In their view, the intervening two years have thoroughly validated that thesis and proven the company’s business model differentiation. Pangaea Logistics was the only US-listed drybulk operator to remain profitable in both 2015 and 2016. The company generated more than $40 million in operating cashflow during the period, which was primarily reinvested in completing a planned acquisition program, adding three additional vessels to the owned fleet to support new contracts. PANL even withstood the 2016 bankruptcy restructuring of its largest customer, Noranda Aluminum. The Noranda contract is a 10-year contract for the transport of bauxite from Jamaica to the US and a key reason for Pangaea’s differentiation.
Hedge Fund Letters
The board of Johnston Press have received a formal demand for a vote to install Alex Salmond as chairman, setting the scene for a potentially explosive confrontation between the newspaper publisher and its shareholders.
MSD Capital now holds a total of 5,192,232 shares in Blueknight Energy Partners (BKEP). MSD Capital L P is based out of New York. Their last reported 13F filing included $255,282,000 in managed 13F securities and a top 10 holdings concentration of 100.0%. Another fact noteworthy MSD Capital is a private investment firm established in 1998 to exclusively manage the assets of Michael Dell and his family. Looks like Mr.Dell is betting on the oil price recovery too.
Tesla, Inc. is an over-hyped, lousy company, from a financial perspective, that is destined to go bankrupt. There, I said it. Bring on the critics. Contrary to the likely barbs and pitchforks we will receive, I do wish that global warming was not occurring and that the polar bears and penguins could live undisturbed in their former environments.
The battle for Herbalife (HLF) is heating up once again. QTR Research most recently outlined its short thesis on Herbalife’s stock ahead of a documentary’s release, a movie about Pershing Square Capital manager Bill Ackman’s $1 billion short bet on Herbalife and his drive to expose the company as a pyramid scheme. It looks like the Titanic found its iceberg.
Ray Dalio and New York Times editor Charles Duhigg have a powerful conversation about how Ray has built a strong value-based culture at Bridgewater that encourages creativity, excellence and innovation at The New York Times second annual Work Summit.
Ben Graham, the father of value investing, once said of the stock market, “In the short run, the market is a voting machine but in the long run it is a weighing machine.” To Graham the market was like a popularity contest. Investors “vote” for a stock out of considered enthusiasm for its prospects. Results however are determined in the long run as profits are “weighed” year after year and intrinsic value is revealed.