Investment Process: Management and Board - Part I

This topic has been widely explored, and much has already been written about it. Rather than revisiting familiar arguments, my aim is to highlight a handful of underappreciated governance features that I have found particularly useful when evaluating management teams and boards—and deciding whether they are truly worthy partners for deploying hard-earned capital.

Alliance Aviation Services (ASX:AQZ)

Disclaimer: The views expressed here are mine and may change without notice. Past performance is not indicative of future results. All investments carry risk, including financial loss. This analysis is for educational purposes only and does not constitute investment advice or recommendations of any kind. Conduct your own research and seek professional advice before investing. Please see important disclaimers here and here.

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Price is what you pay, Value is what you get - Warren Buffett

It is not very common that a company becomes cheap on both asset value and earning power value at the same time. Alliance Aviation could be one such case.

Hurco Companies (HURC)

Disclaimer: The views expressed here are mine and may change without notice. Past performance is not indicative of future results. All investments carry risk, including financial loss. This analysis is for educational purposes only and does not constitute investment advice or recommendations of any kind. Conduct your own research and seek professional advice before investing. Please see important disclaimers here and here.

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Value with better odds of success can take various forms — and Hurco Companies may be one such example.

Webco Industries (WEBC)

Disclaimer: The views expressed here are mine and may change without notice. Past performance is not indicative of future results. All investments carry risk, including financial loss. This analysis is for educational purposes only and does not constitute investment advice or recommendations of any kind. Conduct your own research and seek professional advice before investing. Please see important disclaimers here and here.

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At first glance, Webco Industries looks like a classic value setup. The stock trades at just 56% of tangible book value, has a consistent history of generating operating income, carries low debt, has significant insider ownership, and is repurchasing shares. On the surface, these are all attractive traits for a value investor. However, despite these positives, Webco does not align with my investment philosophy.

Crest Nicholson (CRST)

Disclaimer: The views expressed here are mine and may change without notice. Past performance is not indicative of future results. All investments carry risk, including financial loss. This analysis is for educational purposes only and does not constitute investment advice or recommendations of any kind. Conduct your own research and seek professional advice before investing. Please see important disclaimers here and here.

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Apart from Beazer Homes in the U.S. homebuilding industry, I also find value in select U.K. homebuilders that appear temporarily out of favor. One such company is Crest Nicholson, which the market seems to be mispricing.