Six Days Until Release of August Press On Research Pick

We’re now six days out until release of the August Press On Research pick.  And its time to release an excerpt from the issue.

Since I was on vacation I’m a bit behind this month.  So keep in mind with the content below that this is an unfinished, unedited excerpt from the issue.  And since I’m still writing this one the content will change.  But the valuations and numbers are finished.

“On two small islands a small tech company is providing some of the biggest tech names in the world with a necessary service that most of us never even consider.

When we think of tech we think about Intel’s (INTC) microchips and processors.  Google’s (GOOG) search engine and Android.  Microsoft’s (MSFT) operating system.  Apple’s (APPL) phones, tablets, and other gadgets.

Or we may think of Facebook’s (FB) or Twitter’s (TWTR) social networking “new tech.”

The tech industry is a wasteland for value investors though.  Most of us stay far away from it.  And I do in most cases too because of how fast things change in this industry.

But today’s recommendation isn’t in the tech hardware, software, or app businesses.  Its in a more stable industry.  And the service it provides is necessary for industry giants.

Not only does it meet my strict criteria for valuation, safety, and quality.  But one of the biggest and best value investors in the world owns a significant portion of the company.

I don’t start researching any company based off other prominent value investors owning portions of companies.  But when I read in  company financials that a prominent value investor owns a company I’m considering recommending its always something I love to see.

And I’ve invested alongside this prominent value investor one time before…

This led to a 50+% gain for the portfolios I manage.

The last time it was a ~$20 billiion company going through a special situation.  The company had great margins.  A lot of cash.  A lot of debt.  And was undervalued by a substantial margin to my conservative valuations.

This time it’s a ~$450 million company about to go through a potential special situation.  The company has great margins. A lot of cash.  A lot more debt than I would like from a company this size.  Has better margins than its bigger competition.  Is more undervalued than its competition.  And it’s undervalued by a substantial margin to every one of my conservative valuations.

But before I tell you what the company is I need to tell you how it does business.”

To see the rest of this issue.  What the company is.  And the four other Press On Research picks up to this point.  Subscribe here.

And remember Value Investing Journey subscribers get a 50% discount on a Press On Research subscription.  To get this discount subscribe to Value Investing Journey here.