The Intelligent Investing Podcast

To watch this episode on YouTube, click here. Subscribe If you like The Intelligent Investing Podcast, please consider subscribing on: Apple Podcasts YouTube Stitcher TuneIn Spotify Podbean iHeart Radio   Summary In this episode of The Intelligent Investing Podcast, Eric Schleien sits down with Mariusz Skonieczny. We discuss the shipping industry, COVID recovery stocks, value investing in general, Oroco Resources, and Mitcham Industries. We also discuss his new website, Microcap Explosions.   About Mariusz Skonieczny Mariusz Skonieczny is the founder of Microcap Explosions and Classic Value Investors and the creator of Value Investing University. He is also the author of several books on the subject of investing. He is a professional investor meaning and has written books and videos. He also, teach ballroom dancing. Mariusz graduated from Indiana University in 2003 with a Finance degree. From 2003 to 2008, he was in the commercial real estate industry as an appraiser and broker. During the 2008/2009 financial crisis, he left the industry to start Classic Value Investors.   Staying In Touch With Mariusz Skonieczny Classic Value Investors  Twitter Author Page YouTube   Staying In Touch With Eric Schleien Facebook YouTube LinkedIn Twitter Instagram GSCM

Summary In this episode of the Intelligent Investing Podcast, I sit down with Robert Leonard who is the VP of Growth & Innovation at The Investor's Podcast Network. He is also the host of the Millennial Investing Podcast and the Real Estate Investing Podcast. To watch the video of this podcast on YouTube, click here.   Robert is a Certified Management Accountant (CMA) who graduated Cum Laude with a BSBA degree in Finance and Economics from the University of Massachusetts, where he also earned his MBA degree in Accounting and Finance. He is an accounting and finance professional with an immense passion for stock and real estate investing, business, entrepreneurship, traveling, and spending time with his friends and family. Show Links JL Collins (The Simple Path to Wealth) on Millennial Investing Pomp (Bitcoin, COVID-10, and Macro) on Millennial Investing Simon Erickson (Growth Investing) on Millennial Investing Gary Mishuris (Warren Buffett Value Investing) on Millennial Investing TIP's Real Estate Deal Analysis 101 Chad Carson (Get Start in Real Estate) on Real Estate Investing Neal Bawa (COVID-19 and Finding Great Markets) on Real Estate Investing Real AF Podcast with Andy Frisella 1st Phorm 75Hard 75Hard book Support The Podcast If you like The Intelligent Investing Podcast, please consider leaving a rating and review on Apple Podcasts. It takes less than 30 seconds to do and makes a huge difference! You can also join the Facebook page!       You can subscribe to the podcast on the following platforms: Apple Podcasts Stitcher TuneIn Spotify Podbean iHeart Radio YouTube   CONTACT ROBERT LEONARD LinkedIn Twitter   CONTACT ERIC SCHLEIEN Facebook  |  LinkedIn  | Twitter  | YouTube | GSCM | Instagram Email: IntelligentInvesting@gmail.com

OVERVIEW In this episode of The Intelligent Investing Podcast, Shana Sissel sits down with Eric Schleien to discuss the world of Alternative Investments. Shana is a seasoned investment professional with almost two decades of industry experience. She currently serves as the Chief Investment Officer at Spotlight Asset Group. She also serves as one of the most prominent public faces of the firm. Shana is a frequent contributor on Bloomberg, Fox Business Network, the TD Ameritrade Network, Yahoo Finance and CNBC and travels the globe as a sought-after investment conference speaker.   Mrs. Illinois International 2020 In November 2019 Shana was crowned Mrs. Illinois International 2020 at the North Shore Center for Performing Arts in Skokie, Illinois.   Financial Literacy For Girls As Mrs. Illinois International she is a prominent advocate for improving financial literacy rates for women and for gender diversity within the finance industry through her platform Investing in Girls. Through her work with organizations like Invest in Girls and Rock the Street Wall Street, Shana seeks to introduce financial concepts to high school girls and serves as a mentor for young women entering the field of finance. Shana also serves as a spokesperson for Women in ETFs (WE), an organization dedicated to improving gender diversity in the investment industry, where she is a member of the WE Speakers Bureau and Press Corp.   Women In Finance In 2019, Shana was recognized for her talent as an investor and contributions as an advocate for women in finance when she was named a finalist for Index Portfolio Manager of the Year at the Women in Asset Management Awards. In March of 2020 she was named the winner of Citywire USA’s Women Driving Change in Manager Research & Investment Due Diligence award.   SHOW LINKS Rocking Wall Street Invest In Girls All About Alpha Blog   SUPPORT THE PODCAST If you like The Intelligent Investing Podcast, please consider leaving a rating and review on Apple Podcasts. It takes less than 30 seconds to do and makes a huge difference! You can also join the Facebook page!       You can subscribe to the podcast on the following platforms: Apple Podcasts Stitcher TuneIn Spotify Podbean iHeart Radio YouTube   CONTACT SHANA LinkedIn Twitter   CONTACT ERIC SCHLEIEN Facebook  |  LinkedIn  | Twitter  | YouTube | GSCM | Instagram Email: IntelligentInvesting@gmail.com

