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 (77789)	8/1/2025 2:44:56 PM
From: E_K_S	Read Replies (3) \| Respond to of 78465

Also a lot of small buys and a New REIT A new REIT for me; Nexpoint Residential Trust Inc (NXRT) They provide multi-unit house in Texas NexPoint Residential Trust, Inc. is engaged in acquiring, owning, operating and selectively developing multifamily properties. It operates primarily in the Southeastern United States and Texas. NexPoint Residential Trust, Inc. is based in Dallas, United States Price/FFO at 9x w/ ok growth. Services mid income family's earnings $50K-$90K so affordable housing ----------------------------------------------------------------- Adds: COLD, DVN, ANDE, OGN, ASIX, TROX, FMC, LAND, KTB, PLYM, MRK, EXEL, BGS Sells: small sales in AMAT, AGCO great earnings; KIM, TWI, D, SJM, MTW, PYPL (got a few sold before their earnings), OVV --------------------------------------------------------------- Still sitting w/ a lot of cash and expect more selling and will deploy 5% of cash ever week until we finish our correction; Correction may/could last weeks I am finding value in certain REITS (based on Price/FFO), Oil & NG especially those w/ NG; No rush but selective value buys and scaling into positions

To: Paul Senior who wrote (77789)	8/3/2025 2:40:50 PM
From: Madharry	Read Replies (2) \| Respond to of 78465

I am curious have you done any tracking over the years as to how your reversion to the mean plays have done overall? do you have a specific strategy for adding? i have initiated a new speculative position. Nierenberg the successful ceo of ritm has taken over management of a commercial real estate reit , change the name , and symbol to RPT, and is looking to make deals- do commercial real estate financing of one type or another in the coming years hoping to achieve 15% returns on invested capital. The company says that the nav of the stock which trades at $2.60 is around $5.50. I bought some stock and also preferred which now yields around 10% but which will switch to a floating rate in 2030. that floating yield based on todays rate would be around 6.7%. I am hopeful that Nierenberg will repeat his success here since he can afford to be opportunistic. One of the hotel companies I own reported that one of their hotel loans went into default, not because they werent making interest and principal payments but because the lender refused to extend the loan at maturity. I imagine there are a lot of situations like this across the country. Bought this in non taxable accounts so that 10% looks pretty good to me The revisions on the job report are like a two edged sword. I expect the fed to cut rates by 50 basis points at their next meeting. Clearly the initial job report numbers can no long be relied upon. The question that is harder to address is to what extent overseas investors will leave the US as the US dollar depreciates.

To: Paul Senior who wrote (77789)	10/6/2025 8:37:06 PM
From: E_K_S	Read Replies (1) \| Respond to of 78465

Tronox Inc (TROX) pays a 10.4% dividend; My 3rd add as I build this position Tronox Holdings plc is a vertically integrated mining and inorganic chemical business. The company mines and processes titanium ore, zircon and other minerals and manufactures titanium dioxide pigments to paints, plastics, paper and other everyday products. It operates primarily in South Africa, Australia, United States, the Netherlands and Australia. Tronox Holdings plc, formerly known as Tronox Limited, is based in London, United Kingdom. It's a commodity play w/ a BV of $10.59/share Value PropositionTronox's competitive advantages stem from: Vertical integration, enabling control over mining, processing, and finished product sales for key minerals (TiO2 and zircon), used in paints, coatings, plastics, and paper. Industry scale and global reach, which deliver efficiency and reliability for customers (2024 revenue: ~$3.3 billion; projected 2025: $3.0–3.1 billion). Consistent focus on sustainability, environmental stewardship, and innovation, highlighted by major investments in R&D, emissions reduction, waste management, and mine upgrades. Long-term market potential for zircon (7.5% CAGR forecast) and early demand recovery in regions like India help offset cyclicality in their primary TiO2 business. Cost discipline and operational efficiency initiatives ($125–$175 million in planned annual cost savings by end of 2026). Debt ConcernsTronox's debt load is substantial and presents clear risks: As of mid-2025, Tronox's total debt stands at about $3.1 billion, with a net leverage ratio of 6.8x and an interest coverage ratio below 1x (0.74x). Both Moody’s and S&P have downgraded Tronox’s credit ratings, further increasing the cost and difficulty of refinancing. Despite a $397 million liquidity buffer and no major debt maturities until 2029, the company remains exposed to liquidity stress if earnings weaken further or restructuring benefits don’t materialize. The dividend has been cut by 60%, capital expenditures sharply reduced (now under $330M for 2025), and aggressive cost-cutting is underway. High debt levels, volatile product pricing, and cyclically weak demand amplify risk; investors should definitely be concerned about Tronox’s credit profile and watch for progress in deleveraging and operational turnaround. Tangible Asset Worth (Minerals and PP&E)Tronox’s balance sheet supports its valuation through substantial tangible assets: As of June 2025, Tronox reports total assets of ~$6.19 billion, including: Property, plant, and equipment (PP&E): ~$2.0 billion Mineral leaseholds, net: ~$613 million Inventories: ~$1.7 billion The mineral leaseholds figure ($613M) represents booked value for their “minerals in the ground,” but may be conservative relative to market or replacement value, depending on future pricing and regulatory factors. Ongoing capital investment into mine upgrades (e.g., Fairbreeze Phase 2) aims to expand future capacity and support long-term asset value. Tronox presents a differentiated global mining and industrial chemicals profile, but its debt is a material risk that requires vigilance; asset values, although significant, may be impaired if market conditions remain weak or restructuring efforts falter.