Cardboard Posted December 26, 2014 Share Posted December 26, 2014 Hi All and Merry Christmas! Is anyone involved currently with stocks in the 3-4 P/E range with some growth, good balance sheets and into a stable industry? One that I like very much is Bri-Chem Corporation or BRY in Canada. It meets the P/E range that I mentioned, although being a distributor, the balance sheet is levered. It also has the issue of distributing drilling fluids which will definitely be in lesser demand over coming months with cuts from producers in their capex budgets from 25 to 75%. Although, with their sale this Summer of their steel business, they are in acquisition mode which bodes well longer term. Anyway looking forward to your ideas. Cardboard Link to comment Share on other sites More sharing options...
Packer16 Posted December 26, 2014 Share Posted December 26, 2014 There are only two places in know where you can find stock that cheap and growing, S. Korean preferreds and HK real estate hold cos. Some the S. Korean preferred at that price include: Lotte Chilsung, Taeyoung E&C, Daelim Industries, Nexen Corp, BYC, Sebang Corp., Daesang Holdings and Doosan Holdings. Some the HK Real Estate hold cos include: Shun Ho Resources, Asia Standard, Lai Sun Garment, CSI and Allied Holdings. If you want to pay-up to 5x or 6x earnings pretty much most of the CA regional banks in France are in that range. Another 2 in NA are Alliance Healthcare (AIQ) and Awilco Drilling (AWLCF). Packer Link to comment Share on other sites More sharing options...
berkshire101 Posted December 26, 2014 Share Posted December 26, 2014 There's CTC Media (CTCM). It's a Russian based company though. But the industry is fairly stable. Even if Russia goes into a recession, people will still watch TV and get bombarded with ads. Half of the earnings are distributed as dividends so you do get paid while waiting for things to get better. Of course, you have to put up with a crazy dictator so there's that risk. But it's cheap, profitable, good balance sheet, and growing. Link to comment Share on other sites More sharing options...
yadayada Posted December 26, 2014 Share Posted December 26, 2014 Texhong, potentially 2.5x earnings. competent manager not out raping minority holders .If cotton prices stabilize, it could go up a lot. There still seems to be a large spread which will not go away in the near future. Dividend, and normal earnings again are catalyst. Link to comment Share on other sites More sharing options...
plato1976 Posted December 27, 2014 Share Posted December 27, 2014 Packer，how big an impact will the rate hiking have on AIQ 's FCF? There are only two places in know where you can find stock that cheap and growing, S. Korean preferreds and HK real estate hold cos. Some the S. Korean preferred at that price include: Lotte Chilsung, Taeyoung E&C, Daelim Industries, Nexen Corp, BYC, Sebang Corp., Daesang Holdings and Doosan Holdings. Some the HK Real Estate hold cos include: Shun Ho Resources, Asia Standard, Lai Sun Garment, CSI and Allied Holdings. If you want to pay-up to 5x or 6x earnings pretty much most of the CA regional banks in France are in that range. Another 2 in NA are Alliance Healthcare (AIQ) and Awilco Drilling (AWLCF). Packer Link to comment Share on other sites More sharing options...
Packer16 Posted December 27, 2014 Share Posted December 27, 2014 In most cases and I believe it is true for AIQ that the borrower buys swaps to lock in a fixed interest rate. Based upon the latest 10-Q they have swaps for 50% of the debt and caps for 50% of the debt. Packer Link to comment Share on other sites More sharing options...
plato1976 Posted December 27, 2014 Share Posted December 27, 2014 as far as I can see most of their debts are not very long term so when the refinance their interest payment has to go up a lot if the rate increases In most cases and I believe it is true for AIQ that the borrower buys swaps to lock in a fixed interest rate. Packer Link to comment Share on other sites More sharing options...
Packer16 Posted December 27, 2014 Share Posted December 27, 2014 At the time of refi, there will be some paydown as there is amortization on the loan. BTW I do not see why interest should go up given the huge amount of excess savings looking for return and goods inflation not in sight. Packer Link to comment Share on other sites More sharing options...
randomep Posted December 27, 2014 Share Posted December 27, 2014 European Reliance (insurance) ATH:EUPIC, trades at 4x earnings, about 65% of book. Only problem is it is in Greece! Link to comment Share on other sites More sharing options...
Patmo Posted December 27, 2014 Share Posted December 27, 2014 ESI has a 10-year average net income of $7.5 and is trading at $10 (was at $4 for a few months). The co is poised to start hitting an upwards trend in a couple years with its reform initiatives. Crazy valuation gap should start closing when SEC issues get cleared out. Even at $30-40 the stock would still be traded at a very conservative valuation. I swear I end up talking about this co in every thread I enter... Too bad nobody else has much interest :'( Link to comment Share on other sites More sharing options...
siddharth18 Posted December 27, 2014 Share Posted December 27, 2014 ESI has a 10-year average net income of $7.5 and is trading at $10 (was at $4 for a few months). The question is what will be it's net income, going forward... (I haven't researched the idea, but based off of your post, why should 10-year avg net income matter, given how the industry has been in a flux since the last few years...?) Link to comment Share on other sites More sharing options...
Patmo Posted December 28, 2014 Share Posted December 28, 2014 ESI has a 10-year average net income of $7.5 and is trading at $10 (was at $4 for a few months). The question is what will be it's net income, going forward... (I haven't researched the idea, but based off of your post, why should 10-year avg net income matter, given how the industry has been in a flux since the last few years...?) It's just to show how cheap it trades now compared to how it has performed in the past. You won't find this kind of discrepency anywhere else. The co will end up doing better or worse than this average, but will not deviate by an incredibly large margin. Will not pump out 500mil year in year out but will not do 10mil either, let alone run sustained losses. Current run rate normalized EBIT and cash flows are both about 80-100mil currently, I think the co will end up doing much better shortly with the housekeeping that's going on but that's my opinion. Link to comment Share on other sites More sharing options...
DanielGMask Posted December 28, 2014 Share Posted December 28, 2014 Itt Educational Services, Enviromental Clean Technologies, Esi Group? Which ESI? What's the thesis, can you share? Link to comment Share on other sites More sharing options...
frommi Posted December 28, 2014 Share Posted December 28, 2014 NWH.AX trades at an estimated forward P/E of 3-7 and at 33% of net asset value with high uncertainty. But i wouldn`t say that the mining service industry in australia is stable at the moment. ;D Whats interesting is that they were kicked out of the ASX100 and ASX200 in the last quarter, so there was a lot of forced selling pressure. They traded at net asset value before that started. Link to comment Share on other sites More sharing options...
oddballstocks Posted December 28, 2014 Share Posted December 28, 2014 NWH.AX trades at an estimated forward P/E of 3-7 and at 33% of net asset value with high uncertainty. But i wouldn`t say that the mining service industry in australia is stable at the moment. ;D Whats interesting is that they were kicked out of the ASX100 and ASX200 in the last quarter, so there was a lot of forced selling pressure. They traded at net asset value before that started. Thanks, will be looking at this. Link to comment Share on other sites More sharing options...
Patmo Posted December 28, 2014 Share Posted December 28, 2014 Itt Educational Services, Enviromental Clean Technologies, Esi Group? Which ESI? What's the thesis, can you share? Educational services. Thesis is simple, market believes the company will shut down but it's not going to happen. Not a single party involved in this situation would benefit. The most likely scenario is that ESI will be forced to play nice and be useful again. Which is what is already happening, albeit at very early stage. The only question is whether the co will be able to sustain through further fines and settlements. Currently in good position to do so. Link to comment Share on other sites More sharing options...
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