Investment Ideas of the Week 11-26-12
Top 5 ideas of the week:
In June, we wrote about Berkshire’s recent newspaper investments. We followed up that report with a deep dive of the newspaper portfolio of Berkshire’s newspaper investees. In our second report installment we were interested in examining further the newspaper portfolios of the companies that Warren Buffett and Berkshire Hathaway (BRK.B, BRK.A) has invested in the past and has invested in recently.
Will Michael Smith’s Acquisitions Close MFC Industrial’s 37% Discount to Book? - On November 14th, MFC Industrial (MIL) released its Q3 financial performance and it earned Adjusted EPS of $.05, which missed broker estimates by $.04.
RECOMMENDATION: We reiterate our near term Avoid rating, and reduced our long-term Rating from Neutral to Avoid. We also reduced our Fair Value share price for Student Transportation Inc. (STB) common stock from $3.63 to $3.42.
Although Supervalu Inc. (SVU) has failed to turn the corner in its multi-year turnaround project, we see some hope for the once-proud retailer. We were disappointed that Craig “The Wal-Mart (WMT) Guy” Herkert was not able to restore SVU’s sales momentum and that SVU’s leadership team was caught with its pants down with regards to pricing moves made by its competition.
Howard Hughes Enjoys Solid Growth Due to Strong Land Sales Performance – Our firm owns The Howard Hughes Corporation (HHC) and we have owned it since November 2010, when it was spun-off from General Growth Properties (GGP).