Deep Value

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Walter Could Still be Ocwen Déjà Vu

(Update 4/13/17: My timing was atrocious on making this call just days before Q4 results.  The stock got decimated in reaction to company disclosure that it had hired Houlihan and Weil, Gotshal for a debt restructuring.  I believe that investors expect this to mean a bankruptcy filing or a highly dilutive out-of-court debt exchange.  In…

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Don’t Fret This Ocwen Short Attack

Quick commentary by Ocwen shareholder John Devaney of United Capital Markets (unedited): Yesterday Ocwen Financial Corp ( NYSE: OCN) declined 13%.     I continue to be a substantial holder of Ocwen Equity and supporter of the company and their  future prospects..   I’ve followed the “trade flows”, news, and  the fundaments for almost two years  now.      I continue …

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GAIA: Under-The-Radar Hyper-Growth 5-Bagger

  Bottom-Line: Gaia has a $6 stock; The company has net cash of $4 per share, owns an unencumbered office building with a market value of $1.35-$1.65 per share and a video-streaming business growing subscribers at 50%-80% per annum. CEO Jirka Rysavy, a serial entrepreneur and the largest GAIA stock holder, has a proven track record…

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Ocwen Revived: Where Do We Go From Here?

On June 17, 2016, I had posted on Oozing Alpha Has Ocwen Stock Been Sufficiently De-Risked? Since that post: The company reported significantly improved Q2 results on July 27. During Q2 earnings call, it announced that it is negotiating with California regulator (CA DBO) and has set aside a $15 million reserve for a potential settlement,…

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Why I am Long Green Brick Partners (GRBK)

Ticker GRBK Revenue (LTM) $273M EV/Rev 1.0x Stock price $5.58 Pre-Tax Income (2015) $22M-$24M P/PTI 12x FD Shares 48.8 TBV $364M P/TBV 0.7x Market Cap $271 Backlog $98M Exchange Nasdaq Cash $14 Net Debt/Equity 3.0% 52-wk H $14.94 Total Debt $25 Float (M) 12 52-wk L $4.75 TEV $282 Shares Short (M) 1.01 Div Yld…

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Einhorn’s Case for Sticking with CONSOL

I just got done reading Greenlight’s Q3-2015 Investor Letter.  The fund was down 17% YTD as of the end of Q3 so David Einhorn had a bit of explaining to do and he did.  Three holdings have performed “abysmally” for Greenlight: SunEdison (SUNE), CONSOL Energy (CNX) and Micron (MU).  The letter provides a detailed update…

Will the Sell-Side Ever Learn Valuation?

Today, I sent an email to the CEO of a company in which I hold a position.  Wanted to share it with you without naming names. Dear Mr. CEO: I just browsed through ABC Bank’s initiation report on our company.  While it is filled with wonderful details, pictures, charts and analysis, the fundamental way by…

Einhorn-Controlled Homebuilder Expands Ops

According to Dallas Business Journal, shortly after New York hedge fund managers David Einhorn and David Loeb increased their financial stake in Green Brick Partners (Nasdaq: GRBK), the Plano-based real estate firm acquired tracts within the $900 million Heritage Creekside to put more single-family homes on the ground. Green Brick purchased 17.3 acres to develop…

Yes, Now is a Good Time to Invest in Nationstar

1. Nationstar is one of the largest non-bank mortgage servicers in the U.S.  With 109M shares outstanding, it has a market cap of $2.2B and tangible book value of $1.7B.  2. I have been following this sector closely over the past couple of years due to Ocwen-related spin-off activity (ASPS, RESI and AAMC).   3….

Linktone Down 30% on Move to Pinks

  Linktone Ltd., a provider of media and entertainment content and services in Asia, intends to voluntarily delist its American Depositary Shares from the NASDAQ Global Select Market and thereafter intends to deregister its ordinary shares under the Securities Exchange Act of 1934, as amended. The Company expects the Form 25 to be filed with…

ChipMOS to List Unit on Taiwan Stock Market

ChipMOS TECHNOLOGIES has approved plans for the listing of its subsidiary ChipMOS TECHNOLOGIES INC., a Taiwan corporation, on Taiwan’s Emerging Stock Market. The Company has engaged an underwriter to facilitate the stock listing, which it expects will occur in the second quarter of 2013. ChipMOS also announced that its Board of Directors has approved a new…

Marlin Acquiring SCMR’s Legacy Biz

  Marlin Equity Partners to Acquire Intelligent Bandwidth Management Business from Sycamore Networks, Inc. Los Angeles, CA – October 23, 2012: Marlin Equity Partners is pleased to announce that a subsidiary of Marlin (“Marlin”) has entered into a definitive agreement to acquire the Intelligent Bandwidth Management business from Sycamore Networks, Inc. (NASDAQ: SCMR), which includes…

Sycamore Near Net Cash with a Decent Option Value

I would like to bring Sycamore Networks to your attention because the stock has declined 18% over the past two months which has got it back in the “good value” category. My thesis is simple: 1. As of January 28, 2012, Sycamore held cash and investments of $439 million and no debt outstanding. 2. Strip out cash & investments from its market…

Nuance-Transcend Deal’s Valuation Implication on MModal

Nuance Communication announced this morning that it is acquiring Transcend for $300 million in cash.  Following are the acquisition metrics: TRCR 2011 2012E Revenue 125 144 EBITDA 28 29 Price/Rev 2.4 2.1 Price/EBITDA 10.7 10.3 After this transaction closes, the only remaining pure-play in the healthcare transcription service sector will be MModal, a company which…