3/20/2014

Potential Over Looked Value: OTC listed, Foreign,

 See interactive table for all 7 stocks . Click for quotes






Bullet Point Reasons to investigate 

CVTPF (Cvtech Group): Deep discount based on historical, relative and intrinsic valuation; 52 week low ; -32% 52 week change; Price is close to 5-year low; P/B and P/S Ratio near 10-year low,
Price on 03/20/14 = $.75

CVT.TO 

SENEA (Seneca Foods): Asset rich real estate on books below FMV; attracted value institutions, Royce, Kennedy Capital,and Robotti Robert to report additional Q4 2013 purchases
Price on 03/20/14 = $30.74


IMKTA (Ingles Markets) :Large real estate holdings,68 shopping centers, 96 properties free standing Ingles stores, 19 undeveloped sites, 73 acres of land in NC, and other properties on the books below FMV; Aggressive 12 months share count reduction, ordinary shares outstanding was 24.26M on Q1 2012 reduced to Q1 2013 balance of 22.76M; Profitable now trading at discount to industry and historical valuations.

Price on 03/20/14 = $23.72


DPNEY (Daphne International Holdings):52 changes of -63.52%; Overreaction to China data; near 52 week low off high of $25.95; profitable strong financial position; trading at a deep discount to historical, industry and intrinsic value; EV/EBITDA = 3.69; Favorable view from value institutions Royce; trailing annual dividend yield of 4.30%   

Price on 03/20/14 = $8.92
Hong Kong exchange price


SRGHY   (Shoprite Holdings Ltd. ):Off 52 week high of 40.79, 52 week change – 65%, price is close to 3 year low, P/B P/S near 2 year low, highly predictive earnings and cash flow based on historical results. Great vehicle to participate in growing incomes in Africa.  Supermarket operator over reacted to due to concerns regarding the health of the South African consumer

Price on 03/20/14 = $13.70

SHP:SJ Johannesburg exchange


TVBCY  (Television Broadcasts Limited) :Strong A+ financial position with predictable earnings based on consistent 10 years of profitable results.  Annualized revenue growth 7.20%, EBITDA growth 18.30%, and book value growth 9.10% over the prior 5 year period.

Price on 03/20/14 = $12.15
Hong Kong Exchange Price


AUSDF (Ausdrill Ltd): Discount to intrinsic value based on an average EBITDA per share of .37 from 2006 to TTM, TTM EBITDA = 207.70M versus market cap of 257.66M and enterprise value of 715.47M. EV/EBITDA (TTM) = 3.44, 52 week change = -72.77%, BV = 2.72 versus price of .825, 52 week high of $3.07 versus price of .825, exposure to Australia and Africa.
Price on 03/20/14 = $.82

Australian exchange: ASL:AU



CVTech Group Inc(CVTPFcountry Canada

Per share price 03/20/14  = $.73


“CVTech Group inc. (“CVTech” or the “Company”) is a management company with subsidiaries in activities pertaining to the construction and maintenance of electrical transmission and distribution lines, power houses and substations, as well as pruning and vegetation control services around distribution and transmission power lines. CVTech has more than 1,000 employees.” Source corporate website



CVTPF CVTech Group's market price is discounted to its intrinsic value and relative valuation. Aggressive long term debt reduction, the 2009 long term debt/lease obligation balance was 26.1M versus the current balance of 1.60M. Share count reduction over the past year.




THE CANADIAN PRESS March 20, 2014 

CVTech subsidiaries U.S. and Canadian subsidiaries have been awarded several contracts valued at roughly $60 million

Canadian quote CVT.TO

Market Cap: 53.38M ,Enterprise Value:  99.14M
Price/Sales:0.21 ,Price/Book:0.66
Enterprise Value/Revenue:0.39 , Enterprise Value/EBITDA: 7.74
Revenue: 256.38M , Revenue Per Share: 3.56
Qtrly Revenue Growth:-3.40%
EBITDA:12.81M
Total Cash: 2.18M
Total Debt: 47.58M
Current Ratio:1.08
Book Value Per Share:1.14
52-Week Change:-31.82%

52-Week High: 1.32 ,52-Week Low:0.75


Seneca Foods Corp. (SENEAcountry USA

Per share price 03/20/14  = $30.74


Seneca Foods Corp is a producer and distributor of processed fruits and vegetables founded in 1949. The company has 22 processing plants throughout the United States, two can manufacturing plants, two seed processing operations, small farming operation coupled with a limited logistical support network. Warehouses are located next to its processing plants. The Company’s food processing plants are located in major vegetable producing states and in two fruit producing states.  Fruits and vegetables are primarily obtained through supply contracts with independent growers. 


