Value Investing Spotify's Opportunity in Advertising, Podcasting, and Marketplace |
- Spotify's Opportunity in Advertising, Podcasting, and Marketplace
- Waiting for the Last Dance - Jeremy Grantham
- Special Situation: Yorkey Optical HK$2788
- Carson Block (Muddy Waters) Interview - Reuters/The Exchange Podcast
- Beyond Exxon: Why a desperate mega-merger with BP might finally make sense
- The temptation for cyber attackers to become short-sellers
| Spotify's Opportunity in Advertising, Podcasting, and Marketplace Posted: 05 Jan 2021 01:08 PM PST |
| Waiting for the Last Dance - Jeremy Grantham Posted: 05 Jan 2021 06:31 PM PST |
| Special Situation: Yorkey Optical HK$2788 Posted: 06 Jan 2021 01:43 AM PST Yorkey Optical (HK:$2788) The main business of Yorkey is in the manufacturing and sales of plastic and metallic parts and components of Digital Still Cameras (DSCs), action cameras, copier-based multifunction peripherals, surveillance cameras, projectors and advanced TVs, etc. The DSC market is a slowly dying business as mobile phones cameras become more advanced but Yorkey has managed to remain barely profitable with interest income mainly from property they own. The company derives a bulk of their revenues from Japan and the PRC. Yorkey's latest interim report gives us reason to look at this stock. Interim Report - Balance Sheet 30/6/20 (All figures in USD$) Non-current Assets Investment Properties: Acquired in 31 December 2016, Workshops 01-09. 26th Floor CRE Centre, bought for $6.3M. Unable to find any disclosed transactions at Cre centre and hence couldn't get a gauge on whether they overpaid for this. However, let's assume they overpaid and value this at = $2.75M (50%) Property, Plant & Equipment: This is currently valued at US$5.1M on their balance sheet. As the DSC market is a slowly dying industry, let's assume a worst case scenario and value their equipment at $750K (15%). Deposits valued at balance sheet figures = $390K Total Non-current Assets = $4M Current Assets Inventories ($2.7M) = Let's assume their inventories are worthless and value it at $270K (10%). Trade and other Receivables ($7.76M) = $6M(valued at 80%) Bank balances and cash = $82M Total Current Assets = $88M Total Assets = $4M + $88M = $92M Yorkey has no debt and total liabilities amount to = $20M Thus, anyone can come along and pay $56M for a company with a book value of about $72M in a worst case scenario and get $16M for free. Let's say in the past 3 months since the interim report was released, the company has suffered more losses in their business. I believe the difference between book value and market price provides a sufficient margin of safety as I have been fairly pessimistic in the valuation of the assets. Short Case:
Catalysts:
Additional points: David Webb, HK corp governance guru has also recently added US$35K to his current holdings. He is a 5% shareholder of the company since 2013 and has fought against the board for them to be more shareholder-friendly. The past 3 times he has invested a similar amount to his positions, the stock has always revalued upwards in the following months. David Webb Acquisition Dates: Jan 28 2014 (Went up in Feb) Jul 22 2014 (Went up in Aug) Jan 19 2016 (Went up in Feb and March) [link] [comments]  |
| Carson Block (Muddy Waters) Interview - Reuters/The Exchange Podcast Posted: 05 Jan 2021 08:56 AM PST |
| Beyond Exxon: Why a desperate mega-merger with BP might finally make sense Posted: 05 Jan 2021 08:58 PM PST |
| The temptation for cyber attackers to become short-sellers Posted: 05 Jan 2021 06:53 AM PST |
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