“Value investing is at its core the marriage of a contrarian streak and a calculator.” – Seth Klarman
When pausing to think about what the absolute most hated things in the world are, things such as disease, corruption, and taxes are some of the items that may immediately come to mind. But down on this same list is also usually debt or usury of one form or another.
Given this stigma, payday lenders have almost always been reviled to a lesser or greater extent throughout their official history going back to the early 1980’s Depository Institutions Deregulation and Monetary Control Act which effectively overrode all existing state and local usury laws, giving way to the elimination of interest rate limits.
Thus it should come as little or no surprise that a small, Kansas City based payday lending company – QC Holdings Inc. (OTC: QCCO) was valued at a whopping 75% discount to its discounted net asset value as late as last month. While this gap has significantly closed recently, a buying opportunity still persists as shown if one reads on. Continue reading →
Premier Financial Bancorp (NASDAQ: PFBI) is a relatively small and sleepy multi-state bank holding company with 47 branch offices across five states and Washington D.C. which originates residential, commercial, and consumer loans and not much else.
However, unlike some of its community banking contemporaries, Premier has a documented history of profitability as it has been profitable on a net income basis in each of the past 10 years including 2008/2009, bears a uninterrupted dividend payout harking back to 1996 amounting to just over a 4% annual yield today, and has a management team with a very well defined strategic plan in place… which they have actually executed upon to date!
“How do you make money? Spin-offs, split-ups, liquidations, mergers and acquisitions.” – Mario Gabelli
As the name attempts to imply, Seritage Growth Properties (NYSE: SRG) is a Maryland incorporated, self-administered and managed real estate investment trust (REIT) which only recently (July 2015) spun-off from its long-time parent – Sears Holdings Corp. (NASDAQ: SHLD). Something which could not come soon enough as the public offering raised slightly over $1.6 billion for the cash-strapped big box retailer, somewhat easing its liquidity constraints at least for the time being.
Electronic racks that hold servers, outlet strips, transformers… if you are still with me, then I commend you for not drifting off to sleep. Hammond (TSX: HMM.A) is a Guelph, Ontario-based electrical component manufacturer, wholesaler and distributor directly to original equipment manufacturers (OEM’s).