Tuesday, November 18, 2014

Punching Above Its Weight, Little-Known Pointer Telocation Has Multi-Bagger Potential

Disclosure: Long PNTR. Please read our full disclaimer.

  • Pointer is a high quality business with recurring revenues, growth, profitability, and scale.
  • Pointer trades at a low multiple in a growing industry that has high multiples.
  • Pointer’s growth and margin plans, newly invigorated investor relations efforts, and acquisition potential are reasons we expect Pointer’s share price to appreciate materially.
  • We provide an interview with the company’s CEO.
Introduction. Pointer's (NASDAQ: PNTR) modest market cap of $57 million makes the company easy to overlook by investors. But those who take the time to look behind the market cap will find a profitable and growing company with over $100 million in sales, $9 million in cash, and innovative technology in a hot industry - and it just happens to trade at around 7x earnings.

You can read our full article here.

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Tuesday, September 30, 2014

The Warren Buffett Of Flavors

Disclosure: Long Frutarom (the Tel Aviv listed shares). Please read our full disclaimer.

Ori Yehudai of Frutarom may be the best manager at the best company you never heard of.

Frutarom's CEO, Ori Yehudai

For the past twenty-eight years, Ori Yehudai has been quietly building an empire. Out of a nondescript office near the Mediterranean Sea in Herzliya, Israel, Yehudai has grown Frutarom's sales from $3.5 million in 1986 to $792 million in 2013, adjusted for acquisitions. He's targeting crossing the $1 billion mark in the near future. Although few outside the industry have heard of Frutarom, today it is one of the ten largest flavor and fine ingredients companies in the world. Under Yehudai's leadership, investors in Frutarom's 1996 IPO have made over 110x their money.
You can read our full article here.

Legal Disclaimer      Twitter: @lazarusip

Catching Up With Barfresh's CEO: Others Can Only Dream Of What We Have

Disclosure: Long BRFH. Please read our full disclaimer.

  • Barfresh has been quietly executing on its business plan.
  • Barfresh’s agreement with Sysco, the largest food service company in the country, is a game changer.
  • We provide an update interview with the company’s CEO.
In December of last year, we explained why we invested $2 million in a tiny, early stage company called Barfresh (OTCQB:BRFH). Since that article we have added to our investment in the company. Barfresh remains in the risk portion of our portfolio, yet we are excited about what this company can turn into. We've heard more than one investor call this company the next Green Mountain (NASDAQ:GMCR).

 You can read our full article here.

Legal Disclaimer      Twitter: @lazarusip

Thursday, July 31, 2014

Where Almost Counts: Horseshoes, Hand Grenades, And Silver Bull

Disclosure: Long SVBL. Please read our full disclaimer.
  • Silver Bull is one of the largest and most attractive independent silver resources around.
  • The company has been advancing towards production and silver prices have been moving up, yet the stock price has moved down.
  • Silver Bull has over $2 billion worth of zinc which it gets little credit for. Zinc is near a 3 year high.
  • We argue that even critics would have to agree that this company is worth multiples of its current market cap.
 You can read our full article here. 

Legal Disclaimer      Twitter: @lazarusip

Tuesday, July 15, 2014

Ur-Energy: A Uranium Giant In The Making, Part 2

Disclosure: Long URG. Please read our full disclaimer.
  • Since December, Ur-Energy has transitioned from a development company to one of the largest domestic producers of uranium, with capacity to produce 20% of US supply this year.
  • The company has materially added to its resource, posted two quarters of solid production, and given strong guidance through 2015 yet the stock price is unchanged.
  • We explain the upside potential that convinced us to become a top shareholder of the company.
  • We provide an interview with the company’s Chairman highlighting progress at the company.
You can read our full article here.

Legal Disclaimer      Twitter: @lazarusip

Monday, February 24, 2014

Cbeyond Won't See Beyond 2014

Disclosure: No position in CBEY. Please read our full disclaimer.
Cbeyond (CBEY) has some challenges, but it's too cheap to ignore. This telecom services company has had trouble growing and differentiating its technology, but still offers nearly half a billion dollars in revenue, a clean balance sheet, and an attractive customer base. It is also free cash flow positive and rather cheap, with a multiple of 2.9x EV/EBITDA. In November 2013 the company announced that it was forming a committee to explore strategic alternatives, which may include "a business combination or sale of the Company." We wouldn't be surprised if someone bit.

Click here to keep reading.

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Monday, January 6, 2014

SuperCom CEO: We Just Tripled Our Revenues And We're Only Getting Started

Disclosure: Long SPCB. Please read our full disclaimer.

Every once in a while we walk out of a first meeting with a management team and are interested in immediately buying stock in the company they run. That was the feeling we had the first time we met with the team from SuperCom (Nasdaq: SPCB). We were so intrigued by our initial visit that we followed up the next day by returning to their office for a second meeting. Weeks later we became one of the company's largest shareholders.

What we saw, and still see, in SuperCom is the rare combination of:

  • a highly incentivized management team with a track record of building shareholder value
  • a corporate turnaround to which the market was giving no credit
  • an acquisition (now complete) of the company's largest competitor that nearly triples the revenue base and grows EBITDA 2.5x
  • a recurring revenue model with long term visibility
  • a loyal customer base that's extremely sticky
  • growth opportunities that offer the prospect of multiplying the top line
  • a very low valuation

Legal Disclaimer      Twitter: @lazarusip