Throwback Thursday – Dole Investment Analysis Case Study Part 4 The Bad Side Of Dole

Throwback Thursday – Dole Investment Analysis Case Study Part 4 The Bad Side Of Dole

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This is the ninth post in our new Throwback Thursday’s Series, where we share with you posts from the past blogs to bring you as much value as possible.

Today, we’re continuing the case study on Dole from articles in 2012 and 2013.

In Part 1, I valued Dole and compared it to its competition.

In Part 2, I shared with you the results I had in only 104 days after my initial analysis of Dole led to great things.

In Part 3, you learned about some valuable hidden assets Dole owned including the value of its land and ships.

Today, we’re getting to the rough part of Dole.

Its Chairman and majority shareholder, David Murdock, offered to take Dole private at a ridiculously low ball price and screws shareholders.

We’re now to the far more important learning aspects of these articles.

I researched and wrote extensively about Dole when I began doing ‘real’ investment research in 2012.

I’m going to be reposting a series of my past research and investment articles on Dole beginning today.

They’re a great case study in doing deep work. Here are some of the things we’ll be looking at in this series…

  • HOW to find the value of potentially hundreds of millions or billions of dollars worth of hidden assets
  • The signs of a company potentially having hidden value
  • Doing deep work to find the value of these and other things people won’t look for
  • Valuations and how and why I’ve done these valuations
  • And more…

I hope you enjoy this series and know we can all learn a lot from doing this.

Oh and please excuse the poor writing style and huge paragraphs. I wrote this in 2012 before I learned how to write.

As always, nothing is changed below from the past article in 2012.

Jason

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Excerpt From My Upcoming Book About The Proposed Going Private Transaction At Dole and Dole Shareholders Fighting Back.

I have finished up writing the main transcript of my book and have done one full revision and edit of the book. I have sent the book off to some family members and a couple recently published investing authors to get some feedback on things that I could be doing better.

After receiving some feedback from those sources, (Thank you all so much!) I am in the process of going back over the entire book to make improvements.

I wanted to release this portion of the book right now to you all because I have talked about Dole quite a bit on this blog and I wanted to share my full thoughts about the ridiculous situation going on at Dole right now.It appears that a lot of Dole’s current shareholders agree that the buyout offer at $12 is ridiculously low as its own shareholders have been suing the company to stop the low ball going private transaction offer.

Below are just two of the many articles about Dole getting sued for the proposed transaction.

Levi & Korsinsky Notifies Investors of Claims of Breaches of Fiduciary Duty in Connection With Going Private Proposal From Company’s CEO

More cases against Dole board say Murdock bid too low

Directly below are two pages from my upcoming book where I talk about the transaction. Please feel free to leave any comments or concerns you have about the actual excerpt from my book or the proposed Dole transaction as I would love to converse about either. Also, keep in mind that I still have a lot of editing and revising to do if you find any grammar or editing errors.

“As I have been writing, editing, and revising this book, Dole’s Chairman Mr. Murdock has put in an offer to take the company private once again like I thought that he may do so I wanted to write my thoughts on the ridiculous offer being given to Dole shareholders.  I did think that Mr. Murdock may have wanted to take the company private again but what I didn’t expect was the manipulation of the company’s stock price in my opinion before that happened. Shortly after Dole sold its worldwide operations to Itochu, Dole management began to do some very strange things. The value of its land holdings, that Dole management themselves estimated to be worth around $500 million when they were getting ready to sell their worldwide operations to Itochu, suddenly stated that they thought their land now was worth only around $250 million only a few months later.

This was shocking to me and led me sell the stock I owned in Dole in my personal portfolio and the portfolios that I manage because I figured that Dole was doing something untoward to try to get the value of its shares down so the company could be taken private again at a cheaper valuation. One of my followers on Seeking Alpha and I actually talked about this and both came to the same conclusion that something fishy was going on.

After selling my shares in Dole due to the above situation I stopped paying attention to the company altogether to concentrate on the research of other companies until it came out that Dole was planning to do a massive buyback of its shares. I thought this was a very good thing for them to do since I found the company to be very undervalued when writing my second article on them so I started to look into them a little bit again. Before I could do even minimal research into the new situation at Dole, though its management made another very strange decision.  A few days after Dole announced that it was going to buy back $200 million worth of its shares it changed its mind and all of the sudden decided to update its fleet of container ships instead and canceled the proposed share buyback program.

