The 400% Man!

[fareastwarriors]

I think DSWL is a good deal, I own it 2 :). Not only is it trading at cash, but paying a solid dividend and business is profitable.

 

Thoughts on XPO or Barry?

[Hielko]

I think DSWL is a good deal, I own it 2 :). Not only is it trading at cash, but paying a solid dividend and business is profitable.

 

Thoughts on XPO or Barry?

None. Can't have an opinion on everything :)

[biaggio]

I think DSWL is a good deal, I own it 2 :). Not only is it trading at cash, but paying a solid dividend and business is profitable.

 

No offence, this looks like one of those Chinese companies that look too good to be true. Mind you I just only looked at it very briefly. Be careful

[Hielko]

I think DSWL is a good deal, I own it 2 :). Not only is it trading at cash, but paying a solid dividend and business is profitable.

 

No offence, this looks like one of those Chinese companies that look too good to be true. Mind you I just only looked at it very briefly. Be careful

That's why it's cheap: nobody likes US listed Chinese companies, especially if it's obscure and unknown. But not everything is fake in China. Wrote almost a year ago some of my thoughts on why DSWL isn't a fraud on my blog here. Since then they have paid a special dividend and increased the regular dividend. That's not how you run a fraud! ;)

[ragnarisapirate]

I think DSWL is a good deal, I own it 2 :). Not only is it trading at cash, but paying a solid dividend and business is profitable.

 

No offence, this looks like one of those Chinese companies that look too good to be true. Mind you I just only looked at it very briefly. Be careful

That's why it's cheap: nobody likes US listed Chinese companies, especially if it's obscure and unknown. But not everything is fake in China. Wrote almost a year ago some of my thoughts on why DSWL isn't a fraud on my blog here. Since then they have paid a special dividend and increased the regular dividend. That's not how you run a fraud! ;)

 

Or, it's how you run a fraud when you know how to play game theory with investors... ;)

[Palantir]

I think DSWL is a good deal, I own it 2 :). Not only is it trading at cash, but paying a solid dividend and business is profitable.

 

I'm curious about how you were able to get comfortable with them, as others have noted, given that they are based in China. What specific markers do you look for indicating quality?

 

In a sense, I suppose investing in Chinese microcaps is a true contrarian bet.  8)

[Hielko]

I think DSWL is a good deal, I own it 2 :). Not only is it trading at cash, but paying a solid dividend and business is profitable.

 

I'm curious about how you were able to get comfortable with them, as others have noted, given that they are based in China. What specific markers do you look for indicating quality?

 

In a sense, I suppose investing in Chinese microcaps is a true contrarian bet.  8)

Check out the blog post I linked above. But it's simple: company IPO'ed in 1995 and raised $30M. They have paid almost $100M in dividends since without raising new equity or debt. If that's all part of an elaborate fraud: you got me!

[twacowfca]

I think DSWL is a good deal, I own it 2 :). Not only is it trading at cash, but paying a solid dividend and business is profitable.

 

I'm curious about how you were able to get comfortable with them, as others have noted, given that they are based in China. What specific markers do you look for indicating quality?

 

In a sense, I suppose investing in Chinese microcaps is a true contrarian bet.  8)

Check out the blog post I linked above. But it's simple: company IPO'ed in 1995 and raised $30M. They have paid almost $100M in dividends since without raising new equity or debt. If that's all part of an elaborate fraud: you got me!

 

The proof of the pudding is in the eating.  Mecham does an incredible amount of dilligence and holds a mere handful of stocks.  The risk of fraud seems very low.  Besides, are they a Hong Kong listed co, despite being outside the Hong Kong limits?

 

Can anyone explain their recent downturn in sales?  Is this likely temporary or not?  We can assume that Mecham thinks it is not.

[Hielko]

I think DSWL is a good deal, I own it 2 :). Not only is it trading at cash, but paying a solid dividend and business is profitable.

 

I'm curious about how you were able to get comfortable with them, as others have noted, given that they are based in China. What specific markers do you look for indicating quality?

 

In a sense, I suppose investing in Chinese microcaps is a true contrarian bet.  8)

Check out the blog post I linked above. But it's simple: company IPO'ed in 1995 and raised $30M. They have paid almost $100M in dividends since without raising new equity or debt. If that's all part of an elaborate fraud: you got me!

