Comments on: What’s Sizzlin at WEST? http://streetcapitalist.com/2009/04/09/what%e2%80%99s-sizzlin-at-west/ Wisdom on such diverse topics as: spin-offs, merger arbitrage, post-bankruptcy equities, global macro commentary and short ideas. Thu, 10 Feb 2011 04:28:00 +0000 hourly 1 http://wordpress.org/?v=3.2 By: Ross Greenspan http://streetcapitalist.com/2009/04/09/what%e2%80%99s-sizzlin-at-west/comment-page-1/#comment-3913 Ross Greenspan Fri, 10 Apr 2009 15:12:10 +0000 http://streetcapitalist.com/?p=515#comment-3913 Western Mustang has been accumulating OICO in the last 4 months. It now holds over 11%. http://bit.ly/17ZGx O.I Corporation products perform detection, analysis, measurement and monitoring applications in a wide variety of industries, including environmental testing, food and flavors, pharmaceutical, semiconductor, power generation, chemical, petrochemical and security. Western Mustang has been accumulating OICO in the last 4 months. It now holds over 11%. http://bit.ly/17ZGx

O.I Corporation products perform detection, analysis, measurement and monitoring applications in a wide variety of industries, including environmental testing, food and flavors, pharmaceutical, semiconductor, power generation, chemical, petrochemical and security.

]]> By: Ross Greenspan http://streetcapitalist.com/2009/04/09/what%e2%80%99s-sizzlin-at-west/comment-page-1/#comment-5746 Ross Greenspan Fri, 10 Apr 2009 15:12:00 +0000 http://streetcapitalist.com/?p=515#comment-5746 Western Mustang has been accumulating OICO in the last 4 months. It now holds over 11%. http://bit.ly/17ZGx O.I Corporation products perform detection, analysis, measurement and monitoring applications in a wide variety of industries, including environmental testing, food and flavors, pharmaceutical, semiconductor, power generation, chemical, petrochemical and security. Western Mustang has been accumulating OICO in the last 4 months. It now holds over 11%. http://bit.ly/17ZGx

O.I Corporation products perform detection, analysis, measurement and monitoring applications in a wide variety of industries, including environmental testing, food and flavors, pharmaceutical, semiconductor, power generation, chemical, petrochemical and security.

]]> By: Jae Jun http://streetcapitalist.com/2009/04/09/what%e2%80%99s-sizzlin-at-west/comment-page-1/#comment-3899 Jae Jun Fri, 10 Apr 2009 05:57:18 +0000 http://streetcapitalist.com/?p=515#comment-3899 Great analysis. Very interesting to see another form of valuation. I never looked at WEST or SNS previously but you've provided a nice background. Great analysis. Very interesting to see another form of valuation. I never looked at WEST or SNS previously but you’ve provided a nice background.

]]> By: Jae Jun http://streetcapitalist.com/2009/04/09/what%e2%80%99s-sizzlin-at-west/comment-page-1/#comment-5745 Jae Jun Fri, 10 Apr 2009 05:57:00 +0000 http://streetcapitalist.com/?p=515#comment-5745 Great analysis. Very interesting to see another form of valuation. I never looked at WEST or SNS previously but you've provided a nice background. Great analysis. Very interesting to see another form of valuation. I never looked at WEST or SNS previously but you’ve provided a nice background.

]]> By: Tariq http://streetcapitalist.com/2009/04/09/what%e2%80%99s-sizzlin-at-west/comment-page-1/#comment-3888 Tariq Thu, 09 Apr 2009 23:36:59 +0000 http://streetcapitalist.com/?p=515#comment-3888 Hi NFI, you're absolutely correct - which is why I said it's important for any investor in WEST to also analyze ITEX and SNS before investing, so that they can figure out what the values of those two are. SNS trading at $20 would add ~$5.12 to estimated NAV. I just wanted to put out a system for valuing WEST that others could modify to fit their own estimates on IVs for ITEX and SNS. Hi NFI, you’re absolutely correct – which is why I said it’s important for any investor in WEST to also analyze ITEX and SNS before investing, so that they can figure out what the values of those two are.

SNS trading at $20 would add ~$5.12 to estimated NAV.

I just wanted to put out a system for valuing WEST that others could modify to fit their own estimates on IVs for ITEX and SNS.

]]> By: Tariq http://streetcapitalist.com/2009/04/09/what%e2%80%99s-sizzlin-at-west/comment-page-1/#comment-5744 Tariq Thu, 09 Apr 2009 23:36:00 +0000 http://streetcapitalist.com/?p=515#comment-5744 Hi NFI, you're absolutely correct - which is why I said it's important for any investor in WEST to also analyze ITEX and SNS before investing, so that they can figure out what the values of those two are. SNS trading at $20 would add ~$5.12 to estimated NAV. I just wanted to put out a system for valuing WEST that others could modify to fit their own estimates on IVs for ITEX and SNS. Hi NFI, you’re absolutely correct – which is why I said it’s important for any investor in WEST to also analyze ITEX and SNS before investing, so that they can figure out what the values of those two are.

SNS trading at $20 would add ~$5.12 to estimated NAV.