SENECA is a slow growing asset rich company. Book value per share is 35 with a substantial real estate holdings.


Per Share Values = : Price $30.74 , Cash = $1.67 , BV =$35.00 , AR = $7.71 , Inventory = $44.60 , Current Assets = $56.87 , PPE Gross = $49.84 , PPE Net = $17.52 , Enterprise Value = $61.44 , GP = $13.14


The stock has attracted value institutions, Royce, Kennedy Capital,and Robotti Robert to report additional Q4 2013 purchases


Valuation Measures

Market: 330.18M , Enterprise Value:   660.62M

Price/Sales:   0.25 , Price/Book :   0.87

Enterprise Value/Revenue:0.50 , Enterprise Value/EBITDA:13.25

Return on Assets : 1.94% , Return on Equity: 5.02%

Revenue :  1.32B , Revenue Per Share: 122.91

Qtrly Revenue Growth (yoy): 5.50%

Gross Profit: 141.31M ,EBITDA:  49.86M

Current Ratio:  3.89

Operating Cash Flow:    44.15M ,Levered Free Cash Flow:   2.21M

52-Week Change:    -5.85%

52-Week High:   36.33 , 52-Week Low :     27.46

% Held by Insiders:  18.75%


Real Estate Portfolio:










































Ingles Markets, Incorporated (IMKTA)country USA

Per share price 03/20/14  = $23.72

"Ingles Markets, Inc., is a supermarket chain in the Southeast United States. It operates in three lines of business: retail grocery sales, shopping center rentals and a fluid dairy processing plant." source Morningstar


Real Estate Rich: Ingles Markets owns and operates 68 shopping centers, 57 of which contain an Ingles supermarket, and owns 96 properties that contain a free-standing Ingles store. 19 owned undeveloped sites are suitable for a store or shopping center development. In addition, Ingles owns outparcels and other acreage located next to the shopping centers and supermarkets it owns. Real estate owned is located in the same geographic regions as its supermarkets


The Company owns a 1,649,000 square foot facility. The location is strategically located between Interstate 40 and Highway 70 near Asheville, North Carolina along with 73 acres of land. The facility includes the Company’s headquarters warehouse and distribution facility. The property also includes truck servicing and fuel storage facilities.   Furthermore, owns a 139,000 square foot warehouse on 21 acres of land one mile from main warehouse and distribution facility used to store seasonal/overflow items. 

The Company’s milk processing and packaging subsidiary, Milkco, Inc., owns a 140,000 square foot manufacturing and storage facility in Asheville, North Carolina. In addition to the plant, the 20-acre property includes truck cleaning and fuel storage facilities. Ingles market incorporated in 1965.

Positives: Aggressive 12 months share count reduction, ordinary shares outstanding was 24.26M on Q1 2012 reduced to Q1 2013 balance of 22.76M. Real estate on the books for less than market value.  


Market Cap: 558.51M,Enterprise Value:1.47B
Price/Sales: 0.14  ,Price/Book:  1.30
Enterprise Value/Revenue: 0.39
Enterprise Value/EBITDA: 7.01
Financial Highlights
Qtrly Revenue Growth:1.10%
Current Ratio:1.94  ,Book Value Per Share:18.30
52-Week Change: 14.35%
S&P500 52-Week Change3: 20.29%
% Held by Insiders:3.30%  ,% Held by Institutions: 67.20%
Trailing Annual Dividend Yield:2.80% ,5 Year Average Dividend Yield: 3.70%    



Daphne International Holdings Limited (DPNEY): country China
Per share price 03/20/14  = $8.92


"Daphne International Holdings Ltd., is a manufacturer of footwear for the mass market under its proprietary brands ‘Daphne’ and ‘shoebox’ in Mainland China, through a network of both directly-managed shops and franchised stores." Morningstar

Listed on Hong Kong Exchange: Quote


Royce fund manager David A. Nadel made the following comments on its position in Daphne International in the recent 2013 Annual Report to Shareholders, “A slumping share price led us to more than triple our position in Daphne International Holdings during 2013. Daphne is a Chinese footwear maker and retailer, which sells Aerosole shoes in China. Its strong management and market position gave us confidence in the company’s long-term potential, though we recognize that this investment is likely to require patience. The overall slowdown in the Chinese economy has taken its toll on Daphne’s business as lower levels of consumer spending in particular caused sales and revenues to decline.“


