• PhotoChannel: Strong cash generation, but

    Photochannel today announced their 2010 Q1 results. The numbers were very good. – Generated $2.7 of EBITDA in the quarter – Top line grew by 8% (16% if you account for currency changes) – 5.6 million transactions were recorded, a record for the company – Expenses look like they have stabilized, even decreased in some…

  • Tilson’s presentation on GGP

    Whitney Tilson recently presented a potential valuation for GGP. He made an argument for GGP getting a comparable valuation to Simon Properties. Based on GGP’s asset quality and NOI, we agree that GGP should command at Cap Rate around 7%, which should mean a share price of $25. We think in the next 6-9 months…

  • Buffett’s Squanderville: A Classic

    Buffett’s biggest flaw might be his inability to time the market. In 2003 Buffett wrote about the growing US debt and the future impact of the growing burden. Well we all know that from 2003-2007 anyone having a negative outlook on the market looked stupid in the short-term. Now looking back it is clear, once…

  • CombiMatrix – A step towards unleashing value

    We recently purchased a stake in Combimatrix (CBMX). We haven’t shared our write-up on it but will point folks to the one done by Wes Gray. We generally agree with the write-up although we think there is substantial upside that the write-up doesn’t dwell into. Recently Combimatrix completed one of the steps that we expected…

  • Obama: A step towards bipartanship

    Last week, after this State of the Union speech, Obama went to the House Republican’s retreat. The video of his talk and the Q&A shows not only how divisive the split between the parties is but also the attempt Obama is making to bridge the divide. I’m not naive to believe this attempt by Obama…

  • Caraco: We are getting closer

    Caraco came out w/ earnings today. Although the quarterly performance was reported, we are not too interested in looking at the numbers. The main concern for us is any update on the FDA compliance, moving production to other facilities, and cash burn. As for cash burn the company had 72M in cash and 10M in…

  • GGP update with a step towards deal

    GGP today announced the engagement of UBS for “evaluating potential financial transactions for emergence from Chapter 11, raising exit capital and with such other matters.” This is the first clear indication from management that they are likely to receive an offer or are working with potential suitors. The recent activity by BAM (here, here, here, here) are…

  • iGo – An operating company for FREE

    This is a small cap play, you are basically getting the company for cash on hand and getting for free a growth story for a strong set of products. The company has $33M of cash w/ a market cap of $35M and zero debt. In the past 6 months, the company has signed huge distribution…

  • Constellation Energy Partners

    A small-cap natural gas pure play that is selling for 23% of its Net Asset Value (NAV). The opportunity provides a huge margin of safety and an extremely compelling upside. Company Constellation Energy Partners was formed by Constellation Energy Group in 2005. In Nov 2006 CEP was taken public. Constellation Energy Group still owns 28% of CEP,…

  • Investment Checklist

    Charlie Munger is famous for saying that investors should use a checklist for selection of companies to invest in. Mohnish Pabrai recently presented on the lesson he learned from the 2008 Credit Crisis and talks about his process for creating his extensive investment checklist.