Chris Mayer: People Not Personnel, The Case for Owner-Operators

Chris Mayer is the editor of Capital & Crisis. Chris’ topic today is People Not Personnel, The Case for Owner-Operators from the 9th Annual Value Investing Congress.

Chris Mayer: People Not Personnel, The Case for Owner-Operators

Chris Mayer a value investor, is the Managing Editor of Agora Financial, which provides independent financial advice with over 1 million readers across its publications. As mentioned above, Chris is also the editor and founder of Capital & Crisis, a newsletter focused on global value investing. The letter which was started in 2004, now claims over 20,000 paid subscribers. In 2006, Mayer started  a new publication called Mayer’s Special Situations. The publication focuses on small cap value stocks as well as special situations.

Six options to find content: Value Investing Congress

Come back to find the latest. Other (and easier options include), You can (and should) sign up for our newsletter. Or  follow us on  Google+LinkedinTwitterFacebook,  RSS.

Chris Mayer live coverage

ValueWalk readers can get a 53% discount on the Value Investing Congress in Vegas (April 3rd and 4th), just use this link to register.

Use code ‘WALK’ to save an extra $100.

 

The Case for Owner-Operators  “…Entrepreneurial instinct equates with sizable equity ownership…”

Wealth Index (from Horizon Kinetics) –looks at companies with insiders who own large ownership and the index Horizon created has outperformed the S&P by 2.7% per year for 20 years   (Horizon created a fund based on the index call the virtus wealth masters fund run by Matt Houk)

Examples Chris Mayer owns, Howard Hughes Corp, Covanta, Kennedy Wilson, Retail Opportunity Inv. Corp

(9:00am EST)    2 NEW ideas

He loves little banks and has made good money on them, as a previous banker at one time in his life, he feels he has an edge

He likes Thrift conversions, when a mutual company goes public.  They have loads of cash and  a defined path to use it.

Charter Financial (NYSE:CHFN)

went through second step conversion on 4/9/13, raised $143M with market cap of $233M

P/TBV= 85%     NPLs?Assets= 1.09%

NFBK is another potential idea, along with BNCL….he prefers to build a basket of these things, set them aside in your low risk portfolio for 2-3 years.  You must be patient, these are not home runs over night, but eventually the banks buy back stock and pay special dividends.

Next Idea:

Pulse Seismic (TSX:PSD) —Canadian owner of seismic maps

One of the best businesses he has ever seen.  leveraged to Natural gas

Seismic Library is a great asset.  They can lease them over and over again, no maintenance costs, hard to replicate.  Cost of library is over $2B

Pulse is a cash machine, but does not screen well due to pass through costs which understate earnings, but cash flow is solid

$0.47 per share of FCF on a C$4.00 stock

Did a large acquisition in 2010

Catalysts: Potential to ship out of British Columbia, Interesting wrinkle–the data is not transferable

Pulse had their best year ever and nat gas prices were very low last year

$10.5M in buybacks in 2012, paid dividend and reduced debt

Trding for less than 10x FCF…..downside is the unpredictability of data sales (so it can be lumpy….)

 

 

LEAVE A COMMENT


Saved Articles
X
TextTExtLInkTextTExtLInk

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Congrats! Are you a smart person?

We have an exclusive targeted & limited time offer for being a sophisticated and loyal reader.

ValueWalkPremium is a website and newsletter on the latest industry news much of which is not in the public domain and obtained via our sources.

We also have 10 years of resources on how to use this information to better your investment process.

Sign up for  today and get our exclusive content for 40% off. This is our second biggest discount ever!!

Use coupon code VIP20 or click on the button below

Limited time offer only ENDS 4/30/2020 or after the next 40 subscribers take advantage whichever comes first – please do not share this discount with others

 

0