2 Studies on Spin-offs

What follows are excepts from two academic studies on spin-offs. Spin-offs are special situations whereby a company spins-off an asset in a tax free distribution to its shareholders. Spin-offs are thought to have predictive attribute of outperformance due to structural factors. A spin-off study - Chris Mayer (2005) Spinoff Companies: Four Reasons Companies Spin Off … Continue reading 2 Studies on Spin-offs

Mental Model: Defined benefit pension plans

This is a dossier with resources and material regarding the valuation of defined benefit pension plans. This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Pension Plan Calculator (spreadsheet provided by aliactuary.com) Actuarial Methods and Assumptions used in the Valuation of Retirement Benefits in the EU and other … Continue reading Mental Model: Defined benefit pension plans

Ryan Morris and the Value of the Activist Option

Ryan Morris of Meson Capital has been showing up on my radar frequently over the last six months (often through SumZero). From what I have read, he seems very capable and his write-ups have struck a chord with me. Investment Approach There is something about his approach that makes me think of the old Buffett … Continue reading Ryan Morris and the Value of the Activist Option

The Penman-Nissim model of profitability analysis

  Stephen Penman is a George O. May Professor of Financial Accounting at Columbia Business School. He is the author and co-author of acclaimed financial valuation textbooks, such as Financial Statement Analysis and Security Valuation as well as books aimed at a more general audience, such as Accounting for Value.  The Penman-Nissim Profitability Framework In 1999, Doron … Continue reading The Penman-Nissim model of profitability analysis

Nugget: Eddy Lampert on Same store sales (SSS)

From the 2005 Letter to shareholders: If we take a simple example of a single store, then a comparison of SSS from year to year is fairly straightforward. If a store does $1 million in sales at a 10% operating margin this year, generating $100,000 in operating profit, and does $1.1 million in sales next … Continue reading Nugget: Eddy Lampert on Same store sales (SSS)

Profile: Level 3 Communications

Level 3 Communications in one sentence: Level 3 Communications, Inc., together with its subsidiaries, operates as a facilities-based provider of a range of integrated communications services primarily in North America, Latin America, and Europe. The Internet Content Value Chain: On Durable Competitive Advantage Lower unit cost faster than you lower unit prices. That has been … Continue reading Profile: Level 3 Communications

Nugget: O. Mason Hawkins on Madison Square Garden

From the 2011Q4 letter to shareholders of the Southeastern Asset Management´s Longleaf Funds: Madison Square Garden: Based in New York, Madison Square Garden (MSG) owns one of the most valuable regional sports networks at a time when live sports content is increasingly important to traditional distributors. In addition, the company owns two of the best … Continue reading Nugget: O. Mason Hawkins on Madison Square Garden

Exor NV | Discount to Net Asset Value (NAV)

EXOR NV (EXO) is a European Holding Company, controlled by the Agnelli family (founders of FIAT). Currently, based on a Sum of Parts analysis, common shares of EXOR trade at a 32% discount to its Net Asset Value. Read recent Exor write-ups on the Exor Compendium Page EXOR Sum of Parts   Although it is not … Continue reading Exor NV | Discount to Net Asset Value (NAV)

First Marblehead Corporation

First Marblehead Corporation was a speciality finance company that specialized in providing private lending solutions to students in the United States. The company was founded and lead by Dan Meyers in 1991. After going private in August 2016, First Marblehead Corporation changed their name to Cognition Financial Corporation in May 2017. FMD writeup on SumZero A … Continue reading First Marblehead Corporation