Grahamian Value Week in Review ― February 19, 2021
Grahamian Value Week in Review ― February 19, 2021
“We shall conclude with a practical observation that is based on experience rather than theory. When the general market is high there are always a number of individual issues that appear definitely undervalued by objective standards and consequently even more attractive in contrast to the inflated level of other stocks. The analyst may be tempted to recommend these as unusual opportunities. Not only may the ‘neglected security’ continue neglected for the remainder of the bull market, but when the downturn comes it is likely to decline in price along with the general market and to fully as great an extent. In a word, beware of ‘bargains’ when most stocks seem very high.”
— Benjamin Graham (Security Analysis, 1951 Edition, Page 30)
PART ONE.
WEEK IN REVIEW
PART TWO.
WEEKEND READING
PART THREE.
WEEKEND WATCHING
PART FOUR.
WEEKEND LISTENING
In appreciation —
We’re thrilled to introduce Andrew Alexander, Daniel Ternes, Graham Hay, Hassan El-Essawi, Jonathan Mottola, Kyle Varrone, Salil Rajadhyaksha, and Shane Minte as our latest Grahamian Value Project Volunteers — thank you for your contributions and welcome aboard!
OVERVIEW —
Zero companies presently appear on our Grahamian Value Classic list — a wrinkle observed for the first time since inception and further discussed below.
I. WEEK IN REVIEW
This marks our nineteenth consecutive week with no new additions to the Grahamian Value Classic list of companies.
Due to underlying share price movement, Servotronics, Inc. and Rubicon Technology, Inc. no longer qualify for inclusion on the Grahamian Value Classic list.
As such, no companies presently appear on the Grahamian Value Classic list.
II. A MESSAGE FROM THE GRAHAMIAN VALUE TEAM
For the first time, we have zero Grahamian Value Classic names on our radar —
We set out on this electronic adventure on July 13, 2020. In the 221 days since, we’ve taken note of the following Grahamian Value Classic equities (in chronological order of the company’s initial mention, herein) —
Rubicon Technology, Inc. | link, link, link, link, link, link, link, link
Universal Stainless & Alloy Products, Inc. | link, link, link, link, link, link
Hudson Global, Inc. | link
And we’re intrigued by the following —
Bloomberg’s Joanna Ossinger on February 15, 2021: “…A grind higher in U.S. stocks to fresh records last week helped the VIX finish Friday’s [February 12, 2021] session down 6% to 19.97, the first sub-20 close since the pandemic rout took hold a year ago. Traders had been focusing on that level for some time as an indicator markets were back to ‘normal.’ But at the same time volatility was falling, bets on its return — via a leveraged ETF that tracks volatility futures — were soaring. Investors poured over $850 million into the ProShares Ultra VIX Short-Term Futures ETF last week, and the number of its shares outstanding has surged to a record…”
Our house view of the “stonks” market (explained) —
“So, What Now?” —
That’s precisely the question we’re asking ourselves — with regards to this weekly electronic letter and, more broadly, regarding the private capital we individually manage.
Coming Soon: Grahamian Value Fireside Conversations —
Join us as we explore this question of “So, What Now?” with key (value-oriented) thought leaders and industry veterans we particularly admire, in the weeks ahead.
III. WEEKEND WATCHING
Courtesy of Ivey Business School: Ivey Business School’s Value Investing Classes of 2011 welcomed Prem Watsa as a Guest Speaker. Mr. Watsa is the Chairman and CEO of Fairfax Financial Holdings Ltd. in Toronto, Ontario. (Uploaded October 31, 2018)
IV. WEEKEND LISTENING
Courtesy of Riches in the Niches Investor Podcast, hosted by Richard Sosa of thinkAEN: What do Endowment Investing, Real Estate, Hedge Funds, Alternatives, Over-the-Counter (OTC) Stock Investing, Stock Newsletters, Peter Kamin, SunLink Health, Libsyn and Shareholder Board Meetings all have in common you may ask? In this episode of Riches in the Niches, our guest is Marcus Frampton, CIO of Alaska Permanent Fund Corporation, who manages the $71 billion in assets for the state of Alaska. (February 12, 2021 episode date)
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.