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Tuesday, January 31, 2017

Dyadic: two lottery tickets for the price of none $DYAI

  • Dyadic (DYAI; disclosure: long) trades for below its cash value and is buying back shares like crazy
  • The company has two massive options: their C1 tech for healthcare, and a big lawsuit
  • Position sizing has been a real struggle for me here; I'd love to hear your thoughts

Sunday, January 29, 2017

What will Ophthotech do with all that cash? $OPHT

  • This week, the blog’s focusing on companies trading below net cash value.
  • Net cash investing sounds boring and safe, but I’ve generally found it to be highly volatile.
  • Ophthotech (OPHT) trades below net cash; the question is what management is going to do with the money.

Friday, January 27, 2017

Franklin Covey's big question $FC

  • Franklin Covey is undergoing a business model switch that makes their financials look worse than they are.
  • Ignoring the model switch, Q1 still seemed awful and calls into question if the switch is going well or not.
  • If Q1 was just a blip and AAP is as successful as advertised, investors could do well at today’s price as the business model switch drives significant growth.

Thursday, January 26, 2017

Bob Evans and the Conference Call Question of the Year $BOBE


  • Bob Evans is selling off their restaurant side
  • The conference call was hilarious
  • They're probably roughly fairly valued around today's prices

Tuesday, January 24, 2017

Nexmo could make Vonage shareholders go "Woo-Hoo" $VG

  • Vonage (VG) is helmed by a fantastic CEO who has done a masterful job of capital allocation over the last three years
  • The company has three segments with wildly different outlooks and financials, and that disparity plus the legacy overhand of people thinking of VG as a dying consumer phone company could mask the underlying value of the company
  • My biggest issue with VG is valuing their Nexmo acquisition: it swings a huge piece of VG’s value, but can it really be worth twice as much as VG paid for it last summer?

Monday, January 23, 2017

Tucows "right" in eNom deal $TCX $NAME

Quick Summary
  • Tucows is buying Rightside’s eNom division for $84m
  • The deal appears to be a win/win for both companies
  • I may have only written this article to indulge my fascination with the one day stock chart and/or to quickly break my plans for the blog. You decide.

Sunday, January 22, 2017

Shoretel's Calling $SHOR

Quick Summary

  • The whole Unified Communications space (UC) is undergoing a massive shift to an internet driven, SaaS-like model
  • The decline in traditional premise based sales has masked the growth in Shoretel's UCaaS segment and likely left Shoretel trading at a discount to its SOTP.
  • The potential cost synergies from Shoretel merging with a strategic acquirer (likely Mitel) would be significant and could be worth most of today's share price