Member Info for rob229

I note that, with regard to CRV, you posted on its bb about the company. You seem to see value in the share. You studied CRV in considerable depth, and you seem to have determined, at least for the moment, that its shares in the current range meet a criterion or perhaps more than one criterion. If I interpret your posts correctly, you may be pleased that the manager's fee has been recently paid in shares of CRV at a per-share valuation that is greater than the CRV share price. Lest I say anything inaccurate, I will refrain from writing about other virtues which I perceive. Note also that I am not posting on the CRV bb. I am generally happier just to read what others might say about a given company, and I then proceed to do some research myself. With some exceptions, I find myself not so interested in learning whether others on the bb's agree or disagree with a buy decision. I am not looking for adherents, and I think that it is generally established that share prices are not influenced by the opinions posted on bb's. I am willing to wait quietly to see whether this or that hypothesis is valid. I am posting here today about CRV mainly to mention that, to my recollection, 09.05.2014 is the 120th anniversary of the birth, in London, of Benjamin Graham. (With his parents, he emigrated as a young child to the US.) It is next to impossible to find in the current era any shares that seem to be priced in accordance with the value-investing principles that Mr Graham applied. I am speaking of principles that allowed him to become both a highly regarded securities analyst and a very prosperous investor. I am not saying for sure that CRV is a company of which Mr Graham, if he were in our midst today, might approve; but I think he might give the company a careful look. I find in the US in this 21st century that many people assert that a given share represents a Benjamin Graham-type opportunity, but I have found that this is frequently untrue. Mr Graham was interested in those shares which, on the basis of tangible book value, were at a discount. Very few such shares are around today. There are many reasons why this is true. Broad access to data among the investing public and the large size of the securities-analyst community are (I suspect) two reasons that shares seldom trade at meaningful discounts to tangible book value. Please accept my cautionary closing comment. I hope not to be regarded as a CRV ramper. I know from experience that the shares of some companies will remain unloved for a long time. To my consternation and notwithstanding the expenditure of conscientious effort over a considerable period of years, I remain unable from time to time to prevail upon my crystal ball to show me the future. And sometimes, I fail to apply value-investing criteria with the rigor which ought to be applied. Good luck to all who may read this message. Rob22

Good evening sir, I enjoyed reading and evaluating JQW last evening. I too believe in diversification, so I am in accord with the strategy that you espouse, i.e. not to invest more than 5% in a particular share. The maximum percentage of my portfolio in the shares of a quoted company may be a little lower than yours, JQW is not the usual kind of company in which I invest, but I see there a remarkably modest PE ratio (barely above 10), and the ratio of price-to-sales appears very reasonable for this type of company. I see a tight share structure, and one member either of the Board or the management team (I forget which) is a Goldman Sachs alumnus. To me, both the tight share structure and the Goldman Sachs connection are genuine attributes. An individual who has the Goldman Sachs pedigree would, in my experience, be very likely to know the difference between the real and the unreal. Such individual would also assure himself that he is aligned with ethical people. (Some reader of this message may chuckle about the preceding sentence, but I say it with complete seriousness. Maybe there is a rare exception to the rule; but the rule is, in my opinion, just as I have stated it.) So to make a long short, I entered that which I call an "overnight order" in JQW shares. The execution which took place at 8:00 in London is my purchase. I think it is noted on this site as an uncrossing trade. I think I understand the meaning of the term "uncrossing trade," but I am not sure. I do know that, thanks to you, kind sir, I am the proud beneficial holder of 1800 shares of JQW. Let's see how we do. If you like deep value stories, I will pass along Craven House Capital, CRV. I urge the usual words of caution, but CRV looks good. Very unexciting, but there is a catalyst in that a business called Pressfit, which CRV controls, is supposed to be demerged soon. (In this country, we usually say "spun off," but I think that English investors say "demerged." "When in Rome, do as the Romans do.") I did not look at Hydrodec yet today. I don't know whether it closed higher, lower or unchanged. JIL may have closed a tiny bit stronger than yesterday, but I may be seeing nothing other than a last trade that was a buy and not a sell. Kind regards and thank you again. Rob229

