tag:blogger.com,1999:blog-2149523431587168680.post4566720862600159845..comments2024-01-16T00:12:23.220-05:00Comments on Oddball Stocks: First Aviation, a catalyst wrapped in a mysteryNate Tobikhttp://www.blogger.com/profile/05660387777171986124noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-2149523431587168680.post-59746909485156281312014-05-17T12:21:56.271-04:002014-05-17T12:21:56.271-04:00FAVS just announced a going-private transaction th...FAVS just announced a going-private transaction through a reverse stock split. Minority shareholders are going to be cashed out at $8.40/share. Do you still have a position in this?PJKnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-44910315169090255502013-05-28T12:52:29.741-04:002013-05-28T12:52:29.741-04:00The report is out now....First Aviation Reports Pr...The report is out now....First Aviation Reports Profitable First Quarter 2013....what is your read now?? Thanks jhhttps://www.blogger.com/profile/00332221286312076092noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-37999042946349188482013-04-04T16:44:19.094-04:002013-04-04T16:44:19.094-04:00Nice find, truly looking under the rocks ;) to fin...Nice find, truly looking under the rocks ;) to find this info. The explanation of the $11.5 write-down raises some questions about what book value of the remaining business will be. Will be answered when they publish the 2012 report. But, you're right, the net result is that the business will be better positioned and should give management liquidity for value-creating (hopefuly shareholder friendly) moves.undertherockstockshttps://www.blogger.com/profile/06223086052091925315noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-17537468552867068802013-04-04T15:38:10.300-04:002013-04-04T15:38:10.300-04:00The sale price is public but hidden…guess it's...The sale price is public but hidden…guess it's time to expose it. Since TATT owns such a large stake in FAVS they filed an 8-k regarding the sale. In the 8-k they have the sale price ($16.9m) and note that $15.9m of the sale proceeds will be used to pay down debt.<br /><br />I tried to contact the CFO but have heard nothing back.<br /><br />I have no idea what things look like going forward. I want to see what assets they end up divesting with API and how the business looks once this is done. I like that debt is paid down and they're left with profitable divisions as well. I think this is an all around good transaction.Nate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-70384346617243522522013-04-04T15:33:16.842-04:002013-04-04T15:33:16.842-04:00Nate - I've been looking out for 2012 financia...Nate - I've been looking out for 2012 financials from FAVS to verify the API sale price. Did you get the $16.9m figure from the company (that would be a pretty nice return for the business)? Any other indication from the company on what the uses of cash may be after $4.2m debt is paid (acquisition, buyback, dividend, etc)? undertherockstockshttps://www.blogger.com/profile/06223086052091925315noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-13460050416228481512013-03-29T09:41:56.391-04:002013-03-29T09:41:56.391-04:00Agreed - I occasionally post at undertherockstocks...Agreed - I occasionally post at undertherockstocks.tumblr.com and @undertherock3 on Twitter. Have a great weekend.undertherockstockshttps://www.blogger.com/profile/06223086052091925315noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-83199889165168911142013-03-28T23:12:19.483-04:002013-03-28T23:12:19.483-04:00Thanks for the link, very interesting indeed. I t...Thanks for the link, very interesting indeed. I think this is a fascinating story, I originally purchased on a safe speculative basis, but the more I research the more I like this.<br /><br />The company sold API for $16.9m, they're delevering, and they have a management team in place that knows about value creation, and isn't afraid to sell off divisions. At $10 this is almost a no-brainer investment, there's a tangible 50% upside at an absolute minimum, plus whatever operational changes the management can put in place.<br /><br />Glad you found me, thanks for the insightful comments, hope you'll continue to contribute!Nate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-30663672089699119212013-03-28T22:35:53.270-04:002013-03-28T22:35:53.270-04:00Turns out First Equity is the main investor in FAV...Turns out First Equity is the main investor in FAVS. The manager of First Equity is also the Chairman and CEO of FAVS. Despite the close ties (and even shared offices) between the two companies, I believe management is capable, and probably fair and ethical.<br /><br />First Equity's corporate presentation is quite impressive: http://www.firstequity.com/uploads/FEG_overview.pdf <br /><br />I'm relatively new to your blog and the value / special situation community. Look forward to sharing ideas and analysis with you...undertherockstockshttps://www.blogger.com/profile/06223086052091925315noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-56106359216887021842013-03-28T04:57:07.891-04:002013-03-28T04:57:07.891-04:00Rule 1 : Follow the Gurus
rule 2 : if Mr. Market s...Rule 1 : Follow the Gurus<br />rule 2 : if Mr. Market serves you at "cheaper than Guru's buy price" , take it<br /><br />1. You seem to be a guru at this .... <br /><br />2. Part a. <br />the market is close to where you bought <br />http://investing.money.msn.com/investments/stock-cash-flow/?symbol=FAVS<br /><br />2. Part b... will it get well below where you bought ?? hmm then it MAY be worth my 1% or so ....<br /><br /><br />TIA<br />Regards<br />Subuhttps://www.blogger.com/profile/05733514336560466306noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-74192497573860574572013-03-27T15:21:39.368-04:002013-03-27T15:21:39.368-04:00Sorry for the slow response..
I saw the note when...Sorry for the slow response..<br /><br />I saw the note when I was reading their reports, I'm split on it. Part of me is glad that the CEO is willing to contribute cash, but part of me is also concerned that he got a really nice deal. If I remember correctly these guys aren't making a ton of money, I think the CEO makes $190k.<br /><br />I'm not sure if the investment was a cautious sign of faith in the company, or they needed the cash at the time.<br /><br />What I'm really impressed with is the current management's team's focus and desire on cleaning up the balance sheet. They're delevering fast and getting rid of API the one marginally profitable division. I don't know where things go from here, but I'm happy to wait.Nate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-63530474180916288572013-03-27T15:17:53.461-04:002013-03-27T15:17:53.461-04:00The position is roughly 1%, and based on the $16.9...The position is roughly 1%, and based on the $16.9m sale price against my $9m purchase mcap I think this is probably worth $25-30m. In other words about 2.5x what I paid.<br /><br />I like to think of research time value, I probably spent two to three hours researching this. If I get 2.5x on my investment the value of my time spent researching expressed at an hourly rate will be close to 50x what I make at my day job. <br /><br />Granted I won't retire on this sale lots of returns like this over the years does add up, that's always the goal!Nate Tobikhttps://www.blogger.com/profile/05660387777171986124noreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-14159403508103789522013-03-27T15:13:13.938-04:002013-03-27T15:13:13.938-04:00Great work Nate, and congrats. The question I hav...Great work Nate, and congrats. The question I have for you is whether you put enough money in it to make it worth your time?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2149523431587168680.post-47422841185755078772013-03-22T10:20:23.050-04:002013-03-22T10:20:23.050-04:00Nate - nice find. I agree with you that there is ...Nate - nice find. I agree with you that there is no secret to finding interesting opportunities. Takes discipline and a sharp eye.<br /><br />I'm intrigued by the opportunity (also noticed that FAVS price rose from $9 to $11 already). How concerned were you about the $3m note provided by the CEO to the company July 2012, and the detachable warrants for 107k shares at a strike at $7? <br /><br />FAVS price at the time was around $5. In hindsight, seems like a GREAT deal for the CEO, but not such a great deal for shareholders. Do you think this says anything about possibility of future dilution to shareholders, which would in-turn affect the margin of safety?undertherockstockshttps://www.blogger.com/profile/06223086052091925315noreply@blogger.com