Author Topic: CKI - Clarke Inc.  (Read 193056 times)

jm25

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CKI - Clarke Inc.
« on: January 17, 2014, 11:57:49 AM »
TSX:CKI

Clarke, Inc. is an investment holding firm. It primarily involves in investment in undervalue businesses. The firm through its subsidiaries, engages in investment and transportation business in Canada and internationally. Through transportation services business subsidiaries, it engages in integrated transportation operations that include various modes, such as boxcar, intermodal, and trucking services, as well as offers truckload and less than truckload services comprising longhaul, flatbed, and intermodal services. Firm’s freight product mix includes building products, food, beverages, metals, consumer packaged products, pharmaceuticals, computer hardware, electronics, and a range of retail goods. It also provides various information technology services, such as server hosting, migration services, application services, network services, disaster recovery services, security and access, and Web services to the business community. In addition, the firm owns a container ship that serves as a time charter vessel transporting goods between Fort Lauderdale, Florida and George Town, Grand Cayman, as well as operates ferries. Further, through a joint venture with Sure-Gro, Inc., it involves in consumer home and garden business. Additionally, through its investment division the firm invests in marketable securities portfolio, including fixed income securities, unit trusts, and long-term investments.

• Cash flow positive
• Pays a 5% dividend
• Cheap on a p/e and ev/ebitda
• Trades below 1.5x price / tangible book value, 1.1x book value
• Reasonable leverage
• Bought back shares when shares were trading below book value – seem like smart capital allocators. Tried to buy back converts with cash rather than have dilution for shareholders
• Large insider ownership
• No research analyst following
 
What I need to look into:
 
• Strong earnings in 08, 09, 10, and LTM… what happened in 2011 and 2012?
• How active CEO is in the business and if he will be around. I think he stepped back a while back due to health reasons. Potentially some key man risk here.

Has anyone looked into this name or ever spoken to Management?


Parsad

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Re: CKI - Clarke Inc.
« Reply #1 on: January 17, 2014, 12:22:50 PM »
TSX:CKI

Clarke, Inc. is an investment holding firm. It primarily involves in investment in undervalue businesses. The firm through its subsidiaries, engages in investment and transportation business in Canada and internationally. Through transportation services business subsidiaries, it engages in integrated transportation operations that include various modes, such as boxcar, intermodal, and trucking services, as well as offers truckload and less than truckload services comprising longhaul, flatbed, and intermodal services. Firm’s freight product mix includes building products, food, beverages, metals, consumer packaged products, pharmaceuticals, computer hardware, electronics, and a range of retail goods. It also provides various information technology services, such as server hosting, migration services, application services, network services, disaster recovery services, security and access, and Web services to the business community. In addition, the firm owns a container ship that serves as a time charter vessel transporting goods between Fort Lauderdale, Florida and George Town, Grand Cayman, as well as operates ferries. Further, through a joint venture with Sure-Gro, Inc., it involves in consumer home and garden business. Additionally, through its investment division the firm invests in marketable securities portfolio, including fixed income securities, unit trusts, and long-term investments.

• Cash flow positive
• Pays a 5% dividend
• Cheap on a p/e and ev/ebitda
• Trades below 1.5x price / tangible book value, 1.1x book value
• Reasonable leverage
• Bought back shares when shares were trading below book value – seem like smart capital allocators. Tried to buy back converts with cash rather than have dilution for shareholders
• Large insider ownership
• No research analyst following
 
What I need to look into:
 
• Strong earnings in 08, 09, 10, and LTM… what happened in 2011 and 2012?
• How active CEO is in the business and if he will be around. I think he stepped back a while back due to health reasons. Potentially some key man risk here.

Has anyone looked into this name or ever spoken to Management?

Have not spoken to management, but followed the company for years!  Read all you can on George Armoyan...interesting fellow!  The stock has run up a bit after being flat for a couple of years.  Cheers!
No man is a failure who has friends!

jwfm1985

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Re: CKI - Clarke Inc.
« Reply #2 on: January 17, 2014, 12:47:07 PM »
This is 100% a personal opinion (and I'm sure there are others with differing views!) but I wouldn't touch anything Armoyan is behind, especially Clarke. Some very shady dealings in the past...