Summary Most investment portfolios look the same, comprised of 60 percent stocks and 40 percent bonds, and each portfolio moves with the rollercoaster of the stock market.     Vince Annable, best-selling author of The Household Endowment Model is here to show an alternative investment method that doesn't leave you whiplashed.    Modeled after the Yale Endowment Model, The Household Endowment Model is a similarly diversified, non-correlated investment strategy for individuals and families, enabling them to make private, institutional-style investments with minimums in the $50-$100k range, rather than in the millions.    By putting your money into alternative investments such as private equity, venture capital, real estate, natural resources, and more, The Household Endowment Model provides an illiquidity premium that prevents emotionally driven bad investment decisions and may contribute to greater overall yields in the future.      About Vince Annable Vince Annable, CRPC®, is the creator of The Household Endowment Model® and founder and CEO of Wealth Strategies Advisory Group. Vince has been involved in the financial services industry since 1981. Vince prides himself in bringing new investment methods to high net worth families. He’s had families approach him after learning his method to tell him that they didn’t understand why their own advisors hadn’t told them about it. He’s also taken his message to the public on The Michael Wall Show, ABC15 Sonoran Living, and as the host of the podcast, Your Money Manual. Vince lives in Scottsdale, Arizona, with his wife and enjoys fine food and wine, traveling, and reading. Support The Podcast If you like The Intelligent Investing Podcast, please consider leaving a rating and review on Apple Podcasts. It takes less than 30 seconds to do and makes a huge difference! You can also join the Facebook page!       You can subscribe to the podcast on the following platforms: Apple Podcasts Stitcher TuneIn Spotify Podbean iHeart Radio YouTube Contact Vince Wealth Strategies Advisory Group Contact Eric Schleien Facebook  |  LinkedIn  | Twitter  | YouTube | GSCM | Instagram Email: IntelligentInvesting@gmail.com

