This is the announcement of the winners of the September Value Idea Contest. In September we received 9 qualified submissions. Some of them are written in great quality and provide deep insight of the companies that are covered.
This is the list of the submissions:
A Turnaround Story for Long-Term Investors
Value Ideas Contest: Dolby Labs ($DLB) Priced for Zero Growth
Add ADDvantage (AEY) to Your Portfolio for Some Profits
Zumiez: Conservative Retailer Has Good Probability of High Growth
ArcelorMittal - A Huge Opportunity
NUCOR: A Shareholder-Friendly Low-Cost Steel Producer
Telefonica - Undervalued Dividend Stock with Strong Emerging Market Exposure
Value Ideas Contest: ARO Is a Recovery, Priced Like a Disaster
EBIX: Improvement in Operating Efficiency with High Return
These are the comments from our reviewers:
ADDvantage
This is a mall company traded at below net-current asset value. It will help if author discuss more about the product lines and customers, competitors etc. The company may have a moat, but the moat seems to be easily broken by a larger player with more capital.
Dolby Labs
An excellent analysis of the company, undervalued and risk seems to small. Deep analysis and good responses to questions. The company has very strong balance sheet and it is now deeply undervalued. The downside risk seems to small for this situation.
Zumiez
A lot more information is needed to make the analysis more convincing. For instance, the revenue sources of different segments, the growth in different segments, the competition, comparisons with competitors etc. More discussions of the management etc.
ArcelorMittal
Very good analysis on a cyclical business. The author covered almost all the aspects we are looking for in a research. The risk will be if we do fall into another recession, the downside risk of the share prices will be high. The debt burden will also be a problem if work economy slows or the prices of commodities decline.
NUCOR
Detailed description of the company business. Management seems to be experienced in managing cyclical nature of the business. Undervalued according to several matrix. Business seems to be more flexible than most of competitors. Balance sheet is also strong relative to others.
Telefonica
An interesting idea for investors who seek for high dividend yield. The growth in South America market is attractive. The company seems to be shareholder friendly. Discussions of the sustainability of dividends will be appreciated, as pointed by user comments. 20% undervalued seems a bit low, too.
Aeropostale
Nice presentation of a company that is facing cost increases and declining profit margins. As pointed by authors, comparison with competitors will help greatly. More discussion of the company's financial strength will help. Discussions of management is also necessary for readers to build confidence
EBIX
This is a fast growing company. Growth comes mainly from acquisitions. Though the company might be cheap for the growth, but the risk seems to be high, too. Questions about the lawsuit, the sustainability of continuous growth and the expansion of the profit margin etc.
ABB Ltd
This article provided an overall of a conglomerate which operates in many countries and many product lines. It will be more interesting if the financial strength, the growth in different countries or product lines are discussed.
Therefore the winners are:
First Place:Value Ideas Contest: Dolby Labs ($DLB) Priced for Zero Growth
Second Place: NUCOR: A Shareholder-Friendly Low-Cost Steel Producer
Congratulations!
Please contact us to claim your prizes. Other participants, please also contact us to claim your $50 award for submissions. We pay by check or PayPal and payments are made at the beginning of each month. If you have not done so, a Free Lance Agreement needs to be signed, scanned and emailed to [email protected]. You can download it here.
With this announcement, GuruFocus is calling for our October Value Idea Contest submissions. We will not host contest in November and December. Please submit your ideas before October ends. Don’t miss the deadline.
Please submit your best value ideas and get feedbacks from the most intelligent group of value investors on the internet.
This is the list of the submissions:
A Turnaround Story for Long-Term Investors
Value Ideas Contest: Dolby Labs ($DLB) Priced for Zero Growth
Add ADDvantage (AEY) to Your Portfolio for Some Profits
Zumiez: Conservative Retailer Has Good Probability of High Growth
ArcelorMittal - A Huge Opportunity
NUCOR: A Shareholder-Friendly Low-Cost Steel Producer
Telefonica - Undervalued Dividend Stock with Strong Emerging Market Exposure
Value Ideas Contest: ARO Is a Recovery, Priced Like a Disaster
EBIX: Improvement in Operating Efficiency with High Return
These are the comments from our reviewers:
ADDvantage
This is a mall company traded at below net-current asset value. It will help if author discuss more about the product lines and customers, competitors etc. The company may have a moat, but the moat seems to be easily broken by a larger player with more capital.
