If you’re considering a company as a possible investment, you’ll need to determine how healthy and promising it is. Here are some online resources that can help. (Two good offline resources are “The Little Book That Still Beats the Market” by Joel Greenblatt and “The Little Book of Value Investing” by Christopher H. Browne — both Wiley, $20.)
•The company’s own website. Look for links labeled “About Us,” “Corporate Information,” “Investor Relations,” etc., and try to read through at least the most recent annual report. Even a “Career Opportunities” section can give you insights into how heavily it’s hiring and what kinds of people it needs. Search engines such as Google.com can help you find a company’s website.
•Online company data providers, such as finance.yahoo.com and caps.fool.com. Financial statements that companies must file with the Securities and Exchange Commission (SEC) are available through such sites and also at sec.gov/edgar.shtml.
•Analyst research reports. Most major online brokerages (such as E-Trade, TD Ameritrade, Schwab, Fidelity, etc.) offer customers access to a range of Wall Street reports on loads of stocks. Learn more about choosing the best brokerage at broker.fool.com.
•Industry information. Research an industry at websites such as these: virtualpet.com/industry /rdindex2.htm, bls.gov/iag, and valuationresources.com/IndustryReport.htm. Simple Google searches can help, too.
•Historical P/E ratios and other measures. Look these up at sites such as morningstar.com.
Historical numbers can be very handy. If a company you’re examining has a P/E of 22, for example, and you see that over the past five years its P/E has usually been around 30, then you might be looking at an attractive price right now. (Do more digging, though, to make sure the company isn’t facing some current tough challenges.)
•Articles in current issues and archives of financial periodicals such as The Wall Street Journal and Fortune. You can read many online for free, and your local newspaper’s business section can be informative, too.
http://tourism9.com/ http://vkins.com/
2012年2月26日星期日
2012年2月7日星期二
Capital Access Network Raises $30M From Accel To Loan Small Businesses Working Capital
In this economic climate, many small businesses do not qualify for loans based on the standards imposed by banks and financial institutions. For fledgling businesses, the establishment doesn’t have enough cash flow, revenue or credit to qualify for a loan. Many times, entrepreneurs have to put up personal assets as collateral for loans, which can be problematic and risky. The fact is working capital is difficult to get from banks unless a business has perfect credit.
Capital Access Network (CAN), a company that gives small businesses access to credit and working capital and helps solve the problem outlines above, is announcing this morning that it has raised $30 million from Accel Partners. As part of the transaction, Accel partner, Kevin Efrusy will join Credit Access’s board of directors, and Accel vice president, John Locke, will join as an observer.
CAN constitutes the largest, non-bank alternative capital provider to small businesses in the US. The company uses its own real-time platform and risk scoring models to provide capital to small and medium-sized businesses in the US and Latin America and has funded over $2 billion in capital to SMB’s under the brands NewLogic Business Loans and AdvanceMe. This represents roughly 100,000 distinct small business finance transactions. This year alone, CAN will fund over $600 million in loans to small businesses.
CAN uses a variety of data points to deem a business worthy of credit or capital apart from the traditional criteria. CAN’s proprietary underwriting algorithms will churn through its vast data stacks of historical merchant demographic, firmographic, psychographic and social and behavioral profiles seeking and seasoning new behavioral and synthetic risk indicators and recombining those indicators into new risk scorecards.
For example, CAN will look at frequency of sales (not just how much), inventory access, eBay seller rating, tax returns and other information. In terms of interest, the company uses a more unorthodox, merchant-friendly way of collecting money on top of a loan. If an online violin store needs $30,000 in working capital to purchase inventory, CAN will loan the money, but the borrower will need to pay back $35,000 to CAN over 12 months.
Typically, CAN will give merchants and businesses anywhere from $2,500 to $250,000 in working capital. Customers range from medical practices, to shoe stores to auto repair shops to clothing, accessory and home product online retailers.
CAN CEO, Glenn Goldman, tells me that the extra amount the borrower has to pay to CAN depends on risk of the loan, how long it will take for the loan to be paid back, the amount of capital lent and other factors. But he says many times, the amount CAN charges is less than any interest rate from a bank. And 75 percent of customers renew their funding. In some cases, repayment can be fairly simple. Goldman points to the example of one online merchant who chose to automatically forward a small percentage of sales from its payment processor directly to CAN to repay the loan every month. If sales were lower than usual that month, CAN would lower the amount needed to pay.
And Goldman explains that behavioral risk scoring, rather than just examining a small business owner’s FICO score, allows the company to ‘yes’ to a higher percentage of SMBs than traditional sources while mitigating losses.
For Accel, the investment marks the continuation of a thesis of investing aggressively behind companies that are enabling small businesses to grow faster, says Efrusy. He cites investments in Groupon, Etsy, 99 Designs, Braintee, DropBox as just a few of the Accel-backed companies that are helping are “giving small businesses tools to thrive.”
“From our work with small businesses, it’s clear that one of the most pressing issues for merchants is access to credit and working capital,” Efrusy said. “Especially today, banks are unable to play effectively in this market. Large institutions cannot reach, evaluate, or serve small businesses efficiently. Many newcomers to the finance space are constrained by limited access to and very high-cost capital combined with high portfolio losses given unseasoned risk scoring models. Capital Access Network has by far the strongest team, scale, and data-driven approach to this market.”
