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Value Idea Contest Winners Announcement
Posted by: gurufocus (IP Logged)
Date: January 17, 2012 07:55AM

This is the announcement of the winners of the December Value Idea Contest. We received 13 qualified submissions. Most of them were written in great quality and provided deep insight of the companies they covered. The submissions in November are also included in the December contest.

We are currently open for January contest. Please submit your best value ideas now. For the monthly contest guidelines, please check here. This is a monthly contest. The deadline for this month’s submission is the end of the month. Please submit.

This is the list of qualified submissions:

Ticker Price at writing Current price Article
OSTK 7.51 6.83 “A share of stock is a slice all the way through the company” - Overstock (OSTK)
GT 14.17 13.5 The case for Michelin
PAYX 29.26 30.99 Paychex (PAYX): Wide Moat Dug from High Switching Costs
PETS 9.34 10.82 PetMed Express (PETS) – Short-Term Pain and Undervalued
ELNK 6.15 6.64 Earthlink (ELNK) – Mr. Market Looking Through the Looking Glass
ITW 46.43 49.37 Stock to Buy on Dips – Illinois Tool Works (ITW)
TRGT 7.79 5.9 Should We Follow Seth Klarman on the Purchase of Targacept?
GKK 2.65 2.72 Gramercy Capital – This Ain't Your Daddy's Net-Net
MURGY 12.68 12.06 Contest: Warren Buffett’s Munich Re (MURGY) – 50% Upside to Fair Value
ISCA 24.6 25.24 ISCA, What's Not to Like About NASCAR
ITIC 36.99 36.76 Investors Title Company – Owner-Operated Net-Net
KSWS 2.87 3.02 K-Swiss... Running to Value
MILL 3.08 3.11 Miller Energy Resources (MILL) : Massively Undervalued Alaska Oil & Gas

These are the scores from the judges on different aspect of the submissions:

Value Idea Business Quality Financial Strength Management undervalued Analytical Depth Presentation Comments Total
OSTK 3 4 5 4 4 2 3 25
GT 4 4 3 4 4 4 3 26
PAYX 4 5 3 3 3 4 2 24
PETS 4 4 2 4 3 3 2 22
ELNK 2 3 4 3 3 3 2 20
ITW 4 5 4 3 4 4 4 28
TRGT 2 5 2 4 2 2 2 19
GKK 2 2 3 4 4 3 2 20
MURGY 4 4 4 4 4 4 3 27
ISCA 4 3 3 3 3 4 2 22
ITIC 3 3 4 4 4 3 3 24
KSWS 2 2 3 3 4 4 3 21
MILL 3 3 4 4 3 3 4 24


These are the comments for the submissions:

“A share of stock is a slice all the way through the company” - Overstock (OSTK)

Good and deep analysis. Shareholder oriented management. However, it is not very clear why the company is cheap except the PS ratios. Also financial data which shows the strength of the company will help. How is the company doing compared with competitors?

The case for Michelin (GT)

Excellent writing. Good argument of the business quality and valuation. The comparison with the competitors makes it clear that the company is the best in the industry. However, it is not clear that the management is capable, although they might be shareholder oriented.

Paychex: Wide Moat Dug from High Switching Costs (PAYX)

A high quality company with strong financial strength. However, it is not convincing that the company is undervalued. New CEO is yet to be proven. More comparison with the competitors will be appreciated.

PetMed Express – Short-Term Pain and Undervalued (PETS)

Seems to be a good business at a discount. Discussions of managements, competitions will certainly be more convincing.

Earthlink – Mr. Market Looking Through the Looking Glass (ELNK)

A struggling business which might be cheaply valued. For valuation, it will be more convincing if the company has more consistent performance. The company might be turning around.

Stock to Buy on Dips – Illinois Tool Works (ITW)

Great analysis of a high quality company. The risk seems to be small at the current valuation. Any discussions of other players in the market is appreciated.

Should We Follow Seth Klarman on the Purchase of Targacept? (TRGT)

Deeper analysis of the company's business, management will be appreciated.

Gramercy Capital – This Ain't Your Daddy's Net-Net (GKK)

Probably an overlooked company in a seemingly distressed situation. The recent change in the company seems to be the catalyst for the value to be unlocked.