Market Cap:735.52M ,Enterprise Value: 660.13M

Price/Sales: 0.54 ,Price/Book: 1.12

Enterprise Value/Revenue: 0.48

Enterprise Value/EBITDA: 3.69

Profit Margin:  7.38% ,Operating Margin: 10.29%

Return on Assets: 9.14% ,Return on Equity: 16.16%

Revenue(ttm):  1.37B ,Revenue Per Share:16.62

Qtrly Revenue Growth: 1.70%

EBITDA(ttm):  178.76M ,Net Income(ttm): 101.06M

Total Cash Per Share: 1.95

Current Ratio:    3.26

Book Value Per Share: 7.94

Cash Flow Statement

Operating Cash Flow (ttm):      63.23M

52-Week Change:  -63.88%

52-Week High: 27.54

52-Week Low:  8.06

Trailing Annual Dividend Yield:  4.30%  




Shoprite Holdings Ltd. (SRGHY) country South Africa
Per share price 03/20/14  = $13.70


South African company listed on the Johannesburg exchange SHP:SJ

Shoprite Holdings Limited "is an investment holding company with subsidiaries operating in the supermarket, produce distribution, furniture retailing, and property holding industries. Retail chains of the Group include "Shoprite", "Checkers", "OK", "Hyperama", "Freshmark", and "Sentra"." Source Bloomberg

Positives: Off 52 week high of 40.79, price is close to 3 year low, P/B P/S near 2 year low, highly predictive earnings and cash flow based on historical results. Great avenue to participate in growing incomes in Africa. 

Shoprite Holdings is one of Africa's largest retailers head quartered in South Africa. 


Television Broadcasts Limited (TVBCY) country Hong Kong
Per share price 03/20/14  = $12.15



Television Broadcast (OTCPK: TVBCY) Hong Kong


“Television Broadcasts Limited broadcasts and produces television programs. The Company also licenses and distributes satellite and subscription television programs, and provides services such as animation, videotape rental, film studio leasing, and advertising.” Source Bloomberg

Why consider: Television Broadcasts Limited, Strong A+ financial position with predictable earnings based on consistent 10 years of profitable results.  Annualized revenue growth 7.20%, EBITDA growth 18.30%, book value growth 9.10%  over the prior 5 year period.




Ausdrill Ltd. (AUSDFcountry Australia 

Per share price 03/20/14  = $.82


“Ausdrill Limited provides specialist drilling services. The Company operates drill, blast, and exploration rigs and its services include contract drilling and blasting, exploration drilling, ground support, contract open pit mining and earthmoving, mining equipment supplies, and logistics management. The Group also provides trenching, cable and pipeline rollout services.”Source Bloomberg


Why investigate further: Discount to intrinsic value based on an average EBITDA per share of .37 from 2006 to TTM, TTM EBITDA = 207.70M  versus market cap of 257.66M  and enterprise value of 715.47M. EV/EBITDA (TTM) = 3.44, 52 week change = -72.77%, BV = 2.72 versus price of .825, 52 week high of $3.07 versus price of .825, exposure to Australia and Africa.


Managing director Ron Sayers, described the situation as "the toughest business conditions for some years." This seems to have created an opportunity to buy shares at deeply depressed levels. Deutsche Bank still has a buy rating (March 2014) even with management’s lowered earnings forecasts for the 2014 financial year.

5 Year Chart on Australian Exchange

Australian Quote from Bloomberg 


5 comments:

Ishaan Gupta said...

You might like my blog about value investing in India at www.igvalue.com.

Facebook page: www.facebook.com/igvalue
Google plus page: https://plus.google.com/+IgvalueBlog

I would be obliged if you gave feedback.

Amit Raghuvanshi said...

Shoprite SRGHY did not drop from $40 to $16 on December 6th. It debuted its ADR on Dec 6th probably replacing an older ticker in the OTC market.

ShadowStock said...

Amit, thanks as you can see the number was taken from Yahoo finance. Stocks has done well in this market. Seems like a good way to play the continent of Africa.John

Amit Raghuvanshi said...

I agree its a great play on Africa. Thanks for your excellent blog.

ShadowStock said...

I appreciate!! The ideas are often over looked value but leave it up to the reader to see if and how it may fit in their world now or in the future. No long thesis. John