Goldman says the new funding will be partly used for boosting and redesigning the online merchant experience on CAN. By April, the lender will feature new user interfaces, merchant portals and online approvals.
As Efrusy explains, there’s a huge amount of disruption taking place in the online lending space, and CAN is in a great position to help small businesses grow with working capital. Kabbage is another startup that is also looking to provide capital to online merchants, and ZestCash is doing something similar on the consumer end of the spectrum.http://tourism9.com/ http://vkins.com/
Capital Access Network (CAN), a company that gives small businesses access to credit and working capital and helps solve the problem outlines above, is announcing this morning that it has raised $30 million from Accel Partners. As part of the transaction, Accel partner, Kevin Efrusy will join Credit Access’s board of directors, and Accel vice president, John Locke, will join as an observer.
CAN constitutes the largest, non-bank alternative capital provider to small businesses in the US. The company uses its own real-time platform and risk scoring models to provide capital to small and medium-sized businesses in the US and Latin America and has funded over $2 billion in capital to SMB’s under the brands NewLogic Business Loans and AdvanceMe. This represents roughly 100,000 distinct small business finance transactions. This year alone, CAN will fund over $600 million in loans to small businesses.
CAN uses a variety of data points to deem a business worthy of credit or capital apart from the traditional criteria. CAN’s proprietary underwriting algorithms will churn through its vast data stacks of historical merchant demographic, firmographic, psychographic and social and behavioral profiles seeking and seasoning new behavioral and synthetic risk indicators and recombining those indicators into new risk scorecards.
For example, CAN will look at frequency of sales (not just how much), inventory access, eBay seller rating, tax returns and other information. In terms of interest, the company uses a more unorthodox, merchant-friendly way of collecting money on top of a loan. If an online violin store needs $30,000 in working capital to purchase inventory, CAN will loan the money, but the borrower will need to pay back $35,000 to CAN over 12 months.
Typically, CAN will give merchants and businesses anywhere from $2,500 to $250,000 in working capital. Customers range from medical practices, to shoe stores to auto repair shops to clothing, accessory and home product online retailers.
CAN CEO, Glenn Goldman, tells me that the extra amount the borrower has to pay to CAN depends on risk of the loan, how long it will take for the loan to be paid back, the amount of capital lent and other factors. But he says many times, the amount CAN charges is less than any interest rate from a bank. And 75 percent of customers renew their funding. In some cases, repayment can be fairly simple. Goldman points to the example of one online merchant who chose to automatically forward a small percentage of sales from its payment processor directly to CAN to repay the loan every month. If sales were lower than usual that month, CAN would lower the amount needed to pay.
And Goldman explains that behavioral risk scoring, rather than just examining a small business owner’s FICO score, allows the company to ‘yes’ to a higher percentage of SMBs than traditional sources while mitigating losses.
For Accel, the investment marks the continuation of a thesis of investing aggressively behind companies that are enabling small businesses to grow faster, says Efrusy. He cites investments in Groupon, Etsy, 99 Designs, Braintee, DropBox as just a few of the Accel-backed companies that are helping are “giving small businesses tools to thrive.”
“From our work with small businesses, it’s clear that one of the most pressing issues for merchants is access to credit and working capital,” Efrusy said. “Especially today, banks are unable to play effectively in this market. Large institutions cannot reach, evaluate, or serve small businesses efficiently. Many newcomers to the finance space are constrained by limited access to and very high-cost capital combined with high portfolio losses given unseasoned risk scoring models. Capital Access Network has by far the strongest team, scale, and data-driven approach to this market.”
Goldman says the new funding will be partly used for boosting and redesigning the online merchant experience on CAN. By April, the lender will feature new user interfaces, merchant portals and online approvals.
As Efrusy explains, there’s a huge amount of disruption taking place in the online lending space, and CAN is in a great position to help small businesses grow with working capital. Kabbage is another startup that is also looking to provide capital to online merchants, and ZestCash is doing something similar on the consumer end of the spectrum.http://tourism9.com/ http://vkins.com/
2012年1月30日星期一
2012年1月19日星期四
Mutual Funds Invest in Brazilian Online Deals Company
SÃO PAULO, Brazil — Peixe Urbano, Brazil’s first online daily deal company, has closed a series C round of financing with mutual funds and institutional accounts managed by Morgan Stanley Investment Management and T. Rowe Price Associates. General Atlantic and Tiger Global Management, who had previously backed the company, also participated. The size of investment was not disclosed.
Julio Vasconcellos, Peixe Urbano’s chief executive and co-founder, told DealBook in an interview that the new capital would be used to finance research and development and product development. He said the company, based in Rio de Janeiro, planned to develop new features and seek to improve the daily deal business model, including a push into local e-commerce.
Mr. Vasconcellos says Peixe Urbano also plans to hire engineers and fill out its senior leadership team.
The site started in March 2010, when Brazil had no daily deal market.
Its founders, Mr. Vasconcellos, Emerson Andrade and Alex Tabor, met while at Stanford University.
