Author Topic: CLWY - Calloway's Nursery  (Read 26954 times)

Paarslaars

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Re: CLWY Calloway's Nursery
« Reply #20 on: May 25, 2017, 12:33:24 PM »
Have to agree here, I buy almost everything online except for two things:
- Food
- Flowers

Both for the same reason, you want to pick out quality.


Pelagic

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Re: CLWY Calloway's Nursery
« Reply #21 on: May 25, 2017, 12:35:27 PM »
A retailer with real estate that provides a margin of safety, now where have I heard that story before  ;D

I thought this seekingalpha writeup on it was well done, only wish I'd seen it when it first came out.

https://seekingalpha.com/article/4040237-calloways-nursery-radar-trading-liquidation-value

I guess the thing is you need to come to a conclusion:
1) Is all real estate worthless?  If so then yes ANY company with RE isn't worth a look.
2) Some RE will hold value, even if there is a retailer on top of it.

I'm in the #2 camp.  Have you ever ordered plants from Amazon?  How about mulch?  Of course 90% of this board probably lives in NYC or Toronto where people don't do those things.  But in the heartland people buy mulch, grass seed, living and established plants.

I have purchased from Lowes, HD, Costco, local nurseries.  My experience is this.  If you want a cheap plant with a 30-40% chance of living the big box stores are the way to go.  Costco's plants are bigger and usually do better.  A local nursery is the best bet.  Most local nurseries have guarantees too.  One we use has a three year guarantee, I think five years for trees.  If something happens in that time they just replace it.

The value-add thesis is about as popular in investing circles as low book value stocks.  But as a customer I know I prefer to go to a place and pay a little more for good service, a good product, and advice from someone who knows what they're doing.  I know friends do as well.  Most go the cheap route until they're burned and then pay slightly more.

I don't disagree with you on the big box stores. I'm currently in the process of converting most of the trees in my yard to fruit trees, mainly avocado and mangos. I figure if I'm going to be taking care of them anyway, I might as well get something in return. HD might carry one or two different varieties whereas a nursery specializing in them may carry as many as 30 with someone knowledgeable about the different qualities of each. If a store like Calloway's existed where I live I would probably shop there for gardening supplies. I am concerned how it would perform in an economic downturn, spending money on new trees and yard beautification is an easy cut to any family budget when times are tight but for now it seems attractively priced.
« Last Edit: May 25, 2017, 12:44:49 PM by Pelagic »

valueyoda

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Re: CLWY Calloway's Nursery
« Reply #22 on: May 25, 2017, 04:32:04 PM »
Have been trimming my position in the last few days after holding the stock since 2013. This was the perfect little underfollowed gem guided by a wonderful investor Peter Kamin, the former Valueact cofounder, through his family office 3K. You should definitely follow some of his other investments as well. The stock is becoming fairly valued now.

awindenberger

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Re: CLWY Calloway's Nursery
« Reply #23 on: May 25, 2017, 08:15:33 PM »
Have been trimming my position in the last few days after holding the stock since 2013. This was the perfect little underfollowed gem guided by a wonderful investor Peter Kamin, the former Valueact cofounder, through his family office 3K. You should definitely follow some of his other investments as well. The stock is becoming fairly valued now.

Whats the best way to follow his other investments?

gfp

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Re: CLWY Calloway's Nursery
« Reply #24 on: May 25, 2017, 08:18:53 PM »
This is a decent starting place - http://3klp.com/portfolio.html

https://www.sec.gov/cgi-bin/own-disp?action=getowner&CIK=0000937541
https://www.sec.gov/cgi-bin/browse-edgar?company=Kamin+Peter&owner=exclude&action=getcompany

Have been trimming my position in the last few days after holding the stock since 2013. This was the perfect little underfollowed gem guided by a wonderful investor Peter Kamin, the former Valueact cofounder, through his family office 3K. You should definitely follow some of his other investments as well. The stock is becoming fairly valued now.

