We're posting up notes from the 2013 Value Investing Congress in New York. Next up is Chris Mayer of Capital & Crisis. He presented "People Not Personnel - The Case For Owner Operators" and pitched .
Chris Mayer's Value Investing Congress Presentation
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Newsletter writer. 16.7% annual return since 2004. 12.3% annual on Special Situations
(small cap names) since 2006.
3000 public companies,
ahead of the tax increase, only 225 paid special dividends. They had an average of 25% insider
ownership!
Likes small banks:
PEOP, FXCB, VPFG, RCKB,
IROQ, MCBK, MLVF, HTBI, BNCL, NFBK, FCNCA. (A lot of recent thrift conversions). Typical process: Mutual company goes
public, with lots of cash, buybacks, pays dividends, sell to acquirer at a
premium.
Charter Financial (CHFN)
Small,
22.7M shares out, $10.29 per share.
$12.05 TBV. P/TBV is 85%,
reasonable. Based in Georgia - weak
market. They've bought 4 failed
banks. Similar plays: NFBK, BNCL.
Pulse Seismic (PSD)
Traded in Toronto. Based in Calgary, owns
seismic data which is essential for oil and gas E&P companies. Canadian maps.
Says earnings understated
because the amortize the survey costs. Trades for 10x FCF, during
low natural gas prices.
Shareholder friendly ownership.
Main downside is lumpy/unpredictable data sales.
Be sure to check out the other presentations from the New York VIC here.