 

The proof of the pudding is in the eating.  Meecham does an incredible amount of dilligence and holds a mere handful of stocks.  The risk of fraud seems very low.  Besides, are they a Hong Kong listed co, despite being outside the Hong Kong limits?

I would never trust the due diligence of someone else as proof that a company isn't a fraud. So many well known hedge funds and managers ended up with worthless Chinese paper, and you would have thought in all cases that they had done tons of due diligence...

[twacowfca]

I think DSWL is a good deal, I own it 2 :). Not only is it trading at cash, but paying a solid dividend and business is profitable.

 

I'm curious about how you were able to get comfortable with them, as others have noted, given that they are based in China. What specific markers do you look for indicating quality?

 

In a sense, I suppose investing in Chinese microcaps is a true contrarian bet.  8)

Check out the blog post I linked above. But it's simple: company IPO'ed in 1995 and raised $30M. They have paid almost $100M in dividends since without raising new equity or debt. If that's all part of an elaborate fraud: you got me!

 

The proof of the pudding is in the eating.  Meecham does an incredible amount of dilligence and holds a mere handful of stocks.  The risk of fraud seems very low.  Besides, are they a Hong Kong listed co, despite being outside the Hong Kong limits?

I would never trust the due diligence of someone else as proof that a company isn't a fraud. So many well known hedge funds and managers ended up with worthless Chinese paper, and you would have thought in all cases that they had done tons of due diligence...

 

I agree that even the best investors can be fooled, especially if they have a large portfolio. However, dividends don't lie.

[ExpectedValue]

I wouldn't look to a concentrated investor's stake as meaning a business is particularly strong or not a fraud. Pabrai was a big Delta Financial and Pinnacle holder, both of which turned out to be 0s.

 

On the point of frauds, look at the Chandler Bros and their Sinoforest investment or Southeastern's Olympus investments. What about CV Starr's chinese fraud investments?

 

In regards to the dividend, while you all are correct about the yield being high, sales and margins seem to be on a downward trend, what if mgmt chooses to save their jobs at the expense of shareholders? The company seems to be diluting owners already, what if they choose to acquire a new business at a bad price in desperation to keep their jobs, rather than liquidate?

[txlaw]

I think DSWL is a good deal, I own it 2 :). Not only is it trading at cash, but paying a solid dividend and business is profitable.

 

Thoughts on XPO or Barry?

 

I remember superficially looking at this company a while back because I believe Peter Lynch had bought some shares.  All I know is that they are like a broker/market maker for expedited freight (delivered by truck, I believe).

 

I never really followed through with analyzing the company and business, but this could be one to look into.

[motownsf]

This may derail the topic. In a similar vein, any other small hedge funds in the sub $500m range that you would recommend?

[Palantir]

^I can't speak for the board, but Michael Burry recommends his protege, Bo Shan who runs Gobi Capital.

[berkshiremystery]

This may derail the topic. In a similar vein, any other small hedge funds in the sub $500m range that you would recommend?

 

You got me on an idea...

 

Maybe I would start personally to look for some "cloners" randomly... in the sub $500 AUM league.

With cloners, I meant Mohnish's idea of cloning other great investors, like Buffett, Berkowitz et al. I just went for some 5 minutes on fast forward and searching for them without knowing anything about them. But beware this is not a recommendation to invest with them. Someone would have to make deeper research, who's behind these partnerships.

 

Force Capital Mgmt.

http://holdings.nasdaq.com/asp/OwnerPortfolio.asp?FormType=OwnerPortfolio&CIK=0001317601&HolderName=FORCE+CAPITAL+MANAGEMENT+LLC

 

Manikay Partners LLC

http://holdings.nasdaq.com/asp/OwnerPortfolio.asp?FormType=OwnerPortfolio&CIK=0001454893&HolderName=MANIKAY+PARTNERS%2C+LLC

 

Sabretooth Capital Mgmt

(some Baby Tiger, but accidentally they had some rough year and closed shop)

http://holdings.nasdaq.com/asp/OwnerPortfolio.asp?FormType=OwnerPortfolio&CIK=0001512445&HolderName=SABRETOOTH+CAPITAL+MANAGEMENT%2C+LLC

 

Geduld E E

http://holdings.nasdaq.com/asp/OwnerPortfolio.asp?FormType=OwnerPortfolio&CIK=0001352107&HolderName=GEDULD+E+E

 

Lourd Capital LLC

http://holdings.nasdaq.com/asp/OwnerPortfolio.asp?FormType=OwnerPortfolio&CIK=0001568190&HolderName=LOURD+CAPITAL%2C+LLC

 

Carval Investors LLC

http://holdings.nasdaq.com/asp/OwnerPortfolio.asp?FormType=OwnerPortfolio&CIK=0001425040&HolderName=CARVAL+INVESTORS%2C+LLC

 

 

 

 

 

[OracleofCarolina]

Seems like everybody loves BAC..at least they did on 12/31/2013.

