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Daniel Miller And Richard Lashley Favorite Value Investments

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HFA Staff
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Daniel Miller is a managing director of GAMCO Investors (NYSE:GBL), a diversified financial services firm with over $40 billion under management, and has been the lead portfolio manager of the Gabelli Focus Five Fund since inception of the investment strategy on January 1, 2012.

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Daniel Miller And Richard Lashley Favorite Value Investments

Daniel Miller spoke at the 9th Annual Value Investing Congress, also see Daniel Miller: Investing With Conviction. Below are notes from his presentation.

Highlights from Daniel Miller’s presentation

Idea 1: The Bon-Ton Stores, Inc. (NASDAQ:BONT)

Market cap $200M, debt $850M

279 locations, 25 states

7 brands

Worth 6.5x 2015 EBITDA of $200M.

Stock is $11, Miller believes it's worth $23

CEO will leave in 1 year. Search is on. CFO is good.

Easy comps in 2-4q.

Hurt by harsh weather and large store closures pre-Christmas.

Ideas 2: Rowan Companies PLC (NYSE:RDC)

Market cap $4B.

Debt $1B

Ev $5.1B

Fleet of jack-up rigs

Ordered 4 drill ships

2016 $1 billion OCF expected $1.2B EBITDA

Dividend initiated 40c a year. Likely to raise as new ships come on line. May do buybacks.

Richard Lashley

Richard Lashley is a co-founder and principal of PL Capital, an investment firm specializing in U.S. community banks and thrifts. PL Capital utilizes shareholder activism to improve corporate governance and maximize shareholder value in the banks and thrifts in which it invests. Prior to PL Capital, Rich was a CPA at KPMG Peat Marwick from 1984 to 1996.

Richard Lashley spoke at the 9th Annual Value Investing Congress, also see JPMorgan Backs Away From The Brink With Russia. Below are notes from his presentation.

Highlights from Richard Lashley’s presentation

Activist in banks

Tarp warrants of JPMorgan, Capital One Financial, PNC are attractive

JPMorgan Chase & Co. (NYSE:JPM) 16% IRR expected

Capital One Financial Corp. (NYSE:COF) 19% IRR

PNC Financial Services Group Inc (NYSE:PNC) 25% expected

Small cap bank ideas:

1. Metro Bancorp Inc (NASDAQ:METR)

2. Horizon Bancorp (NASDAQ:HBNC)

3. Intervest Bancshares Corp (NASDAQ:IBCA)

Richard Lashley Shareholder Activists Perspective on Bank Stocks

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The post above is drafted by the collaboration of the Hedge Fund Alpha Team.

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