Deep Value - Current Sectors Trading at Depressed Prices

[Sportgamma]

Oddly we actually did use the central bank auction, & also hold some Marel.

 

As at Friday the FX rate was 126 ISK to the $C (around 150 ISK using the central bank auction), & Marel was at 135 ISK - or $C 0.90. OK, so you have to hold for a minimum 5 years - but we don't see any similar quality juniors about at comparable prices - even if the market falls off the fiscal cliff. Iceland is not that far away, the people are very friendly, & x-country skiing under the northern lights is pretty special.

 

Agreed on the Real Estate, but players who haven't failed by now are most likely not going to. We're on the property management side, & one of our partners has deep experience in the business.

 

With Marel the currency is not that much of an issue as the revenue streams are for most parts in foreign. Also the operational leverage mean that minor improvements in efficiency and/margins will have a big impact on the equity value.

 

Where did you ski and who was your guide?

[SharperDingaan]

We've only been over once so far & that was in summer. Holed up in Reykjavic to do the DD & sign-offs, then a self drive tour along the South & West Coast. Rather not say who we talked to - as Iceland is a VERY small place! The plan is to return/vacation every 18 months or so, over summer & winter.

 

We x-country ski in Southern Ontario, Algonquin NP, & Quebec. Occasional dog-sledding as well around Thunder Bay & Whitehorse.

 

[Sportgamma]

We've only been over once so far & that was in summer. Holed up in Reykjavic to do the DD & sign-offs, then a self drive tour along the South & West Coast. Rather not say who we talked to - as Iceland is a VERY small place! The plan is to return/vacation every 18 months or so, over summer & winter.

 

We x-country ski in Southern Ontario, Algonquin NP, & Quebec. Occasional dog-sledding as well around Thunder Bay & Whitehorse.

 

I thought that you had gone x-skiing in Iceland, so I was wandering who your ski-guide was as I know a few (and as you say, its a very small place). I'd definitely recommend Jökull Bergmann (he's the only IFMGA Internationally certified mountain guide in Iceland and he is a member of the Association of Canadian Mountain Guides ACMG):

http://www.arcticheliskiing.com/en/media/videos

 

http://www.arcticheliskiing.com/en/media/photo-gallery/best-of-arctic-heli-skiing

 

And Arctic Adventures:

 

http://www.adventures.is/

 

http://www.glacierguides.is/

 

Well, if/when you're heading over, you're more than welcome to drop me a line if you want to catch a beer/coffee.

[Packer16]

Sportgamma,

 

Do you have recommended local broker who handels US citizens accounts.  Thx.

 

Packer

[LC]

Sportgamma,

 

Do you have recommended local broker who handels US citizens accounts.  Thx.

 

Packer

Wouldn't IB be able to give you access to the Icelandic market? Sorry if I am missing something here...

[alpha231616967560]

  Electricity provider NRG is also cheap and call on NG prices.

Packer

 

I have also been looking at this sector and came away with the idea to start a small position in Exelon,  which will also benefit from higher NG prices and has maintained a strong profit stream. It is also yielding 6% presently. Any reason that you like NRG better? 

[Sportgamma]

Sportgamma,

 

Do you have recommended local broker who handels US citizens accounts.  Thx.

 

Packer

 

I'd say HF Verðbréf, they are independent (not one of the big banks), especially if you're considering participating in on of the currency auctions.

 

http://hfv.is/en/cm

 

[Sportgamma]

 

Bank Nordik

 

http://www.euroland.com/omx_attachments/2012-08/493647-0-is.pdf

 

Market price (DKK) = 69

Book value = 200

 

http://www.euroland.com/SiteFiles/company/company.asp?GUID=5941796F2BE0B74F95F8EDC073CE5316&Isin=FO0000000088&MarketID=15&CompanyCode=FO-BANK&Customer=1&ShowMyShares=true&menuitem=90&wtlang=English

 

http://en.foroya.fo/Admin/Public/Download.aspx?file=Files%2fFiler%2fRating%2fcreditopinion2001feb.pdf