Wednesday, August 28, 2013

Portfolio Update

Over the last two weeks, I have sold out of Conrad Industries, doubled my Emeco position, and bought stakes in Mayur Uniquoters, Alaska Communication Systems, Republic Airways Holdings, and The Dolan Company. I have also converted about half of my position in Hawaiian Holdings into $5 and $6 call options expiring at various dates between September and April.

 In addition, I had been accumulating a stake in Axia NetMedia but my ambitions were cut down when the company unexpectedly sold its crown jewel for a pittance. I sold the shares I had bought just a few days earlier for a ~10% gain.

It’s been a long, long time since I’ve held so many different names. It feels like chaos.

7 comments:

  1. What is your thesis behind the Dolan Company? Is it just so cheap on an asset basis? Or do you see changing business dynamics, and if so, why?

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  2. I'll be writing it up shortly but, essentially, I see a company transformed: the bad bits have been sold off and what remains are (1) a steady cash flow generator (the periodicals, meeting and public notices), and (2) a growth business (e-discovery) that is heavily dependent on two clients now but is becoming more diversified over time.

    I see ~$27m in run rate EBIT as against a market cap of ~63m

    https://docs.google.com/spreadsheet/ccc?key=0AoCLhoPnjQDgdEJRTUxOMmRTcUwtVjdiRmZWVVJIOUE#gid=0

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  3. Hey,

    Did you actually buy Mayur Uniquoters for your personal account? I understand it's listed in Indian stock exchanges (BSE and NSE) - which broker lets you buy shares in those exchanges? I don't actually live in India...

    Thanks.

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  4. Hi
    As of last year you don't have to be Indian nor to live in India. Here's a link: http://www.scribd.com/doc/175008776/India-QFIs
    You have to set up an account in India, though.

    and another one:
    http://investindia.kotak.com/qualified-foreign-investor

    The process takes a little while.

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  5. Thanks for the link to QFI document. I know InteractiveBrokers won't let non-indians buy stocks on NSE (Indian National Stock Exchange)...so I was actually looking for other options.

    The Kotak link is just regarding disclosure. Is there a link you have, where one can sign up with an Indian broker?

    I assume you didn't actually go to India to open an account there...?

    Thanks & cheers.

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  6. Ah, I see now what you're asking. The process is more involved than just trading through your regular internet broker. You'd need to open a "Demat" account, get a PAN card, register with an QDP, etc. The best thing is to go through one of the established Indian brokers - Kotak, Motilal Oswal, HDFC etc -- and have them guide you through it.
    Here's Kotak
    http://www.kotaksecurities.com/faqs/foreign-investment-basics.html

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  7. Hi Red,

    Is there anyone you know at Kotak, Motilal Oswal, HDFC, etc. that could actually set up a QFI account? I've tried to go through the online and phone systems at these places to get an account set-up, but I haven't been able to get to the right people (I just wind up getting no more return contact after being shuffled between departments or ignored). Alternatively, assuming you set up an account, how specifically did you do it, since just following the instructions at the respective firms' websites hasn't worked for me?

    Thanks in advance

    ReplyDelete