Monday, April 30, 2007

Stock Market Prognosticator and Festival of Stocks

The 34th edition of the Festival of Stocks appears today in Stock Market Prognosticator, a blog written by Eric J. Fox.

Eric has done a great job in highlighting some interesting posts of the past week covering a wide range of topics from uranium stocks to opening a zero commission brokerage account. Eric has been kind enough to include one of our posts last week, Private Equity Envy.

Eric is a hedge fund manager who seems to focus on deep value, somewhat obscure stocks. A terrific universe that can result in some outstanding returns. Managements frequently forget that they still have a public constituency. Read Eric's post on Biloxi Marsh Land. The financials may be intriguing, the assets may appear interesting, but management clearly does not want to divulge, let alone disclose anything based on Eric's experience.

Years ago, I went through a similar experience with International Speedway (ISCA) while it still lived as a pink-sheet company. Similarly, St. Joe Paper, now known as St. Joe Company (JOE) hardly gave outside investors much disclosure when it lived in the "pink."

Both ISCA and JOE turned into real goldmines as their management discovered that open disclosure and a broadened sharebase actually could help others recognize the intrinsic value. I am sure there are many pink sheet names that also gained "legitimacy" or at least broader recognition as they were launched on more more actively traded platforms and developed fuller disclosure requirements and standards. The Detroit and Canada Tunnel Company for years was OTC-pink and for years, the true value seemed unattainable. After being taken over some years ago, the tunnel is now owned by a fund of Macquarie Bank of Australia.

Enjoy Eric's version of the Festival of Stocks and have a look around his website. In my view, Eric has a great handle on value.

Disclaimer: I, my family, and clients do not currently own any of the securities mentioned in this post.


At 10:17 PM, Blogger Off The Beaten Path Investments Forum said...

Rick -- just ran across your blog and was reading some of your early posts …. great call on ASPM …. I think you called about as close to the top as possible ….just wanted to let you know that I have set up a blog myself and have made some posts that I think you will enjoy reading …. Check it out and let me know what you think…… ….my email is ……thanks


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