Of course, this sent the share price falling and again led me to believe that its management was trying to manipulate the share price lower so that it could be taken private at an unreasonably low valuation.

Unfortunately it turns out that I appear to have been right because a month or two after Dole decided to cancel its proposed share buyback program to instead buy new container ships, which of course sent the share price lower, Mr. Murdock announced that he was putting in an offer to take Dole private at $12 a share.

Mr. Murdock brought Dole public in 2009 at $12.50 a share so this in and of itself is ridiculous since the company is much more financially stable now than it was then due to getting rid of its giant debt load. In my opinion this entire situation from the changing of the estimated value of its land by 50% shortly after announcing that they thought it was worth $500 million, announcing the proposed $200 million share buyback and then a few days later canceling it, and then Mr. Murdock attempting to take the company private again at an incredibly low valuation should be investigated. If Dole is allowed to be taken private at $12 a share, which it probably will because Mr. Murdock at my last check still owned 40% of the company, then the company should be investigated for manipulating its stock price.  If the company is taken private for a paltry $12 per share than its remaining shareholders are getting screwed.

If a situation like this happens to a company you own, to be very careful, trust your research, trust your instincts, and get out of owning the company if you think you need to. There are a lot of other companies you can spend your time researching and owning rather than spending your precious time and capital having to worry about whether a company’s management is going to screw over shareholders. Dole’s current shareholders are fighting back by suing the company and I wish them good luck because the proposed buyout offer is ridiculously low.”

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I ALWAYS love high insider / family ownership in a company. It means the insider loves the business and that their incentives are aligned to do what’s in the best interests of shareholders.

Well in most cases.

This is the negative side of high insider ownership by one person.

If one person or one group of people own a huge majority of a company’s shares situations like this can sometimes happen.

However, in this case, not everything turned out bad for Dole shareholders which we’ll see next week.

P.S. We just launched the new Value Investing Journey Masterclass. If you want to learn how to do the above things yourself check out the course at the link above.

P.P.S Make sure to check out the brand new Value Investing Journey Training Vault here to gain access to $10,000 training sessions for as little as $97 a month.

Throwback Thursday – Dole Investment Analysis Case Study Part 1

Throwback Thursday – Dole Investment Analysis Case Study Part 1

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This is the sixth post in our new Throwback Thursday’s Series, where we share with you posts from the past blogs to bring you as much value as possible.

Today, I’m beginning a series on Dole in these Throwback Thursday posts.

I researched and wrote extensively about Dole when I began doing ‘real’ investment research in 2012.

I’m going to be reposting a series of my past research and investment articles on Dole beginning today.

They’re a great case study in doing deep work.  Here are some of the things we’ll be looking at in this series…

  • HOW to find the value of potentially hundreds of millions or billions of dollars worth of hidden assets
  • The signs of a company potentially having hidden value
  • Doing deep work to find the value of these and other things people won’t look for
  • Valuations and how and why I’ve done these valuations
  • And more

I hope you enjoy this series and know we can all learn a lot from doing this.

Oh and please excuse the poor writing style and huge paragraphs. I wrote this in 2012 before I learned how to write.

As always, nothing is changed below from the past article in 2012.

Jason

***

This article is the fourth and final article in the series detailing the businesses of Dole (DOLE), Chiquita (CQB), and Fresh Del Monte (FDP). If you want to see the valuations and brief descriptions of these companies, please view these articles: DOLE, CQB, and FDP.

In this article, I will go over the margins of all the companies to determine if there are any sustainable competitive advantages. I will decide whether I would buy any of these companies as they currently stand, without the possibility of any kind of merger, spin off, or massive asset sales. I will also look into whether or not a merger between any of the companies would be a good thing.

Before I start with my analysis of the three, I need to go back and look into Dole’s total contractual obligations in comparison to Chiquita’s and Fresh Del Monte’s. At the time I’ve done Dole’s valuations, I wasn’t doing as thorough of research as I am doing now, and did not talk about their total obligations in the original article I wrote.

