AutoInfo Inc.
Glad to be back in NYC.
Usually I receive my Chemo therapy on Mondays but due to my trip to Ohmaha, I had to move it to today. As most of you know, I get my Chemo Injection from Monday - Wednesday bi-weekly. Believe me, it is not the most comfortable situation to sleep with a needle stuck in your body for three days. But I am used to it by now. I am O.K.
This morning, as I was driving to the hospital, I felt a surge of happiness. During my trip to Ohmaha for the Berkshire Hathaway (BRK-A) annual shareholder meeting, I was in a same room with the World's richest man and a second richest man. (Bill Gates and Warren Buffett are friends - which makes sense - they play bridge together - and Bill buys Berkshire stock every week it seems - he owns over 5,000 shares so far - 5,000 x $90,000.00 = $450,000,000.00). Oh, let's just say about half a billion dollars worth. And he keeps on buying like a clock work ... hmmm ...
Driving to the hospital by myself (quite rare that a guy in my situation takes himself to the hospital) in my beautiful Mercedes S class (black on black I mind you) blasting my Bose speakers with Alpine CD system; thinking about the trip I just had and remembering how beautiful my son Ace is - I almost cried in my car by myself.
I consider myself a very lucky guy.
Not too many guys in my age group (39) can just fly away to the shareholders meeting (not too many guys even own shares, period.), able to spend almost all day with his 2 year old son (this is heaven guys), goes out to eat whatever he fancy, has a beautiful loving wife who pulls in six figures, owns a condo right in front of the seashores and I can go on and on. If only I can beat this Colon Cancer business (and this is a major business), I am in heaven - and I will beat it (statistically about 90% die in 5 years, just so you know what business I am talking about) - for my son Ace.
Back to real business: I will share my experience from Ohmaha trip from time to time. But more importantly let me introduce AutoInfo Inc. (AUTO.OB). From my last note I told you that I just bought this small outfit.
AutoInfo, Inc., through its wholly owned subsidiary, Sunteck Transport Co., Inc., provides transportation capacity and related transportation services to shippers in the United States and Canada. Basically they are the brokers in transportation business so they do not own any equipments (trucks or ships). They basically conduct business through computers, phones and faxes. Sounds boring right? However, this small outfit knows what they are doing. Revenue and profits are growing like mushrooms (you know I love mushrooms). Yet it is priced at about half times sales ($70 Million) and less than 10x 2006 earings! And ROE (return on equty) is over57% ! WOW !
You introduce me a company with 50%+ ROE while selling for less than half times annual sales - I am in. And I was in Friday. I want to buy more if it falls a tad from here. But this is not happenning yet. The price has not gone below $1.19 since my purchase. If this continues, I might just buy more at $1.2x. What do I expect in terms of returns? My target for AUTO.OB is about $2.40/share. This is about 1X 2006 sales and 15x 2006 earnings. Reasonable; unless there is a disaster we haven't thought of. Transport business may sound boring but it is growing and it is profitable. I suggest you pick up a unit or at least half your usual unit.
And please do not call me when this goes to $1.5x (up 40%) and ask me if it is still a good buy. Because I don't know. I am risking my own money just like you because it makes sense to me. My estimates are just that - an estimate. Remember no one makes money without putting it on the table. So far you have seen my judgement calls from previous notes. There are many winners in rather short period of time - there will be losers I am sure in the future. But overall, our winners will more than offset our losers - or at least that's the plan :-)
P.S: If any one of you who do not know how to check a stock symbol from Yahoo.Finance, please ask me. I am assuming that you all know how to do a basic research on a company when I give you the symbols. But it just hit me that I have been doing this for over 20 years. Some of you might be new to this - just ask. It is very simple. Good nite.
Usually I receive my Chemo therapy on Mondays but due to my trip to Ohmaha, I had to move it to today. As most of you know, I get my Chemo Injection from Monday - Wednesday bi-weekly. Believe me, it is not the most comfortable situation to sleep with a needle stuck in your body for three days. But I am used to it by now. I am O.K.