Early investors in the company are Chamath Palihapitiya, Benchmark Capital and Monashees Capital, based in São Paulo. Matt Cohler of Benchmark and Eric Acher of Monashees continue to serve on Peixe Urbano’s board of directors.
The company has grown rapidly in its brief history. It says that by the end of 2010, in its first nine months, it had sold two million coupons and employed 270 people. By early this month, it had sold roughly 12 million coupons and had 1,000 employees. It has also expanded in Latin America, and is now present in more then 80 cities.
Brazil’s daily deal market initially exploded following Peixe Urbano’s founding. More than 2,000 similar sites developed, according to Guilherme Stocco, vice president of business development at the Buscapé Company, which owns intelligence-gathering units.
The market has since experienced a significant correction: there are now just 1,000 sites, and only 300 generate revenue.
While Peixe Urbano does not disclose its revenue, Mr. Stocco told DealBook that in 2011 the total daily deal market in Brazil was about $843 million. He says the top three companies — Peixe Urbano, Groupon and Click On — have been running neck and neck in the market’s brief history. The top three sites account for 40 percent of total market revenue, he said, while the top eight account for 70 percent.
Mr. Stocco said that while there had been a lot of consolidation, “the market is still growing,” adding that “the companies doing well are picking up business from those that failed.”
Benchmark’s Mr. Cohler said in an interview that he continued to see an “unbounded upside” to Peixe Urbano’s growth.
http://tourism9.com/ http://vkins.com/
Julio Vasconcellos, Peixe Urbano’s chief executive and co-founder, told DealBook in an interview that the new capital would be used to finance research and development and product development. He said the company, based in Rio de Janeiro, planned to develop new features and seek to improve the daily deal business model, including a push into local e-commerce.
Mr. Vasconcellos says Peixe Urbano also plans to hire engineers and fill out its senior leadership team.
The site started in March 2010, when Brazil had no daily deal market.
Its founders, Mr. Vasconcellos, Emerson Andrade and Alex Tabor, met while at Stanford University.
Early investors in the company are Chamath Palihapitiya, Benchmark Capital and Monashees Capital, based in São Paulo. Matt Cohler of Benchmark and Eric Acher of Monashees continue to serve on Peixe Urbano’s board of directors.
The company has grown rapidly in its brief history. It says that by the end of 2010, in its first nine months, it had sold two million coupons and employed 270 people. By early this month, it had sold roughly 12 million coupons and had 1,000 employees. It has also expanded in Latin America, and is now present in more then 80 cities.
Brazil’s daily deal market initially exploded following Peixe Urbano’s founding. More than 2,000 similar sites developed, according to Guilherme Stocco, vice president of business development at the Buscapé Company, which owns intelligence-gathering units.
The market has since experienced a significant correction: there are now just 1,000 sites, and only 300 generate revenue.
While Peixe Urbano does not disclose its revenue, Mr. Stocco told DealBook that in 2011 the total daily deal market in Brazil was about $843 million. He says the top three companies — Peixe Urbano, Groupon and Click On — have been running neck and neck in the market’s brief history. The top three sites account for 40 percent of total market revenue, he said, while the top eight account for 70 percent.
Mr. Stocco said that while there had been a lot of consolidation, “the market is still growing,” adding that “the companies doing well are picking up business from those that failed.”
Benchmark’s Mr. Cohler said in an interview that he continued to see an “unbounded upside” to Peixe Urbano’s growth.
http://tourism9.com/ http://vkins.com/
Mutual Funds Invest in Brazilian Online Deals Company
SÃO PAULO, Brazil — Peixe Urbano, Brazil’s first online daily deal company, has closed a series C round of financing with mutual funds and institutional accounts managed by Morgan Stanley Investment Management and T. Rowe Price Associates. General Atlantic and Tiger Global Management, who had previously backed the company, also participated. The size of investment was not disclosed.
Julio Vasconcellos, Peixe Urbano’s chief executive and co-founder, told DealBook in an interview that the new capital would be used to finance research and development and product development. He said the company, based in Rio de Janeiro, planned to develop new features and seek to improve the daily deal business model, including a push into local e-commerce.
Mr. Vasconcellos says Peixe Urbano also plans to hire engineers and fill out its senior leadership team.
The site started in March 2010, when Brazil had no daily deal market.
Its founders, Mr. Vasconcellos, Emerson Andrade and Alex Tabor, met while at Stanford University.
Early investors in the company are Chamath Palihapitiya, Benchmark Capital and Monashees Capital, based in São Paulo. Matt Cohler of Benchmark and Eric Acher of Monashees continue to serve on Peixe Urbano’s board of directors.
The company has grown rapidly in its brief history. It says that by the end of 2010, in its first nine months, it had sold two million coupons and employed 270 people. By early this month, it had sold roughly 12 million coupons and had 1,000 employees. It has also expanded in Latin America, and is now present in more then 80 cities.
Brazil’s daily deal market initially exploded following Peixe Urbano’s founding. More than 2,000 similar sites developed, according to Guilherme Stocco, vice president of business development at the Buscapé Company, which owns intelligence-gathering units.
The market has since experienced a significant correction: there are now just 1,000 sites, and only 300 generate revenue.
