Rocky Mountain: Way Too Cheap

Shares of Rocky Mountain Dealerships (RME) have fallen dramatically over the last few months, for issues that appear to be only short term in nature. As a result, the company can be purchased for not much more than its 2007 IPO price.

But since that IPO six years ago, both sales and operating income have tripled. Consequently, the company now trades at a P/E of less than 10 despite a history of stellar returns on capital, including an ROE* of 19% for 2012.Read more...

Best Buy Lives Up To Its Name

One of the toughest (from a psychological perspective) companies I've ever owned is Best Buy. Until recently, that is: the shares are up 250% year to date. While the ending is happy (I'm now out of it), the journey had more than its share of downs, for several reasons.

Data Group Debentures Trade At Massive Discount

Shares of Data Group (DGPIF.PK) have a dividend yield of nearly 20%. In this low-rate environment, Mr. Market is making it clear he does not believe in the sustainability of this dividend. While Data Group has proven itself to be a cash cow, because of the company's debt load, Mr. Market may be right.

But investors don't have to take the downside risk associated with the company's equity, because the company's debt (DGI.DB.A) is trading at a massive discount to par. Data Group's debentures trade at just 58 cents on the dollar (as of Tuesday's close), providing an upside of over 100% should the company make good on these obligations due in 2017.Read more...

1493

I first heard of 1493 when PlanMaestro called it his favourite book of the year. Until I looked into it at that point, I hadn't realized just how many had enjoyed this book.

Karsan Value Funds: 2013 Q3 Results

Karsan Value Funds (KVF) is a value-oriented fund, as described here. Due to securities regulations, the fund is not open to the public at this time. Should that change in the future, there will be an announcement on this site.

Entrepreneur's Guide To Customer Development

I know you think this is a blog on value investing, but to know what you're doing investing in businesses, you need to know a lot about business. How else can you identify when a manager is pursuing a sound strategy, and when he's pissing into the wind? When I first started investing, I don't think I could tell the difference. Now, however, I think I can *sometimes* tell when a strategy is a poor one; though of course I could always be wrong. (The worst position to be in is where you're wrong, but "know" you're right...you have to be vigilant to ensure you avoid that where possible!)

Urbana Goes On A Roll

For what seemed like an eternity, shares of Urbana (URB) went absolutely nowhere. After I discussed the company in July of 2011 as a potential value investment, shares continued to drift lower for a good year and a half. As the discount grew wider, investor patience grew thin. But in the last ten months or so, the shares have been on an absolute tear; the stock is up 50% from July 2011 and up more than 100% from its 2012 low.