Value Investment Case Study #1

Below are the links to download the most recent quarterly and annual reports for the first blind value investment case study on this blog.  As I stated in one of my previous posts about this I redacted all identifying information about this company so all you will have to rely on is what is found in the financials.

The only information I am going to give you that is not in the financials is that as of this past Friday the company has a current market cap of $4.7 million.

I will not post my analysis until at least a few of your analysis write ups posted in the comments section of this post and I am not looking for a full 7-20 page write-up.  The main things I am going to post about when I write my analysis is valuations, pros and cons, and if I would invest in the company.  If I would at what price do I estimate its intrinsic value to be and at what price would I buy into them.  If I wouldn’t buy into them why not.

I hope that we will all learn a lot from this by seeing each others analysis and helping each other out to see where we could improve.  I also hope that these kinds of exercises will help keep all of our skills fresh while we wait for a market drop.

I hope to see a lot of write ups and hope this is a good exercise for us all.  If you are able to figure out which company this report is (or in case I missed some kind of identifying information to redact) please do not post about it until after the company is revealed.  Also, if you have any suggestions for the next case study please let me know what you think could improve this process for us all.  The financials are directly below.

Case Study #1 3Q 2013 10Q

Case Study #1 2013 10K

Weekend Reading Links And First Case Study Incoming

The first value investment case study will be released this coming Monday and I hope that we can all learn something from it.  Until then on to the links. – Be A Learning Machine.

The XX Committee – Is East Asia About To Experience Its “July Crisis?

National Geographic – Mice Inherit Specific Memories, Because Epigenitics?

Remembering The Obvious – Charlie Munger’s Wesco Letters.

Fundoo Professor – The Ashiana Housing Lecture.

Santa Fe Institute – How Complex Systems Science Helps Reveal Market Behavior.

Wiley Online Library – 17 Free Issues About Psychology Topics.

Long Reads – There is Nothing New In Wall St: A Stock Traders Life In The 1920’s.

Value Walk – Understanding And Valuing Financial Companies.

Nathan Barry – Two Years After Quitting My Job 2013 Review.  Amazing story for any entrepreneurs out there like me.

Direction of This Blog For The Time Being

Over the last two weeks I have asked for some input on the kind of educational value investing content you would like to see on this blog until the market drops significantly.  The two-week poll results are in and it appears the majority of you want to see value investment case studies first.  I will begin work immediately on some of those but honestly do not have a time frame for when I will start to post them.

To make it fair for new and advanced analysts alike I am going make it a blind valuation case study where all I am going to give you is the companies financials, footnotes, and other key points from their proxies, annuals, and quarterlies.  I am going to redact the company name and any other potential identifying information so that we can all hopefully learn as much as possible by not knowing which company it is or how much its shares are selling for.  The exercise will be to determine: A) Would you buy this company? B) What would you estimate the companies intrinsic value to be? And C) If you would buy this company at what price would you buy them at?

When I am ready to release some of these I will release the above information one week, wait for some of your reader valuation and analysis write ups to be posted, and then release my valuation and analysis of them a week or two after I release the company financials and other information.

I will only post information on companies that I have not done research into so that we can all do this exercise together and learn from each other.  My hope is that this will be a great help to all of us, that we will all learn a lot, that we will help each other learn, (especially newer investors) and help to keep our skills fresh while we wait for the market to drop.

I plan to get some of these up as soon as possible but I honestly have no idea when I will start posting them because I have never done anything like this before so please be patient with me.

I also will start working on some video content for the blog as well so if you have anything you have ever wanted to know or wanted help with that you think would be good to talk about in a video format please leave a comment below so I can get some ideas for videos.

One last note for today.  In the poll someone voted for the “Other” option but did not comment about what they would like to see.  I would love to hear from you and your idea so if you see this please comment below or email me your idea.

Please Vote On What Content You Would Like To See On The Blog

Last week I announced this vote to determine which direction this blog would take while the market continues to rise.  Whatever wins the vote will be started on first.  Right now it appears that people want to see some value investing case studies first.  The vote will officially end this coming Monday March the 10th which is when I will start on whatever wins so please vote for which you would like to see on the blog until the market drops.

If the market takes a long time to drop significantly I will also work on some of the other vote getters as well so please vote for your desired choice no matter if it has a vote yet or not.

If you have a write in choice of another great idea you would like to see please comment below.