Recent content by Rainman

I am back in this stock at $3.73. I have been in and out of this stock for years and have made good money on it - but it can be very volatile. Just in relation to CBA putting out a tender, I think the risk is not that CBA will go to another insurer, but that it will self-insure in one way or...

That is false.

I have traded in and out of this name a couple of times. A look at the recent FY 2018 earnings has gotten me interested again. In the 2018 earnings release, management reported that it was eliminating the dividend. It also reported that it had reduced total debt from $43.5 million to $25.6...

The performance of Montgomery's funds is very ordinary. Most of the funds are either barely outperforming the market - like by 100 bps - or are severely lagging the market after fees: https://rogermontgomery.com/investing-with-montgomery/. Roger himself talks a good game. But many of his...

In April this year, one could have purchased this name for 0.025. At that price, SRS was trading at a massive 50% discount to net current asset value. The land that it owned and all the other non-current assets one got for free. Today SRS moved up to 0.05 cents a share and I sold out the last...

SRS reported a decent FY 2018 given where it was trading when I first mentioned it. It was trading at 0.036 on 1 June 2018. It's trading today at 0.044. That's a more than 20% gain in just under 3 months - 80% on an annualised basis. Decent net-net stocks appear fairly infrequently on the...

I wouldn't take a position in SRS at this level. The discount from net current asset value has narrowed since March. The risk/reward is not as attractive as it was in March.

An investment in a net-net like SRS is not a bet on a turnaround. It is not even a bet on a modest improvement. It is a bet on a reversion to the mean. What's the mean in this case? Net current asset value, i.e. net assets less all liabilities and minority interests, is around 0.05 cents...

SRS is a cigar butt trading at a 30% discount to net current asset value. I am not arguing that it's a great business. I don't know what the catalyst is. In my experience, if the value is there, it will get realised in one form or another. Also, there's an activist shop, Sandon Capital, in...

So that passes for your analysis on an individual stock name - plug a ticker code into a computer program and repeat whatever it spits out? Very diligent. SRS is up nearly 20% since mid-March. Enough said.

SRS issued shares to purchase units in the PaperlinX SPS Trust that it didn't already own. This trust held the Paperlinx hybrids that had been issued before Paperlinx went under. The purchase was necessary for SRS to be able to operate without the overhang on its capital structure of these...

Who cares about growth? Growth is overrated and most investors usually overpay for it. SRS is my largest position and it has been since 0.026. There is a tonne of value here: the cash, the real estate. A return of capital or a sale of the real estate could easily cause this stock to pop...

ACR is currently trading at 30% discount to net cash.

Personally, I am comfortable with this provisioning for both the consumer leasing and the TEF line. It might be a little worse but probably not by much. I reckon TGA is a good turnaround candidate at $1.20 a share. Plenty of negativity surrounding the stock. Technically, it is also at a...

Montgomery's biggest failing is that he blabs too much about his positions. And because he has a large retail following, the your-money-your-call crowd often buy his positions and get burnt when they tank - like they did with VTG, HSO, ISD. These are all stocks that Montgomery has talked about...