Grahamian Value Week in Review ― September 11, 2020

Sep 11, 2020

“One of the essential traits of the successful ‘vulture’ value investor is instinct. One needs not just to smell the lion’s carcass from afar but to be able to imagine that the bees may have made honey inside it.”

― Christopher Risso-Gill, There's Always Something to Do (pg 129)

PART ONE.

WEEK IN REVIEW

PART TWO.

FURTHER RESOURCES

“Greetings to all new subscribers and a warm welcome back to all returning readers. Your comments and feedback are always welcome at grahamianvalue@gmail.com; we hope you enjoy and sincerely appreciate all deserved recommendations and referrals.” - The Editors

For those just joining us —

GV Longform is our long-form missive, with intermittent release. (Issue 1 | Issue 2)
GV Week in Review is our short-form update, with weekly release.

I. WEEK IN REVIEW

P&F Industries, Inc.

Andrew Shapiro @Lawndale1

A nice tailwind for $PFIN aerospace segment -

nytimes.comBoeing Gets Go-Ahead for Test Flights of Its Troubled 737 MaxThe flights, which could begin as soon as Monday, are a major step in getting the plane flying again.

Pendrell Corp. and Rubicon Technology, Inc.

Tim Eriksen @eriksen_tim

Q2 2020 Letter for Cedar Creek Partners is now available. eriksencapitalmgmt.com/investor-lette… $PCOA $RBCN $BWEL $DBMG $HCHC $SODI $DHIL $PIOE I have also posted letters for 2019 as well.

eriksencapitalmgmt.comGeneral 2 — Eriksen Capital Management567 Wildrose Circle Lynden, WA 98264 | (360) 354-3331 | tim@eriksencapital.com

Universal Stainless & Alloy Products, Inc.

Nothing But Net-Nets @nothingbutnnets

Check out our latest post on $USAP, another steel net-net.

nothingbutnetnets.comUSAP: Another Steel Net-NetMark Twain said, “History doesn’t repeat itself, but it often rhymes.” In the case of Universal Stainless, a Pennsylvania-based steel company, history has rhymed four times in the past twenty years. During each of those times, Universal Stainless’s stock, after a stupendous rise, crashed by at leas…

II. FURTHER RESOURCES

Grahamian Value Longform, August 17, 2020: “Headquartered in Longview, Texas, Friedman Industries, Inc., is a manufacturer and processor of steel products with operating plants in Hickman, Arkansas; Decatur, Alabama and Lone Star, Texas. The Company has two reportable segments: coil products and tubular products. The coil product segment consists of the operations in Hickman and Decatur where the Company processes hot-rolled steel coils using temper mills and cut-to-length lines. The Company is in the process of replacing its temper mill and cut-to-length line at the Decatur plant with a stretcher leveler line. The tubular product segment consists of the operations in Lone Star where the Company manufactures electric resistance welded pipe, provides pipe finishing services and distributes pipe.”

Grahamian Value Longform, September 2, 2020: “From the other side of the world, we look towards the work of David Webb for (much needed!) local guidance within the Hong Kong stock market. Mr. Webb’s contributions to the state of local intelligent investing in Hong Kong provide us with inspiration in our ongoing journey as we endeavor to navigate through the depths of Graham-inspired value around the world.”

Writser @thewritser

Impressive H1 report from Ming Fai, $3828.hk. Company transformed from a hospitality business into a Covid play in 6 months. Trading at ~4.5x TTM net earnings. Conservative balance sheet, David Webb involved, history of returning capital.

janeo @janeo1934

Allan International (HK:0684) manufactures household electrical appliances in China and sells to Euro/US Largest 5 customers make up 90% rev Facing rising costs that cannot be pass onto cust Slight losses, strong BS, NCAV 71%, PB 37%, pays div Family ctrl. David Webb owns 11%

janeo @janeo1934

Lion Rock Group (HK:1127) prov printing services for book publishers. At 72c HKD it trades at low single digit PE, slight prem to NCAV and has a 10% div yield. Net cash backs up decent portion of mcap. Insiders own >40% s/o and David Webb owns 8% s/o.

janeo @janeo1934

Alco Holdings (328:HK). Big victim of trade war. Did some rights issue this yr to grow a lesser affected division. Now trading at a big discount to its tangible book and rights issue price. Insiders own 60% and David Webb owns 10%. Too tough to handicap? Any opinions?

ABOUT GRAHAMIAN VALUE

Founded in 2020, Grahamian Value is a labor of love centered around our desire to openly share data and perspectives that we find helpful in our pursuit of Benjamin Graham-inspired investment ideas.

The co-editors of Grahamian Value, as of the date of this communication, may individually own shares of companies mentioned herein. The publishers do not receive compensation from the companies and people covered in Grahamian Value for such coverage. This communication is for informational purposes only. This is not intended to be investment advice. Seek a duly licensed professional for investment advice.