Tieton Capital Management

4700 Tieton Drive, Suite C
Yakima, WA  98908
(509) 965-6488

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September 14, 2018

September 14, 2018 By Lora Leavenworth

Added to Atlas Financial (AFH): 

  • Niche commercial vehicle insurer
  • Strong belief in innovative management team
  • Trading less than 5x management’s guidance for 2018 earnings (rarity for non-cyclical) at time of purchase
  • Stock price drifted downward after previously raising weighting to 5%
  • Took opportunity to purchase more shares and increase weighting back to 5% – largest weighting will buy

Added to ChromaDex (CDXC): 

  • Dietary supplement and ingredient supplier
  • Additional research supporting NIAGEN, their primary ingredient
  • Increasing number of active studies (over 150) by universities & institutes
  • Building distribution relationships around the globe
  • Anticipate new ingredient supplier relationships – possibly quite meaningful
  • Share price drifted after large spike last year
  • Yet, fundamentals incrementally improving
  • Therefore, added to weighting

Added to Customers Bancorp (CUBI): 

  • Commercial bank primarily serving the Washington, D.C. to Boston corridor
  • Spinning off disbursements and mobile bank business, called BankMobile
  • Process taking longer than anticipated
  • Investors appear to the focusing on the near-term glitches, rather than value of primary banking franchise
  • Trading less than book value
  • Excluding BankMobile, Customers is trading at less than 10x this year’s earnings
  • Increased weighting anticipating eventual successful BankMobile monetization or shuttering business, at which point the core banking franchise value should drive share price 

Trimmed Enova International (ENVA): 

  • Online subprime lender with operations in U.S., U.K. and Brazil
  • Management masterfully executing business plan
  • Surprised investors with strong income leverage in first quarter and big earnings beat
  • Stock price responded quite favorably, then continued to move up into Q2 release
  • Forecasted upside reduced as a result
  • Trimmed to raise cash for alternatives with greater forecasted upside

Trimmed Myriad Genetics (MYGN): 

  • Leading provider of genetic testing
  • Catalysts developing nicely
  • Made strategically smart acquisitions
  • Investors appear to be recognizing Myriad’s competitive strengths and opportunity
  • Have held shares longer than typical value manager might due to the strong fundamentals
  • Therefore, shares trading at higher valuation than normal for portfolio
  • Believe more money can be made in another company
  • Consequently, trimmed position

 

Filed Under: Portfolio Change Updates

Archieve

  • December 21,2020
  • February 27, 2020
  • April 18, 2019
  • December 4, 2018
  • September 14, 2018
  • June 14, 2018
  • January 22, 2018
  • November 15, 2017
  • September 7, 2017
  • June 28, 2017
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