Group 1 - The core thesis of the article is that Boston Omaha's management is highly capable in capital allocation, which has resulted in a slight stock appreciation of 6% since the last analysis [1] - The author expresses a focus on value investing, particularly in emerging markets, and admires renowned investors like Li Lu and Peter Lynch [1] - The investment philosophy emphasizes an owner-mindset while largely ignoring macroeconomic noise, indicating a preference for long-term value over short-term market fluctuations [1] Group 2 - The article reflects a shift towards an Austrian economic perspective, influenced by the works of Henry Hazlitt, Friedrich Hayek, and Ludwig Von Mises [1] - The author highlights the importance of maintaining an investment journal to track past successes and learn from failures, which serves as a tool for self-assessment and public accountability [1]

Core Viewpoint - The company Boston Omaha has experienced disappointing performance in 2024, leading to a reduction in shareholder conviction regarding the stock [1]. Summary by Relevant Sections - **Company Performance**: Boston Omaha's stock performance in 2024 has been described as extremely disappointing, prompting a reevaluation of investment positions [1]. - **Investment Strategy**: The decision to trim the position in Boston Omaha is linked to both performance concerns and potential tax benefits from such a move [1].

Core Insights - Boston Omaha has experienced significant challenges over the past couple of years, leading to disappointment among investors [1] - The company is now concentrating on its three core businesses, indicating a strategic shift towards stability and growth [1] - Current developments suggest that Boston Omaha may be on a positive trajectory, potentially presenting a value investment opportunity [1]

Core Viewpoint - Boston Omaha reported third-quarter earnings that fell short of analyst expectations, leading to a decline in stock price, but the stock is considered undervalued and may present a buying opportunity [1][5]. Financial Performance - Boston Omaha reported revenue of $27.7 million for the third quarter, representing a year-over-year increase of 12.8%, surpassing revenue expectations of $27.1 million [3]. - The company experienced a net loss per share of $0.05, which was worse than the estimated loss of $0.01 per share [3]. Business Operations - Boston Omaha operates in various sectors including billboard advertising, fiber broadband, and insurance, and was previously co-run by Warren Buffett's great-nephew, Alex Rozek, who has since stepped down [2]. - The company has significant noncash depreciation charges in its billboard and broadband businesses, which obscure its underlying cash generation [3]. Investment Insights - The stock is currently trading almost 70% below its all-time highs and is valued at less than its book value, indicating potential for investment [5]. - Boston Omaha's stake in Sky Harbour is recorded at its initial investment value, while its market value is actually $64.5 million higher, suggesting that the book value may be understated and could increase by approximately 15% [6]. - The diverse portfolio of stable businesses positions Boston Omaha as a potential buy on the dip [6].

