Monthly Archives: April 2014

Updated the FFP spreadsheet

I updated the spreadsheet that tracks FFP’s NAV discount to include the results of the latest annual report and to reflect the partial sale of the Zodiac stake in the beginning of this year. The spreadsheet updates automatically all share prices and the current discount, and is publicly accessible on Google Drive using this link. As is visible FFP’s NAV discount is basically unchanged at 47% since I initiated my position a half year ago:



Author is long FFP.PA

More updates (AWDR.OL, CNRD, PVCS.L, SHFK)

While I was on vacation for just three weeks a ton of companies thought that would be the perfect time to release news. So some quick thoughts on the latest portfolio developments:

Awilco Drilling (AWDR.OL)

Awilco refinanced its debt last month. The company had ~$100 million of debt outstanding at a 9% interest rate that matured in 2015 and they replaced this with $125 million of debt with a 7% interest rate that will mature in 2019. Because Awilco decided to increase its debt load the lower interest rate will not lead to a meaningful reduction in interest payments which is unfortunate. Although $25 million isn’t a whole lot of money (for Awilco) I don’t see why they would want to borrow more. It’s not very cheap at a 7% rate, they don’t need it because they pay this much in quarterly dividends and since the effective tax rate of Awilco is low it has little value as a tax shield.

Conrad Industries (CNRD)

Conrad Industries reported their 2013 results last month, and business continues to be good. Earnings increased from $20.8 million in 2012 to $28.6 million in 2013 and the backlog is up 27% compared to last year. With the stock now trading at $42/share the company is certainly not as cheap anymore as it once was, but with a capable and shareholder friendly management team at the helm this is a business I don’t mind owning close at fair value (it would probably be more correct to incorporate a premium for management quality in the fair value estimate).

PV Crystalox Solar (PVCS.L)

Crystalox also reported their 2013 results last month, and their news was positive as well. The solar panel business is still struggling, but the company managed to increase revenues by 54% and they recorded a small profit of €3.7 million. After returning €36.3 million to shareholders at the end of 2013 they still have a net cash position of €39.2 million while the current market cap is just €37 million. Given the positive operating cash flow and the strong balance sheet I think Crystalox is still cheap and in a good position to wait for better times. So despite the fact that the shares are up significantly this year I’m keeping my position.

Schuff International (SHFK)

The last company in my portfolio that reported 2013 results was Schuff International. I never wrote about the stock on this blog because it has been covered extensively on other value investment blogs, and because I never managed to buy a full position (unfortunately). A good introduction to the stock can be found on OTC Adventures (part 1, part 2).

Just like my other holdings Schuff also reported excellent results. Revenues stayed more or less flat, but margins increased significantly: almost doubling operating income. What’s very encouraging is that the backlog has grown a whopping 130%: next year should be good! What’s also nice is that they managed to eliminate most of the debt that they incurred when they bought back almost 60% of the outstanding shares at the end of 2011. Looking back this must have been one of the best share repurchases ever.

Schuff recently also launched a shiny new website that includes a pretty cool infographic that showcases how much of the Las Vegas strip has been built by them:

Schuff projects in Las Vegas


Author is long all names mentioned

Conduril reports 2013 results and doubles dividend

Conduril reported their results for 2013 last week, and while the investment thesis doesn’t hinge on exceptional operational results it’s good to see that the business is doing well. Earnings per share are up 56% and the dividend has been increased to €3/share giving the company a 4.8% yield. The only slightly negative news is that revenues are down 9.5%, but I don’t think that signals a trend because the backlog has increased 23% from €610 million at the end of 2012 to €750 million at the end of 2013. The fact that the company invested a significant amount of money in fixed assets last year also hints at (a) sunny year(s) ahead. In 2013 Conduril spent €22 million on capex while it spent just €4 million in 2012. I’m not exactly sure how they arrive at these numbers since they doesn’t show up in the financials:

Historical financials Conduril 2013Despite the run-up in share price Conduril remains very cheap. It’s still trading at a PE ratio of just 3.1x, a 0.6x PB ratio and an EV/EBITDA ratio of just 1.5x. Pretty remarkable for a company that has almost tripled in value since I first bought it.


Author is long Conduril