Summary   Today's interview guest is 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.      Focus Stock: Northfield Precision Instruments Corporation   Basic Company Information:   Name: Northfield Precision Instruments Corporation Stock Ticker: $NFPC Location: New York, United States Industry: Industrial Manufacturing Market Cap: $5.3 million TTM Earnings: $668k   Shares Outstanding: 234,237 (constant, no change in the last 5 years) Stock Price: $23.00 TTM EPS: $2.85 (based on 2019 FY results)   P/B: 1.09 P/E: 8.07 Earnings Yield: 12% Dividend Yield: 2.6% (based on 2019 dividends) 3-year Earnings CAGR from 2015 to 2018: 100.4% (EPS was $0.53 per share in 2015) - dropped a bit in 2019.    Investment Thesis   Northfield Precision Instruments Corporation is a niche manufacturer of precision air chucks. Precision is a keyword because very careful machining is required in the manufacturing process to meet the required specifications. Northfield is a leading manufacturer in the air chuck industry although the market is quite small. Northfield manufacturers for a worldwide customer base out of a single manufacturing location in New York State, United States. This single manufacturing facility has room for production expansion without adding additional space. The combination of being a small manufacturing concern with room to grow is that Northfield is a huge current and future beneficiary of expanding operating leverage. They have a fixed cost base and are able to sell their goods at a consistent and sustainably competitive gross margin. Gross profit margins are consistently in the 45-50% range over the last 6 years.    Northfield is undervalued significantly as they trade for a single-digit P/E while in the process of rapidly growing their earnings. They have been able to sustain a high growth rate because incremental returns on capital clearly exceed 50%. It is my view that Northfield has remained undervalued for two key reasons: They are a small nano-cap company with a market cap below $5 million and they are dark. Northfield doesn't report to the SEC and the only way to receive financial statements is to email their accountant and request physical copies sent by mail.    Earnings History 2015 = $0.53 per share 2016 = $1.05 per share 2017 = $2.46 per share 2018 = $4.27 per share 2019 = $2.85 per share 3-yr avg = $3.19 per share   As Northfield grows earnings above $1m per year over the next few years and starts to earn multiple millions of dollars per year, they will be able to justify spending money to include their financial reports on OTC Markets. This will grow their potential investing audience and likely broaden their appeal.    Potential Risks Northfield is an industrial manufacturer which means it is not immune to cyclicality in the economy. With the current recession, we should expect earnings in 2020 to be lower than in 2018 and 2019. They are likely considered an essential business, so I doubt they would be drastically affected. However, a dip in earnings is both foreseeable and expected. Yet, I expect that earnings will grow again after this recession ends to exceed the 2018 high in earnings.  They are highly illiquid. It is difficult to buy shares in the market. It took several months for me to acquire my full position. I think liquidity is largely constrained because current large shareholders are unwilling to sell at such a low price while the profitability of the company continues to improve.    In summary, Northfield Precision is a dark company with a low single-digit P/E and a high earnings growth rate. They are able to profitability reinvest their earnings into growth at a high ROIC. While a 2020 recession will slow their progress, Northfield is on the way to becoming a much larger and more profitable company. Simply trading from the current P/E of 8 to a market multiple of 16 would double the stock price. The earnings growth and ROIIC should justify an even higher multiple though. The biggest downside is simply that the company is small and overlooked. It is hard to predict which a company of this size will begin to get a bid in the market. Yet, the low liquidity in shares should ensure that once interest grows the stock price will jump quickly.    Connect With Trey Henninger Twitter: @TreyHenninger  Blog Podcast:Spotify Apple Podcasts YouTube HELP OUT THE PODCAST If you like The Intelligent Investing Podcast, please consider leaving a rating and review on Apple Podcasts. It takes less than 30 seconds to do and makes a huge difference! You can also join the Facebook page!         You can subscribe to the podcast on the following platforms: Apple Podcasts Stitcher TuneIn Spotify Podbean iHeart Radio YouTube   GET IN TOUCH WITH ERIC SCHLEIEN Facebook  |  LinkedIn  | Twitter  | YouTube | GSCM | Instagram Email: IntelligentInvesting@gmail.com   Disclosure: Eric Schleien and some SMA clients of Eric Schleien through GSCM own shares of NFPC. Nothing here is investment advice. Do your own due diligence. 