On page 40 of Dole’s 2011 10K, they list their total obligations and commitments as of December 31, 2011. The total obligations and commitments, including debt, is $4.68 billion, and over the next two years it comes out to $2.661 billion. Their current market cap is $765 million. Not a great ratio, but not terrible like Chiquita’s. The total obligations / market cap ratios for all of the companies are:

  • Dole: 4680/765=6.12
  • Chiquita: 3167/220=14.40
  • Fresh Del Monte: 1992/1310=1.52

Fresh Del Monte has by far the most sustainable ratio in my mind and should have no problems if another crisis hits them individually or the economy as a whole. Dole might be able to make it through another crisis, even if they don’t decide to do some kind of asset sale or spin off like they are looking into right now. Chiquita’s ratio is horrendous and I would be worried about them if I was a shareholder of theirs.

All of these companies have low amounts of cash and cash equivalents on hand, which is another thing to possibly worry about with Dole and Chiquita if something bad were to happen in the economy. In any kind of emergency, they would most likely either default on some of their obligations, have to draw down their credit facilities, or try to take on some more debt if they could, most likely on unfavorable terms.

Now, let us get to the margins of all three and try to determine if any of them have a competitive advantage.

Dole (DOLE) Chiquita (CQB) Fresh Del Monte (FDP)
Gross Margin (Current) 10.5 12.9 8.8
Gross Margin (5 years ago) 9 12.4 10.8
Gross Margin (10 years ago) 16 16.1 16.1
Op Margin (Current) 2.7 -0.3 3
Op Margin (5 years ago) 1.9 0.7 5.2
Op Margin (10 years ago) 6.5 2.2 10.3
Net Margin (Current) 0.75 0.69 2.84
Net Margin (5 years ago) -0.83 -1.05 5.34
Net Margin (10 years ago) 0.83 0.91 9.34
FCF/Sales (Current) -0.58 0.12 2.66
FCF/Sales (5 years ago) N/A -0.08 2.42
FCF/Sales (10 years ago) N/A 2.37 11.86
BV Per Share (Current) $9.30 $17.42 $30.41
BV Per Share (5 years ago) N/A $21.03 $23.65
BV Per Share (10 years ago) N/A $15.80 $13.51
ROIC (Current) 2.16 1.53 5.21
ROIC (5 years ago) -2.12 -2.72 11.66
ROIC (10 years ago) 1.98 1.63 22.56
Insider Ownership (Current) 59.06% 3.33% 35.72%

These companies, for the most part, all have operations in the same segments and the next table will be showing the margins of those comparable operations.

Dole Chiquita Fresh Del Monte
Total Fresh Fruit EBIT 172 N/A N/A
Total Fresh Fruit Revenues 5,024 N/A 2,721
Fresh Fruit EBIT Margin 3.42% N/A N/A
Total Vegetable EBIT 31 N/A N/A
Total Vegetable Revenues 1,002 N/A 523
Vegetable EBIT Margin 3.10% N/A N/A
Packaged Food EBIT 96.5 N/A N/A
Packaged Food Revenues 1,197 N/A 355
Packaged Food EBIT Margin 8.10% N/A N/A
Total Operations EBIT 300 33.7 116
Total Operations Revenues 7,224 3,139 3,590
Total EBIT Margin 4.15% 1.07% 3.23%

In a perfect world Chiquita and Fresh Del Monte would have broken their operations out further like Dole does. Instead they choose to combine their operations reporting data, especially the Operating Margin data, otherwise known as EBIT. So at this point, it is impossible for me to break out the data further than it is in the above table.

Taking the above information, combined with the information in the previous articles, I think that I have enough information to make some judgments on the companies.

As things currently stand, I would NOT buy Chiquita under any circumstance, not even with the possibility of a spin off or asset sale. Their low margins, combined with their huge amount of total obligations, and low cash on hand, scare me too much to invest in them. That is not even taking into account the fact that, in my valuations, I found them to be about fairly valued to slightly undervalued, not nearly enough of a margin of safety for me considering all the risks. I also do not see them being bought out by anyone due to their high amount of total obligations. The only thing going in their favor is that they are selling for less than book value by a good margin, which is currently $17.42 per share, but at this point it looks to be justified.

Fresh Del Monte is interesting. They are selling for less than book value by a good margin, which is currently at $30.41 per share, they generally have the best margins of the three companies, and they also have high insider ownership, which I always love. However, by my estimates they appear to be slightly overvalued at this point, and have low cash on hand. They are also the company out of the three in the best position to make some acquisitions: in my opinion, a merger between Dole and Fresh Del Monte could possibly be a good thing. They have already been buying back a lot of shares and are the only one out of the three to pay a dividend, which are more pluses. At this point, I am not going to buy Fresh Del Monte, but I will wait for an opportunity when they are undervalued and will reassess at that time whether or not I will be a buyer then.

