Mohnish Pabrai who manages a 600 million fund is a Buffett follower. He spent about 650K just to have lunch with Buffett. He keeps on buying PNCL since last year. You can click here to check it out.
Below are some of the financial statements about PNCL:
1) PNCL is not consumer monopoly.
2) ROE 134%(2006), 44.74%(2007)( I only can find 2 years)
3) ROA 27%(2003 & 2004), 13%(2005), 29%(2006) and 6.86%(2007)
4) Total cash=213.6M; total debt=279.49m
5) Net income(EPS) 1.60(2003);1.86(2004);1.17(2005);3.54(2006);1.5(2007)
With skyrocketing of oil price, the stock price won’t move up for quite some time. If you go through the nine questions on chapter 16 from the book, it just not an excellent investment. So wait for more on sale if you like it.
1 comment:
I believe there's a typo. 2006 ROE is 34.57% not 134.57%
Please also note, total equity decreased from $97MM to $57MM. I am curious whenever equity decreases because it will make ROE artificially higher. However, while equity goes toward zero will increase ROE, it also means the business will go belly up (usu. due to over-borrowing to expand or pay something.)
A bigger concern is the netincome seemed to be going down rather than being consistent.
Post a Comment