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
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
Price on 03/20/14 = $30.74
IMKTA (Ingles Markets) :
Price on 03/20/14 = $23.72
DPNEY (Daphne International Holdings):
Price on 03/20/14 = $8.92
Hong Kong exchange price
SRGHY (Shoprite Holdings Ltd. ):
Price on 03/20/14 = $13.70
SHP:SJ Johannesburg exchange
TVBCY (Television Broadcasts Limited) :
Price on 03/20/14 = $12.15
Hong Kong Exchange Price
AUSDF (Ausdrill Ltd):
Price on 03/20/14 = $.82
Australian exchange: ASL:AU
“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.
Small insider buying end of 2013 and 2014. The current price of $.74 (03/20/14)is near a 5 year low, along with 10 year P/B low and 5 year P/S low valuations.
Boston, MA – (NYSEPOST) – 02/28/2014 – CVTech Group Inc (TSE:CVT) is a construction & maintenance-servicesprovider. The company said that it is now adopting a completely neworganizational structure that will raise the operating efficiency and verysignificantly reduce its operating costs. CVTech Group Inc (TSE:CVT) said inits statement that its new business model will add momentum to growth,strengthen its market position and bring down costs by over $2 million
Boston, MA – (NYSEPOST) – 02/28/2014 – CVTech Group Inc (TSE:CVT) is a construction & maintenance-servicesprovider. The company said that it is now adopting a completely neworganizational structure that will raise the operating efficiency and verysignificantly reduce its operating costs. CVTech Group Inc (TSE:CVT) said inits statement that its new business model will add momentum to growth,strengthen its market position and bring down costs by over $2 million
THE CANADIAN PRESS
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 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%
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.
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. (AUSDF) country 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