2014 – The Great Irish Share Valuation Project (Part III)

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Allied Irish Banks, Clontarf Energy, Fastnet Oil & Gas, ICON, Irish shares, Irish Stock Exchange, Irish value investing, ISEQ, Kerry Group, portfolio performance, Providence Resources, Ryanair Holdings, TGISVP, The Great Irish Share Valuation Project, Total Produce

Continued from here:

Company:   Kerry Group

Prior Post(s):   2012 & 2013

Ticker:   KYG:ID

Price:   EUR 51.60

So, here I am again – eyeballing Kerry’s valuation, and searching for supporting evidence in its accounts. But it’s nowhere to be found… Now I think about it, maybe all the big Irish food/agri companies will end up looking wildly over-valued to my jaundiced eye? This investor homage perplexes me – surely someone recalls how little respect these companies commanded in the past?! Well, perhaps they were different beasts then – but I don’t believe they’ve (fully) delivered on what they promised, when they embarked on this multi-year process of portfolio rationalization & re-configuration. And I certainly don’t believe they’ve grown into their current valuations either.

Then again, maybe I shouldn’t look a gift horse in the mouth! Now Donegal Investment Group (DCP:ID) has ditched its dairy business, and is looking to shed non-core assets & move up the value chain, surely it’s on the verge of a similar multiple? Hmmm, so what’s a 20 P/E worth to DCP?! 🙂

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2013 – The Great Irish Share Valuation Project (Part IX)

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Allied Irish Banks, Bank of Ireland, Biogen Idec, Dalradian Resources, Datalex, Elan Corp, ELG Scheme, Fastnet Oil & Gas, FBD Holdings, IIU, Irish shares, Irish value investing, Pageant Holdings, Permanent TSB Group Holdings, Prime Active Capital, Royalty Pharma, TGISVP, The Great Irish Share Valuation Project, US Oil & Gas

Continued from here. [If you’re new to the series, I recommend you re-visit my first 2013 TGISVP post].

Company:   Elan Corp

Prior Post:   Here

Ticker:   ELN:US

Price:   $11.61

Last year, I had Elan pegged for a significant fall – which definitely appeared to be on the cards with the share price falling 25%+ to sub-$10 levels in Dec & Feb. In the past 2 months, however, they’ve certainly pulled a rabbit from the hat with their recent Biogen Idec (BIIB:US) deal. This hands full control of Tysabri back to Biogen, but in return Elan receives $3.25 billion of cash, and a 12-25% royalty on future global net sales. Post-restructuring, Elan was almost entirely dependent on Tysabri – so this deal transforms the company into a highly attractive pot of cash, and a low cost/high margin royalty stream.

Unfortunately, management didn’t quite grasp this was shareholder’s money – they acted like all their bloody Xmases had come at once! They’ve promised a share buyback, but their main plan is to use the majority of the proceeds & royalties to acquire a brand new portfolio & pipeline. This is coupled with a projected reduction in annual operating expenses to (only?) $180 million per year! This has lured Royalty Pharma out of shadows, to offer shareholders an interesting alternative: An $11.00 per share bid.

TGISVP VIII – ISEQ Recap

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Allied Irish Banks, FBD Holdings, Irish shares, Irish Stock Exchange, Irish value investing, ISEQ, Petroneft Resources, Prime Active Capital, Russia, TGISVP, Total Produce, Tullow Oil, Zamano

Continued from here. I highlighted we’ve another 20 or so stock valuations to work through, but we’re now finished with all the ISEQ-listed Irish stocks. Whenever you consider Irish stock performance or are investing in some type of Ireland focused fund/product, it’s only these ISEQ stocks that will (likely) be relevant. We’re therefore at a good point to pause and provide some interesting stats & comments. I’ll use the TGISVP V Excel file from this post, but I’ve updated it here with current market prices as of March 7th (and included my TOT & FBD valuation updates):

TGISVP V (Mkt Prices Updated Mar 7th)     (xlsx file)

TGISVP V (Mkt Prices Updated Mar 7th)     (xls file)

The Great Irish Share Valuation Project III

Tags

Allied Irish Banks, Bank of Ireland, First Derivatives, ICON, IFG Group, Independent News & Media, Irish Life & Permanent, ISEQ 20 ETF, Karelian Diamond Resources, Kenmare Resources, Kerry Group, singing dancing duck, Wile E. Coyote

Continued from here:

Right, let’s work our way through another batch of 10 stock valuations. As usual, I’ve updated market prices (and any relevant FX rates) for all stocks covered to date, so remember that each new file published will be a dynamic snapshot of each stock’s upside/downside potential:

The Great Irish Share Valuation Project III     (xlsx file)

The Great Irish Share Valuation Project III     (xls file)

ICON (ICLR:US):   ICON’s at a very interesting point right now. In 2009, they pretty much hit the wall, probably a reflection of the mid-life crisis that most of the major pharma companies are suffering right now. This is a pattern I’ve seen before – and forget to check up on nearly every bloody time (and, of course, it’s far easier to spot with hindsight!):

The Great Irish Share Valuation Project I

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Abbey plc, Aer Lingus, Allied Irish Banks, Aminex, Bank of Ireland, Conroy Gold, Continental Farmers Group, CPL Resources, CRH, Irish shares, Irish Stock Exchange, Irish value investing, stock screener

Time to take a little breather from Catalysts..! I’ve finally got ‘round to beginning a project that’s been top of my to-do list ever since starting this blog:

Yes, I wanted to identify all the listed Irish companies out there, (re)acquaint myself with their business fundamentals and financials, come up with a rough and ready valuation for each stock, and thereby come up with a list of the most potentially under- and over-valued Irish stocks.

Don’t Bank on the Banks!

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3-6-3, Allied Irish Banks, Bank of Ireland, EIIB, iShares Turkey ETF, Loan-to-Deposit Ratio, TBTF, valuestockinquisition, Wilbur Ross, WisdomTree ETF

John from valuestockinquisition.com left a great comment here, and I thought I’d set down some thoughts here with a blog post rather than a comment:

I’m not too worried about EIIB (EIIB:LN) in this context, at this point I pretty much consider it to be a failed bank experiment. Now, they just need to monetize their bank licence and move on. More generally, John has some great points and examples, and I’m sure he could provide more. It’s like fingers in the dyke – for every bank ratio you focus on, there’s another you’re forgetting and that’s about ready to spring a leak. And he highlights that no ratio’s proven to be a reliable predictor of success or failure. God, all in all, just look at any specific TBTF bank and it really just looks like one great bastard of a Rube Goldberg contraption…