We're posting up notes from the 2013 Value Investing Congress in New York. Next up is Chris Mittleman of Mittleman Brothers. He presented "Severely Undervalued Stocks in an Unappealing Market" and pitched Azteca and CMIC Holdings.
Chris Mittleman's Value Investing Congress Presentation
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Private equity mentality. Last year he pitched REV and CKEC, went up about 20%
Azteca
Trades only in Mexico. Second largest TV channel
in Mexico, 30% share. High barriers to entry.
In 2009, Mexico GDP dropped
6.5%. Sales up 1.6%. CBS down 6.7% during same period.
Stock is cheap because of
bad programming. So there is a cycle, not based on the economy, but rather on
the programming cycle. Losing share.
CAPEX burden near term on digital
conversion. CEO has a checkered past,
including sec lawsuit.
40% up from here, 10 peso,
8x EBITDA.
Japanese Company: CMIC Holdings
They are the first CRO in Japan (contract research organization). CEO owns 42%
of stock.
2309.jp on Bloomberg.
Negatives are western CROs
are gaining share from them and the other smaller players. They also missed
last quarter.
Says 86% upside. May need
takeover to work.
Be sure to check out the other presentations from the New York VIC here.
