Down 10% more than the market in 2015 ---so far. Warren is ruining his portfolio with highly cyclical stocks like rails and housing. It may pay off if inflation comes roaring back but not right now. Buy level around 120% of BV or $175,000
Sally Thornton, the wife of Founder John Thornton, has died. She was a great benefactor of San Diego and member of our Board. We mourn her loss.
The control position of John Thornton is now marked to market under Federal Estate Tax Law. This will accelerate the sale of our company. I have reason to believe the value is over $12/shr. ID check products are more valuable than Mobile Deposit. Fiserv and Jack Henry are obvious buyers.
The customer goes to WFM and TFM because they do not need to read labels. Everything is organic. Unfortunately, the supermarkets have caught on. Ralph's and Von's in CA have tripled their organic sections. I no longer go to WFM as my needs are met in traditional stores with all their extra offerings. The WFM/TFM niche is being eroded and with prices so much higher, they will now begin to lose market share. WFM is selling at a big cash flow premium to the SPX and has a lower ROE. With growth slowing, that cannot last for long. TFM is a little cheaper but still valued at $10MM/store or 12x cash flow. Their store prices are higher than WFM. They will now bump up against WFM smaller format stores.
Now in survival mode. Fired marketing, CFO and other execs. Other key people will leave shortly as hand writing on the wall--slow decline to nowhere. product offering is obsolete and cellphone internet access speeds up and is secure. Ipas missed the boat.
margins up, cash flow up, number of customer additions up 40%, only selling at 12x EBITDA @ $2.50 based on company projections plus building cash as capex limited. Open ended growth. Love the prospects. Had a big run in last month so natural that day traders dump some shares. Buying more.