Purchased Atlas Financial Holdings (AFH):
- Specialty insurer of commercial vehicles
- Forecast increased market share in non-taxi transportation segment
- Growth of aging population may be tailwind to paratransit premium growth
- Investors panicked over unexpected reserve increase for bigger losses in Michigan (small portion of revenue)
- Concluded Michigan issues are isolated
- Therefore, used stock price decline associated with investor concerns to purchase company
- Trading at approximately 8x this year’s earnings estimates and slightly above book value at time of purchase
Added to Enova International (ENVA):
- Profitable online, small loan lender with operations in the United States, United Kingdom and Brazil
- Three new business lines: Near prime, small business and Brazilian consumer
- CEO of four years completed strategic realignment last year
- Company positioned for meaningful growth with new and existing business lines
- Added to company after reported strong first quarter earnings
- Trading at approximately 10x this year’s earnings estimates at time of purchase
Added to VAALCO Energy (EGY):
- Produce oil offshore Gabon
- Reduced operating costs considerably
- Therefore, breakeven oil price also reduced
- Higher oil prices directly benefit the company’s earnings
- Believe investors underestimating this positive influence
Trimmed Lattice Semiconductor (LSCC):
- Design and develop high performance, low cost, programmable semiconductors
- Company being acquired by a Chinese backed buyout fund
- Share price rose on acquisition announcement
- Trimmed position again to further reduce risk if purchase is rejected by U.S. Government