Author: Paul Manning
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Update: Moving to Substack
Hi everyone. I will be moving to Substack and shutting down this site on April 31. I like the Substack interface, it costs less than WordPress, and offers better collaboration with value investors that I admire. I will be carrying over a few of my favorite articles, and if you are subscribed here I will…
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Leon’s Furniture (LNF) – A business currently trading at a 50% discount with an upcoming catalyst to close the gap
About The Furniture Business The furniture business is competitive with low barriers to entry and few firms have a competitive advantage. The industry has a lower priced segment (IKEA), mid priced segment (Leon’s) and a luxury segment (Williams Sonoma). Online players like Wayfair are also a significant presence. Online purchasing in general (from any player)…
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Portfolio Update March 2024
In February, I took a step back and reconsidered my investment strategy, and as a result I reallocated much of my portfolio. I updated my philosophy to include 4 new criteria: With that in mind I made some changes to my portfolio: Over such a short period of time, I don’t think that my returns…
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US Public Equity Research: Backtesting Ben Graham’s net-net investment strategy in US markets from 2004-2024
Abstract Using Nasdaq’s Sharadar public equity API, which includes data on fundamentals (from sec filings) and price (from nasdaq and NYSE), I back-tested an investment strategy that invested only in US common stock equities (with no preferred) trading below 65% of net current asset value, a debt to tangible ratio below 1 and selling after…
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The Attractive Project Economics of BOC’s Broadband Segment
To better understand a business I find it helpful to break down the relevant unit (or project) economics. Here I looked at the project economics of 3 project types in Boston Omaha’s broadband segment. This exercise helped me to better understand future cash flows and management’s stated IRR figures. Greenfield Projects Management shared: Which when…
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Analyzing Crocs Market Share on Amazon for the Rubber Clogs Category
This is post 3 in a series about CROX. Here are posts 1 and 2. I wanted to measure the extent of Crocs’ dominance of the rubber clog footwear category. To do this I used Jungle Scout to check the top best selling Amazon listings for the term “rubber clogs.” I took the top 19…
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Calculating an Earnings Power Value for CROX
This is part 2 in a series of blogs valuing CROX. See my valuation of CROX’s asset replacement value in part 1 here. We can calculate Earnings Power Value (EPV) with the following formula: EPV = ((EBIT – one time gains or losses + reported depreciation – capex)(1-effective tax rate))/wacc In this case according to…
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The Net Asset Replacement Value of CROX
I valued CROX using Greenwald’s asset replacement value method. This is the first post in a series of 3. According to their 10-K for 2023 Book Value (M) Adjustment Adjusted Value (M) Cash and cash eq 149 100% 149 Accounts receivable* 306 80% 245 Inventories** 385 75% 289 Income taxes receivable 4 100% 4 Other…
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My Favorite Investing Book: Value Investing From Graham to Buffett and Beyond, 2nd ed.
by Bruce Greenwald, Judd Kahn, et al. Regrettably I found this book late in my investing journey. This is far and away the best book on investing I have yet read. Often investing books will get lost in formulas, specific examples or not contextualize the ideas with economics well. With a focus on valuation and…
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Boston Omaha (BOC) Stock Valuation : Revisited
I originally valued BOC in December using a “sum of the parts” approach, using EBITDA and industry average multiples, and I was very conservative. I found it slightly undervalued with too small a margin of safety. I also had concerns over management, and I stayed away. But after viewing AlexB91‘s post on VIC, I went…
