We're posting up notes from the 2013 Value Investing Congress in New York. Next up is Daniel Miller of the Gabelli Focus Five Fund. His presentation was entitled "Investing With Conviction" and he pitched 3 ideas: Real D, Internap, and Guidance Software.
Daniel Miller's Value Investing Congress Presentation
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PMV: Private Market Value-
value for the entire company. Runs the Gabelli Focus
Five Fund.
Real D (RLD)
363M EV. 49.5M shares.
3-D movie stock. They are
working on "glasses-free" 3-D.
Trades at 5.5x EBITDA. IMAX
trades at 12x. (Not a good comp?) Says Dolby (DLB) could buy RLD, save
a ton of OPEX. CEO founder owns
10% of RLD. Think he'll cut OPEX
10-15% based on weak summer box offices.
Percentage of 3-D tickets dropped to only 40% of the big 3-D
movies. They are buying back a lot
of stock.
Internap (INAP)
$490M EV. Colocation, managed hosting company. 65% data centers, 35% legacy IP
services. Says they deserve 10x EBITDA multiple, gives you $10.50 per share
stock price. Has large NOL. Says large cable companies would buy
them.
Guidance Software (GUID)
$8.50/share, $200M EV. Digital forensics, e-discovery software
to analyze threats on networks and defend against lawsuits, incident response,
sell to 65% of the Fortune 100.
Be sure to check out the other presentations from the New York VIC here.
