If you have been so kind as to have read some of what I’ve written on this blog, you may remember that I had a chance to invest in a Quebec microcap trading at just two times earnings. Alas, for reasons I either can’t or don’t want to remember, I passed on buying PCI. If I had bought when I originally found the company, I’d be looking at almost a 300% return in under a year. If I had bought it when I had wrote about missing the opportunity, I’d still be looking at over a double.
Two months ago I wrote my thesis on Input Capital Corp, which essentially boils down to they are generating lots of cash but the business model seems to be misunderstood or otherwise not getting the full respect it deserves. Everyone seems to accept that mining streams are good models, and are safe ways to play precious metal prices. Far fewer seem to think that agricultural streams are a good way to play canola prices though. Continue reading “Input Capital Update”
Anybody who takes a look at my portfolio will see I’m a huge fan of Brookfield Asset Management. I’m a big believer in Bruce Flatt and know that I want him responsible for a lot of my portfolio’s returns. But BAM.A is huge. I salivate at the thought of having invested back when it was Brascan. Integrated Asset Management may give me a chance to turn back the clock so to speak.
Integrated Asset Management (IAM) is an alternative asset manager for institutions and private clients, just like Brookfield. Where Brookfield focuses on private equity, real estate, infrastructure, and renewable energy; IAM focuses on private debt, real estate, and infrastructure. Continue reading “Integrated Asset Management – A Tiny Brookfield?”
I love running stock screeners, which is even more proof of how fun I am. You get to find investments with the exact metrics you want. Want to find a company trading at 6.2x P/E, with a market cap between $550 million and $585 million, and debt/equity of less than 1? You can find it. Then you can do the rest of the research to find if it will also make a good investment. Continue reading “Perlite Canada – PCI”
In yet another example of “loaning money to Canadians or Canadian companies isn’t a real business and making money that way doesn’t count”, we have Callidus Capital. Now, to be fair, this is how Callidus explains their business:
Callidus Capital Corporation is a Canadian company that specializes in innovative and creative financing solutions for companies that are unable to obtain adequate financing from conventional lending institutions. Unlike conventional lending institutions who demand a long list of covenants and make credit decisions based on cash flow and projections, Callidus credit facilities have few, if any, covenants and are based on the value of the borrower’s assets, its enterprise value and borrowing needs.
Input Capital has a pretty simple business model. They pay farmers a certain amount of money up front, and then they get paid back in canola. A typical deal might be paying a farmer $240/MT of canola up front, and then paying them another $86 upon delivery. This means Input is buying canola for around $326/MT and selling it for much higher. They’ve realized average prices around $480, and the current canola price is ~$520. Input is essentially buying $5 bills for $3.20. Continue reading “Input Capital Corp: INP”