In a post called As Warren Buffett Dumps Retailers And Loads Up On Airlines I took a fleeting look at the improving economics leading to much improved ROIC of listed airlines as a possible reason why Buffett would have bought stock in an industry that he has traditionally shunned throughout his investing career. It has been well documented that low oil prices have … [Read more...] about Has New Tech Been Responsible For The Improved Profitability Of Airlines?
There are is one main reason why I did not make an investment into Senior Plc (LSE: SNR) yesterday after it's mixed trading statement: on an earnings basis the Senior Plc (LSE: SNR) stock is beyond the realms of sensible value with a PE Ratio of over 20 If I were a long-term shareholder I would not be panicking right now and just leave my position open whilst counting the … [Read more...] about Senior Plc (LSE: SNR): Awesome Operating Business Suffering Revenue Declines
Punch Taverns (LSE: PUB) yesterday announced interim results for the 28 weeks to 5 March 2016 and I bought in. I'll not deconstruct my idea behind this purchase too much except to say that at 100p Punch Taverns represents safety because: I am investing with money I can afford to lose which means I am willing to watch it go to 5p and it simply would not bother me … [Read more...] about Long Punch Taverns (LSE: PUB) at 106p
On 20 August 2015 Hornby (LSE: HRN) closed at 109p Recently Hornby's share price hit 30p representing a 72% decrease. For those who don't know Hornby is going through what can be described as a delicate and complicated restructuring that has seen it move from the main market to the Alternative Investment Market. There's been more to it than that. A lot more. But … [Read more...] about Why Investing In Turnarounds Is Fraught With Difficulty
Far be it from me to hold a grudge but I thought I'd take a look back at one of the worst businesses that an investor could ever hope to plough money into: Savannah Resources (LSE: SAV). The last time I had a look at this value destroying entity the share price had plummeted over 15% in one day. But that is small fry when you consider Savannah's previous … [Read more...] about Savannah Resources – Up To It’s Old Tricks
The price to book ratio has always been a default metric with which many value investors start to get a sense of the intrinsic valuation of a business before engaging in more in-depth research. Benjamin Graham and his seminal work The Intelligent Investor has been the go-to book for individuals who are serious about learning the art of value investing and will remain so for … [Read more...] about How To Invest In Stocks Like Benjamin Graham
Geopolitics and the oil price are issues over which we have little direct influence Andrew Simon, Chairman Gulf Keystone The financial position of Gulf Keystone (LSE: GKP) is weakening. Yesterday's half yearly report was typically upbeat for a set of numbers that frankly has strengthened my bearish conviction. Before I get to those numbers here is a section from note … [Read more...] about Gulf Keystone’s Weakening Financial Position
Yesterday's RNS from Gulf Keystone is a good example of a company trying to publish any good news it can to divert attention away from the fact that it is losing $60 million a year and is at the mercy of it's bondholders. At the risk of being accused of talking up my own book, I do think that yesterday's RNS is a non-event and that lower prices are inevitable when you … [Read more...] about Gulf Keystone’s RNS Full Of Smoke And Mirrors
Here is a recent price chart of Curis (NASDAQ: CRIS) indicating where I purchased stock: Since I opened a position at $1.81 on 5 August 2014, at the exited share price of $3.33 Curis' share price rose just under 84% in 7 months. Not bad. But like my recent review of another stock from The Value Investor Report I failed to wait for the stock price to fall to … [Read more...] about Curis Has Returned 84% In 7 Months – Time To Exit
From the final results dated 23 May 2014: Cash balance at the year-end was $9.56m (31 December 2012: $4.45m), including net proceeds of $11.4m placing in June 2013. Operating cash outflow for the period was $5.52m, reflecting an outflow from operating activities of $5.86m and a decrease in working capital of $0.33m. Investments in assets totalled $1.09m (2012: $0.27m), … [Read more...] about Blur Group Brings Out The Bear In Me
From the mailbag, Paul writes: "I have to ask David, what are your thoughts on Tesco? Lost 1/3rd of market cap in a short time and now a forward yield of 6%. It is still a market leader and surely makes enough cash to turn the decline around, though admittedly it is a but like turning an oil tanker. Whilst I don't live in the UK at present, I was visiting recently and I … [Read more...] about Is The Tesco Share Price Decline A Green Light To Load Up?