SUMMARY In this episode of The Intelligent Investing Podcast, I sit down with Jim White to discuss his book Opportunity Investing.   As the famed value investor, Joel Greenblatt, had to say about the book:   "Jim White's marvelous book Opportunity Investing is conclusive evidence of my belief that the secret to investing is to figure out the value of something - and then pay less. Dr. White offers magical advice on how to make big money while saving on capital gains. At the same time, he vividly illuminates the dire situations in Opportunity Zones and presents a wide range of innovative ideas for Opportunity Funds, including directing them toward education and non-profits."   QUALIFIED OPPORTUNITY ZONES For those interested in learning more about qualified opportunity zones and opportunity funds, check out Jim's presentation on YouTube.   ABOUT JIM WHITE Jim White, PhD is Chairman and CEO of Post Harvest Technologies, Inc. and Growers Ice Company, Inc., Founder and CEO of PHT Opportunity Fund, LLC, and Founder and President of JL White International, LLC. Jim is the best-selling author of What's My Purpose? A Journey of Personal and Professional Growth. The book, which has been lauded by such industry leaders as Steven M.R. Covey and Jack Canfield, seeks to change readers by helping them to identify key truths while breaking down the main barriers (the Five Masks) to fulfillment. Jim is also the founder of the customized yearlong leadership and management transformation process, The Circle of Success; Jim White's Classic Movie Series; and The Red Carpet Tour. These innovative events have attracted more than 100,000 participants worldwide, including Fortune 500 CEOs, management teams, entrepreneurs, governments, and trade associations. Dr. White first found his entrepreneurial spirit at age five when he created his first business-collecting and selling Coke bottles to help support his family. From these humble beginnings, Jim went on to serve his country in Vietnam before entering the corporate world upon his return. Along the way, he would go from high school dropout to academic triumph, eventually earning a B.S. in Civil Engineering, an MBA, and a Ph.D. in Psychology and Organizational Behavior. Dr. White achieved international recognition as CEO of Blount World Trade Corporation; owner and Managing Director of ACEC Centrifugal Pumps NV, Belgium; and as Vice-President and Division Manager of Ingersoll Rand Equipment Corporation. Throughout his career, he has bought, expanded, and sold 23 companies, operating in 44 countries. Jim acquires struggling businesses to revive and develop them into profitable enterprises using his business turnaround strategy. To date, Jim has generated more than $1.8 billion in revenue.     RESOURCES PHT Opportunity Fund Jim’s Author Site Economic Innovation Group   HELP OUT THE PODCAST If you like The Intelligent Investing Podcast, please consider leaving a rating and review on Apple Podcasts. It takes less than 30 seconds to do and makes a huge difference! You can also join the Facebook page!         You can subscribe to the podcast on the following platforms: Apple Podcasts Stitcher TuneIn Spotify Podbean iHeart Radio YouTube     GET IN TOUCH WITH ERIC SCHLEIEN   Facebook  |  LinkedIn  | Twitter  | YouTube | GSCM | Instagram Email: IntelligentInvesting@gmail.com    

In this episode, I sit down with Malcolm Ingalsbe and Ladislao Zichy Thyssen, co-author Quantrarian Research, a research blog covering microcap equities. We discuss a long position of theirs, XLMedia PLC   Summary XLMedia PLC (LSE: XLM) is a leading digital publishing and affiliate marketing company that owns 2000+ informational websites across several high-growth verticals. The company generates sales primarily through revenue-sharing agreements; they publish editorials and other informational content (i.e. product reviews, rankings, ongoing deals, etc.) on their websites which drive visitors to their clients’ services.   History and Problems XLMedia has experienced tremendous growth in the past decade, increasing revenues by over 750%. However, XLMedia’s top-line growth has retracted in recent years as it faces a combination of regulatory headwinds, search engine demotions, and the cancellation of sporting events. Worries over these complications have driven the share price down over 80% in the last two years, yet the company produced over 50% free cash flow TTM.    New strategy The hindrances currently being faced have precipitated the company’s plan to employ a “quality over quantity” consolidation strategy. This entails a shift of focus towards selling non-core assets and establishing a meaningful presence in mature and regulated markets that are less prone to volatility. This includes infiltrating the U.S. sports-betting market, which should experience very high growth via regulatory tailwinds over the next several years. The company’s new management team is well incentivized and brings more experience to the table than the prior team.    Staying In Touch With Eric Schleien Facebook YouTube LinkedIn Twitter Instagram GSCM Staying In Touch With Malcolm and Ladislao LinkedIn Subscribe If you like The Intelligent Investing Podcast, please consider subscribing on: Apple Podcasts Stitcher TuneIn Spotify Podbean iHeart Radio YouTube    

