market folly

We're posting up notes from the Capitalize For Kids Sohn Canada conference that just took place.  Next up is Jody Lanasa of Serengeti Asset Management who pitched long Fortress Investment Group (FIG) as well as long Kodak.


Jody Lanasa's Sohn Canada Presentation

$1.6B in assets, utilizes an opportunistic value investing strategy.

Pitched LONG Fortress Investment Group (FIG). A global asset management firm with ~$65B AUM ($5B is permanent capital). Does about $940M in revenue and has grown assets by 11% a year since being public. Currently trades at 6x earnings, a 14% dividend yield, which he believes is sustainable. Without considering the FIG segment (has not maximized incentive fees recently), believes the company it’s worth $10, including, is valued at $12.69.

Next, pitched LONG Kodak. Revenues have suffered recently and they had to file for bankruptcy. During the restructuring, they exited the legacy businesses (the cameras and traditional printers). Today, they have over 7000 patents, with a cumulative cost of $5B to develop. The company has than $1B in debt (< 1x Net Debt-EBITDA) and unfunded pension liability. Believes investors are NOT giving them credit or appreciation for monetizing $10/share in cash of “hidden” assets (property, run-off businesses). In addition, they have a couple fast growing revenue generating business such as creating touch screens 30-50% cheaper than other competitors for tablets, phones, etc. Price target $59 (226% upside) within 12 months.

Be sure to check out the rest of the presentations from Capitalize For Kids Sohn Canada here.