What I Hold in My Portfolio – Part 1


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Written by

Jae Jun

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My Current Portfolio Holdings

Here is an update on my portfolio holdings. I don’t do full portfolio reviews often and I don’t bother with monthly portfolio updates anymore so who knows when the next update will be. I’ve stopped tracking my portfolio on Google Finance for a while now. Good thing is I don’t waste time or energy watching prices tick up or down. Bad thing is, I don’t know when something blows up (e.g. ARO & RSH).

For this reason, be sure to do your own analysis or start a thread in the forum if you want to discuss a certain stock that I hold in more detail.

I will provide all relevant links here for your convenience.

Gravity Co. (GRVY)

Earnings will come out in a couple of days and I will finally be able to see exactly how RO2 has been doing. Many people have been disappointed after the initial short term price spike when RO2 launched, but for me, the real test is to see how much value RO2 brings to GRVY.

I won’t get into too much detail because I wrote about GRVY last month and not much has changed. We will know the full details in a few days anyhow.

About GRVY

We are a leading developer and publisher of online games in Japan, Taiwan, Brazil, the Philippines, Singapore, Malaysia and Thailand based on the number of peak concurrent users, or PCU, as compiled from various statistical data available from public sources in such countries. We are based in Korea and we currently offer thirteen online games worldwide and have one online game in development and one online game developed or being developed by third parties for which we have entered into license agreements. Our principal product, Ragnarok Online, is commercially offered in Korea and 78 other countries and markets. Ragnarok Online II is currently commercially offered in Korea.

Retail Holdings (RHDGF)

The somewhat economic “recovery” for the emerging markets has done wonders for Retail Holdings. It’s fundamentals are growing in this environment and they have been posting record revenues even during these difficult periods.

There certainly isn’t anything exciting about RHDGF. It’s a holding company of a holding company that sells things like dishwashers, fridges and fans.

The main investment thesis that RHDGF investors know about is the sum of parts. Add up all the parts and RHDGF is worth around $30. We are currently sitting on a $21 stock price at the moment with big special dividends coming up and very shareholder friendly management.

Recently I came upon another RHDGF investor & blogger who went the extra mile and did further analysis on the company.

About RHDGF

The Company holds three principal assets: 1) a 56.2% equity interest in Singer Asia, a distributor of consumer durable products in Bangladesh, India, Pakistan, Sri Lanka and Thailand with consumer credit and other financial services available to qualified customers; 2) seller notes, arising from the sale of the Singer worldwide sewing business and trademark in 2004; and 3) cash and cash equivalents. The Company has no operating activities other than those carried out through Singer Asia.

ADDvantage Technologies Group (AEY)

I first read about AEY from Whopper Investments and following up on his idea with my own research, I liked it to and still hold. Business is easy to understand but has a cloud of pessimism hanging over it. This company is not going to be some high flyer, and can only operate within a niche, so growth is limited.

But with consistent profits, strong cash flow generation, good margins and returns on capital, it was just too cheap to ignore. As I don’t believe this is a value trap (their business is not dying or becoming obsolete), it’s a solid holding in my portfolio.

More articles on AEY by others

About AEY

ADDvantage Technologies Group, Inc., through its subsidiaries, distributes and services a line of electronics and hardware for the cable television (CATV) industry. The products, the Company sells and services are used to acquire, distribute, receive and protect the communications signals carried on fiber-optic, coaxial cable and wireless distribution systems.

UFP Technologies (UFPT)

UPFT is another boring company. They make the molded cardbox packaging in electronic products and for other industries.

UFPT will probably do about the same as last year in terms of net income and FCF, but the biggest difference is the increased spending on capex. The last quarter showed that the company has spent 5x more on capex than the previous year.

There isn’t enough information to determine whether most of the capex is for maintenance or growth from the reports just yet, but by applying Greenwald’s method to calculate maintenance capex, most of the capex in the latest quarter is for maintenance.

If the maintenance capex number creeps up too high, 2012 will be a struggle in terms of FCF.

But UFPT isn’t a sell at the moment. It’s still worth holding.

About UFPT

UFP Technologies, Inc. (UFPT) designs and manufactures engineered packaging solutions utilizing molded and fabricated foams, vacuum-formed plastics, and molded fiber. The Company also designs and manufactures engineered component products using laminating, molding, and fabricating technologies. The Company’s products include foam, plastic, and fiber packaging solutions, and component products.

Yukon Nevada Gold (YNGFF)

What I have learned is that mining isn’t rocket science. It is harder. Even more so for junior mining stocks.

YNGFF is a big problem child. So much potential, but just cannot make use of it. It’s been and still is a wild ride with problem after problem after problem.

But, the previous CEO, Bob Baldock, resigned, which I see as great news, and YNGFF finally reached steady state production and is cash flow positive.

The company wore out everybody with its problems and is still flying very under the radar. I’m keen to see what will happen when YNGFF releases numbers that the market is not expecting.

About YNGFF

Yukon-Nevada Gold Corp. engages in the acquisition, exploration, development, and mining of mineral properties in Canada and the United States. The company holds a portfolio of gold, silver, lead, zinc, and copper properties in the Yukon Territory.

Part 2 Coming Soon

Remaining portfolio holdings and sold out positions coming soon.

Disclosure

Long all mentioned stock at the time of writing.

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