I wrote about Zoran Corporation (NASDAQ:ZRAN) here and here, noting in November, when the company was $6.18/share, that it was at its 52 week lows and superficially looked cheap. However, its cash balance was a mirage, as the company had agreed to use the bulk of it to purchase Microtune. The company had been losing money and wasn’t trading at a discount to assets, so I didn’t see a margin of safety and I . . .
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Epolin Inc (OTC:EPLN) manufactures and markets proprietary near infrared absorbing dyes and dye formations (such as those used in eyewear). The company trades not far above its NCAV, but its operations appear to be in decline, with revenue decreasing each of the last five years and the most recent quarter showing profits dipping into the red. The good news is that the company is actively marketing itself for sale, having engaged Millburn Capital Group in February 2009 to . . . The Financial Post crowns Green Mountain Coffee Roasters (NASDAQ:GMCR) the most expensive in America, trading at 295 times cash flow, 81 times earnings (and no, earnings are not temporarily depressed – these are the highest earnings in the company’s history, by a long shot) and above the 80th percentile for its sales multiple (also at a historic peak). GMCR has gained 18% in the last month alone, on rumours of a tie up with Starbucks ( . . . Long term value investors react to news in one of two ways. If the news is negative, it should be fully accounted for in the analysis and valuation. If the news is positive, it should be treated as a potential bonus, and only in rare circumstances where the investor is nearly certain of the outcome and its effect should it be included in the valuation. Leave it to the short term traders to react to news! Consider the case of . . . DAC Technologies (OTC:DAAT) sells gun maintenance and safety products, as well as hunting and camping accessories. It outsources the design and manufacturing of its products and sells them through retailers such as Wal-Mart (which comprises approximately 50% of its revenues in any given year) and via mail-order. I became interested in DAAT when it showed up on one of my regular stock screens. It trades between $0.31 and $0.41 per share (this is a fairly large band, but . . . |
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