Brand Architekts Share Discussion Threads

[tara7] 30/11/2008 21:42

Here is a bargin, FTS,REASONS, director buying, new contracts profit jump, pe of just 3, upbeat results, five million nett cash with the whole show [market cap] worth just 7 million. So in effect take away the 5 million nett cash and you get a two million pound company making well over 2 million a year.!!!!!!!!!.

[rainmaker] 30/11/2008 21:34

Another recent posing from VAL-
Total Systems(TTS)currently at 29p is officially a Bargain as defined by Ben Graham as trading at less than Net Working Capital-a proxy for it's minimum liquidation value.Buy them here and the Company's net cash covers your purchase value so you get the Business and future earnings for nothing plus a lovely free prime Central London "City"location, worth the current share price.Who said there's no such thing as a free lunch!

They should have paid an interim dividend which would have been covered by earnings.They're already said that the possible deferrment of existing Customer's orders should be offset by new contract wins. The thought crossed my mind that they may wish to take the Company private.

Nice to reasonable spread of just 6.6%


regards

[rainmaker] 30/11/2008 21:33

A recent posting of mine from the Value thread (VAL)I think it's an interesting and worthwhile exercise to relect on Alba(ABA), in a "Value" context, to see what lessons can be learnt. Their share price has all but doubled over the last month(27p to 51p).I would draw the following conclusions-

Investor's Psychology-Ben Graham said that whilst Stock Market Investors had a general tendency to overestimate the prospects of a successful Company and give it a stellar rating, the exact opposite was true of poorly performing Companies with a very low rating.In other words, Investors will generally overcompensate for bad performance,bad news and poor sentiment ie they will more than discount for it.Warren Buffett talks of rear view mirror Drivers ie they look at previous events that are already "in the share price" rather than looking ahead.

Margin Of Safety-There was a substantial margin of safety on offer at 27p.For Every £1 you spent on the shares you got £4.54 of liquid assets less all liabilities plus you paid absolutely nothing for this Company's fixed assets,both tangible( Property, Land, Plant, Machinery etc) and intangible(Brands etc-see next paragraph). In other words there was a substantial buffer or cushion between the Company's intrinsic value and share price to protect the investor against further unseen negative events likely ensuring the Company's undervaluation remains intact.

Intangible Assets-Although Intangible Assets are seldom in a Company's balance sheet-Cadbury's brands are/or have been a notable exception,and are difficult to value, there are worth a great deal.In Alba's case the market put a value of 19p per share on these Brands.A Brand enables an Owner to charge a premuim price for his product over that of a rivals generic one.You can call this economic goodwill.Whereas price is the determining factor for purchasing a commodity product, it is of lesser importance for a brand. Buffett talks of a Brand's expanding value ie a Company is able to not only to charge more but raise prices at a rate greater than the inflation rate.

regards

[glennborthwick] 16/11/2008 23:16

lo-q will. ticker is loq - this year profit will be at least 2 million , and next year 4 million at least current market cap - 4.5 million. an absolute bargain

[rainmaker] 16/11/2008 22:31

Thanks, I'll check it out. Which one of these Companies is going into a Phone Box as Clarke Kent only to re-emerge as Superman?

regards

[rainmaker] 16/11/2008 22:22

999 Dreamer-Is this a seminal moment in your Investing life?

The legendary Stock market Investor and Teacher,Ben Graham* described a share as a "Bargain" when you could buy the Company at the equivalent or less than it's Net Working Capital-that's liquid assets of stocks, debtors and cash less all liabilities(ie borrowings deferred taxation, provisions etc since you would be getting the Company's Fixed Assets for free ie you would pay nothing for it's tangible fixed assets such as Property,Land, Plant and Machinery and nothing for it's intangible assets such as Brands, Patents, Distribution Agreements, Copyrights.

Ben Graham noted that a Company could not be liquidated for less than this value. Certainly such shares have consistently delivered market beating returns over a two/3 year period.Ben Graham expressed a bargain ratio as net working capital divided by Market Capitalisation so if a Company NWC is twice the share price then it's bargain ratio is 2.Ben Graham said that if a Company could be acquired for the equivalent of two thirds of it's net working capital(ie a Bargain ratio of 1.50) then the Investor did not need to know anything further about the Company before buying.

*The Worlds richest Man, Warren Buffet(who started with $10k and made his fortune wholly through the Stockmarket) was a Pupil and it is fair to say Ben Graham has been the dominant influence in his Investment thinking. in fact, I'm sure that I have read somewhere that he himself describes his investment style as 80% Ben Graham and 20% Philip Fisher)

600 Group(SIXH) 2.00
Abbeycrest(ACR) 2.15
Acal(ACL) 1.16
Alba(ABA) 4.51
Blue Oar(BLUE) 1.14
Delta(DLTA) 1.22
French Connection(FCCN) 1.63
Leeds Group(LDSG)2.00
Litho Supplies(LTS) 1.19
Mallet(MAE) 2.91
NBA Quantum(NAQ) 2.50
Northamber (NAR) 2.50
Robotic Technolgy(RTS) 1.58
Theo Fennell(TFL) 1.68
Titon Holdings(TON) 2.28
Total Systems(TTS) 1.18
Wensum(WSN) 2.54

According to Ben Graham's 2/3 of net working capital rule, the following 12 Companies now qualify as an automatic purchase at current levels-

600 Group(SIXH)
Abbeycrest (ACR)
Alba (ABA)
French Connection (FCCN)
Leeds Group(LDSG)
Mallett (MAE)
NBA Quantum (NAQ)
Northamber (NAR)
Robotic Technology(RTS)
Theo Fennell (TFL)
Titon Holdings (TON)
Wensum (WSN)

There a Value Thread-search epic VAL if you need any further help.


regards

[jrewing3] 16/11/2008 21:25

any bargains?

[jrewing3] 16/11/2008 21:18

any bargains?

[robo63] 25/7/2008 21:58

Thought I was filtered? Watch AMER next week! All of the above are bargain's, well undervalued.

It depends when you bought and when you sold, made good money on HAWK and IVE.

[jrewing3] 25/7/2008 21:43

any bargains?

[jrewing3] 25/7/2008 21:13

Robo63 - 4 May'08 - 21:55 - 107 of 115


MRP,IVE,AMER.MDX,HAWK How many do you want?

-------------------------------------------------

robo, notice how all your predictions have tanked except mrp!
lol

[999dreamer] 08/5/2008 21:32

shutting this thread down guys



....................thanks for the tips........................

[rbcrbc] 07/5/2008 21:05

He He He - have you seen what they did to me on the Hawk board ?

I will be proved right, just give it a couple of weeks.

[robo63] 07/5/2008 18:36

RBCRBC,


What were you saying about Hawk?

Lol

[999dreamer] 06/5/2008 17:33

cesg
looks a good buy
imo

[rbcrbc] 06/5/2008 10:36

PEJR - a sort of investment trust holding japanese property reits, the underlying reits are at about 40-50% discount to NAV, japanese property market is starting to come out of long term depression, yield is 12% !! excellent long term yield play with high likely hood of significant growth. one to tuck away for years and live off the income.

[999dreamer] 05/5/2008 21:12

cheers rbcrbc