From most value investing metrics, the stock of Gamco Investors (NYSE:GBL) looks dirt cheap. Based on the trailing twelve-month earnings per share, GBL trades at a Price-to-Earnings ratio of about 5.3: 2Q20$0.421Q20$0.424Q19$0.913Q19$0.50EPS (TTM)$2.25Share Price12.11P/E Ratio5.38 If we use the 2019 Earnings per Share, the trailing P/E is about 4: 4Q190.913Q190.502Q190.881Q190.70EPS (TTM)2.99Share Price12.11P/E Ratio4.05 The operative … Continue reading Is Gamco Investors a Value Trap?
When people talk about the Quality of Earnings, what they usually mean is how well do current earnings predict future earnings. This is, literally, the textbook definition of earnings quality. The problem with this definition, however, is that it favours the stability of earnings above anything else. What if, as an example, a future stream … Continue reading Embedded Optionality | FRMO Case Study
On June 13, 2016, Steven Stein, the President of Etude Capital, LLC sent an open letter to the Board of Directors of the Renn Fund. At the time, Etude Capital and its affiliates held 12.4% of the outstanding shares of the Renn Fund (NYSE MKT:RCG). Two months earlier, a shareholder meeting had voted in favour of a … Continue reading Renn Fund | Enter Horizon Kinetics