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

To: Paul Senior who wrote (54176)	7/24/2014 12:02:49 PM
From: E_K_S	1 Recommendation Recommended By Mattyice Read Replies (1) \| Respond to of 78536

Re: Container leasing TAL International Group, Inc. (TAL) -NYSE TAL International Group, Inc. Reports Second Quarter 2014 Results While our Adjusted pre-tax income increased sequentially from the first to the second quarter of 2014, it was down 12.7% from the second quarter of last year, mainly due to a large decrease in our disposal gains. Our average used container selling prices were down nearly 20% compared to the second quarter of last year, reflecting the ongoing moderation of used container sale prices from the extreme peak levels reached in 2011. Our disposal gains also continue to be constrained by the low number of original TAL containers reaching sale age due to our low level of procurement in the late 1990’s and early 2000’s. Overall leasing business still remains strong but the spot rates for used containers was off 20% YoY. ---------------------------------------------------- TAL has the best long term history and has been the main one I have watched. I made a large buy today based on the sell off due to a 12.5% decrease in disposal gains. Their leasing revenues continue to grow along w/ BV and in fact those used containers could/should be a future valuable asset once the company explores other sales channels for them other than the "spot" market. TAL is one of only a few company's that sells at/near their Graham Number (GN) of $42.47/share. They generate sufficient FCF to pay and grow their dividend. For me it's their long term history in the leasing business and the hidden gem are all of those used shipping containers that are carried on the books as salvage cost. TAL has one of the largest company owned inventories of shipping containers, most were bought recently so those will not come up for salvage for at least 10 years. Many things are getting re-purposed and so are used shipping containers. At approx $2K per used container, the value eco builders are using these containers to build high quality homes. I have been exploring using up to 10 of these containers for a custom off-grid home. The use of these containers for housing in the 3rd world (Non US & EU) is big too. TAL needs to develop a new channel for selling their used containers and even explore a separate division that re-purposes these containers for the modular home industry. This home was built out of used shipping containers and is located just west of my home in the Santa Cruz mountains.. EKS