Free 7-day Trial
All Articles and Columns »

April Value Idea Contest Results Announcement

insider

gurufocus

308 followers
In April GuruFocus hosted its third Value Idea Contest. This is the announcement of the winners.

We received 8 submissions for the April contest. This is the list:

Article Analyst Company (Symbol)
Tesco PLC (TSCDY) Business and Value Analysis graemew TSCDY
Meritage Hospitality (MHGU) — A Substantially Undervalued Microcap whopper investments MHGU
General Maritime Corp. inqosi GMR
Johnson & Johnson: Medicine for Your Portfolio Alex Morris JNJ
CVS Caremark Rishi Gosalia CVS
Rio Tinto Plc — Minerals to Make Your Portfolio Grow Dr. Paul Price RIO
Premier Exhibitions: An Undervalued Stock with a Clear Near Term Catalyst Jacob Wolinsky PRXI
Syms Corp. - A Deeply Discounted Retail Real Estate Opportunity Michael Glickstein SYMS


These are the comments from our judges:

Tesco PLC (TSCDY) Business and Value Analysis

Thorough analysis with the company. Discussion of the margins, cashflow, and debt coverages. It does not seem to be wise to diversify into mobile business. The performance in this area is appreciated. Future growth rate? Comparison with WMT, TGT, etc.?

Meritage Hospitality (MHGU) — A Substantially Undervalued Microcap

Excellent writeup for a small company. Extremely undervalued. Valuation is the strongest part of this article. Multiple approaches that clearly point to a value proposition. Price targets and methodologies are clear. More discussions of the history and the management will be appreciated.

General Maritime Corp.

The investment idea seems to carry a lot of risk. The company's financial condition is not strong enough to eliminate the possibility of permanent loss of capital. The analysis is weak in convincing readers that it is undervalued.

Johnson & Johnson: Medicine for Your Portfolio

In-depth discussions on the company. Covered many areas. While the reverse DCF is nice, the valuation part can be improved if other matrices are used too. A comparison with other big pharmas will be helpful in convincing readers that JNJ is a better investment.

CVS Caremark

This is a very detailed analysis where the author touched on everything. There is a clear thesis, good valuation work, price target, etc. He addresses competition and industry dynamics.

Rio Tinto Plc — Minerals to Make Your Portfolio Grow

The analysis will be deeper if discussions and analyses on management, competitions, potential risks, etc. are added. The author should not rely on third parties for valuations. The valuations should be based on the business of the underlying company.

Premier Exhibitions: An Undervalued Stock with a Clear Near Term Catalyst

An investing idea of special situation. The company is losing money but the asset that might be received through a lawsuit might be valuable. The analysis is clear and straightforward. There are uncertainties with the valuations and outcomes. Maybe the stock is undervalued. The situation is not what we are looking for in this contest.

Syms Corp. - A Deeply Discounted Retail Real Estate Opportunity

An activist investing idea, which requires the company sell its real estate assets. Not for average investors.

These are the overall ratings:

Analyst Company (Symbol) Business Quality Financial Strength Proven Management Capability Depth of Analysis Undervalued? Presentation Readers' Rating and Comments Total
graemew TSCDY 4 3 3 4 4 4 5 27
whopper investments MHGU 3 4 3 5 5 4 4 28
inqosi GMR 3 1 1 3 4 3 3 18
Alex Morris JNJ 4 5 1 4 4 4 4 26
Rishi Gosalia CVS 4 4 3 5 4 5 4 29
Dr. Paul Price RIO 4 5 3 2 3 3 3 23
Jacob Wolinsky PRXI 2 3 3 5 4 4 4 25
Michael Glickstein SYMS 2 2 2 5 5 5 3 24


Therefore the winners are:

The First Place ($500): CVS Caremark by Rishi Gosalia

The Second Place ($200): Meritage Hospitality (MHGU) — A Substantially Undervalued Microcap by whopper investments

Congratulations!

Please contact us to claim your prizes. Other participates, please also contact us to claim your $50 award for submissions. We pay by check or PayPal. 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, we also open our May Value Idea Contest. The payment to each qualified submission to $50. The first place will win $500, and the second place will win $200.

Submit your value ideas now!

About the author:

gurufocus
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.0/5 (12 votes)

Comments

DfiinancialH
DfiinancialH - 2 years ago
Proven management capabilities JNJ:1 ???
kfh227
Kfh227 premium member - 2 years ago
DfiinancialH,

The rating is in regards to how well the article argued that fact. It does not imply that JNJs management is bad (it is very good).

Adib Motiwala
Adib Motiwala - 2 years ago
Congrats Rishi and Whopper Investments
Alex Morris
Alex Morris - 2 years ago
Congrats to the winners! Thanks everybody else for the solid research and ideas as well!
rgosalia
Rgosalia - 2 years ago
Thanks Adib and Alex. I agree that the rest of the write-ups were really good as well.

Alex, your JNJ write-up could easily have been #1 but for technical reasons. JNJ's management is among the best that one can look for. The contest requires that you convince the readers of it. But, in this case, it really requires no convincing. It is a well known fact given their long history of proven execution. So, the rating on JNJ's management could easily have been 4 or even 5.

- Rishi
Alex Morris
Alex Morris - 2 years ago
Yeah, thats part of the challenge with large caps with huge analyst/institutional followings; I have to convince you of something (in this case, managements ability) that is clearly in question at this time. I believe the best measure of management is that they create long term value for shareholders; a look at the results since Mr. Weldon became CEO clearly suggest that they have (which I pointed to with the 10 year numbers).

Regardless, I'm happy with the results, and believe that the winners clearly earned it. The rankings are the opinion's of the judges, which I happily accept; at the end of the day (for me, at least), the most important thing is fine-tuning my own investment ideas, as well as learning from the pitches of the GuruFocus community.

graemew
Graemew - 2 years ago
Congratulations to Rishi and Whopper Investments! I learnt a lot from both write-ups. And Alex, I am also a big fan of JNJ:
kfh227
Kfh227 premium member - 2 years ago


Thanks Adib and Alex. I agree that the rest of the write-ups were really good as well.

Alex, your JNJ write-up could easily have been #1 but for technical reasons. JNJ's management is among the best that one can look for. The contest requires that you convince the readers of it. But, in this case, it really requires no convincing. It is a well known fact given their long history of proven execution. So, the rating on JNJ's management could easily have been 4 or even 5.

- Rishi


Most recently, JNJ's BoD reduced executive compensation (I think it was the bonus side of things) due to reduced revenues. It's the little things liek this that not enough people notice.

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide