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K Tucker Andersen's avatar

Very Intetrsting,

One update - after year endAnywhre Real Estate merged with Compass. Discovered this when the symbol shown was inaccurate. It is now being interested Compass, Symbol - COMP

Could be an intetsying play when starts and turnover recover, hopefully within my lifetime.

Think another such small cap play is BLND, which full disclosure I own. It is another small cap with practically no analyst coverage or even investor recognition and a very good management. Don't have to worry about major changes in the ER brokerage areas you do with COMP.

Nathan McGinty's avatar

You talking about the same BLND as I'm looking at with the "practically no analyst coverage" comment? I see at least 5, including majors like Goldman & Wells Fargo! That is way way way more coverage than a typical penny stock.

Nathan McGinty's avatar

Good & useful post. It reads as if you went in and read some (all?) of the letters from these funds as well. If folks want to know when a given position was initiated, I would assume that information is available in the historical newsletter archives, so it could be extracted with some legwork. If you do this in the future, replace North Peak Capital with a better thesis fit.

jont's avatar

Quite a few of these companies carry a significant amount of debt and have very little interest coverage either from cash flow or ebitda. Difficult to see how thay can be returning cash to shareholders while being borderline able to service debt.

Disquiet's avatar

It would be interesting to know when the funds bought these companies wouldn't it? A company a fund has been holding for 10 years vs one it just entered into are different things aren't they?