I had forgotten to check this bb until this morning. I see your nice reply. Today, another good day for TCM despite generally lackluster activity in the markets. I feel encouraged. I often allow my winners to run. My problem is that I sometimes allow the losers to run too. Thankfully, I was not swept up in QPP. I hope that, if you have a position in QPP, it is not significant. Before writing today, I should have clicked on "OliG" in the hope of seeing some other shares that are of interest to you. Maybe you will just tell me what you like. I am intrigued by JIL. I own some, and I might like to increase my holding. I wonder whether you know this company. I like it because, in order to be successful in its niche, management at JIL requires quite specialized expertise. I have the impression that the JIL directorate possesses the requisite expertise. I also like the idea that JIL has an inclination to share its success with the public shareholders. In other words, the dividend is significant, though subject to increase and (I suppose) decrease. Maybe you will think JIL is worth a look. I am always willing to share ideas with agreeable investors. I also hold SIM. Another company with management in Israel. The management seems qualified, resolute. I do not own HYR, but it is a story that has piqued my interest. By the way, I write from across the pond. I like to make this disclosure so if you see in a message from me that I have spelled a word like "favor" without a "u," you will know why. I wish good luck to all TCM shareholders. Rob229

Hello Ian, I write from the US. I do not claim to possess knowledge about the right of the taxing authority in Israel to withhold 25% of the dividend that SIM may pay to an ISA account holder. In the US, I generally prefer not to hold shares in the retirement-type account known here an IRA ("Individual Retirement Arrangement") of dividend-paying companies that are incorporated outside the US. Outside of my IRA, I hold shares of numerous non-US companies because the amount which is withheld and paid to the foreign taxing authority is a credit against US income tax that I otherwise owe. I am not able to claim on my income tax a credit for foreign income taxes withheld from my IRA. So I would tend to doubt that shares of Simigon held by you in an ISA will be insulated from foreign-tax withholding. I realize that there is something inequitable about the foregoing. So I hope that, for UK taxpayers, the Inland Revenue equalizes the effect of the foreign-tax withholding in ISA and non-ISA accounts. In other words, I hope that the credit is allowed to you in the event that you cannot obtain a waiver of the withholding of the 25% of the SIM dividend. I would be pleased to know what you find out. Good luck to all. Rob229

Hello to Mr OliG, I am in accord with your message of 17.04.2014. Not too many of my British shares are in the blue today, so strength at TCM is very nice to see. Good luck to all TCM investors. Rob229

(from preceding message, posted at 23:36) In the past, I have read some of the novels of the distinguished Victorian, Mr Anthony Trollope, who is plainly less well-known here than in England. Although I do not understand all of the political aspects of the novels of Trollope, the subtle, recurring Trollope theme of propinquity is quite special. Why do I make this point? I am struck by this coincidence: Out of the dozens of shares that I have evaluated, I mentioned JIL to you. And your dad knows the chairman. Maybe this is not an endorsement of JIL per se, but JIL may well be a sound investment. I sense that JIL are quite careful about the decisions to invest in various litigation matters. Getting back to the great author, Mr Trollope, my thinking is that a QC who happens to know the father of a brainy young poster justifies, at least to a limited extent, the confidence of this potential investor. That is all I should say about JIL for now. ----- On Monday in London and on Tuesday in Sydney, OEX (Oilex) had a little pop. I would have liked to see a little follow-through in London today, but I think that it is fitting to acknowledge here that "Rome wasn't built in a day." A favorite expression of mine. ----- Market sentiment in NY seemed to repair itself on Tuesday afternoon after much weakness late morning through lunchtime. I think the pundits would describe the trading day here as choppy. I wonder whether it is a good sign that the conventional wisdom seems to be that a correction is in view. I never short stocks because it calls for a discipline that is different from the one which I practice, but I found a recently floated share that looks expensive to me. Called Venture Life Group plc. I think the symbol is VLG. I think the market capitalization is about 27 million GBP. The offering document is replete with references to prospective products and revenues, but the prospects seem a little too unclear to me. Only if you have a little extra time, I would be pleased to know your assessment. Rob

