More meta on investing

I realize that I haven't discussed specific companies lately, but focused more on how/what/when/where/why to look for them.  This is more of the same, but hopefully it will be useful.  I don't fancy myself as much of a link aggregator, despite regarding my reading selection as highly a Williamsburg hipster does their "indie bands you never heard of" selection.  I've collected a couple different links/resources that one might find useful not for analyzing companies, but uncovering resources that will help you to invest.

One thing I've become a big fan of lately is adding things to my RSS reader (I use Google, I'm sure there are better more "techy" ones out there, its all the same).  You can add SEC filings by company, filing type, etc.  This is a huge time saver because you don't have to check for anything that is not there.  I've done it with all of my holdings.  You will get a by the minute update of filings.  Maybe I'm just an old fart who hasn't fully embraced web 2.0, but hopefully this is of some help to people.  I recently found this through Special Situations Monitor.  It doesn't look fancy, but a link under the "Links" section on his page has this.  It searches the SEC for any 10-12b filing, which is the documents for spinoffs.  It's nothing revolutionary, but adding this to your RSS can help you originate your own stock ideas as quickly as anyone else interested in the field.

On SSM, there is also this link which is a search for a Bloomberg writer who writes about bankruptcy issues.  For the layman, such as myself, scouring bankruptcy filings is neither fun nor entirely comprehensible.  While this may be an indicator to stay away, it can let you know when companies are edging closer to listing a post reorg equity where you comprehension will increase exponentially.  Other than huge fans of the blog, Warren Buffett and Seth Klarman, I suspect most readers don't have the resources to invest in distressed debt.  It's all interesting to follow nevertheless.  I'd also give SSM a ringing endorsement, as the author uses the above resources and usually has quite quick posts on many spin offs among other special situations.


Valued Uncovered had a recent post about his journey through the Pink Sheets.  It is along the lines of what I have written above.  It doesn't offer any specific investing ideas, but it does set up a blueprint through which one can find attractive investments.  It requires a lot more legwork, which may seem daunting.  It was well worth his time to go through this effort.  Some of the rewards included this:

• A business with 50 years of history trading at 1.5x EV/EBIT & less than working capital
• A sub $50m stock that grew revenues through 2008/2009 with an average FCF yield of 27%
• A $300m in sales company selling for 0.65x book value, with positive net income for 9 out of 10 years

Happy hunting.


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