Stocks-in-Depth

Bill Baker, CFA
  • 4.4 (9)
  • INVESTING
Stocks-in-Depth

Stocks-in-Depth thoroughly examines the fundamentals of reasonably valued high-quality small and mid-cap growth companies. It is produced by GARP Research, a provider of equity research to institutions including many of the most well-known fund managers for over 20 years. GARP is known for its granular modelling of business lines and in-depth assessment of competition and served markets. Stocks-in-Depth searches for value and growth by researching stocks that may be out of favor, or where a major catalyst to earnings growth is hidden. Our financial models attempt to shed light on trends underneath opaque segment reporting. Stocks in Depth emphasizes balance sheet accounts and profitability margins to determine underlying return on capital, and maintains healthy skepticism regarding pro forma adjustments and undue reliance upon unconventional measures such as EBITDA. We emphasize field visits with managements, industry conferences, non-public competitors and ancillary fields to detect industry dynamics. In our search for the best companies and investment opportunities, we often challenge the consensus view. StocksinDepth forecasts over the long-term, typically over about a three year horizon, and review track records going back for years.

  1. 01/18/2019

    Mitel (MITL) - Part 1

    Mitel has was long relegated to obscurity within the institutional investment community.  However, the discussion in this series of episodes will broadly portray what we find are Mitel’s underappreciated competitive strengths.  In episode 39, we first lay out how Mitel came to be a major, if little known, player in providing cloud telephony services to businesses.

    1h 4m

  2. 12/21/2018

    Realty Income - Part 2

    Realty Income has a diversified portfolio by sectors within the single parcel commercial property market.  What are the risks of each sector, and how does management approach each?

    1h 18m

  3. 11/21/2018

    Realty Income - Part 1

    Realty Income operates in a commoditized industry, the ownership of standalone real estate parcels used by certain commercial retail enterprises.  In this podcast, we discuss how Realty Income structures its business to provide diversification and attempts to differentiate its offering.

    42 min

  4. 10/18/2018

    Knowles (KN) Part III

    Demand for MEMS microphones increased greatly when Apple put four microphones into the iPhone7.  What might further stimulate the worl's appetite for MEMS microphones?  In this podcast, Stocks in Depth discusses potential for new technologies like the internet of things (think Alexa) and 5G networks (think machine-to-machine communications) that might continue to cause MEMS microphones to proliferate.

    48 min

  5. 10/12/2017

    Knowles - Part 2

    Knowles two most important businesses, MEMS microphones and hearing aid components, share a common theme of eroding market dominance.  But, management has devoted a large percentage of revenue into R&D that might address new developments.  In Part 2 of this podcast on Knowles, we discuss how Knowles has positioned itself to capture new sources of demand from the internet of things (IoT), and how it has addressed greenfield needs in hearables, e.g. small earbuds, which require distributed processing power.  We also discuss how packagers enjoyed a huge upswing in recent years, but have begun to back off, in our opinion shifting the balance of power back towards the two clear leaders in the upstream production of bare microphone dies, Knowles and Infineon.

    1h 23m

  6. 09/10/2017

    Knowles - Part 1

    Knowles Corp. has suffered mightily since its spinoff from Dover Corp. in early 2014, mostly from the disastrous acquisition of Sound Solutions.  MEMS penetration of smartphones, currently around 1.7 globally compared to 4 per iPhone, can continue to rise, since this statistic is nearer to one mike per phone outside of Apple.  GARP Research has published a major report on artificial intelligence earlier in 2017, part of which discusses advancements in speech recognition.  Amazon's Echo / Dot makes use of AI, as do new clones of Alexa developed by Chinese companies like iFlytek.  This multi-part podcast discusses many of these fascinating developments, including how the emergence of the internet of things could also positively impact MEMS microphones sales.