This morning, as I was driving to the hospital, I felt a surge of happiness. During my trip to Ohmaha for the Berkshire Hathaway (BRK-A) annual shareholder meeting, I was in a same room with the World's richest man and a second richest man. (Bill Gates and Warren Buffett are friends - which makes sense - they play bridge together - and Bill buys Berkshire stock every week it seems - he owns over 5,000 shares so far - 5,000 x $90,000.00 = $450,000,000.00). Oh, let's just say about half a billion dollars worth. And he keeps on buying like a clock work ... hmmm ...
Driving to the hospital by myself (quite rare that a guy in my situation takes himself to the hospital) in my beautiful Mercedes S class (black on black I mind you) blasting my Bose speakers with Alpine CD system; thinking about the trip I just had and remembering how beautiful my son Ace is - I almost cried in my car by myself.
I consider myself a very lucky guy.
Not too many guys in my age group (39) can just fly away to the shareholders meeting (not too many guys even own shares, period.), able to spend almost all day with his 2 year old son (this is heaven guys), goes out to eat whatever he fancy, has a beautiful loving wife who pulls in six figures, owns a condo right in front of the seashores and I can go on and on. If only I can beat this Colon Cancer business (and this is a major business), I am in heaven - and I will beat it (statistically about 90% die in 5 years, just so you know what business I am talking about) - for my son Ace.
Back to real business: I will share my experience from Ohmaha trip from time to time. But more importantly let me introduce AutoInfo Inc. (AUTO.OB). From my last note I told you that I just bought this small outfit.
AutoInfo, Inc., through its wholly owned subsidiary, Sunteck Transport Co., Inc., provides transportation capacity and related transportation services to shippers in the United States and Canada. Basically they are the brokers in transportation business so they do not own any equipments (trucks or ships). They basically conduct business through computers, phones and faxes. Sounds boring right? However, this small outfit knows what they are doing. Revenue and profits are growing like mushrooms (you know I love mushrooms). Yet it is priced at about half times sales ($70 Million) and less than 10x 2006 earings! And ROE (return on equty) is over57% ! WOW !
You introduce me a company with 50%+ ROE while selling for less than half times annual sales - I am in. And I was in Friday. I want to buy more if it falls a tad from here. But this is not happenning yet. The price has not gone below $1.19 since my purchase. If this continues, I might just buy more at $1.2x. What do I expect in terms of returns? My target for AUTO.OB is about $2.40/share. This is about 1X 2006 sales and 15x 2006 earnings. Reasonable; unless there is a disaster we haven't thought of. Transport business may sound boring but it is growing and it is profitable. I suggest you pick up a unit or at least half your usual unit.
And please do not call me when this goes to $1.5x (up 40%) and ask me if it is still a good buy. Because I don't know. I am risking my own money just like you because it makes sense to me. My estimates are just that - an estimate. Remember no one makes money without putting it on the table. So far you have seen my judgement calls from previous notes. There are many winners in rather short period of time - there will be losers I am sure in the future. But overall, our winners will more than offset our losers - or at least that's the plan :-)
P.S: If any one of you who do not know how to check a stock symbol from Yahoo.Finance, please ask me. I am assuming that you all know how to do a basic research on a company when I give you the symbols. But it just hit me that I have been doing this for over 20 years. Some of you might be new to this - just ask. It is very simple. Good nite.
posted by Jaewoo | 11:56 PM
5 Comments:
Jae - good to hear from you again - I was getting a little worried that you were MIA for a while. OK, AUTO.OB does look pretty good, but what about UTK? Is it still a good buy? And, what about EBAY now that their bad earnings report depressed the stock?
Glad to hear your trip went well. What's up with MATK? Should I hold, or sell and get into something better?
Boy, so many questions...
UTK: is a good buy - long term.
EBAY: is at 2 year low. What do u think? Do u think that EBAY business will shrink or grow 2 years from now? You tell me.
MATK: everyone knows this one is for long term holding. If you have to sell just because the stock goes down a few points then you can not own anything. Put it in the bank. And who are you?
Your website has a useful information for beginners like me.
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Nice! Where you get this guestbook? I want the same script.. Awesome content. thankyou.
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