Hi Dan, I am glad that my short disquisition regarding A/R made sense; but a small clarification might still be warranted. Something that you had asked called upon me to explain as follows: that revenues are customarily booked onto the income statement when (a) services are provided and when (b) goods are shipped. If financial reporting were a little stricter, companies would not book revenues until the payments arrive. But companies never postpone the booking of revenues until the payments arrive. Because revenues are booked upon the occurrence of the above-described (a) and (b), it is a little aggressive to analyze a balance sheet as though 100% of A/R will be turned into cash. Most companies have some small percentage of A/R that will in due course be written off. I should have drawn your attention to this point when I was writing. ----- I see the pop in SPSY. I looked at this company because it was the subject of one or two General Chat posts of yours. I do like the quiet corners of the market (e.g., Camellia plc), but I think we both know that the quiet shares can stay quiet for a long time. So I was indecisive re SPSY. ----- After I wrote to you very late last night (Tuesday a.m.), I stayed up a little more. My buy order for ACTA was the first execution of 15.04.2014. Then I quit for the night. Now that British summer time has started, the difference is back to five hours. On Monday, I had tried to buy some ACTA a bit below 7p, and when they would not execute my order, I decided that I am willing to pay the offer price. I think some orders were executed @7.10p or 7.15p after my buy. In the long run, this may mean nothing, but there is something about ACTA that feels good to me. Within the past six months, I have watched two comparable, clean-energy Toronto shares (viz., Ballard Power and Hydrogenics, symbols BLD.to and HYG.to, respectively) do very well, so I am thinking that ACTA may soon have its day. But very speculative. So please study before making any decision. ----- I am struck by your statement that your dad knows the JIL chairman. I remember that the chairman is a QC named Lord Daniel Brennan. I think it needs hardly be said (in harmony with one of the past discussions between you and me) that a prominent individual such as Lord Daniel Brennan is likely to try hard to ensure that JIL continues to be properly managed. That does not guarantee that the shares will soar, but it means to me that the shares are likely not to be brought low by nefarious activities. I do wish that, by reason of the risky nature of the investments held by JIL, the shares were quoted at a discount to tangible book value, but I still like them. I will make a comment that might seem faintly off-topic, but it really is not off-topic. (continued)

to expand at a faster clip than revenues have expanded. Occasionally, expansion of A/R could be benign, but the reason that it is a danger sign goes like this: say a manufacturer is selling clothing to a merchant; say that the customary sales terms are "60 days, net"; say that the clothing does not seem to be selling to the retail purchasers in the expected volume; then the merchant may either refuse to pay (requesting the manufacturer to take it back) or the merchant will be unable to pay. That is a bad situation for a manufacturer to be in. Maybe he will have to engage a lawyer to sue the merchant, and maybe the merchant will defend the lawsuit by saying that the clothing was unsaleable. The expanded A/R might turn into a bad debt which will eventually be a write-off, i.e. resulting in a reduction in shareholders' equity. Manufacturers usually don't mention that A/R has expanded too rapidly. But if year-over-year revenue has risen only 5%, then why should A/R have risen 10%? If the revenue rise is a valid indicator that the manufacturer is marketing desirable merchandise, the merchants should be happy to pay for it promptly in the hope that the manufacturer will replenish the merchant's inventory with interesting new inventory. When merchants promptly pay, then A/R should not, in my opinion, rise any faster than revenue. It's all a big cycle, you see. A/R that rises to a greater extent than revenue is (to me) a cause for caution. Remember, my friend, revenues appear on the income statement. Accounts receivable appear on the Balance sheet (sometimes called "Statement of Financial Condition"). I hope that my explanation helps you a little. On your side of the pond, everyone is probably waking up or has already woken up. Over here, past my bedtime, but I did at least wish to correct my error re CAP and ACTA. Over the weekend, I did find an interesting income share, JIL, but maybe I should have spotted it earlier. Seems to be a rather a suitable share for people who are conversant in corporate litigation. Let us hope that Tuesday is good for all. Rob

Hi Dan, In the event that there is criticism here about off-topic discussion, I will mention a good alternate bb: CAM. This is Camellia plc, which is in part an agribusiness operation. Very old-line company, including tea estates in Sri Lanka. I have forgotten how long CAM has been incorporated, but I think it is well over 100 years. I am the only poster there in the past six months or more. I was drawn to the company ages ago when a famous US commodities investor (who has since expatriated to Singapore) mentioned it in the Barron's Roundtable, an annual discussion by some distinguished investors. I think CAM was quoted ca. 30 pounds then, today it is quoted ca. 100 pounds. Your friend is a proud holder of 35 shares of Camellia plc. Every evening when I fix a cup of tea, I think maybe I am contributing in a token way to the cause of the company. For now, no need to migrate to CAM unless you are so inclined. I look at the share quote each day. I think the annual financials are due soon, but to be completely candid, I forget. Thank you for your comments about VLK. I am a bit surprised that you prefer to wait for a break-out. I am not saying that that is unwise. I just think of you as more a fundamentals-based investor than one who adheres to technical analysis. I try to be receptive to both. Maybe one should wait for a break-out at VLK. I don't know. I did get the impression that the PB acquisition adds a favorable dynamic to the company. I made a mistake when I mentioned CAP. I already own some. The company about which I had intended to ask you -- the company that was founded by a gentleman named Paolo Bert -- is called ACTA, which is both the name and the symbol. The company's operations are in the north of Italy, but I am quite sure it is quoted only on AIM. It seems very promising to me. One of the posters on the ACTA board has attached a youtube link to a forum in Hannover, Germany which was attended by Mr Bert on 07.04.2014. I do not claim to be able to understand the science. But I thought that someone made a shrewd observation yesterday on the ACTA bb. That the market cap for ACTA is about the same as that for a lovely townhouse in London, 12 million GBP. I think that, when one starts to evaluate the prospects for ACTA, it does not seem to be trading expensively. On the other hand, maybe the townhouse is overpriced, I am not sure. Happy to tell you what accounts receivable are. They are listed on financial statements as current assets because the expectation is that they will be turned into cash within 90 days. Generally abbreviated in the accounting and bookkeeping worlds as A/R. The idea is that customers purchase goods and services on the understanding that the customers will pay with reasonable promptness. If the goods and services are as promised and if the vendee is reputable, the A/R will indeed become cash. But A/R is generally not expected (continued)

Hi Dan, No apologies. It is fun to read your letters when you get the chance to send them. In large measure we are in accord that China stories are very risky. I did not know that one of the companies mentioned by me pays dividends in shares only (so-called scrip dividends, I guess). Anyway, my reason for staying away is that the accounts receivable in both CAMK and NBU seemed to be growing faster than revenues, and that is for me a cause for caution. I own a couple of China plays quoted in Canada; my paper profits to date might allow me to splurge on a small serving of Won Ton soup in a Hong Kong restaurant, and that is all. So I am not adding to my China plays. I am not sure whether you have taken a position in VLK. I recall reading a post of yours about this company. Then, I was reading on www.equitydevelopment.co.uk a quite good write-up of this company. I do realize that that website publishes research reports that are funded by the quoted companies themselves, but I still think there is integrity in the process. I would add here a link to the VLK report, but I am not sure I would be successful in this endeavour. I would welcome your thoughts on VLK. Also on equitydevelopment.co.uk, there is favourable coverage about CAP. This is a hydrogen-clean energy story. The founder, Paolo Bert, has a very substantial holding, and he added shares last year at the time of the place. In North America, there have been spectacular gains in the share prices of some similar companies, so I am asking myself whether CAP may be the next one to blossom. CAP is run from the north of Italy, but it is AIM-quoted. I concede that CAP is speculative, but it offers to the potential investor much more than a concept. The company have some revenues, and I think they have some form of cooperation agreement with Ballard Power, which is a Canadian company the shares of which have soared in price. When will you receive news of your results on the insurance broking exam? I understand that you are a little apprehensive, but my crystal ball is showing me something good. Did you notice that this board is getting a little busy? A migration might be needed before long. Regards, Rob