While Peixe Urbano does not disclose its revenue, Mr. Stocco told DealBook that in 2011 the total daily deal market in Brazil was about $843 million. He says the top three companies — Peixe Urbano, Groupon and Click On — have been running neck and neck in the market’s brief history. The top three sites account for 40 percent of total market revenue, he said, while the top eight account for 70 percent.
Mr. Stocco said that while there had been a lot of consolidation, “the market is still growing,” adding that “the companies doing well are picking up business from those that failed.”
Benchmark’s Mr. Cohler said in an interview that he continued to see an “unbounded upside” to Peixe Urbano’s growth
http://tourism9.com/ http://vkins.com/
Julio Vasconcellos, Peixe Urbano’s chief executive and co-founder, told DealBook in an interview that the new capital would be used to finance research and development and product development. He said the company, based in Rio de Janeiro, planned to develop new features and seek to improve the daily deal business model, including a push into local e-commerce.
Mr. Vasconcellos says Peixe Urbano also plans to hire engineers and fill out its senior leadership team.
The site started in March 2010, when Brazil had no daily deal market.
Its founders, Mr. Vasconcellos, Emerson Andrade and Alex Tabor, met while at Stanford University.
Early investors in the company are Chamath Palihapitiya, Benchmark Capital and Monashees Capital, based in São Paulo. Matt Cohler of Benchmark and Eric Acher of Monashees continue to serve on Peixe Urbano’s board of directors.
The company has grown rapidly in its brief history. It says that by the end of 2010, in its first nine months, it had sold two million coupons and employed 270 people. By early this month, it had sold roughly 12 million coupons and had 1,000 employees. It has also expanded in Latin America, and is now present in more then 80 cities.
Brazil’s daily deal market initially exploded following Peixe Urbano’s founding. More than 2,000 similar sites developed, according to Guilherme Stocco, vice president of business development at the Buscapé Company, which owns intelligence-gathering units.
The market has since experienced a significant correction: there are now just 1,000 sites, and only 300 generate revenue.
While Peixe Urbano does not disclose its revenue, Mr. Stocco told DealBook that in 2011 the total daily deal market in Brazil was about $843 million. He says the top three companies — Peixe Urbano, Groupon and Click On — have been running neck and neck in the market’s brief history. The top three sites account for 40 percent of total market revenue, he said, while the top eight account for 70 percent.
Mr. Stocco said that while there had been a lot of consolidation, “the market is still growing,” adding that “the companies doing well are picking up business from those that failed.”
Benchmark’s Mr. Cohler said in an interview that he continued to see an “unbounded upside” to Peixe Urbano’s growth
http://tourism9.com/ http://vkins.com/
Cascadia Capital Forecasts Top Sustainable Industries Predictions for 2012
SEATTLE, WA–(Marketwire -01/18/12)- Cascadia Capital, a diversified, boutique investment bank serving both private and public growth companies around the globe, today announced its Sustainable Industries predictions for the coming year. Cascadia Capital’s Chairman and CEO, Michael Butler predicts that upcoming political and economic debates will drive increasing interest in Sustainable Industries throughout 2012. Cascadia believes that financing and M&A will continue to accelerate, led in part by activity in the solar and energy efficiency sectors.
Sustainable Industries Predictions for 2012:
1. Renewable Project Financing Market in Turmoil as European Banks Pull Out
It’s no secret that banks across Europe have been experiencing the stress of the region’s ongoing economic crisis and fluctuating capital markets. To prepare for further market volatility, European banks are increasing their capital ratios and turning their focus back to their core business. As a result, many European banks are pulling out of the US project finance market for renewable energy products, which will likely result in an overall downturn in financial activity across the sector.
However, Cascadia expects that this void in European investments will be filled by US regional banks along with private placements / 144A financing throughout the next year. These investments will likely come from insurance companies such as John Hancock, Metlife, and Prudential. Union Bank, Wells Fargo, and Key Bank have also indicated that they will be expanding their project finance teams. Furthermore, tax-exempt bonds are now being used to fund qualifying projects. This was evidenced in 2011 when UTS Biogas issued a $24 million bond to finance its two California biogas projects.
Two recent biomass financings illustrate that private equity investors are also stepping up to provide debt. Starwood Energy joined Prudential in providing debt to its Berlin Station biomass plant, and Carlyle recently provided construction financing for the Plainfield Renewable Energy Project, developed by Enova, through the Carlyle Energy Mezzanine Opportunities Group. Cascadia expects this to continue throughout 2012.
2. Renewable Energy Climate Change Comes Back into Public Focus as XL Pipeline Protests Gain Attention
Cascadia predicts that the attention around the XL pipeline will draw interest to the controversy that surrounds broader natural gas and fracking related issues. In the last several months, conservationists and conservatives alike have come together to object the XL pipeline, framing it as an energy-intensive, pollution creating oil extraction process. In 2012, this debate will challenge the U.S.’s commitment to a clean energy economy as natural gas continues to make inroads in the mainstream energy matrix.
