June 2014 Value Idea Contest Announcement
In order to encourage more idea sharing GuruFocus hosts a monthly value idea contest. We will reward qualified value idea submissions $1000 if the idea double in 12 months. Qualified authors will also receive $100 per submission. The submissions are evaluated monthly.
We review all the submissions in the area of business quality, financial strength, management, valuation, presentations and user comments. To qualify the award and compensation, the submission should score 26 or higher. The goal of the contest is to dig out high quality companies at reasonable prices. That is also how the scoring tilted to.
These are June’s submissions and the results of the review. Click on the tickers will bring you to the submissions.
Ticker | Business Quality | Financial Strength | Management | Analytical Depth | Undervalued | Presentation | Comments | Total |
JPM | 4 | 4 | 4 | 4 | 4 | 4 | 3 | 27 |
AFL | 4 | 4 | 3 | 4 | 4 | 4 | 3 | 26 |
TJX | 4 | 4 | 4 | 4 | 3 | 4 | 3 | 26 |
EMMS | 3 | 3 | 3 | 5 | 4 | 4 | 4 | 26 |
PRSV | 3 | 4 | 4 | 4 | 4 | 4 | 3 | 26 |
CACC | 4 | 4 | 4 | 4 | 4 | 4 | 1 | 25 |
QCR | 4 | 3 | 3 | 3 | 4 | 4 | 1 | 22 |
MRCBF | 3 | 5 | 2 | 3 | 5 | 2 | 1 | 21 |
SIMG | 3 | 4 | 3 | 3 | 4 | 3 | 1 | 21 |
PIR | 3 | 3 | 4 | 3 | 3 | 3 | 1 | 20 |
OME | 3 | 4 | 3 | 3 | 3 | 3 | 1 | 20 |
SFFK | 3 | 3 | 2 | 4 | 3 | 3 | 1 | 19 |
AMZN | 4 | 3 | 4 | 3 | 1 | 2 | 1 | 18 |
RIG | 3 | 3 | 2 | 3 | 3 | 3 | 1 | 18 |
AVACF | 3 | 2 | 3 | 3 | 3 | 3 | 1 | 18 |
C | 3 | 3 | 3 | 2 | 3 | 2 | 1 | 17 |
GS | 3 | 3 | 3 | 2 | 3 | 2 | 1 | 17 |
GTS | 2 | 3 | 2 | 2 | 3 | 3 | 1 | 16 |
SDRL | 3 | 3 | 2 | 2 | 1 | 2 | 1 | 14 |
These are the comments on the submissions. Authors please review the comments and hopefully they will help you to write better in future submissions.
Author | Article | Comments |
Robert Abbott | Credit Acceptance Corporation: Could “No Credit, No Problem” Produce Capital Gains? | One question is if the company approves 100% of the applications, how can it manage the risk? |
cody56 | Amazon: A Growth or Value Stock? | Lacks the depth we expect for the contest. Expect more analysis on financial strength, profitability, growth, valuation etc. |
Robert Abbott | Aflac: An Opportunity During This Dip | Interesting idea. The stock seems to be undervalued. |
David Chulak | It’s Retail and It’s Boring, but it’s TJX Companies | A high quality retailer that has temperory earnings miss due to foreign currency issues. Very deep and thorough analysis. |
cody56 | Morguard Corporation: Selling at a 30% Discount to Intrinsic Value | The company seems to be very cheap. Any idea why it is that cheap? Analysis on Business Quality, Management etc will help. |
cody56 | Undervalued Play on Puerto Rico | Again the lack of the analysis on business quality, management and why the company is cheap. Earnings seem to be flat and unlikely to trade at the same P/E as Berkshire. |
cody56 | Transcocean Ltd: Still A Turnaround Play | Simiar problems as in the author's other submissions. |
Irish Investor | QCR Holdings is Undervalued and Unappreciated | A profitable small bank at cheap price. The only concern is the bank has a low equity to asset ratio of 6%, considering the minimum requirment is 5%. It is more leveraged than other banks. The author should definitely discuss the non-performing loan, loan reserve etc, why is key in bank investing. |
apolloportfolio | Pier 1 Import offers 50% upside potential | What is the competitive advantages of Pier I? This is the key question to answer in retail industry. How is the same store sales? How is the trend of profitability? |
DCResearch | Emmis Communications: Undervalued Thanks to a Recent Acquisition | A well researched article on the company in a declining industry. Just look at the history, the company is not investable. The author gave a clear argument on the future of the company. At its current valuation, it seems interesting. |
drlee | Pharma Bio Serv: The Perks of Being a Small Investor | A nano-cap that is thinly traded and undervalued. |
ankangni@google | Silicon Image Is An Undervalued Stock With Strong Growth Potential | An interesting tech company with some rare moat protected by licensing rights and enjoys high gross margins. But the industry is cyclacle and FCF might be as predictable. |
mrz22 | Trading Near BV and Primed for Growth, Schuff is Very Attractive. | A stock traded on OTC market. The company is in the transition of majority of shareholders, which may serve as catalyst. |
Value Investor | Reasons To Remain Bullish On Seadrill | Discussions of management and valuations are expected. Company has too much debt. |
cody56 | Citigroup: Undervalued at 8.2x Its Pretax Earnings | A short analysis on a complex bank. |
Robert Abbott | Omega Protein: Can You Swallow the Volatility? | The business seems to be too volatile to apply Peter Lynch Earnings line for the valuation. |
ValueStalker | JPMorgan: Value Hiding in Plain Sight | An in-depth analysis on JPM. The management had a track record of avoiding risks. Undervalued, decent dividend payment. |
Faisal Humayun | Avance Gas: Well Positioned for Strong Upside | A VLGC company with tremendous growth. But debt coverage of 2.8 from operating cash flow is low. The revenue growth is big, so is the expectations. |
cody56 | Goldman Sachs Undervalued at 10x Earnings | A short analysis on a complex business |
$100 per submission will be paid to the qualified submissions. We will also track the performances of these submissions. $1000 will be paid to these authors if their picks double in the next 12 months. Non-qualified, but exclusive submissions will be paid as regular articles.
We are looking forward to more submissions. Wish your pick double in 12 months.