My Portfolio Notes of the Week

March 7, 2012 | Comments (4)

Quick notes and updates on several stocks I own. GRVY, DCHAF, UFPT and RHDGF.
Also, my thoughts on why talking to investor relations is pointless.
There is also a link to a reading list with daily updated articles from around the web that you will find very useful.


Some quick updates on stocks I own.

Gravity (GRVY)

Gravity is top on the list because it is my biggest position at 20%. Regardless of how much it has gone up this year, it is still below book value and does not include the future revenue stream of RO2 or the other games in fact.

Non consolidated report was released. Just read it for reference. Do not base your investment decisions based off non consolidated reports as there isn’t enough information.

It is good to see the balance sheet getting stronger but I have no idea how the net income jumps 250%.

Dacha Strategic Metals (DCHAF)

There is still a big disconnect between the stock price and asset value. The stock price is still at about 40-50% below net current asset value without much progress in terms of the value being realized.

This is a very frustrating investment because management words and actions do not particularly match up all the time.

Getting difficult to completely trust management which is a bad sign.

UFP Technologies (UFPT)

Company continues to perform well with new contracts and sales growth. Consistent growth in profitability and assets which are positive signs.

“We achieved record sales and profits even while phasing out the largest contract in the Company’s history… In addition, we continue to enjoy very strong demand for our molded fiber product line. To meet those new requirements, we have ordered new state-of-the-art equipment that should be online by the third quarter of 2012.”

Retail Holdings (RHDGF)

Expecting 2011 full fiscal year results soon. Last year they announced the results in March, so I’m expecting it sometime towards the end of March again.

Solid and strong business performer through subsidiary Singer Asia and I expect the same this year.

I don’t bother Talking with Investor Relations

On a different note, I just wanted to bring up a quick point about investor relations.

I do not talk to them unless I want to clarify a simple thing such as when I have to tender my shares by or asking for a hard copy of annual reports and nothing more.

Why?

Because investor relations cannot give you any more information than what is publicly available. A lot of traders and pumpers have been plastering emails received from GRVY investor relations on forums and comments in order to create hype so that’s something to be aware of.

Use investor relations to get information about your company, and not your investment. So easy to cloud your judgment thinking you have hot off the press news.

Good Reading List

Here is a good reading list I shared on the OSV Facebook page. It’s a great list of daily updated articles helpful for investing. Do check it out at Reddit Value Investing reads.

Guest Posts?

If you have a stock idea that you wish to share, send it over and if I feel that other readers will benefit from either the way you’ve analyzed or the idea itself,  I’ll put it up.

Great way for you to get known, get your idea out there and have your investment critiqued.

Disclosure

Long all stocks mentioned at time of writing.

About Jae Jun


Jae Jun is the founder of Old School Value. He is on a mission to provide practical and actionable value investing tools, tutorials and educational material to help empower the individual investor. Keep in touch with Jae via any of the methods linked below.

  • jock

    In Canada, IR CAN really talk to you, as can Management. (they don’t have sarbanes to worry about). I’m at the PDAC, world’s largest mining conference, and learned a LOT from IR and CEO’s of junior mining companies.

    Take a look at Sandstorm Energy and Metals. Run by a brilliant young guy, who did much of the design work for Silver Wheaton. I heard him speak here yesterday.

    http://www.aboveaverageodds.com/

    Brilliant — the first streaming company for base metals and energy. Long-term bets via an amazing business model. they have only 13 employees. The CEO is age 30.

    Jock

  • Artur

    I have worked for more than 4 years as IRO. There is no time (space) for truth or dialog with investors but only for scoop the positive elements and very aggressive promoting. Artur

  • http://www.oldschoolvalue.com Jae Jun

    Thanks for confirming my suspicion Artur.

  • Sam

    It is indeed frustrating to as a shareholder of Dacha. I personally believe management has been clueless in the latest correction of the rare earth prices. Furthermore, volumes dried up last year for dysprosium and terbium according to the Chinese Ministry of Trade.
    Restocking in the sector will likely happen soon.
    If they do not unload a significant portion of their inventory before June – than I would think the company isn’t worth a dime (as it would be clear they do no care about shareholder…just another Bharti company).
    However, with 10 million warrants expiring in June, I would think management WILL do something.

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