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Archive for May, 2011

YNG: Gets financing deal done

May 24, 2011 7 comments

YNG announced the results of the warrant exercise and additional capital raise. The warrant exercise raised the capital management had initially planned but after some major hiccups. It definitely wasn’t a smooth ride for shareholders but the capital raised should get the company going on its operational plan. The company also sold 33M shares and 33M warrants to Deutsche Bank. Although I dislike companies selling shares when they are cheap, the potential 66M shares are small compared to the 900M shares O/S after the recent warrant exercise. Also, this is the price to pay for the 120M financing w/ Deutsche and the screw-up by Orifer. The company also is working on finalizing a 120M financing from Deutsche Bank through a Gold Forward sale.

We now have a company where the management has access to the capital needed to execute on its plan. The investment is now dependent on whether this management team can deliver on its short-term goals of 150K oz of production and future goals of increasing production to 400K oz.

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Weekend reading

May 20, 2011 1 comment

Graham and Doddsville letter: Always a good read

Journalism’s best: The best from recent journalism articles

Infosys’ Narayana Murthy writes his last letter: One of India’s top buisnessmen and thinker. Superb letter to shareholders on how an entrepreneur goes about building a giant company in any industry.

Categories: Reading

Weekend reading

May 13, 2011 6 comments

Don Braid on ‘Clear Vision’: Great talk on what makes great companies what they are

Horizon Asset Management’s Quarterly Commentary: A great read. Think of it as a primer in valuation

Notes from the recent Value Investing Congress: Detailed notes from the recent VIC.

Interview w/ Timothy Geithner and Wang Qishan: Great interview between the two economic powers. No wonder why Lee Kwan Yee like Wang Qishan

Categories: Reading

Portfolio Updates

May 10, 2011 3 comments

Some recent updates:

– Sold out of KVH Industries. The company recently reported poor quarterly report. The growth from the TracPhone is not coming as expected. The thing that made me sell was management’s tone in the conference call. The management keeps sticking to its 100% growth in TracPhone business in CY when Q1 grew 59% compared to prior year Q1. It is tough to see how management can hit its guidance. Also, the launch of the new mini-TracPhone model raises questions as to why launch the product when there wasn’t a huge need for it.

– Buying up YNG. I have been buying up shares in YNG since the Orifer news came out. There was a dramatic drop on May 4th. I put in a low ball bid to buy more shares but it didn’t go through. Even after the May 5th PR about YNG working with a bank the shares have been selling at a huge discount. I have been buying shares as the chances look very good that the company gets the financing done.

– Heckmann reported a very good quarter. In their previous quarterly call, Heckmann said the company could hit a run rate of around 120M EBIDTA before it ran out of cash. In today’s CC the company expects to run through all the cash in the current year. Also with the interest rates at absurdly low levels, HEK can lever up and get some amazing returns. Overall, I’m excited about HEK and think 2011 will be the setup year for strong numbers starting 2012.

– Hallmark reported poor quarterly numbers. I have been slowly adding to my position. I think it could take a few quarters for the management to fix the high loss ratio. You have a 7 year track record of a very capable management team producing extremely good numbers. I believe the last few quarters are an aberration and not a sign of long-term trend.

Categories: Updates

Weekend reading

May 6, 2011 2 comments

The Geopolitics of Food: The coming crisis in food prices

How Genius Works: Great read from artists in different fields

Formula for inspiration: Not many folks can make Physics, let alone studying, fun to high school-ers

Denali Investor Presentation: A bit dated but good to see how an up-and-coming investor looks at his portfolio and where he finds his investment ideas

Categories: Reading

Sold out ATSCorp

May 4, 2011 4 comments

Sold out of ATSC. We were up 60% in about 4 months. Although the company likely has some upside left, as they are still looking at ‘strategic alternatives’, I think some of the other holding have gotten cheaper.

Categories: Updates