The Intelligent Investing Podcast #141: Trey Henninger on Entercom, Northfield Precision, and a New SEC Rule Impacting Dark Companies
Join Eric Schleien with today's interview guest, Trey Henninger, as they talk about Entercom, Northfield Precision, and the new SEC rule that impacts dark companies and small businesses. By taking a close look at the outcomes and probabilities close to ETC and the merger made with CBS Radio, he explains what Entercom holds for the next 12-18 months and tells us the technicalities on why he thinks owning shares from the company can still end up positively.
SummaryIn this episode, Trey will also be getting into all the old news, the expected, and the good with Northfield Precision Instrument Corp. Listen as he discusses the company's performance during the pandemic, their ROI report, and how NFPC will seemingly be affected by the new SEC rule that targets dark companies. For Trey, once the new regulation comes into effect in the following months or years, going expert or grey may become an option to be considered for Northfield.
Going in further on the upcoming SEC rule, tune in as Trey explains what the regulation aims to do, what it requires from business entities, how it can backfire, and what it means to trade without a quoted price –a scenario that may just mean good deals for experts. For him, there are always as many opportunities in matters like these as there are risks in every leverage.
About Trey Henninger:Trey Henninger runs the blog and podcast DIY Investing. Trey is a private value investor focused on microcap and dark stocks in the United States. His focus is on high-quality companies with predictable, durable earnings where management has skin-in-the-game.
Trey runs a concentrated portfolio of 5 stocks with a 20% weighting each. By focusing on small companies, Trey hopes to find overlooked compounders at value prices. His favorite opportunities have a market cap below $50 million.
- Website
- The DIY Investing Podcast (on all major platforms)
Outline of the episode:
- [00:42] Entercom Communications – America's #2 Radio Broadcasting Company.
- [02:18] ETC as a radio company and as a growing digital audio presence.
- [02:49] The crashing merger of ETC and CBS Radio.
- [03:46] Binary outcomes and the probabilities for the company now.
- [06:55] What the debt market is telling about it.
- [08:03] Covid as an excuse...; The company's ownership.
- [09:49] A business with no assets, basically.
- [13:09] Bad as expected – Northfield Precision
- [15:54] What SEC Rule is, not retail investor-friendly.
- [16:40] How the new regulation can backfire – a theory!
- [18:25] What it means to not get quoted a price…
- [19:45] Anytime you have leverage, there's risk and also lots of opportunities.
Resources:
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About Eric Schleien:
Over the past decade, Eric has trained thousands of individuals, including board members of public companies as well as several Fortune 500 CEOs. Eric specializes in organizational culture and has become a leading authority on organizational culture in the investment industry.
Eric has been investing for 15 years and has been using breakthrough coaching methodologies for over a decade. Eric had the insight to combine proven coaching methodologies with shareholder activism techniques to create an entirely new model for shareholder activism that was more reliable and created greater sustainable results in a rapid period of time. On average, Tribal Leadership produces a 3-5x increase in profits of culturally troubled companies within an average of 24 months or less.
Eric currently resides in Philadelphia, PA.
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