Sky People Fruit Juice (NASDAQ:SPU) makes and sells fruit juices in China. The company sells for below net cash yet is profitable and has return on invested capital of over 20%. It is definitely cheap and below intrinsic value on all metrics, but is the company for real or a fraud?
If you aren’t a UK based investor then this article probably wont interest you. But if you are, then you’ll want to read on. The chancellor George Osborne has just announced some of the most major changes to ISAs in a decade. I’m very pleased about them, and along with AIM shares becoming ISA eligible, investors are now in a much better position to wrap their entire portfolio in a tax free ISA.
In this edition of the AIM IT Project I look at three investment companies, St Peter Port Capital (SPPL), Impax Asset Management (IPX) and Trading Emissions (TRE). I don’t predict downside for any of these companies, which makes a change from my usual valuations!
Do you ever get the feeling you’re late to the party? Western Digital stock traded at just over $30 in 2011, and now trades at $86. In the last year alone it is up 100%. So you may wonder why I’m writing about it now. Well on the surface it still appears a somewhat attractive investment in a business trading at an adjusted Free Cash Flow yield of 9% with a historical 18% compound annual growth rate in revenues.
In the AIM IT Project I wrote up a post on CLP. I have since realised there is a glaring error in my analysis which significantly affects my valuation. Lucky for me the margin of safety was so great that it is still an attractive opportunity and I intend to remain long the stock
A few months ago I released a free spreadsheet which collected financial data from the web on a chosen stock and pulled it into a nice summary sheet. I was frustrated when doing this by the problems that occur when trawling the web for data, web pages constantly change name, data moves about and the result is the spreadsheet doesn’t work as fluently as I would have liked and continually has errors.
I have developed a new version which uses a professional data feed. Please try it out (it’s free) and let me know what you think. I have tried to pull together the most comprehensive financials data source on the market.
A student once asked Warren Buffett how best to prepare for an investing career. Buffett thought for a few seconds and then reached for the stack of papers he had brought with him.
“Read 500 pages like this every day,” said Buffett. “That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.”
So here are some of my picks from my reading over the last couple of weeks for you to browse this weekend and make up some of your daily 500 pages.
Another installment in the AIM IT Project. I cover three more investment companies, one of which is managed by a value investor and has a very interesting proposition of buying undervalued preferred stock. I intend to initiate a position in it.
Terra Energy (TSE:TT) is a natural gas producer trading below its PV10 – the discounted future expected cash flows from flowing gas reserves, after expenses – a great way to profit from increases to the price of natural gas then. I test the assumptions underlying the PV10 calculation to assess the downside.
In this latest part of the AIM IT Project I cover Aurora Russia (AIM:AURR), Origo Partners (AIM:OPP) and Ingenious Media Active Capital (AIM:IMAC). They all trade at steep discounts to reported book value and are interesting companies to look at from an historical perspective too.
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