Dolby Labs
An excellent analysis of the company, undervalued and risk seems to small. Deep analysis and good responses to questions. The company has very strong balance sheet and it is now deeply undervalued. The downside risk seems to small for this situation.
Zumiez
A lot more information is needed to make the analysis more convincing. For instance, the revenue sources of different segments, the growth in different segments, the competition, comparisons with competitors etc. More discussions of the management etc.
ArcelorMittal
Very good analysis on a cyclical business. The author covered almost all the aspects we are looking for in a research. The risk will be if we do fall into another recession, the downside risk of the share prices will be high. The debt burden will also be a problem if work economy slows or the prices of commodities decline.
NUCOR
Detailed description of the company business. Management seems to be experienced in managing cyclical nature of the business. Undervalued according to several matrix. Business seems to be more flexible than most of competitors. Balance sheet is also strong relative to others.
Telefonica
An interesting idea for investors who seek for high dividend yield. The growth in South America market is attractive. The company seems to be shareholder friendly. Discussions of the sustainability of dividends will be appreciated, as pointed by user comments. 20% undervalued seems a bit low, too.
Aeropostale
Nice presentation of a company that is facing cost increases and declining profit margins. As pointed by authors, comparison with competitors will help greatly. More discussion of the company's financial strength will help. Discussions of management is also necessary for readers to build confidence
EBIX
This is a fast growing company. Growth comes mainly from acquisitions. Though the company might be cheap for the growth, but the risk seems to be high, too. Questions about the lawsuit, the sustainability of continuous growth and the expansion of the profit margin etc.
ABB Ltd
This article provided an overall of a conglomerate which operates in many countries and many product lines. It will be more interesting if the financial strength, the growth in different countries or product lines are discussed.
| Company | Ticker | Business Quality | Financial Strength | Management | undervalued | Analytical Depth | Presentation | Comments | Total |
| ADDvantage | AEY | 3 | 3 | 3 | 4 | 3 | 3 | 1 | 20 |
| Dolby Labs | DLB | 4 | 5 | 4 | 4 | 4 | 4 | 4 | 29 |
| Zumiez | ZUMZ | 3 | 4 | 3 | 3 | 3 | 3 | 1 | 20 |
| ArcelorMittal | MT | 3 | 3 | 4 | 4 | 4 | 4 | 4 | 26 |
| NUCOR | NUE | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 28 |
| Telefonica | TEF | 3 | 3 | 4 | 3 | 3 | 3 | 3 | 22 |
| Aeropostale | ARO | 3 | 4 | 2 | 4 | 3 | 4 | 4 | 24 |
| EBIX | EBIX | 3 | 3 | 3 | 3 | 4 | 4 | 4 | 24 |
| ABB Ltd | ABB | 4 | 3 | 3 | 3 | 3 | 3 | 3 | 22 |
Therefore the winners are:
First Place:Value Ideas Contest: Dolby Labs ($DLB) Priced for Zero Growth
Second Place: NUCOR: A Shareholder-Friendly Low-Cost Steel Producer
Congratulations!
Please contact us to claim your prizes. Other participants, please also contact us to claim your $50 award for submissions. We pay by check or PayPal and payments are made at the beginning of each month. If you have not done so, a Free Lance Agreement needs to be signed, scanned and emailed to [email protected]. You can download it here.
With this announcement, GuruFocus is calling for our October Value Idea Contest submissions. We will not host contest in November and December. Please submit your ideas before October ends. Don’t miss the deadline.
Please submit your best value ideas and get feedbacks from the most intelligent group of value investors on the internet.