Well, one thing is quite clear: by reason of the limited universe of posters here, no one is likely to complain about an off-topic discussion. Nice to hear from you. I had noted shortly after your post of 14.03.2014 that, by reason of something that you had written here about MOS, someone criticized you on the MOS bb. In reliance on a phrase which lawyers sometimes employ, I wondered whether the criticism on that bb had had a "chilling effect" on your inclination to write here. More importantly, I wondered whether the continuing weakness at MOS may have caused you to exit that share. I certainly understand that the drip-drip of a declining share takes a toll on one's sense of mastery, and sometimes it is better to bid adieu. I note that you are a proponent of SFE, and it is performing. I am delighted about that. I am not sure I have any useful wisdom to impart this morning. I continue to keep an eye on many shares. I bought some SBS on 03.04.2014. I had considered this company last month while it was quiet in the 12p range, but I just did not make a decision. I like the story. I have a favorable view of the directorate. We shall see. One company that I think I mentioned to you a few weeks ago seems to be moving in a good direction, Fox Marble, symbol FOX. I also think I mentioned CRV, which has performed poorly. I wonder whether (like most on both sides of the Atlantic Ocean) you stay faraway of China shares. Everyone is suspicious of the accounting, but I ask myself whether the very low valuations serve in an adequate way to compensate an investor for the accounting risk. CAMK and NBU are two London-quoted China shares that I have noticed. Both are manufacturers of branded clothing, both are reporting profits, both pay dividends, and the PE's are very low. I was getting ready to take a chance with NBU, but then I grew concerned about the accounts receivable at both. I started to think of that expression "If something sounds too good to be true ...," but I just cannot make up my mind. Non-China-related stories that I am watching include TIDE and IFM. Both very low-priced, and plainly risky. Independent research on the part of any potential investor is essential. I corresponded via e-mail with the CEO of TIDE, and I was impressed by his willingness to communicate in an ostensibly candid way. His name is Mr Whipp, and my recollection is that he is the largest shareholder. I wish you success with your exam on Monday. I do not know the subject. Related to insurance? In any event, I have a reasoned basis for expressing some confidence that you will do well. That basis is that you are a scholarly individual. I will make a guess that you have never failed an exam to date, so why would you fail this time? Regards, Rob

II = institutional investor

Before the Monday open, I will act upon your suggestion and send an e-mail re the ticker symbol, but I am not sure that Sarossa or any other quoted company have much influence over the awarding of a ticker symbol. And if they do have some influence, I suspect that it is too late to request a change once the public have been notified by means of an RNS. As for PHC, the market seems not to be too unhappy. And another of our investees, SLN, had a good day. SRC almost traded @ 2p the other day. Let's see what the new week may bring. Rob

Hello Mr Shares, Thank you for writing back. Your thinking is just right, sir. I suppose that many people have forgotten, but you have not forgotten. (I concede that I was having trouble remembering what each letter meant. Still, I guess that, to me, the symbol might not be entirely auspicious.) Call me superstitious, but I disfavor any abbreviation that has either a present or past connection with an illness. I realize that it is unscholarly to be superstitious. I suppose I am a bundle of contradictions. Good luck to you and to all. Rob

Thank you for writing back, sir. The e-mail that I plan to send concerns my apprehensive feeling about the new ticker symbol. Does it worry you at all? I realize that "A rose by any other name would smell as sweet," but there is something about the new symbol that gives me pause!!! With regard to your question, I should go back and read the RNS. I forget whether the name change is being submitted for shareholder approval at the AGM. If so, then this will take a while. In any event, I suspect that there is nothing you need to do in order for your old shares to appear in your account under the new name. (My TLDH shares were just converted today to MMX shares, and I had not signaled my acquiescence.) GLTA Rob