[Guest]

Starr's Chinese fraud was CCME (China MediaExpress)

[Phaceliacapital]

^I can't speak for the board, but Michael Burry recommends his protege, Bo Shan who runs Gobi Capital.

 

Doesn't file 13F yet?

[berkshiremystery]

John Huber just wrote an article about Allan Mecham.

 

http://basehitinvesting.com/

http://basehitinvesting.com/the-400-man-a-lesson-for-aspiring-investors/

 

[Yours Truly]

@berkshiremystery all of those funds you've listed have large shares in AIG including Allan Mecham.. very interesting

 

[eclecticvalue]

@berkshiremystery all of those funds you've listed have large shares in AIG including Allan Mecham.. very interesting

 

 

Allan does not have AIG, where are you seeing that.

[Yours Truly]

@berkshiremystery all of those funds you've listed have large shares in AIG including Allan Mecham.. very interesting

 

 

Allan does not have AIG, where are you seeing that.

 

My mistake, saw the wrong 13F...

[mrvlad0]

The latest bold bet from ‘The 400% Man’

Commentary: Why a top stock picker believes in Bank of America

 

http://on.mktw.net/YWoOoI

 

Mecham’s fund held $34 million, or 18% of its assets, in Bank of America at the end of 2012.

 

The Bank of America stake was just one contributor to yet another successful year for Arlington. The fund earned a stellar 36%—or 29% net of fees—in 2012, way ahead of the 16% gain for Standard & Poor’s 500-stock index

 

Mecham’s partner, Ben Raybould, told me last year that Mecham wants to get rid of the computers in their office, as they are a distraction. Mecham spends his time reading—mainly company filings, which he prints out, old-school.

 

You couldn’t get further from the modern world of Wall Street, where everyone is supposed to be online and connected all the time, and where we are all drowning in data. Every time someone praises the Internet in my presence I am reminded of Darth Vader’s scathing comment about the Death Star: “Don’t be too proud of this technological terror you’ve constructed.”

[Guest]

anyone here kind enough to post the letter for us less wealthy folks?  :)

[oddballstocks]

The latest bold bet from ‘The 400% Man’

Commentary: Why a top stock picker believes in Bank of America

 

http://on.mktw.net/YWoOoI

 

Mecham’s fund held $34 million, or 18% of its assets, in Bank of America at the end of 2012.

 

The Bank of America stake was just one contributor to yet another successful year for Arlington. The fund earned a stellar 36%—or 29% net of fees—in 2012, way ahead of the 16% gain for Standard & Poor’s 500-stock index

 

Mecham’s partner, Ben Raybould, told me last year that Mecham wants to get rid of the computers in their office, as they are a distraction. Mecham spends his time reading—mainly company filings, which he prints out, old-school.

 

You couldn’t get further from the modern world of Wall Street, where everyone is supposed to be online and connected all the time, and where we are all drowning in data. Every time someone praises the Internet in my presence I am reminded of Darth Vader’s scathing comment about the Death Star: “Don’t be too proud of this technological terror you’ve constructed.”

 

In other news he's also getting rid of his telephone and switching to carrier pigeon, he was receiving too many calls and they were distracting.  He refuses to communicate via email and prefers to hand write letters with a fountain pen.  He states the fountain pen slows him down forcing him to concentrate on one letter at a time.  Commuting has taken on a whole new meaning once he switched to a more fuel efficient mode of transportation, horse and carriage.  He was quoted as saying "A bale of hay is far cheaper than the gas for my Prius, and I know a farmer who will give me a discount if I help wash tractors every other Saturday."  While traveling to work in his wagon it gives him time to contemplate where he might buy his next top hat from, a respected value investor is never without their top hat and cane...