Whats the best way to follow his other investments?
« Last Edit: May 25, 2017, 08:24:11 PM by globalfinancepartners »

DTEJD1997

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Re: CLWY Calloway's Nursery
« Reply #25 on: May 25, 2017, 09:06:26 PM »
A retailer with real estate that provides a margin of safety, now where have I heard that story before  ;D

I thought this seekingalpha writeup on it was well done, only wish I'd seen it when it first came out.

https://seekingalpha.com/article/4040237-calloways-nursery-radar-trading-liquidation-value

This is where the market is not efficient and an edge can be gained in these micro-cap stocks.  If anybody doubts the Voss Rd. location is not truly "mega super class A+ property", they have not seen it with their own eyes.  Further...the value of this ONE location could be 1/3 of the market cap. of the company EVEN at this heightened share price.  Thus, it makes the evaluation extremely simplistic...kind of like a 1 foot hurdle.

Compare this to another retailer...oh I don't know...one that is run by a "hedgie"...one that has hundreds or thousands of properties...is anyone of those properties with 35% of the market cap of the company?  20%  10%  5%?  More than 1%?

Finally, CLWY sold their crummier Houston location...they booked a gain on it...a "mega super A+ gain".  If they choose to do it again, they can...

hooplaer23

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Re: CLWY Calloway's Nursery
« Reply #26 on: August 16, 2017, 02:27:47 PM »
Calloway's posted its quarterly results today (see http://www.otcmarkets.com/stock/CLWY/filings).  EPS for the first half of the year is $0.71, compared to the share price of around $6.  Historically the company has incurred modest losses in the second half of the year due to the seasonality of the business, but if it can break even the company would be trading at 8.5x earnings. 

DooDiligence

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Re: CLWY Calloway's Nursery
« Reply #27 on: August 16, 2017, 04:57:48 PM »
The recapitalization turned out well for these guys.

Anyone know what happened with the big management shakeup in 2016?

---

Calloway's Nursery And 3K Limited Partnership Announce Final Results Of Joint Tender Offer And Closing Of Recapitalization

(excerpt)

In addition, pursuant to the terms of the Recapitalization Agreement, Mr. Estill resigned as the Chief Executive Officer and Chairman of the Board of Directors of Calloway's at the closing of the Recapitalization, and Marce Ward, the President and Chief Operating Officer of Calloway's prior to the Recapitalization, was appointed as President and Chief Executive Officer. Furthermore, pursuant to the Recapitalization Agreement, five members of the Calloway's Board of Directors, consisting of Mr. Estill, Dan Feehan, Alan Howe, Daniel Reynolds and David Straus, resigned from the board. The post-Recapitalization Board of Directors consists of continuing directors Peter Kamin, David Alexander and Mr. Ward, as well as two designees appointed by 3K, David Schneider and Terry Shaver.
Healthcare 25.9% - CVS EW NVO // BRK.B - 23.1% // Auto's & Oil 15.0% - CLB GPC VDE

Entertainment 4.8% - DIS // Banking 9.9% - WFC // Drinkers & Smokers 4.9% - MO

%'s held @ MV 08/29/2019 minus 16.4% investable cash

i trumpet my ignorance

https://twitter.com/tunawish

DTEJD1997

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Re: CLWY Calloway's Nursery
« Reply #28 on: August 25, 2017, 10:35:28 PM »
Hey all:

WOW, CLWY really had tremendous earnings...I am shocked this stock is not higher.

The balance sheet has shown marked improvement also.

There is a very good chance that CLWY is still very "cheap" at $6/share.

DooDiligence

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Re: CLWY Calloway's Nursery
« Reply #29 on: August 26, 2017, 10:35:48 AM »
The recapitalization turned out well for these guys.

Anyone know what happened with the big management shakeup in 2016?


Thanks to Travis Wiedower for having the clairvoyance to answer my question before I even asked it.

(I gotta learn to read the whole thread...)
Healthcare 25.9% - CVS EW NVO // BRK.B - 23.1% // Auto's & Oil 15.0% - CLB GPC VDE

Entertainment 4.8% - DIS // Banking 9.9% - WFC // Drinkers & Smokers 4.9% - MO

%'s held @ MV 08/29/2019 minus 16.4% investable cash

i trumpet my ignorance

https://twitter.com/tunawish