ItsAValueTrap

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Re: CKI - Clarke Inc.
« Reply #3 on: January 17, 2014, 12:50:48 PM »
I scalped this stock in the past and missed the current run-up because I did not buy and hold.  (Ooops?)

One of their analysts or employees is subscribed to my blog.

I don't have time to analyze everything out there, so I simply assume that you should buy Clarke when the company is buying back or tendering for its own shares.  It looks like the company is currently buying back its convertible debentures:
http://www.canadianinsider.com/node/7?menu_tickersearch=cki

(Is it sad that I know very little about this company?)
"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. " -Buffett

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augustabound

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Re: CKI - Clarke Inc.
« Reply #4 on: January 17, 2014, 03:43:37 PM »
This is 100% a personal opinion (and I'm sure there are others with differing views!) but I wouldn't touch anything Armoyan is behind, especially Clarke. Some very shady dealings in the past...

I can't remember anything to this but I think you're right.  There's something in my gut telling me I forgot about this company for a reason a few years back..........................but I can't for the life of me remember why.

That's why I write things down now.  ;D
"Serenity now, insanity later." - Lloyd Braun

Dazel

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Re: CKI - Clarke Inc.
« Reply #5 on: January 17, 2014, 04:13:43 PM »


I own a lot....I suggest you check out the book value...after the Clarke trucking sale...too tired to give you a scenario...I did not know that Clarke was pushing a proxy vote a Sherritt who just sold it's royalty division to Altius another of my holdings.

If people post I will correct and add...other than that...it is another buck for 40 cents..Armoyan owns 48% so he is aligned with shareholders...

5% yield...book value is mostly cash...

Dazel.

Dazel

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Re: CKI - Clarke Inc.
« Reply #6 on: January 17, 2014, 04:23:02 PM »


Jm25,


The earnings this year are an absolute blow out...they are announced in the deals...but no one has done the work to find out...this is an old Bruce Berkowitz holding. You need to adjust your book value number it's changed dramatically.

Dazel.

Parsad

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Re: CKI - Clarke Inc.
« Reply #7 on: January 17, 2014, 05:19:52 PM »
Armoyan has played some pretty hard-ball tactics at times, and I think that is probably what is giving some people concern from past articles, etc.  But for the most part, his compensation, etc has always been aligned with Clarke shareholders, which is something that many other value CEO's don't seem to follow.  Cheers!
No man is a failure who has friends!

50centdollars

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Re: CKI - Clarke Inc.
« Reply #8 on: January 17, 2014, 06:48:33 PM »


I own a lot....I suggest you check out the book value...after the Clarke trucking sale...too tired to give you a scenario...I did not know that Clarke was pushing a proxy vote a Sherritt who just sold it's royalty division to Altius another of my holdings.

If people post I will correct and add...other than that...it is another buck for 40 cents..Armoyan owns 48% so he is aligned with shareholders...

5% yield...book value is mostly cash...

Dazel.

Agreed. I think they have about $12/share in cash and marketable securities so I think the downside is protected here.
50centdollars

Dazel

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Re: CKI - Clarke Inc.
« Reply #9 on: January 17, 2014, 06:54:05 PM »
Agreed Sanjeev.

Armoyan is a businessman and he is a true value investor and operator...they are extremely rare. Unfortunately, in the real world businessmen get there hands dirty it is not the fun illusion that people get from how easy people think it is consistently produce profits and or shareholer returns. There is a very good reason that most businesses do not perform well. Because it is hard.! Sometimes you have to dig in the dirt and Armoyan has done this...his brothers reputation is not good and George's reputation has been dragged along with it....and no one enjoyed getting absolutely smoked in 2008. Clarke lost 80% of the value of it's shares..and Armoyan took a sabatical. It has been a great turn around story.