July 2014 Value Idea Contest Announcement
In order to encourage more idea sharing GuruFocus hosts a monthly value idea contest. We will reward qualified value idea submissions $1000 if the idea double in 12 months. Qualified authors will also receive $100 per submission. The submissions are evaluated monthly.
We review all the submissions in the area of business quality, financial strength, management, valuation, presentations and user comments. To qualify the award and compensation, the submission should score 26 or higher. The goal of the contest is to dig out high quality companies at reasonable prices. That is also how the scoring tilted to.
These are July’s submissions and the results of the review. Click on the tickers will bring you to the submissions.
| Ticker | Business Quality | Financial Strength | Management | Analytical Depth | Undervalued | Presentation | Comments | Total |
| USNA | 3 | 4 | 4 | 4 | 4 | 4 | 3 | 26 |
| GABC | 4 | 4 | 4 | 4 | 3 | 4 | 3 | 26 |
| JGW | 3 | 2 | 3 | 5 | 5 | 4 | 4 | 26 |
| NSR | 3 | 3 | 4 | 4 | 4 | 4 | 4 | 26 |
| TSX:Y | 3 | 2 | 4 | 4 | 4 | 4 | 4 | 25 |
| FRFHF | 4 | 3 | 5 | 3 | 3 | 3 | 3 | 24 |
| GEOS | 3 | 4 | 4 | 4 | 3 | 4 | 2 | 24 |
| EGBN | 4 | 4 | 4 | 4 | 3 | 3 | 1 | 23 |
| PRAA | 3 | 4 | 4 | 4 | 3 | 4 | 1 | 23 |
| BDRBF | 3 | 2 | 3 | 4 | 4 | 4 | 2 | 22 |
| TUP | 3 | 3 | 4 | 3 | 3 | 3 | 3 | 22 |
| BUSE | 2 | 3 | 4 | 4 | 4 | 4 | 1 | 22 |
| BABB | 2 | 4 | 3 | 4 | 4 | 4 | 1 | 22 |
| AUXO | 2 | 4 | 3 | 4 | 3 | 4 | 1 | 21 |
| BH | 3 | 3 | 3 | 3 | 3 | 2 | 2 | 19 |
| JOEZ | 3 | 1 | 4 | 4 | 2 | 3 | 1 | 18 |
| STLY | 2 | 3 | 3 | 3 | 3 | 2 | 2 | 18 |
| TSX:PLS | 1 | 4 | 3 | 3 | 3 | 3 | 1 | 18 |
| MCP | 1 | 1 | 2 | 3 | 3 | 3 | 1 | 14 |
These are the comments on some of the submissions. Authors please review the comments and hopefully they will help you to write better in future submissions.
| USNA | Interesting idea in a controversial industry. The only reason the company can get this cheap is probably because of the short attacks the industry is facing. |
| GABC | For banks, we need to look at the Equity to Asset ratio, non-performing loans, reserves, and price/book ratio. Though valuation is not very low, but this is a high quality bank. |
| JGW | A beaten stock in a disliked industry. Seems to have a lot of upside potential |
| TSX:Y | Seems to be an extremely undervalued company in a declining industry. |
| EGBN | Seems to be a high quality community bank. For banks, a better measurement is its price/book ratio, which seems to be high at 2.4. |
| BDRBF | A high risk bet on the turnaround on a capital heavy business. |
| TUP | More discussions of financial strength will help. |
| BABB | A nanocap with declining business. Undervalued, paying good dividends. |
| AUXO | Deep analysis on a nano-cap printing company. Everything sounds good but the company has rarely been profitable. |
| BH | Everything looks good until we found that the CEO pays himself $12 million in 2013. That is a significant portion of the operating income in most of the years. |
| JOEZ | Maybe an extremely undervalued stock. But risk is high as the company has too much debt. |
| MCP | Hard to value. |
$100 per submission will be paid to the qualified submissions. We will also track the performances of these submissions. $1000 will be paid to these authors if their picks double in the next 12 months. Non-qualified, but exclusive submissions will be paid as regular articles.
We are looking forward to more submissions. Wish your pick double in 12 months.