3. Renewable energy M&A accelerates, lead by energy efficiency
2011 saw a shift in transactions as money left capital-intensive sectors, such as biomaterials, biofuels and wind, and was invested in asset light sectors such as energy efficiency. As a result, Cascadia predicts managed services providers, like Honeywell, Siemens, and Johnson Controls, will look to acquire energy efficiency companies to meet growing customer demand for real-time energy solutions. Schneider Electric’s acquisition of Summit Energy Services is the strongest signal to date that the energy efficient sector is ready to go to market, and is putting pressure on other large corporations. Cascadia also believes that companies like Eneroc, Ameresco, and Serious Energy, which have not traditionally been involved with the energy services category, will begin to move into the energy efficiency sector through acquisitions.
4. Despite speculation, solar continues to dominate the renewable energy mosaic
As the cost curve of panels decline, Cascadia predicts the growth of solar will continue to accelerate and reach price parity with traditional energy sources in certain geographic regions such as California and areas in the Southwestern United States. While many are weary of the solar market due to Solyndra’s failure, it’s important to keep in mind that the company did not fall victim to a weak solar market, but failed to prepare for a decline in panel pricing. While solar projects have bright futures, investors will still look for sound business models, technological innovation, and continued cost reduction. Policymakers must also provide the kind of regulatory stability that attracts investors and encourages these projects to develop. Cascadia believes the current situation is part of an industry maturation process, and that the category has significantly outperformed all expectations and will emerge stronger than ever.
“Renewable energy will come to the forefront of many political and economic discussions in 2012 due to the presidential election, environmental policy debates, and decreased investment by European banks,” said Michael Butler, CEO of Cascadia Capital. “Despite some uncertainty in the market, we believe renewable energy project financing will remain steady in 2012 due to investment from alternative sources. We expect this dynamic industry landscape to be highlighted by M&A in energy efficiency, and continued adoption of solar as the barriers to entry rapidly decline.”
The rate of policy adjustments, technological adaptation, and strategic transactions that impact the Sustainable Industries sector has been staggering over the past several years. Cascadia Capital assists their clients in navigating this dynamic market through constant dialogue and strong relationships with venture capital, growth equity, private equity, debt and corporate investors who operate in this market sector on a global level.
About Cascadia Capital, LLCCascadia Capital is a diversified, boutique investment bank serving both private and public growth companies around the globe. Cascadia’s business is diversified in terms of the industries the firm covers — Information Technology, Sustainable Industries and Middle Market — and in terms of the range of advisory services it provides — Mergers and Acquisitions, Corporate Financing and Strategic Advising. This diversification provides the firm with stability amidst market fluctuations. Cascadia is a pure advisory firm, and unlike other investment banks, is not conflicted by trading, lending, research or cross-selling business. For over a decade, the firm has delivered the best outcomes for clients based on its transaction experience, domain expertise and commitment to building long-term relationships. Cascadia always acts in the long-term interests of clients, and honors its position as a trusted advisor. For more information, visit http://www.cascadiacapital.com.
Sustainable Industries Predictions for 2012:
1. Renewable Project Financing Market in Turmoil as European Banks Pull Out
It’s no secret that banks across Europe have been experiencing the stress of the region’s ongoing economic crisis and fluctuating capital markets. To prepare for further market volatility, European banks are increasing their capital ratios and turning their focus back to their core business. As a result, many European banks are pulling out of the US project finance market for renewable energy products, which will likely result in an overall downturn in financial activity across the sector.
However, Cascadia expects that this void in European investments will be filled by US regional banks along with private placements / 144A financing throughout the next year. These investments will likely come from insurance companies such as John Hancock, Metlife, and Prudential. Union Bank, Wells Fargo, and Key Bank have also indicated that they will be expanding their project finance teams. Furthermore, tax-exempt bonds are now being used to fund qualifying projects. This was evidenced in 2011 when UTS Biogas issued a $24 million bond to finance its two California biogas projects.
Two recent biomass financings illustrate that private equity investors are also stepping up to provide debt. Starwood Energy joined Prudential in providing debt to its Berlin Station biomass plant, and Carlyle recently provided construction financing for the Plainfield Renewable Energy Project, developed by Enova, through the Carlyle Energy Mezzanine Opportunities Group. Cascadia expects this to continue throughout 2012.
2. Renewable Energy Climate Change Comes Back into Public Focus as XL Pipeline Protests Gain Attention
Cascadia predicts that the attention around the XL pipeline will draw interest to the controversy that surrounds broader natural gas and fracking related issues. In the last several months, conservationists and conservatives alike have come together to object the XL pipeline, framing it as an energy-intensive, pollution creating oil extraction process. In 2012, this debate will challenge the U.S.’s commitment to a clean energy economy as natural gas continues to make inroads in the mainstream energy matrix.
3. Renewable energy M&A accelerates, lead by energy efficiency
2011 saw a shift in transactions as money left capital-intensive sectors, such as biomaterials, biofuels and wind, and was invested in asset light sectors such as energy efficiency. As a result, Cascadia predicts managed services providers, like Honeywell, Siemens, and Johnson Controls, will look to acquire energy efficiency companies to meet growing customer demand for real-time energy solutions. Schneider Electric’s acquisition of Summit Energy Services is the strongest signal to date that the energy efficient sector is ready to go to market, and is putting pressure on other large corporations. Cascadia also believes that companies like Eneroc, Ameresco, and Serious Energy, which have not traditionally been involved with the energy services category, will begin to move into the energy efficiency sector through acquisitions.