Without the possibility of a spin off or asset sale that I outlined in my original article on Dole, I would not be a buyer into their company right now either.  Pretty much the same problems as Chiquita: high debt / total obligations, low cash, low overall margins. However, they do have high inside ownership, they are selling at a slight discount to book value, and by my valuations are extremely undervalued. I do stick to my original assessment about Dole though, that they are a great spin off opportunity if they decide to do a spin off or asset sale. If they do what I suggested in the original article I think they could unlock value, get rid of a lot of their debt, and become a much more focused and profitable company. Especially if they put a lot of their resources into the packaged fruit portion of the business, as it has the highest margins in Dole’s operating structure. Dole also has the 88,000 acres of land that they could sell some of to pay down debts as well.

I did buy half of a position in Dole based on the spin off thesis in my original article. I am waiting to see if they announce a spin off or asset sale to jump fully into Dole at this point. They are in the spin off portion of my portfolio which I plan to hold for 6 months to several years. I do not consider them a long term buy and hold for decades company.

It also appears to me that none of the companies have any kind of sustainable competitive advantage, with their wildly fluctuating margins over the past 10 years, and no one becoming dominant.

I hope everyone has enjoyed and learned something from the analysis and valuation series on Dole, Chiquita, and Fresh Del Monte, and I look forward to some feedback.

***

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33% Off Everything In the Value Investing Journey Shop Until Tuesday

33% Off Everything In the Value Investing Journey Shop

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While I announced the opening of the Value Investing Journey Shop last month, because I’ve been so busy I didn’t announce it to many people.

To make up for that oversight, I’m offering 33% off everything in the Value Investing Journey Shop for the next three days only.

This includes all issues and the All Past Press On Research issues package where you get all past issues for one set price.

This means for the next three days you can pick the individual issues you want most for $65 instead of the regular $97.

And that you can get All the Past Press On Research issues in one package for $628 versus a normal price of $997.

33% off all items in the Value Investing Journey Shop until Tuesday

But only until Tuesday…

I won’t do discounts often – if at all in the future – so if you’ve wanted to see my latest stock recommendation issues at a discount you better buy them now.

As of this writing, each pick is up a combined average of 50.3%.  And these picks are crushing the market.

Below are some of the highlights from all the issues…

  • The average gain for all 12 recommendations is 50.3% as of this writing…  These picks are crushing the stock market since April 2015.
  • As of this writing, the stock market has only produced a 15.8% return.
  • Meaning, my picks since April 2015 have outperformed the stock market by 34.5 percentage points.
  • Two companies I recommended grew from sub $500 million market caps to $1 billion plus market caps as of this writing.
  • One company as of this writing has now surpassed a $2 billion market cap since I recommended them.

So you’re probably wondering what you have to do to get the coupon code.  And the answer to that is nothing…

The coupon code is – 33%OffGrandOpening

The discount won’t show up until you input the code when the item is in your cart as you’re getting ready to check out.  So make sure to put the coupon code in before you hit the payment button or you’ll have to pay full price.

You can go to the Shop here and begin getting your deals now.

And this is the only place to see my most recent stock recommendation issues.

If you have any questions contact me using the Drift App – the blue icon in the bottom right third of the page – to message me through this site and I’ll get back to you right away.

Happy shopping smart value investors.

What Happens When A Company I Own Gets Bought?

What Happens When A Company I Own Get Bought?

What if my valuation is even higher?

The quoted area below is the answer I wrote the the above question asked on Quora.

This actually happened twice to one company I owned stock in.

The first time was a complete low ball offer by the management/insiders of the company to go private.

I was so appalled by the low ball offer that I wrote about it on my blog saying all shareholders of this company should fight.

After this I got contacted by many other investors in the company and we banded together and rounded up as much support as we could to fight.

We did and we won because between all of us we controlled somewhere between 10 and 20% of the companies shares.

The low ball buyout offer was defeated and we won… At least in the short term.

Fast forward one and a half years later and the company proposes another buyout offer.  This time instead of the company itself going private it was going to merge with another private company.

