Value Investing News

TheStreet.com (TST) has more than its market cap in cash and no debt. Is there value here?

Trident Microsystems (TRIDQ) is a recent bankruptcy where there might actually be a substantial recovery for the equity. There appears to be a. downside protection in the form of substantial value to the equity in a liquidation scenario, b. upside in a reorganization of the company as a going concern, and c. a party that will go to bat for the interest of the equity holders.

Xerium Technologies (XRM) makes consumable products for paper manufacturers.

Mac-Gray (TUC) is an operator of laundry rooms in multi-unit housing facilities such as apartment buildings and colleges. They are the second largest company in the space with 86,000 rooms in 43 states.

Companies with activists involved are always an interesting place to look for investment ideas. Here are a two companies with activist activity I have come across recently- Wausau Paper (WPP) and Information Services Group (III).

Hudson Technologies (HDSN) is a distributor and recycler of refrigerant gases. The company is poised to benefit from an EPA mandated phase out of virgin gas production of the leading refrigerant that will boost market pricing and volumes of reclaimed refrigerant where Hudson is the dominant player.

Top Image Systems (TISA) is a NADSDAQ-listed Israeli enterprise software company. TISA makes automated data capture solutions to control the flow of document based data through an enterprise.

Advertisement:

Global Education & Technology Group (GEDU) is a Chinese ADR that offers English language training in China. It has become embroiled in an insider trading scandal surrounding its pending acquisition by Pearson (PSO), the large British media and education company.

Advertisement:

Following up on the NBSK market overview, let’s take a look at some individual NBSK pulp companies. The two publicly traded NBSK pure plays are Mercer International (MERC) and Canfor Pulp Products (CFX on the TSE and CFPUF on the pink sheets).

Talbots (TLB) is a struggling specialty retailer of women’s apparel that has become an interesting risk arbitrage situation.

Paper pulp stocks have tanked in the last few months. With the pricing of their commodity products falling some of the stocks are off more than 50%. Although they are probably not out of the woods yet (pardon the pun), it might be worthwhile to take a look at the industry.

Advertisement:

Clearwater Paper (CLW) is a very intriguing paper and packaging stock that offers a way to capitalize on the still growing private label trend, as well as some company specific catalysts. Offsetting that attractiveness is exposure to commodity risk due to their fluctuating manufacturing input costs.

Tronox (TROX) shares present an opportunity to invest in the only fully integrated producer of titanium dioxide. TROX has flown under the radar due to the market overlooking a post-reorg equity but over the next year TROX should be boosted by a range of macro and company specific catalysts, and yet the company is trading at just 2.4X 2012E EBITDA and less than 5X 2012 estimated free cash flow.

Net 1 UEPS Technologies (UEPS) is a South Africa based provider of a variety of payment processing services. Their business outlook and stock price is clouded by the overhang of the potential loss of a large government contract that accounts for nearly half of their revenues. Is there hidden value?

Kronos Worldwide (KRO) offers a timely investment opportunity in an oligopoly industry experiencing extremely favorable pricing dynamics for the foreseeable future.