Peerless Systems (NASDAQ:PRLS) is a small company selling for below net cash which still generates positive cash flow. It is also involved in an extremely aggressive share buyback program.
In the next part of the AIM IT Project I take a look at three companies, Amphion Innovations, Praetorian Resources and Skil Ports & Logistics. One of these companies is trading below its net cash and is tempting me as a compelling investment.
Joy is one of the largest global manufacturers and servicers of high productivity mining equipment. It sells both new equipment (40-50% of sales), and parts to repair and upgrade existing equipment. Coal and resource stocks haven’t been doing well lately, and naturally, neither has Joy. It now trades a P/E ratio of 10.6 but still has a return on investment of 14% in a depressed market.
An update on some recent changes to the portfolio. Novus Energy (TSX:NVS) has been taken over, I have initiated a position in Clear Leisure (AIM:CLP), and have a good old rant about foreign currencies!
The next installment of the AIM IT Project. In this article I go through Cambria Africa (CMB), Mineral & Financial (MAFL) and China Growth Opportunities (CGOP) which all have very disappointing histories in terms of shareholder value creation, but is there a diamond in the rough?
The Discounted Cash Flow model is one of the most useful and commonly used valuation methods for businesses. It gives the investor a Net Present Value (NPV) of all future free cash flows expected into a company.
But just how accurate is it? It models earnings growth as stable but in reality it is usually very volatile. I decided to test how volatile earnings can affect the values given by DCF models and whether crude estimates investors usually use to account for this are sufficient.
This is the first post of the AIM IT Project I announced last time. I’m starting off by reviewing Clear Leisure (AIM:CLP), I don’t intend to do an entire post for every Investment Trust in the list, but when one tops the list trading at apparently only 10% of Net Asset Value I can’t help but kick off the series with it.
This isn’t your typical Investment Trust which holds a portfolio of equities, it has a few concentrated majority stakes in a number of leisure businesses, which is why I feel it needs a whole post to explain it.
The Alternative Investment Market (AIM) of the London Stock Exchange (LSE) is a great place for investors to find bargains and mispriced securities. A lot of the companies have market caps too small for brokers or institutions to care about, which means small investors like us are left to competed with only each other. But it doesn’t come without its risks: stocks are illiquid with large bid/ask spreads, regulation is more relaxed than the main market and the stock prices are very volatile.
Games Workshop (LSE:GAW) is a company that I have had my eye on for a while. My brother is a big fan of their table top Warhammer fantasy games, and at one point I played the Warhammer Online game, so I am well aware of their products, and how loyal their fan base is. After a shock fall in sales for the first half of the year, and a failure to declare a dividend, the share price has plummeted 25% so the shares may offer good value.
Investors learn a lot of lessons from their mistakes, but that’s a pretty costly way to learn. One of my preferred methods of learning is from the mistakes of others, and that’s why I like to write case studies about investments that have been subject to interesting events.
One of these investments is Silverdell plc (LSE:SID). Investors in this company, including at least one professionally managed value investment fund, thought they were getting good value for their money, until they suddenly without warning lost their entire investment. Don’t think this can’t happen to you, learn from their mistakes and improve your chances.