4. Despite speculation, solar continues to dominate the renewable energy mosaic
As the cost curve of panels decline, Cascadia predicts the growth of solar will continue to accelerate and reach price parity with traditional energy sources in certain geographic regions such as California and areas in the Southwestern United States. While many are weary of the solar market due to Solyndra’s failure, it’s important to keep in mind that the company did not fall victim to a weak solar market, but failed to prepare for a decline in panel pricing. While solar projects have bright futures, investors will still look for sound business models, technological innovation, and continued cost reduction. Policymakers must also provide the kind of regulatory stability that attracts investors and encourages these projects to develop. Cascadia believes the current situation is part of an industry maturation process, and that the category has significantly outperformed all expectations and will emerge stronger than ever.
“Renewable energy will come to the forefront of many political and economic discussions in 2012 due to the presidential election, environmental policy debates, and decreased investment by European banks,” said Michael Butler, CEO of Cascadia Capital. “Despite some uncertainty in the market, we believe renewable energy project financing will remain steady in 2012 due to investment from alternative sources. We expect this dynamic industry landscape to be highlighted by M&A in energy efficiency, and continued adoption of solar as the barriers to entry rapidly decline.”
The rate of policy adjustments, technological adaptation, and strategic transactions that impact the Sustainable Industries sector has been staggering over the past several years. Cascadia Capital assists their clients in navigating this dynamic market through constant dialogue and strong relationships with venture capital, growth equity, private equity, debt and corporate investors who operate in this market sector on a global level.
About Cascadia Capital, LLCCascadia Capital is a diversified, boutique investment bank serving both private and public growth companies around the globe. Cascadia’s business is diversified in terms of the industries the firm covers — Information Technology, Sustainable Industries and Middle Market — and in terms of the range of advisory services it provides — Mergers and Acquisitions, Corporate Financing and Strategic Advising. This diversification provides the firm with stability amidst market fluctuations. Cascadia is a pure advisory firm, and unlike other investment banks, is not conflicted by trading, lending, research or cross-selling business. For over a decade, the firm has delivered the best outcomes for clients based on its transaction experience, domain expertise and commitment to building long-term relationships. Cascadia always acts in the long-term interests of clients, and honors its position as a trusted advisor. For more information, visit http://www.cascadiacapital.com.
2012年1月2日星期一
Large Cap Manager Aster Investment Management Is Looking At Software Companies, Especially Those With 40 …
67 WALL STREET, New York – December 27, 2011 – The Wall Street Transcript has just published its Large Cap Value and Other Investing Strategies Report offering a timely review of the sector to serious investors and industry executives. This Large Cap Value and Other Investing Strategies Report contains expert insight into today’s market climate through in-depth interviews with Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Bottom-Up Stock Selection – Cyclical Sectors – Enduring Trends and Thematic Investing – Top-Down Investing
Companies include: Citrix Systems (CTXS); Edwards Lifesciences (EW); Wells Fargo (WFC) and many more.
In the following brief excerpt from the Large Cap Value and Other Investing Strategies Report, interviewees discuss their portfolio focus, investment style and top picks in today’s market.
Richard F. Aster Jr., President of Aster Investment Management, Inc., was born in Southern California. His formal education includes undergraduate and graduate degrees in economics from the University of California, Santa Barbara. Mr. Aster worked for the U.S. Department of the Treasury and invested privately before joining Newburger, Loeb & Company, a New York Stock Exchange firm, in 1970. He worked for Newburger, Loeb for almost two years as a West Coast Analyst before joining Robertson, Colman, Siebel & Weisel, which became Montgomery Securities and subsequently Banc of America Securities, Montgomery Division. Mr. Aster’s responsibilities at Montgomery Securities included formulating the firm’s economic overview and investment strategy. His primary areas of research included emerging growth stocks and special situations covering a broad number of industries. Mr. Aster successfully managed accounts on a discretionary basis during this period. He left Montgomery Securities in March 1977 to form Aster Investment Management. Mr. Aster started the Meridian Growth Fund (MERDX) in 1984, the Meridian Value Fund (MVALX) in 1994 and the Meridian Equity Income Fund (MEIFX) in 2005.
TWST: Given the current environment, are there particular industries or sectors that you find favorable right now?
Mr. Aster: We don’t find many areas that are particularly favorable at this moment. Investments are based on our traditional bottom-up approach. For the last couple of years, we have owned less health care than we normally do. We believe that under Obamacare there will be pressure on reimbursement levels and this will be bad for company earnings and returns, especially for service providers. So we’ve underweighted this sector. Our heaviest area of concentration is technology, specifically software companies, because they meet our criteria. There are a number of small and medium-sized software companies that are market leaders, have good returns on capital, strong balance sheets and are growing domestically. In addition they have significant international exposure – at least 40% of their business. Growth rates are particularly strong in emerging markets. Valuations are reasonable, and that’s important.
TWST: What are some of your favorite names or top investment picks right now? Perhaps you would give an example from a few different sectors.