I tried to send an e-mail to the e-mail address which is noted on the website for Sarossa, but it was rejected. Might anyone here have an e-mail address to the investor relations department of Sarossa? Thank you in advance. Rob

I think it has already been pointed out here that the earnings-per-share figure of 11.5 p which AVAP reported two to three weeks ago is for a six-month period. Consequently, the PE multiple for the 12-month period ended 31.12.2013 is between 7 and 8. With regard to director loans, I appreciate the link which Robert J provided on 14.03.2014. The loan is to the unlisted subsidiary, CLA [not to AVAP]. I do not generally follow shares of unlisted subsidiaries, but the deep discount to tangible book value at which CLA trades is food for thought. I did not write all the figures down, but after conversion from USD to sterling, I arrived at tangible book value just over 27p per share. The offer price of the CLA share is ~ 40 per cent. below that number. I have not examined the Virgin Australia financials.

Hi Dan, I am sensing that, both here and there, the political issue in Ukraine is affecting sentiment. Those with hard-earned funds invested in the market should probably be a little extra careful right now. I had thought that the dust was settling in Ukraine, but now I think otherwise. Having expressed myself cautiously, I will say that you might like to read some of the posts at ARC, Arcontech. Especially in light of its being a low-priced [ca. 0.20p] share, some good minds think ARC is going places. Re OEX, I find I haven't too much more to say than I wrote recently. I wish I could "pause" this message and check the market cap, but I think that that cannot be done. There was a recent placing, so the co. is cashed up. The story makes sense to me. The gas well which is about to be fracked on the subcontinent is adjacent to the gas well which was abandoned for technical reasons, i.e. not because the gas wasn't there. Among other things, I was drawn in by a remark that it would be really unusual for the technical reason to appear again this time. Neither you nor I is predisposed to commodities, yet I am making an exception. While on the subject of predispositions, I feel that companies which invest in office towers are better positioned that companies that invest in retail shopping centres because I think that the trend towards e-commerce does not augur well for retail. I realize that not so many people are about to order groceries from an e-commerce website, but just about everything else, an increasing number of people seem minded to skip the shops. So I feel that office towers are a better long-term investment. I have never mentioned the property sector to you, but it just seems like something to mention. Not familiar with boohoo.com but it sounds like part of the social media craze. If so, I am happy to leave it to other participants; I see it as the 21st century version of tulip bulbs in the 17th century. Note that I call the boohoo crowd participants, not investors. I may be wrong, but I would guess that 9 out of 10 boohoo purchasers could not tell you what the letters in the acronym EBITDA signify. Maybe they will do fine, but I prefer to look elsewhere. I thought of another Warren Buffett-ism that might drive home the point. Warren says that we won't know which people are swimming without bathing suits until the tide goes out. BTW, maybe it is not so well known in England that Mr Buffett took courses ca. 1949 at Columbia University from guest lecturer Benjamin Graham. Maybe you knew, maybe not. When I stop to think that few people in this country are able to identify important English people such as Stephen Hawking or the late Isaiah Berlin, it may not be well-known in England that B Graham was Warren's mentor. I know a bit about shan. Maybe we are in accord: that he brings wisdom to some bb's. Regards, Rob229

Hello Mr Stockbroker, I may not have quite the expertise that you have, but I am a good reader of notes in financial statements. I am happy that you posed to Robert j the question which you posed. I will look tomorrow when I will have more free time. As between the disputants, I know which strikes me as the more astute, but I will exercise forbearance at present. As for the comment about Virgin Australia, I should think that it is an entity controlled by Sir Richard Branson, and to me, Sir Richard is a good credit risk. What do you think? Regards, Rob229

Does anyone think it odd that the ask price is back to 0.22 even though buy volume has outnumbered sell volume about 24 to 1? Maybe the classification of the trades is erroneous. Just wondering what others are thinking. Rob