I was going to write about it on my blog again and contact everyone we got together before to fight again until I read the offer…  The company learned from its mistakes of the previous time and upped their offer by 16% or $3 a share.  This wasn’t the big kicker though…

While the offer was upped it was still 10 to 20% below my conservative estimate of value.  So we planned to fight… Until I read the updated offer.

The company learned their lesson from last time…

Instead of trying to force shareholders to accept their “generous” offer like the first time, now they already worked with a significant “outside” investor who controlled ~40% of the companies shares who already agreed to the new buyout.

While this investor was never revealed it made fighting the upped – still lowball – offer pointless since they already had so much support.

Since our group would have wasted our time fighting we chose to accept the inevitable low ball buyout.

We were losing ownership of a great profitable company that had minor competitive advantages that should have continued to compound our investment well over time.

A perfect Buffett type of company to own for the long-term.  And we were getting bought out at an offer that was well below our conservative estimates of the companies value.

No we weren’t happy about it but this time there was nothing we could do.

I was proud that we fought the first time and helped shareholders earn ~16% more than the original ridiculous offer.

Long story short is that unless you’re a majority owner of a company you can’t do anything to stop a merger/buyout at a low ball price if the company enlists enough support.

If this does happen to a company you own you can do one of two things.  Fight or accept the buyout price.

If you want details on more of the specifics from the above example go to the following links where I wrote about extensively on my blog.

Hope this helped

Have you ever been through a similar situation?  If so how did you handle it?  Let me know in the comments below.

***

Remember if you want access to my exclusive notes and preliminary analysis you need to subscribe for free to Value Investing Journey.  And this isn’t all you’ll get when you subscribe either.

You also gain access to three gifts.  And a 50% discount on a year-long Press On Research subscription.  Where my exclusive stock picks are evaluated and have crushed the market over the last four years.

 

October Press On Research Issue – The Next GE?

October Press On Research Issue – The Next GE?

I don’t hype investments.  And my biggest fear while the investment newsletter was courting me last year was I would have to hype.  Use hyperbole to explain how you’d gain 10,0000% owning XYZ stock in the next three days.  Or even outright lie.

But I got lucky.

While I learned a ton of investment newsletters are terrible.  And will lie and promise returns they can’t hope to deliver.  The investment newsletter I worked for wasn’t one of those.

One of the biggest rules all analysts had to abide by was “Write about the biggest returns you want and the investment time frame you want.  But you have to be able to prove the investment thesis and returns out or we can’t use them.”  In other words don’t promise what you – or we in that case – can’t deliver.

I was relieved when I found out this was one of the biggest rules analysts had to follow the company.  And while I still don’t hype investments.  I learned it’s not hype if you can prove your thesis out.

Even though you might think a title of The Next GE? for an issue is hype its not. In the October 2015 Press On Research issue releasing today I prove that this company could become the next GE.

If this still isn’t enticing enough how about an excerpt from the upcoming issue where I lay the groundwork for my thesis.  The unfinished excerpt below is from the October 2015 Press On Research issue being sent out to subscribers today.

October 2015 Press On Research Issue

By Jason Rivera

Press On Research Volume 1 Issue 7

The Next GE Pays You A 10% Dividend Now

While We Earn 34.5% In The Next Year

If you’ve studied business and management you’ve read or seen GE from the early 1980’s talked about a huge amount.  And have learned how Jack Welch saved the company by introducing a radical concept.

GE was going to number one or two in each business it operated.  Or it was going to sell or close down the businesses.

This was a drastic – but necessary decision – because GE had become an inefficient bureaucratic nightmare.

Quoted below from Wikipedia.  Emphasis is mine.

“During the early 1980s he was dubbed “Neutron Jack” (in reference to the neutron bomb) for eliminating employees while leaving buildings intact.

In Jack: Straight From The Gut, Welch states that GE had 411,000 employees at the end of 1980, and 299,000 at the end of 1985.

Of the 112,000 who left the payroll, 37,000 were in businesses that GE sold, and 81,000 were reduced in continuing businesses.

In return, GE had increased its market capital tremendously. Welch reduced basic research, and closed or sold off businesses that were under-performing.”

And this changed fortunes for GE shareholders in a huge way going forward  During Welch’s tenure from 1981 to 2001 the company’s share value rose 4,000%.

That’s not a typo.

Whether you thought his slash and burn tactics were humane or not; for GE shareholders Jack Welch’s tenure was amazing.