I just wanted to put out a system for valuing WEST that others could modify to fit their own estimates on IVs for ITEX and SNS.

]]> By: nfi http://streetcapitalist.com/2009/04/09/what%e2%80%99s-sizzlin-at-west/comment-page-1/#comment-3884 nfi Thu, 09 Apr 2009 22:30:19 +0000 http://streetcapitalist.com/?p=515#comment-3884 Tariq, Interesting viewpoint and nice find on the land transaction. What if you were to value SnS and ITEX at their intrinsic values rather than their market price -- i suspect your valuation would come out very differently. Similarly, a flow-through valuation (Jeff and I did one last year see here http://www.noisefreeinvesting.com/blog/?p=249 ) yields different results. Cheers Tariq,

Interesting viewpoint and nice find on the land transaction.

What if you were to value SnS and ITEX at their intrinsic values rather than their market price — i suspect your valuation would come out very differently. Similarly, a flow-through valuation (Jeff and I did one last year see here http://www.noisefreeinvesting.com/blog/?p=249 ) yields different results.

Cheers

]]> By: nfi http://streetcapitalist.com/2009/04/09/what%e2%80%99s-sizzlin-at-west/comment-page-1/#comment-5743 nfi Thu, 09 Apr 2009 22:30:00 +0000 http://streetcapitalist.com/?p=515#comment-5743 Tariq, Interesting viewpoint and nice find on the land transaction. What if you were to value SnS and ITEX at their intrinsic values rather than their market price -- i suspect your valuation would come out very differently. Similarly, a flow-through valuation (Jeff and I did one last year see here http://www.noisefreeinvesting.com/blog/?p=249 ) yields different results. Cheers Tariq,

Interesting viewpoint and nice find on the land transaction.

What if you were to value SnS and ITEX at their intrinsic values rather than their market price — i suspect your valuation would come out very differently. Similarly, a flow-through valuation (Jeff and I did one last year see here http://www.noisefreeinvesting.com/blog/?p=249 ) yields different results.

Cheers

]]> By: Tariq http://streetcapitalist.com/2009/04/09/what%e2%80%99s-sizzlin-at-west/comment-page-1/#comment-3880 Tariq Thu, 09 Apr 2009 20:07:31 +0000 http://streetcapitalist.com/?p=515#comment-3880 Kyle -- thanks for that, I fixed the write up. And I agree, Biglari has a great long term track record. I guess what I hoped to achieve is sort of setting potential investors up with a sort of framework for valuing WEST. Basically so that they could plug their own IV estimates for ITEX and SNS in and figure out what they think the IV will be like. I prefer that kind of approach to simply looking at the total cost of the equity investments in ITEX and SNS, and then slapping a growth percentage and doing a DCF. That approach is a bit less precise when you're only dealing with two major investments. When/If WEST invests more, in a more diverse manner, I could see looking at the investment portion from a different point of view. That's what I do with Fairfax and their equity portfolio. Kyle — thanks for that, I fixed the write up.

And I agree, Biglari has a great long term track record. I guess what I hoped to achieve is sort of setting potential investors up with a sort of framework for valuing WEST. Basically so that they could plug their own IV estimates for ITEX and SNS in and figure out what they think the IV will be like.

I prefer that kind of approach to simply looking at the total cost of the equity investments in ITEX and SNS, and then slapping a growth percentage and doing a DCF. That approach is a bit less precise when you’re only dealing with two major investments.

When/If WEST invests more, in a more diverse manner, I could see looking at the investment portion from a different point of view. That’s what I do with Fairfax and their equity portfolio.

]]> By: Tariq http://streetcapitalist.com/2009/04/09/what%e2%80%99s-sizzlin-at-west/comment-page-1/#comment-5742 Tariq Thu, 09 Apr 2009 20:07:00 +0000 http://streetcapitalist.com/?p=515#comment-5742 Kyle -- thanks for that, I fixed the write up. And I agree, Biglari has a great long term track record. I guess what I hoped to achieve is sort of setting potential investors up with a sort of framework for valuing WEST. Basically so that they could plug their own IV estimates for ITEX and SNS in and figure out what they think the IV will be like. I prefer that kind of approach to simply looking at the total cost of the equity investments in ITEX and SNS, and then slapping a growth percentage and doing a DCF. That approach is a bit less precise when you're only dealing with two major investments. When/If WEST invests more, in a more diverse manner, I could see looking at the investment portion from a different point of view. That's what I do with Fairfax and their equity portfolio. Kyle — thanks for that, I fixed the write up.

And I agree, Biglari has a great long term track record. I guess what I hoped to achieve is sort of setting potential investors up with a sort of framework for valuing WEST. Basically so that they could plug their own IV estimates for ITEX and SNS in and figure out what they think the IV will be like.

I prefer that kind of approach to simply looking at the total cost of the equity investments in ITEX and SNS, and then slapping a growth percentage and doing a DCF. That approach is a bit less precise when you’re only dealing with two major investments.

When/If WEST invests more, in a more diverse manner, I could see looking at the investment portion from a different point of view. That’s what I do with Fairfax and their equity portfolio.

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