Real Estate Project – Important Heat Maps

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Rent-a-Center Valuation | RCII

Valuation conducted on 3/3/2017

Thesis:

A CFO resignation, self-inflicted operational mishaps and a one-and-a-half billion-dollar impairment charge have created the perfect storm of bad news for Rent-A-Center (RCII). These events are short term in nature. Couple this with a hard-to-understand business model, sustainable large cash flow, and an imminent activist board presence, RCII is significantly undervalued and due for a timely turnaround.  Continue reading “Rent-a-Center Valuation | RCII”

Playtech Valuation

It was a supposed to take me an hour or two but then ended up taking a whole weekend…

…Being a customer of online gambling and knowing very well how recession-proof my tendencies are to engage in such activity, I wanted to value the online gambling companies I was familiar with. I thought WTH, the space has very limited analyst coverage and thought it might be a good place to look. I started with valuing B2C operators like Amaya (pokerstars), Paddy Power, Betfair etc but then converged more to the B2B companies given the much more appealing margins. Upon valuing companies in that space, I narrowed my search down to a company called Playtech (PTEC-LON). Continue reading “Playtech Valuation”

What is Our Investment Strategy?

We estimate a company’s intrinsic value by reconciling its risks (industry risk, regulatory risk and company specific risk) and cash flows, with the nature of its business and competitive position within its industry. We invest in companies where their intrinsic value are well below market price. Our portfolio will be biased towards companies that can scale (heavy reinvestment is not necessary for growth) and have a sustainable competitive advantage. Companies with these characteristics trading at a bargain are hard to find. Our likelihood of finding these bargains are substantially increased by being able to search where large hedge-funds cannot; smaller to mid-sized firms, spin-offs, certain mergers – anything that will likely fall well outside of most analyst coverage. We believe that a portfolio structured with 10-16 of these convicted investments will compound at a rate substantially greater than the market over time.