• The Second Wave

    The sub-prime tidal wave might have passed, although the second major wave is on its wave. The problem with prime borrowers is going to hit the real estate market soon, as prime borrowers run into difficulty making payments on their loans. The problem with prime borrowers isn’t the falsification of income or loan documentations, instead…

  • Quarterly Update

    We have decided to start providing quarterly updates of our views on the market and especially on our holdings. Our take on these quarterly updates is very different than what the traditional market view is. The markets are addicted to a constant stream of data. The company’s quarterly reporting has dramatic impact on the market’s…

  • Global Ship Lease

    GSL was spun-out by CMA CGM, the third largest liner shipping company. GSL has 17 ships that it owns and leases out to CMA on long-term contracts. The lease rates to be received are fixed, so GSL gets a steady cash flow. Also GSL is not impacted by the drop in lease prices, due to…

  • China Marine Food Group

    We opened a position in China Marine Food Group. The company reminds us of the early days at Caraco, although without the backing of a big parent company. China Marine Food Group is a China based company that procudes dry fish products. Its products are sold in provinces of mainland China through 1,200 retail stores.…

  • KV Pharma – Closed

    We sold out of our investment in KV Pharma. Although we still believe the company is undervalued and will appreciate once it fixes the FDA issues, there are many investment opportunities that have a better risk/reward scenarios. We took the proceeds from this investment and purchased more Caraco shares. We believe Caraco’s FDA issues will…

  • KV Pharma

    KV Pharma is a pharma company that has been hitten hard because of a FDA compliance issue. In January 2009 the company recalled all its products due to FDA compliance issues. The compliance issues were related to a limited lots of drugs manufactured by the company, to be safe the company recalled all its products.…

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  • Caraco: A misunderstood generic pharma

    Investment Thesis Caraco has annual $350M in sales and $32M in net income. The company has almost no CapEx, zero debt, and over $33 in cash. The company sells for a market cap of $144M and an EV of $110M, an EV-to-earnings multiple of 3.4x. The management has publicly stated a 25% sales growth for…