Contest: Warren Buffett’s Munich Re (MURGY) – 50% Upside to Fair Value (MURGY.PK)

Strong reinsurance company with a dividend yield of 6.9%. Currently traded at its decade-low price/book ratio. Good analysis. Strong moat.

ISCA, What's Not to Like About NASCAR (ISCA)

The company business faces challenges due to economy. But it is a near monopoly play and has strong moat. The business seems to be simple, but it is a tough business, too. The valuation model is not as reliable because of the unpredictable nature of the business.

Investors Title Company – Owner-Operated Net-Net (ITIC)

Founder, owner operators. A tiny title insurance company. A cyclical business. One question here is how approapriate is their reserve? That is always the key question for insurance companies.

K-Swiss... Running to Value (KSWS)

The company is facing revenue decline, loss and capital needs in a very competitive market. A risky bet.

Miller Energy Resources: Massively Undervalued Alaska Oil & Gas (MILL)

An interesting idea in energy sector. Traded at deep discount relative to the company's asset, according to the authors. More detailed discussion of how authors evaluated the company will be helpful. Also any comparison with companies in the same industry will give us a better understanding on the valuation. More discussions of the company's financial situation, the management are appreciated.

Therefore the winners are:


· First Place ($500 Award): Stock to Buy on Dips – Illinois Tool Works (ITW)

· Second Place ($200 Award): Contest: Warren Buffett’s Munich Re (MURGY) – 50% Upside to Fair Value

· Third and Fourth Places ($100 each):

.“A share of stock is a slice all the way through the company” - Overstock (OSTK)

.The case for Michelin


Congratulations!

Please contact us to claim your prizes. We pay by check or PayPal and payments are made at the beginning of the next month. If you have not done so, a Free Lance Agreement needs to be signed, scanned and emailed to gurufocus @ gurufocus.com. You can download it here.

With this announcement, GuruFocus is calling for January Value Idea Contest submissions. We will continue to host the contest in February. Please submit your best value ideas and get feedbacks from the most intelligent group of value investors on the internet.




Guru Discussed: Warren Buffett: Current Portfolio, Stock Picks
Stocks Discussed: OSTK, GT, PAYX, PETS, ELNK, ITW, TRGT, GKK, ISCA,
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Rating: 3.2/5 (22 votes)



Re Value Idea Contest Winners Announcement
Posted by: Alex Garcia (IP Logged)
Date: January 17, 2012 02:15PM

Congratulations to the winners



Guru Discussed: Warren Buffett: Current Portfolio, Stock Picks
Stocks Discussed: OSTK, GT, PAYX, PETS, ELNK, ITW, TRGT, GKK, ISCA,
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Rating: 0.0/5 (0 votes)



Re Value Idea Contest Winners Announcement
Posted by: batbeer2 (IP Logged)
Date: January 17, 2012 04:16PM

Thanks for the balanced feedback.

@ Liarspoker & Chandan Dubey
Congratulations !



Guru Discussed: Warren Buffett: Current Portfolio, Stock Picks
Stocks Discussed: OSTK, GT, PAYX, PETS, ELNK, ITW, TRGT, GKK, ISCA,
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Rating: 0.0/5 (0 votes)



Re Value Idea Contest Winners Announcement
Posted by: gusto.duel@gmail.com (IP Logged)
Date: January 19, 2012 07:51AM

GuruFocus - the comments and questions section as well as the judges ratings are most valuable for authors and readers alike.

I thank to the judges, Batbeer2, Wlameyer, Alberta and Marcus for their comments on my OSTK thesis.

I hope I learnt something from the other contest participants for next time. Your contest idea is beautiful.



Guru Discussed: Warren Buffett: Current Portfolio, Stock Picks
Stocks Discussed: OSTK, GT, PAYX, PETS, ELNK, ITW, TRGT, GKK, ISCA,
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Rating: 0.0/5 (0 votes)



Re Value Idea Contest Winners Announcement
Posted by: Bill.Smith (IP Logged)
Date: January 19, 2012 08:11AM


Congrats guys, good job!



Guru Discussed: Warren Buffett: Current Portfolio, Stock Picks
Stocks Discussed: OSTK, GT, PAYX, PETS, ELNK, ITW, TRGT, GKK, ISCA,
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Rating: 0.0/5 (0 votes)





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