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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (49871)	10/24/2012 2:11:01 PM
From: Paul Senior	Respond to of 78751

Mitcham (MIND): I'll take more shares as stock falls to stated bv. Generally rising bv, low d/e, profitable past several years, low p/e. finance.yahoo.com

To: E_K_S who wrote (49871)	10/24/2012 5:43:56 PM
From: richardred	Respond to of 78751

EKS -I like what I see here. Looks to be a good sector pick up for myself. To go with my BOLT & RES. I will be watching it.

To: E_K_S who wrote (49871)	10/24/2012 8:10:34 PM
From: Sergio H	1 Recommendation Read Replies (1) \| Respond to of 78751

The EKS$ value is around $22.00/share but really a lot depends on if they can maintain (and/or grow) their current annual revenues. Not sure if you took into consideration the tax benefit that MIND received. In their last q, MIND reported a profit of $6.4 million, or 48 cents a share. This includes a one time tax benefit of $5.3 million. Excluding the tax credit, MIND's per-share earnings would be 8 cents per share as compared to 11 cents a share reported a year earlier.

To: E_K_S who wrote (49871)	12/1/2012 11:10:55 AM
From: E_K_S	Read Replies (3) \| Respond to of 78751

Mitcham Industries Inc. (MIND) - Reduced position by 30% booking small gain of 5% Earnings are to be reported Tuesday December 4, 2012. Stock has recently run up and as this one is thinly traded, I thought it prudent to take a little off the table before their EPS report. Like so many "value" buys, it takes time for the market to recognize the true value of a position and w/ MIND it's all about their (1) leasing business and (2) service business. It's their service business I not too sure about and that's where they make high margins. I like the leasing segment as usually the company can secure long term leasing contracts so their revenue streams are not as susceptible to wild fluctuations. Also, their service business is not mutually exclusive from their leasing business. If their service business falls off, that could imply next year's leasing contracts could fall off too. One screen to determine a company's effective "lease rate" is to look at their level of inventory (increasing vs decreasing) as a percent of their current assets. This indicates a positive (or negative) growing "lease" utilization rate. 5 Undervalued Services Stocks With Strong Inventory Trends (August 13, 2012 \| includes: GMAN, MIND, PCCC, TA, TESS) Mitcham Industries Inc. (MIND): Engages in the leasing, manufacture, and sale of seismic equipment to the oil and gas industry worldwide. Market cap at $213.82M, most recent closing price at $16.81. PEG at 0.56. Revenue grew by 30.68% during the most recent quarter ($34.63M vs. $26.5M y/y). Inventory grew by 22.24% during the same time period ($6.54M vs. $5.35M y/y). Inventory, as a percentage of current assets, decreased from 10.37% to 10.17% during the most recent quarter (comparing 3 months ending 2012-04-30 to 3 months ending 2011-04-30). Therefore, my strategy on this small sell, is to set aside funds to double up on the investment if service revenues are reported down and/or flat. The stock should trade down 20% which I feel is an excellent entry point for a 2nd buy. In my last few buys, I have focused on companies that are undervalued based on the GN and/or EK$ value AND operates businesses that lease tangible assets w/ 1 year or more term customer contracts. Leasing provides predictable revenue streams and if we are in a slow growth sustained positive economic cycle, these types of companies should do well. So, if from the start the GN and/or EK$ show there is a significant undervalued entry point (30% or more undervalued), a 12-18 month slow growth period could/should move the fair value of these companies higher. The value proposition is positive if you can buy these assets at or below TBV and you are still early in the economical cycle. I am also trying to focus on US specific regional plays since our sustained slow growth seems to be the best in the world at this time. I still must be careful with the amount of leverage these leasing companies use because as interest rates begin to rise and these companies have limited to no pricing power, margins will shrink and profits will fall. I expect rates to remain flat during the time period I plan to hold these types of investments but it is possible stock prices could fluctuate as investors trade on such an expectation. If anybody has other candidate stocks that fit this theme, please post and we can discuss the "value" merits. Do not bother with airline companies and/or companies that operate in this sector as this has always been a sector I have avoided. EKS