Thursday, September 17, 2020

Friedman Industries

While a certain sector of the market does seem overheated, I'm finding plenty of value opportunities around. Much of the market is still behaving like one in recession, and that's probably a good place to invest for the long term. One example is Friedman Industries (FRD), a steel processor.

Thursday, September 10, 2020

ADF Group

ADF Group is engaged in "the design and engineering of connections, fabrication, including industrial coating, and installation of complex steel structures, heavy steel built-ups, as well as miscellaneous and architectural metalwork", having been originally founded as a blacksmith in 1956. It trades under the ticker symbol DRX in Toronto.

Sunday, September 6, 2020

Very Important People

My memories of my trips to Vegas are bittersweet. On the one hand they have been a lot of fun, but on the other hand a number of incidents leave me feeling ripped off. None more so than going to a club and having to fork over obscene amounts of money at markups of thousands of percent. I don't find this to be good use of either money or time, but the friends I have gone with usually do, so I end up paying my share despite realizing what a racket this is. So it was with great interest that I read former model Ashley Mears' expose of this industry in her book, Very Important People: Status and Beauty in the Global Party Circuit

Friday, August 28, 2020

Thursday, August 27, 2020

Summit Midstream

While many parts of the market have somewhat recovered towards or even above their pre-COVID highs, the energy industry has not fared as well. Over-capacity has resulted in product pricing that is still low. Unfortunately, predicting cash flows in upstream energy companies is very difficult. Not only is it hard to determine the price the company will receive for its product, but it's also tough to know what it will cost to pull the product out of the ground.

But midstream companies can offer a little bit more cash flow certainty. The fees for gathering and processing are set out in contracts, which often specify minimum usage requirements and last many years. In a lot of cases, the product continues to flow through existing wells and pipes, without much need for capex. And yet, one can find companies in this space whose stock prices are as decimated as any solvent upstream company. Consider Summit Midstream Partners (SMLP).

Saturday, August 22, 2020

Kane & Abel

Historical fiction is probably my favourite genre right now, and within that context Jeffrey Archer's Kane & Abel does not disappoint! The plot is terrific, spans several fascinating historical events including Poland's role in World War I, America's role in World War II, and economic issues in America in between.

Monday, August 10, 2020

The Innovation Stack

The co-founder of $60 billion-valued Square Inc has written an intriguing book called The Innovation Stack. Like most books based on a single idea, I think this book should have been an article, as it's repetitive and drawn out. You can't blame the author: who's going to pay $15 for an article? But at the same time, I think the idea is so important that I'm still glad I read it cover to cover.

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