Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Senior who wrote (50196)	11/29/2012 11:31:26 PM
From: Sergio H	Read Replies (2) \| Respond to of 78525

Thanks Paul. Nice find. I put in a buy order at 19.

To: Paul Senior who wrote (50196)	11/30/2012 11:25:02 AM
From: E_K_S	Read Replies (2) \| Respond to of 78525

CAI International Inc. (NYSE: CAP) SeaCube Container Leasing Ltd. (NYSE: BOX) goo.gl CAP looks like a good value play except for me there were two items that were not so attractive: (1) No dividend and (2) their level of debt to annual net income is quite high. These companies will typically have a high amount of debt (and leverage) so it's just the nature of their leasing business. I have built a nice position in BOX which provides similar services but also pays a good dividend. This is in the IRA so that dividend stream is important to me. From a basic value approach, CAP looks to be undervalued by at least 50%. Analysts EPS estimates: 2012 = $3.22/share 2013 = $3.84/share Positive EPS for the last five years EXCEPT 2009. Book Value continues to grow each year for the past several years. BV=$14.37/share; TBV=$14.28/share PE<= 15; Forward PE =5 and Trailing PE= 6.62 Total debt= $873.8M vs Net Income $59M 14.81 x Net Income to cover lt debt. ( I like 4x or less) BOX is lower at 11.58x and is still quite high. The Graham No for CAP comes in at around $32.00/share or about 61% undervalued from it's current price of $19.81/share. Maybe this is more of an EK$ value as CAP does not show 10 years of positive EPS but even at $19.81/share, this one does present a compelling value. Therefore, I may sell some of my BOX and move the proceeds into CAP giving up my dividend for a very nice potential capital gain. EKS

To: Paul Senior who wrote (50196)	12/1/2012 3:08:39 PM
From: E_K_S	Read Replies (1) \| Respond to of 78525

Have you looked at TGH. It's another of the container shippers that I believe is undervalued. It's not as attractive as CAP in it's valuation but one could make an argument that it is 25% undervalued and has a better Net Income to LT Debit profile at 9.55x well below the others in the industry. Their dividend of 6% is not that bad either. Textainer Group Holdings Limited (TGH) Links: Yahoo Finance Key Statistics: Company Web Site : Positive EPS for more than 7 years Growing BV every year for past 5 years. Profitable for the past 26 years; 2011 ROE of 30%; avg. ROE of 22% last 5 years. Link to 11/15/2102 presentation pg-12- Shows their Fleet Utilization. 77% of 2012 lease portfolio in Long-Term leases up over 39% from FY 2000. pg-15- Company continues to grow through acquisition; last 9 years five purchases totaling $1.35B or about 38% of EV. Note: Net Annual Income 9.55x Long Term Debt, one of the lowest I have seen: Compared to CAP @ 14.8x or BOX @ 28x Dividend yield at 5.9%. I put this one on my watch list and will to start a position if.when this one moves to the $25.00/share range. I will then own three of the biggest and most profitable players: BOX, CAP & THG. EKS