CLWY - Calloway's Nursery

[Foreign Tuffett]

For the Peter Kamin fans TTS might be an interesting stock to take a look at. -66% yesterday. A SPAC dumped this retailer on the public. Kamin's on the board. What's he doing in this trainwreck? Some juicy stories here .

 

Though I have to say: it looks like it might be a cheap train wreck. Insiders have been buying a bit the past few years and own ~30%. Might be a nice investment if they can execute the Kamin playbook. Probably too hard for me.

 

I haven't looked at TTS in two years, but my conclusion back then was that Floor & Decor was going to eat its lunch given the huge difference in gross margin (close to 30% at the time). Looks like TTS is still printing ~70% gross margin #s, so it's not hard to see why SSS are declining.

 

Peter Kamin was buying TTS shares in the open market in July 2017 at as high as $14.50!

[writser]

Somebody is an eager buyer today. Will be interesting to see if it was Kamin. But it looks like it is a boiler room / Sykes / greater fool favourite today ( https://twitter.com/search?q=%24tts&src=typed_query&f=live )

[mwtorock]

i mean i got tiny bit tts yesterday purely on the technical forced selling from going dark.

 

longer term though, anyone familiar with Kamin to comment whether he would take advantage of minority shareholders?

 

CLWY tender looked like a low ball offer in 2016?

 

Another case was Abatix buyout at about $15, which was about 30-40% premium to market prices at that time. But it did not look like minority shareholders had any choice...

[writser]

I'm hijacking this thread but TTS still looks intriguing. I might open a topic about it if it weren't for the fact that I hardly know anything about the company. After a few hours of DD I can't say I'm super enthousiastic about it. Still, Peter Kamin bought ~4.3m shares the past three weeks, close to 12% of shares outstanding. On top of that another insider and private investor, Peter Jacullo, bought another 2.4m shares or ~5%. Pretty impressive. I wouldn't be surprised to see Peter Kamin taking this private at some point.

[porcupine]

I will open one.

[brycepeterson]

I haven't heard of a special dividend planned for January.  Anyone heard different?  Makes me wonder what the company is up to. 

 

Thank you.

[DTEJD1997]

I haven't heard of a special dividend planned for January.  Anyone heard different?  Makes me wonder what the company is up to. 

 

Thank you.

 

I checked and could not find anything.  There was a big price rise & volume the other day?  Maybe somebody knows something?

 

We'll see.

[porcupine]

$.25 div Ex Date May 29th.

[brycepeterson]

Porcupine -  will you please show me where you saw the $0.25 dividend announcement?  I went on otcmarkets to look - is it on there?

 

Thank you!

[capitalg]

It's on the OTC Markets website - look at the Security Details tab.  It's listed under Dividends.

[brycepeterson]

Thank you! 

[Fitz]

Looks like a great quarter with net income nearly doubling year over year. Certainly some of the same tailwinds as home depot and the rest of the home improvement market, with people staying home more and looking to improve there property.

 

Cash position swelled from 7mil to 22mil y-o-y. Would love some help with this, I figured they finally sold there Houston property that was on the market but looks like the notes at the end of the statement indicate they have the same lease obligations and property value owned.

 

There was a jump in Accounts payable and Accrued expenses. If they have increased there accounts payable, how would this increase so dramatically the cash on hand within the company? Thanks in advance :)

 

 

https://backend.otcmarkets.com/otcapi/company/financial-report/254404/content

 

[ragnarisapirate]

Looks like a great quarter with net income nearly doubling year over year. Certainly some of the same tailwinds as home depot and the rest of the home improvement market, with people staying home more and looking to improve there property.

 

Cash position swelled from 7mil to 22mil y-o-y. Would love some help with this, I figured they finally sold there Houston property that was on the market but looks like the notes at the end of the statement indicate they have the same lease obligations and property value owned.

 

There was a jump in Accounts payable and Accrued expenses. If they have increased there accounts payable, how would this increase so dramatically the cash on hand within the company? Thanks in advance :)

 

 

https://backend.otcmarkets.com/otcapi/company/financial-report/254404/content

 

No thoughts on CLWY at this point, but, I really like Peter Kamin’s other project right now. It is going to benefit from the same HD sales that you mentioned, too! :)

 

Tile Shop TTSH

 

https://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/tts-tile-shop-holdings-inc/10/

 

It seems to me like tile shop is reminiscent of CLWY in prolly 2015/2016? It’s suuuuppper cheap right now.

[Fitz]

https://backend.otcmarkets.com/otcapi/company/financial-report/262781/content

 

Another great quarter with net income of $1.35 per share in last 9 months, trading at 7 times earnings even with the recent run up, granted these earnings are aided by the COVID home improvement's binge. They currently have 18 million in cash and only 4.6 million in LT debt, expect some more large special dividends soon.

 

There was also a small outfit that owns 39k shares of stock writing the board an open letter trying to get more investor communications. Doubt it will have any impact as Peter is a pretty sharp guy and none of this would be new news to him, but who knows!

 

https://www.businesswire.com/news/home/20201030005698/en/Montana-Advisors-Writes-Open-Letter-to-Calloway’s-Nursery-Inc’s-Board-of-Directors

 

[DTEJD1997]

https://backend.otcmarkets.com/otcapi/company/financial-report/262781/content

 

Another great quarter with net income of $1.35 per share in last 9 months, trading at 7 times earnings even with the recent run up, granted these earnings are aided by the COVID home improvement's binge. They currently have 18 million in cash and only 4.6 million in LT debt, expect some more large special dividends soon.

 

There was also a small outfit that owns 39k shares of stock writing the board an open letter trying to get more investor communications. Doubt it will have any impact as Peter is a pretty sharp guy and none of this would be new news to him, but who knows!

 

https://www.businesswire.com/news/home/20201030005698/en/Montana-Advisors-Writes-Open-Letter-to-Calloway’s-Nursery-Inc’s-Board-of-Directors

 

Fitz:

 

It is raining money from the sky with CLWY!  They have already paid a dividend of $1/share in the last 12 months.  For some investors, that is MORE than what they initially paid for their stock.  Of course, over the years, CLWY has paid a few more dividends.

 

With $19mm in cash, they can certainly pay out yet ANOTHER dividend in December.  I would think that they could pay ANOTHER $1/share dividend in December.  Of course, that is assuming that everything for the company is running reasonably OK, and they don't need $$$$ to open more location(s).

 

The returns on CLWY has simply been stupendously incredible.

[Fitz]

Calloway has really continued to pound out some peak earnings during this home improvement boom. Cash at 20 million now, and they haven't even sold a property! I sold this a few months ago due to the price exceeding fair value for the real estate and that being the thesis behind my initial investment. But if earnings keep plugging along for this business, I will regret it!