And because of how well GE did during his tenure Mr. Welch is regarded as one of the best business leaders of the 20th century.

But why did this approach work so well?

Because it enforced strict competition standards within GE.  It forced every subsidiary to work towards becoming the best company it could be.

GE employees at all subsidiaries knew if they didn’t work towards becoming great.  And achieve those goals.  That its business may be sold to another company.  Downsized.  Or shut down.

This led to more innovation.  Better productivity.  Less bureaucracy and more efficiency at all subsidiaries and GE.  And this led to better margins, compounding of value within the company, and higher returns for shareholders.

But Press On Research is about small, safe, undervalued companies, which have management I can trust.  And we can’t buy GE from the early 80’s today.

So why am I talking about it in Press On Research?

Because today’s recommendation operates using Jack Welch’s rule of being number one or two in each business unit it operates in.  And because of a multi trillion trend within its industry could become the next GE over time.

But before we get to what the company is.  I need to tell you what it does.

Investing In Picks and Shovels

“During the Gold Rush, most would-be miners lost money, but people who sold them picks, shovels, tents and blue-jeans (Levi Strauss) made a nice profit.” Peter Lynch

In the August 2015 Press On Research issue I told you about a great company in the tech sector that works with some of the biggest tech companies in the world.

But it wasn’t a typical tech company…

It didn’t have a social network.  Introduce a new game or app.  Or even improve graphics or processing speed for games and computers.

It operates in what’s referred to as the picks and shovels part of the technology industry.

What does this mean?

The picks and shovels part of any industry is something that’s necessary to the survival of the industry.  But most people don’t think about.

To continue the example from the Peter Lynch quote above; when people flocked to the gold rush they wanted to get rich by focusing on finding gold.

But most people didn’t.  And the people who didn’t lost fortunes and became destitute.

The people who made out best during the Gold Rush were people who sold things like tents, jeans, picks, and shovels.

The same thing is happening in today’s tech arena…

Everyone is focusing on the next big app, game, or social network.  But most of these ventures fail.  And while we have greater social and economic safety nets today than we did in the 1800’s.  Vast fortunes are still being lost today chasing the quick cash.

That is unless you’re in the picks and shovels part of the industry.  And like (NAME REMOVED) from the August 2015 Press On Research issue.  Today’s company operates in that same necessary semiconductor and processor packaging industry.

Handle With Care Part 2

The number one tenant of value investing is buying companies selling at a discount to their intrinsic – or true – value.

This is done so that even when making a mistake in our analysis we still have a good chance of making some money.  Or at least not losing much.

Different value investors also incorporate things like profitability.  Management trustability.  Cash generation.  Trends.  Etc. into their analysis.

But the biggest thing for value investors after buying a company with a margin of safety is the ability to understand the business the company operates in.  And the stability of that industry.

These two concepts are why most value investors keep away from investing in the tech industry.  Where valuations are higher than average.  And the industry changes at a rapid pace.

The best kinds of businesses are ones that are necessary.  Today’s business is.

As with (NAME REMOVED) in August, today’s pick packages microchips and processors for the tech industry.  And as I said in the August 2015 Press On Research issue:

Companies manufacturing parts going into computers and other electronics have to make sure the parts work when finished.

Since most of these hardware manufacturers have assembly lines set up only to make chips, processors, and memory. They have to outsource the testing of their products to third parties

Without third-party specialists like our pick today testing and packaging products.  The part and product manufactures would have to test them in-house.

This would take money away from R&D for new products.

So not only does outsourcing save the tech giants and manufactures money and time.  But it also brought to life an entire specialized packaging, testing, and assembling industry.

Combined this industry does billions of dollars worth of work.  And saves the tech giants billions of dollars.

This industry will experience wild swings when giant chip makers like Intel and Micron slow down.  But it will remain necessary for the foreseeable future.

This is one of the reasons why I have no problem investing in “tech” for the second time as a strict value investor.  But there are a lot more great things about this company.

Today’s pick is a $640 million company.  It has better margins than (NAME REMOVED).  It could turn into the next GE in time.  It’s undervalued by as much as 40% now.  Will pay us a 10% dividend while we wait for its shares to rise.  And produces and has a ton of cash compared to little debt.

All the above combine to make this an ultra safe investment. None of this considers the huge trend that could explode its shares.  And turn the company into the next GE.

But before I tell you what the company is let’s do a quick comparison…

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