– Interview with Dr. Jack Schwager: The author of The New Market Wizards. Great read on the qualities that make a great trader.
– The China Real Estate Market: Analysis of some data on what is really happening in China’s RE market
– Interview with David Winters: A good interview on what he sees as investment opportunity in the international market.
– How Concentrated you should be: A presentation from 2007 by Zeke Ashton. Great for beginners to understand how to structure their portfolio.
– Li Lu, possible Buffett successor: In case you haven’t read this news, Munger comes out and say Li Lu’s future with Berkshire is a ‘foregone conclusion’
Caraco announced its Q1 results today and they were extremely good. The highlights:
- $150M of revenue. I believe this is their best quarterly performance ever. Albeit this quarter includes revenue for Protonix, which the company has stopped distributing.
- Company made a profit this quarter. Even after no manufacturing and compliance expenses, the profit is a major milestone.
- Company filed 2 ANDAs. For a company that is still working on cGMP compliance, the filing of ANDAs shows management’s belief that they will get compliance soon.
- Caraco received the FDA seized inventory. I believe this is $25M in value.
- Caraco’s plan has been approved by the FDA. Now CPD is waiting on final go ahead from the consultants and FDA before resuming manufacturing.
Today’s results shows that Caraco is on the track to gaining compliance shortly. It is now the toughest part of investing, sitting patiently and watching the market realize the value.
KVHI announced their Q2 numbers today and they were exceptional. The company keeps growing its FOGs business, getting close to 1,00o subscribes on mini-VSAT, major improvements in TACNAV, and aviation mini-VSAT starting to provide revenue. The quarterly results were strong and management feels extremely good about the second half of the year. Key highlights from today’s conference call:
- Management expects to ship its 1,000th mini-VSAT in Q3. There is a 3-6 month lag between shipment of product and installation/initiation of service. At $2,000 per month of subscription revenue, we are looking at $24M in recurring revenue. I think 1,000 products in service is a great milestone for the company, with plenty of growth still left to come.
- The company recently announced $13M order, the biggest in the company’s history. Management believes they can bag much more revenue in the company years
- The company’s FOGs business grew 49% year-over-year in Q2. The company also signed another leading remote weapon station manufacturer, creating opportunity for further revenue growth.
- Management sounds extremely bullish about the second half of FY.
- The company has a strong balance sheet w/ 45M of cash and zero debt.
This company has an exceptional growth potential from its FOGs and mini-VSAT business. The company’s other businesses (mini-VSAT for airlines, TACNAV) keep performing strong and can be strong cash flow generators that I never counted for in my valuation.
I haven’t been active on the blog recently as I’ve been busy with some projects that hopefully will become public soon.