tag:blogger.com,1999:blog-2149523431587168680.post3776486184979572299..comments2024-01-16T00:12:23.220-05:00Comments on Oddball Stocks: Prodware and its 47% BV growth rate selling for 6.5x earnings and 70% of book, why?Nate Tobikhttp://www.blogger.com/profile/05660387777171986124noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-2149523431587168680.post-30478017904185316692014-09-22T07:54:42.111-04:002014-09-22T07:54:42.111-04:00Yes, Prodware makes their statements available on ...Yes, Prodware makes their statements available on their site. Most French companies do.Nate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-30546982156257772242014-09-22T03:48:58.205-04:002014-09-22T03:48:58.205-04:00Hey nate.
Do you know where can I get annual repo...Hey nate.<br /><br />Do you know where can I get annual reports or financial statements for French Companies?<br /><br />ThanksBlenderHunterhttps://www.blogger.com/profile/03909241926531996383noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-26532456927682467012014-09-12T16:49:45.587-04:002014-09-12T16:49:45.587-04:00Hello Nate,
I followed a course on value investin...Hello Nate,<br /><br />I followed a course on value investing on the site L'Investisseur Français and we actually studied that company as an example. The trap is in fact even more subtle than the share issuance process. Indeed, Prodware recognizes French tax crédits as sales, which is very aggressive. This allows them to show that their sales are growing and that they are profitable. But in fact, without those tax crédits, the core operations of the company are burning cash every year.<br />So in fact, Prodware is 100% dependant on the "good will" of the government. Without the sibsidies of the government, this company is likely worth 0 and, if the government stop subsidies, we can actually make a good short out of it.JPnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-48177552681163561262014-08-27T05:06:08.792-04:002014-08-27T05:06:08.792-04:00Hi, nice write up.
given your figures, the company...Hi, nice write up.<br />given your figures, the company behavior doesn't make any sense: repaying debt via equity issuance (in this ultra relaxed credit enironment), although the operating CF is impressive, is dumb and I cannot see how this helps the sponsor in any way (equity issuance costs, risk of negative newsflow from a failed transaction a.s.o. ).<br />It only makes sense, IMHO if the operating CF really is much lower than you believe, after all, can you be sure that those software development costs, which apparently have been capitalized, are not operating costs...Viennacapitalist.comhttp://viennacapitalist.comnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-48816507045687522732014-08-26T02:24:04.131-04:002014-08-26T02:24:04.131-04:00Hi Nate, why would you have thought France as bein...Hi Nate, why would you have thought France as being a good place to invest? The socialist government completely stifles innovation, making it very difficult if not impossible to rightsize a company, a problem which is worse, the smaller you are.<br /><br />Because of this backwards government (that has sacked the entire cabinet twice already) and the low productivity per worker, it isn't a surprise that France is quickly becoming the sick man of Europe.<br /><br />On top of this, they are the only advanced European economy with falling property prices and have a population demographic that exhibits high structural unemployment as well as social unrest.<br /><br />The market in which French companies operate in is a whole lot worse than most other European economies and as such, French companies rightly deserve a discount. The question is, how much is enoughRedRutnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-65713307202908071902014-08-25T18:32:31.137-04:002014-08-25T18:32:31.137-04:00In general, you can still find nice opportunities ...In general, you can still find nice opportunities in Europe. My best idea at the moment is a portuguese stock (I'm portuguese): Toyota Caetano<br />Here is my initial thesis:<br />http://keepthesnowballrolling.blogspot.pt/2014/04/a-decent-company-875-off-its-all-time.html<br /><br />and the most recent follow up:<br />http://keepthesnowballrolling.blogspot.pt/2014/08/toyota-caetano-2nd-quarter-preview-and.html<br /><br />They will report 1H2014 results this week.<br /><br />ps1: the stock is still trading around the same price I used on my initial write up<br /><br />ps2: also research the stocks in the other comments, I don't own them but have read good things about almost all of them (opportunity cost is a limiting thing)<br />rollingsnowballhttps://www.blogger.com/profile/10239211973692358487noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-67941060677145513282014-08-23T23:14:28.705-04:002014-08-23T23:14:28.705-04:00Boutman,