Subscribe If you like The Intelligent Investing Podcast, please consider subscribing on: Apple Podcasts Stitcher TuneIn Spotify Podbean iHeart Radio YouTube   Background David found this stock by screening for the smallest listed companies in the United States. He doesn't bother screening on any value metrics, just lowest market cap company he can find. No mining, financials, crypto or cannabis.  Summary Founded back in 1952. HQ in Duluth, MN. Make emulsions and films in printing. Make different types of glass and etching equipment. Sound deadening equipment. Chemicals and materials. 7m market cap. 1m shares floated. Management owns 30%. 17m Revenue. Loss of 800k. A few bad years, then good thing happens. Sell off legacy business, start a new business. Ebbs and flows over time. Insiders Buying CEO, COO, and Directors have all been buying   Valuation Trades at half of book value. At some point there could be good news and a stock pop. Part of David Flood's basket of these low market cap stocks that have been left for dead.   About David Flood David runs the blog, Elementary Value, and is a private value investor based in the UK. His investing approach is grounded in the fundamental precepts of value investing based upon Ben Graham’s core concepts of ‘Intrinsic Value’ and ‘Margin of Safety’. His investment strategy involves looking at both ‘Deep Value and ‘Franchise Value’ situations and using the value investing framework to analyze the financial and corporate facets of a given prospective investment.   Staying In Touch With David Flood Twitter Blog   Staying In Touch With Eric Schleien Facebook YouTube LinkedIn Twitter Instagram GSCM

Subscribe If you like The Intelligent Investing Podcast, please consider subscribing on: Apple Podcasts Stitcher TuneIn Spotify Podbean iHeart Radio YouTube   Video Display (VIDE) The company does video simulation products and video displays. Simulations for military and aerospace. They’ll also do huge video display units that can be installed in huge rooms like NASA. 5.9m Market Cap Lots of hair on this company. Lots of liabilities. Made 67,000 last year. And loss-making previous 3 years. Why does David like it?   2 reasons: Price chart hit support and volume dropped off. Accumulation period. People picking up shares in the stock. CEO owns 49% of the company. He doesn't want to see the company go under. VIDEO has been around since 1975 which indicates that it has managed to struggle along for all these years. They have divested a lot of their old legacy businesses in 2014. Had expanded over the decades and "diworsified."   Potential Catalysts Started to move into a new sector - cybersecurity for defense industry. VIDE has a unit that can test computer systems with homeland security - this could potentially be a lucrative business in the future. just finally turned a profit. the future could be better than in the past.   History VIDE has gone on and off doing well to poor again. The stock goes up a lot when things are good. nobody is paying attention to the company, left for dead. nobody talking about the company on stock boards. Those are the kinds of businesses David likes the most: No sign of life and nobody cares about the company.   Stock Buybacks VIDE was buying back stock last year in mid-2019.   Other Catalysts Potential for some kind of change due to a very old board of directors.   About David Flood David runs the blog, Elementary Value, and is a private value investor based in the UK. His investing approach is grounded in the fundamental precepts of value investing based upon Ben Graham’s core concepts of ‘Intrinsic Value’ and ‘Margin of Safety’. His investment strategy involves looking at both ‘Deep Value and ‘Franchise Value’ situations and using the value investing framework to analyze the financial and corporate facets of a given prospective investment.   Staying In Touch With David Flood Twitter Blog   Staying In Touch With Eric Schleien Facebook YouTube LinkedIn Twitter Instagram GSCM  

Subscribe If you like The Intelligent Investing Podcast, please consider subscribing on: Apple Podcasts Stitcher TuneIn Spotify Podbean iHeart Radio YouTube   Summary https://www.otcmarkets.com/stock/MICR/overview   Micron (MICR) is a medical device company founded in 1978.    MICR has a heavy debt load and negative working capital. It is sat at an all-time low and has recently announced it is going to de-list. Upon the announcement, the share price got cut in half. >10% owner has been buying more.   http://www.openinsider.com/search?q=micr   Insiders own 26% of the common.   About David Flood David runs the blog, Elementary Value, and is a private value investor based in the UK. His investing approach is grounded in the fundamental precepts of value investing based upon Ben Graham’s core concepts of ‘Intrinsic Value’ and ‘Margin of Safety’. His investment strategy involves looking at both ‘Deep Value and ‘Franchise Value’ situations and using the value investing framework to analyze the financial and corporate facets of a given prospective investment.   Staying In Touch With David Flood Twitter Blog   Staying In Touch With Eric Schleien Facebook YouTube LinkedIn Twitter Instagram GSCM