Mr. Aster: A recent addition to our portfolio is Advance Auto Parts (AAP). Advance Auto Parts is a retailer of automotive aftermarket parts, accessories, batteries, maintenance products and so forth. The stores are located in North America. Two-thirds of their business goes to the do-it-yourself, DIY, market, and one-third goes to the do-it-for-me, DIFM, market. This is a large market growing at approximately 3% to 4%, and it is highly fragmented with the top 10 participants combining for about 40% of the market. Advance Auto Parts has about 5% market share in DIFM and 14% in DIY, and is one of the top three players. We estimate earnings growth will be in the area of 12% and come from unit expansion, comparable sales increases and margin expansion. The company has a strong return on capital and generates excess cash flow, which will benefit shareholders also. Importantly, this is a business that holds up better than average in difficult economic times, fitting with today’s environment. The valuation is reasonable. There is nothing fancy here, but we believe that at the end of the day, you’re going to get good performance. Another holding is Arcos Dorados (ARCO). Maybe you don’t speak Spanish, but Arcos Dorados means golden arches in Spanish. The company is the largest McDonald’s (MCD) franchisee. Its territory is most of South and Central America. The market addresses over 600 million people, and it is growing nicely. The middle class is expanding, and the market, I believe, was around $35 billion in 2010, and has been growing at around 15% per year. McDonald’s has 12% of the market and the nearest competitor, Burger King, has about 4%. It has good returns and financial characteristics. So we have a market leader, an expanding and underserved territory, and one of the world’s best brands. It appears to us that Arcos Dorados, whose business is not cyclical, can grow at an above-average rate for an extended period of time. The company has a market value of $2.8 billion, which we believe is reasonable for such a valuable franchise.
TWST: How about a software company example? You said that was an area of concentration.
Mr. Aster: Autodesk (ADSK)is a software holding and a market leader, providing computer-aided design software, CAD, for industrial, architectural, engineering among other business applications. The product is used to create digital prototypes early in the design process. The software then flows through to manufacturing, purchasing, sales and cost accounting. AutoCAD, the company’s primary product, is the prevalent standard format taught in universities and used by small businesses – 34% of their business is in America, 43% EMEA and 23% Asia Pacific. The company has good returns on capital, no debt, a high level of cash. And while the business does have a cyclical element, the valuation is attractive.
TWST: Have you exited any investments recently?
Mr. Aster: Yes, there have been a couple of companies where we had small positions, Lumber Liquidators (LL) and NetScout Systems (NTCT). We took initial positions. Management didn’t appear to be executing and performing as we anticipated. We experienced small losses, sold our positions and moved on.
TWST: In the context of the broader market, is this a good time to focus on growth stocks? Is this a market where there are ample opportunities for an investor?
Mr. Aster: We don’t focus on timing, but it’s probably as good as any. There is plenty to worry about, but that’s usually the case. Today it is not hard to find good small/medium-sized growth companies that are reasonably valued and doing well. Most companies have become more efficient during the last several years. They’ve reduced their cost structures by closing inefficient plants, increasing labor productivity and consolidating where possible. They are better positioned to withstand difficult times, especially compared to 2008. If we ever get solid growth, they will have a significant amount of earnings leverage.
TWST: What is your outlook for the market for 2012?
Mr. Aster: Nobody can consistently predict the market, including me. My view, for what it’s worth, is that as long as the economy and earnings continue to grow and interest rates remain favorable, we will be alright. There is another point on our strategy that I didn’t mention. William and I, in addition to the companies we own, monitor an additional 50 to 100 companies that we believe are possible investment candidates. We like the businesses, but we don’t own the stocks for one reason or another. It may be valuation, the economy or the industry or a company-specific problem. We continue to research and monitor this group of companies, and if we are patient, in a number of cases, we will eventually purchase the stocks. This has been a primary source of new investment ideas for us over the years.
The Wall Street Transcript is a unique service for investors and industry researchers – providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This Large Cap Value and Other Investing Strategies Reportis available by calling (212) 952-7433 or via The Wall Street Transcript Online.
The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.
For Information on subscribing to The Wall Street Transcript, please call 800/246-7673
http://tourism9.com/
Topics covered: Bottom-Up Stock Selection – Cyclical Sectors – Enduring Trends and Thematic Investing – Top-Down Investing
Companies include: Citrix Systems (CTXS); Edwards Lifesciences (EW); Wells Fargo (WFC) and many more.
In the following brief excerpt from the Large Cap Value and Other Investing Strategies Report, interviewees discuss their portfolio focus, investment style and top picks in today’s market.
Richard F. Aster Jr., President of Aster Investment Management, Inc., was born in Southern California. His formal education includes undergraduate and graduate degrees in economics from the University of California, Santa Barbara. Mr. Aster worked for the U.S. Department of the Treasury and invested privately before joining Newburger, Loeb & Company, a New York Stock Exchange firm, in 1970. He worked for Newburger, Loeb for almost two years as a West Coast Analyst before joining Robertson, Colman, Siebel & Weisel, which became Montgomery Securities and subsequently Banc of America Securities, Montgomery Division. Mr. Aster’s responsibilities at Montgomery Securities included formulating the firm’s economic overview and investment strategy. His primary areas of research included emerging growth stocks and special situations covering a broad number of industries. Mr. Aster successfully managed accounts on a discretionary basis during this period. He left Montgomery Securities in March 1977 to form Aster Investment Management. Mr. Aster started the Meridian Growth Fund (MERDX) in 1984, the Meridian Value Fund (MVALX) in 1994 and the Meridian Equity Income Fund (MEIFX) in 2005.