Thanks for the comment, also thanks for ...Boutman,<br /><br />Thanks for the comment, also thanks for the tip on Belgium! I looked at Oeneo a few times in the past, I believe I wrote about them as well. Belgium is a great market, same with the Netherlands. They're important countries in terms of history, but very overlooked currently.<br /><br />NateNate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-79345540953175175482014-08-23T23:13:07.066-04:002014-08-23T23:13:07.066-04:00Sutje,
Thanks, I also own Installux, and Precia. ...Sutje,<br /><br />Thanks, I also own Installux, and Precia. I've looked at Trilogiq a few times in the past without investing. These are all great companies that are worth owning.<br /><br />NateNate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-75754509016608717692014-08-23T18:58:17.053-04:002014-08-23T18:58:17.053-04:00Hi Sutje,
I'm french and I'm impressed by...Hi Sutje,<br /><br />I'm french and I'm impressed by your knowledge about such companies like those you own. All of them are on my watchlist since several months. If you like TFF, take a look to "oeneo", a little bit more expensive but with better hopes of growth.<br />By the way, don't forget to pay attention to belgium market, some small / medium caps are really interesting, for example Picanol (disclosure : I'm owner of this one) or Jensen (same profile as Precia in boring sector).<br /><br />Thanks Nate for your work<br /><br />Regards, BoutmanAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-61606183342487825532014-08-22T09:26:01.341-04:002014-08-22T09:26:01.341-04:00Hi Nate,
very interesting study (like always ;-) ...Hi Nate,<br /><br />very interesting study (like always ;-) ). I agree that French small caps are - even prices increased the last time - one place to find interesting investments. So I own several French stocks: Installux, TFF Group, Precia and Trilogiq. Especially Trilogiq (systems for lean management based on Kaizen) seems to me as an interesting invest at the moment. There is a big pressure on stock prices due to the much lower result 2013. I think (of couse do not know) that the down in profit is mainly related to the change of the main material from steel to graphit. I guess also 2014 will be tough due to higher costs and the start of selling the new products. But cash adjusted even on the lower profit base the cash adjusted P/E the stock is not expensive. Back to "normal" profit level, the stock is really cheap.<br />Some times ago MMI had made an analysis in his blog.<br /><br />Kind regards<br />SutjeAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-76494343183502527142014-08-22T01:38:14.856-04:002014-08-22T01:38:14.856-04:00Thanks for the wonderful case-study on investors&#...Thanks for the wonderful case-study on investors' share dilution, Nate. Please continue to publish such case-studies.<br /><br />Cheers!Samshttps://www.blogger.com/profile/13941457520640473102noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-7878338426884049892014-08-21T11:44:50.600-04:002014-08-21T11:44:50.600-04:00Thanks Dave, will look at Neurones.Thanks Dave, will look at Neurones.Nate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-66571505848798104332014-08-21T11:44:34.151-04:002014-08-21T11:44:34.151-04:00Really any screener works, FT.com, Screener.co, Bl...Really any screener works, FT.com, Screener.co, Bloomberg, CapIQ. Anything that has international stocks will work. I believe even Google Finance works internationally now.Nate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-36587491795174677832014-08-21T11:37:14.546-04:002014-08-21T11:37:14.546-04:00Hi Nate,
What screener do you use to screen for Fr...Hi Nate,<br />What screener do you use to screen for French stocks?<br />ThanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-18174814528672822402014-08-21T09:06:39.744-04:002014-08-21T09:06:39.744-04:00Hi Nate,
Appreciate the shout-out. For a better Fr...Hi Nate,<br />Appreciate the shout-out. For a better French IT stock, check out Neurones. Under 7x EBIT with massive cash hoard, outstanding long-term growth and no dilution.<br /><br />Dave WatersAnonymousnoreply@blogger.com