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
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.
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.
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?
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.
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