TWST: Given the current environment, are there particular industries or sectors that you find favorable right now?
Mr. Aster: We don’t find many areas that are particularly favorable at this moment. Investments are based on our traditional bottom-up approach. For the last couple of years, we have owned less health care than we normally do. We believe that under Obamacare there will be pressure on reimbursement levels and this will be bad for company earnings and returns, especially for service providers. So we’ve underweighted this sector. Our heaviest area of concentration is technology, specifically software companies, because they meet our criteria. There are a number of small and medium-sized software companies that are market leaders, have good returns on capital, strong balance sheets and are growing domestically. In addition they have significant international exposure – at least 40% of their business. Growth rates are particularly strong in emerging markets. Valuations are reasonable, and that’s important.
TWST: What are some of your favorite names or top investment picks right now? Perhaps you would give an example from a few different sectors.
Mr. Aster: A recent addition to our portfolio is Advance Auto Parts (AAP). Advance Auto Parts is a retailer of automotive aftermarket parts, accessories, batteries, maintenance products and so forth. The stores are located in North America. Two-thirds of their business goes to the do-it-yourself, DIY, market, and one-third goes to the do-it-for-me, DIFM, market. This is a large market growing at approximately 3% to 4%, and it is highly fragmented with the top 10 participants combining for about 40% of the market. Advance Auto Parts has about 5% market share in DIFM and 14% in DIY, and is one of the top three players. We estimate earnings growth will be in the area of 12% and come from unit expansion, comparable sales increases and margin expansion. The company has a strong return on capital and generates excess cash flow, which will benefit shareholders also. Importantly, this is a business that holds up better than average in difficult economic times, fitting with today’s environment. The valuation is reasonable. There is nothing fancy here, but we believe that at the end of the day, you’re going to get good performance. Another holding is Arcos Dorados (ARCO). Maybe you don’t speak Spanish, but Arcos Dorados means golden arches in Spanish. The company is the largest McDonald’s (MCD) franchisee. Its territory is most of South and Central America. The market addresses over 600 million people, and it is growing nicely. The middle class is expanding, and the market, I believe, was around $35 billion in 2010, and has been growing at around 15% per year. McDonald’s has 12% of the market and the nearest competitor, Burger King, has about 4%. It has good returns and financial characteristics. So we have a market leader, an expanding and underserved territory, and one of the world’s best brands. It appears to us that Arcos Dorados, whose business is not cyclical, can grow at an above-average rate for an extended period of time. The company has a market value of $2.8 billion, which we believe is reasonable for such a valuable franchise.
TWST: How about a software company example? You said that was an area of concentration.
Mr. Aster: Autodesk (ADSK)is a software holding and a market leader, providing computer-aided design software, CAD, for industrial, architectural, engineering among other business applications. The product is used to create digital prototypes early in the design process. The software then flows through to manufacturing, purchasing, sales and cost accounting. AutoCAD, the company’s primary product, is the prevalent standard format taught in universities and used by small businesses – 34% of their business is in America, 43% EMEA and 23% Asia Pacific. The company has good returns on capital, no debt, a high level of cash. And while the business does have a cyclical element, the valuation is attractive.
TWST: Have you exited any investments recently?
Mr. Aster: Yes, there have been a couple of companies where we had small positions, Lumber Liquidators (LL) and NetScout Systems (NTCT). We took initial positions. Management didn’t appear to be executing and performing as we anticipated. We experienced small losses, sold our positions and moved on.
TWST: In the context of the broader market, is this a good time to focus on growth stocks? Is this a market where there are ample opportunities for an investor?
Mr. Aster: We don’t focus on timing, but it’s probably as good as any. There is plenty to worry about, but that’s usually the case. Today it is not hard to find good small/medium-sized growth companies that are reasonably valued and doing well. Most companies have become more efficient during the last several years. They’ve reduced their cost structures by closing inefficient plants, increasing labor productivity and consolidating where possible. They are better positioned to withstand difficult times, especially compared to 2008. If we ever get solid growth, they will have a significant amount of earnings leverage.
TWST: What is your outlook for the market for 2012?
Mr. Aster: Nobody can consistently predict the market, including me. My view, for what it’s worth, is that as long as the economy and earnings continue to grow and interest rates remain favorable, we will be alright. There is another point on our strategy that I didn’t mention. William and I, in addition to the companies we own, monitor an additional 50 to 100 companies that we believe are possible investment candidates. We like the businesses, but we don’t own the stocks for one reason or another. It may be valuation, the economy or the industry or a company-specific problem. We continue to research and monitor this group of companies, and if we are patient, in a number of cases, we will eventually purchase the stocks. This has been a primary source of new investment ideas for us over the years.
The Wall Street Transcript is a unique service for investors and industry researchers – providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This Large Cap Value and Other Investing Strategies Reportis available by calling (212) 952-7433 or via The Wall Street Transcript Online.
The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.
For Information on subscribing to The Wall Street Transcript, please call 800/246-7673
http://tourism9.com/
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