    1h 32m

  7. 01/21/2017

    SID 0033 Free Trade Doesn't Work - Part 4

    Donald Trump is about to be inaugurated as the 45th president of the United States.  As far as we can tell, every other country in the world advances a self-serving industrial policy, to the detriment of the United States, which embraces free trade.  In this final episode of Stocks-in-Depth’s review of Ian Fletcher’s 2010-2011 book, Free Trade Doesn’t Work, we start by presenting the author’s case that China, Japan, and Europe have emphasized industrial policy over free trade for years.  Fletcher’s solution for the U.S. is a flat tariff, which would eliminate the influence of lobbyists and the inefficiencies of propping up dying industries.  We suspect that Trump's appointment of Peter Navarro to run the National Trade Council might signal that this proposal is on the table.  If the Trump administration considers imposing a flat tariff to balance the trade deficit and stimulate job creation, what would the economic outcome be?  What are the investment implications?  Are there second and third order effects that might be considered?  Might inflation result?  In this conclusion to its 4-part series on free trade and the flat tariff solution, Stocks-in-Depth moderator Bill Baker, CFA examines each of these questions and more in this exciting extension of thought to what Ian Fletcher wrote prophetically in 2010-2011.

    56 min

  8. 01/14/2017

    SID 0032 Free Trade Doesn't Work - Part 3

    Institutional investment strategists follow economic and market data closely, and tend to weave together a narrative that explains the current trend.  Presently the US dollar is rising, like it has two times before in the last few decades.  In this podcast, we sample the perspective of Brown Brothers Harriman currency strategist Marc Chandler, whom we believe mistakenly thinks the rising dollar is proof that the U.S. trade deficit is benign.  In Part 3 of our series, Free Trade Doesn’t Work,” Stocks-in-Depth pulls apart the numerous assumptions behind Chandler’s thesis, except one: the powerful effect of interest rate differentials on the current momentum of the dollar.  Chandler will most likely be right in the short term, and he’s likely to try to make the opposite call when intervention stops the dollar’s path, as was the case in previous bull markets.  But he is wary of the rise of what he dubs “populism-nationalism,” in Europe and America, for it might put the stake into the heart of free trade.  For Chandler, it is a myth that the gigantic trade deficit, which has opened up since the early 1970s when the dollar was severed from its gold backing, means that the dollar is overvalued or that free trade is a failed policy.  To us, that’s a straw man, for currency pairs will always ebb and flow to the rhythms of the global credit cycle and capital’s desire to cross borders for investment purposes.  If the theoretical case for free trade has been falling apart since nearly the beginning of the millennium as economist Ian Fletcher contends, then further dollar strength would only ratchet up the pressure that is boiling under the surface in the form of populist-nationalist movements.

    42 min
See All (39)

Ratings & Reviews

4.4
out of 5
9 Ratings

About

Stocks-in-Depth thoroughly examines the fundamentals of reasonably valued high-quality small and mid-cap growth companies. It is produced by GARP Research, a provider of equity research to institutions including many of the most well-known fund managers for over 20 years. GARP is known for its granular modelling of business lines and in-depth assessment of competition and served markets. Stocks-in-Depth searches for value and growth by researching stocks that may be out of favor, or where a major catalyst to earnings growth is hidden. Our financial models attempt to shed light on trends underneath opaque segment reporting. Stocks in Depth emphasizes balance sheet accounts and profitability margins to determine underlying return on capital, and maintains healthy skepticism regarding pro forma adjustments and undue reliance upon unconventional measures such as EBITDA. We emphasize field visits with managements, industry conferences, non-public competitors and ancillary fields to detect industry dynamics. In our search for the best companies and investment opportunities, we often challenge the consensus view. StocksinDepth forecasts over the long-term, typically over about a three year horizon, and review track records going back for years.

Information

  • Creator
    Bill Baker, CFA
  • Years Active
    2015 - 2019
  • Episodes
    39
  • Rating
    Clean
  • Copyright
    © Gaineswood Investment Management, Inc.
  • Show Website
    Stocks-in-Depth

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