Business Operations - As of September 30, 2024, the company operates approximately 4,000 billboards with about 7,600 advertising faces, having increased from approximately 2,900 billboards since 2015[187]. - The broadband services segment has approximately 45,600 broadband customers, including 14,000 fiber subscribers, and 37,200 fiber passings completed as of September 30, 2024[189]. - The company has expanded its surety insurance business to all 50 states and the District of Columbia, increasing its market reach significantly[188]. - The company aims to expand its geographic reach and market share in outdoor advertising and broadband services, with a focus on acquisitions and sustainable earnings[198]. - Future expansions may include additional services in the insurance sector and potential acquisitions in other sectors, emphasizing growth in existing business lines[198]. Financial Performance - Total revenues for the third quarter of fiscal 2024 were $27,700,936, representing a 12.8% increase from $24,548,101 in the same quarter of fiscal 2023[203]. - Net billboard rentals increased by 5.6% to $11,503,915, accounting for 41.5% of total revenues in the third quarter of fiscal 2024[204]. - Revenue from broadband services rose by 7.4% to $9,664,074, making up 34.9% of total revenues[205]. - Premiums earned from the UCS insurance subsidiary surged by 45.6% to $5,425,052, representing 19.6% of total revenues[206]. - The company reported total revenues of $80,341,450 for the first nine months of fiscal 2024, representing a 12.2% increase from $71,580,280 in the same period of fiscal 2023[223]. Costs and Expenses - Total costs and expenses for the third quarter of fiscal 2024 were $28,440,958, with a decrease in total costs as a percentage of total revenues from 107.9% to 102.7%[209]. - Employee costs decreased to $8,311,882, or 30.0% of total revenues, down from 32.9% in the same quarter of fiscal 2023[212]. - Total costs and expenses for the first nine months of fiscal 2024 were $87,536,368, up from $78,142,705 in the same period of fiscal 2023[230]. - Employee costs rose to $28,764,730, or 35.8% of total revenues, primarily due to one-time severance and bonus payments[233]. Net Income and Loss - Net loss from operations improved to $740,022, or 2.7% of total revenues, compared to a net loss of $1,942,729, or 7.9% of total revenues in the prior year[217]. - The net loss attributable to common stockholders for Q3 fiscal 2024 was $1,595,136, consistent with a loss per share of $0.05[221]. - Net loss from operations for the first nine months of fiscal 2024 was $7,194,918, or 9.0% of total revenues, compared to a loss of $6,562,425, or 9.2% in the prior year[238]. - The net loss attributable to common stockholders for the first nine months of fiscal 2024 was $6,638,436, or a loss per share of $0.21, compared to a net loss of $3,422,048, or a loss per share of $0.11 in the same period of fiscal 2023[242]. Investments - The company invested approximately $5 million in cash and stock to acquire 100% of the membership interests in 24th Street, enhancing its asset management capabilities[190]. - The investment in Crescent Bank represents 15.6% of its outstanding common stock, focusing on subprime automobile lending across the U.S.[192]. - The company invested approximately $55 million in Sky Harbour, converting this investment into 5,500,000 shares of Class A common stock upon the business combination completion[195]. - Investment and other income increased to $1,852,354 in the first nine months of fiscal 2024, up from $1,576,963 in the same period of fiscal 2023[228]. Cash Flow and Financing - Net cash provided by operating activities was $12,117,191 for the first nine months of fiscal 2024, down from $12,241,695 in fiscal 2023[284]. - Net cash provided by investing activities was $29,893,384 in fiscal 2024, a significant improvement from net cash used of $48,959,016 in fiscal 2023[285]. - Net cash used in financing activities was $48,879,743 in fiscal 2024, compared to net cash provided of $34,115,891 in fiscal 2023[286]. - The company plans to finance future acquisitions and investments through cash, debt, and seller or third-party financing[287]. Debt and Equity - As of September 30, 2024, long-term debt included Link's Term Loan borrowings of $26,731,376, with $9,600,000 related to the revolving line of credit[305]. - The Term Loan has a fixed interest rate of 4.00% per annum and is payable in full on December 6, 2028[304]. - The company registered for a shelf registration statement allowing it to raise up to $500 million for future acquisitions and investments[290]. - A share repurchase program was authorized for up to $20 million of Class A common stock, effective August 15, 2024[288]. Market and Risk Factors - The company anticipates continued growth in the outdoor billboard and broadband service markets due to technological advancements and increased demand[199]. - Existing credit facilities impose restrictions that could limit the company's flexibility in responding to economic changes, including limits on incurring additional indebtedness and making acquisitions[321]. - The company operates entirely within the U.S., resulting in no significant exposure to foreign currency exchange rate risk[328]. - The preparation of financial statements requires estimates that may differ from actual results, impacting reported amounts of assets and liabilities[329].

Core Viewpoint - BOC Aviation Limited's aircraft deliveries for Q3 2024 were lower compared to both year-over-year and quarter-over-quarter, falling short of expectations, leading to an unchanged investment rating of "Hold" for the company's shares [1]. Group 1: Company Performance - BOC Aviation Limited's aircraft deliveries decreased in Q3 2024, indicating a potential slowdown in operational performance [1]. Group 2: Investment Strategy - The research service Asia Value & Moat Stocks focuses on identifying value investment opportunities in Asia, particularly in Hong Kong, targeting deep value balance sheet bargains and wide moat stocks [1].

Group 1 - The article highlights the addition of a new aircraft leasing company to the coverage, alongside AerCap and Air Lease Corporation, indicating a bullish outlook on these companies' prospects [2] - The investing group, The Aerospace Forum, aims to identify investment opportunities within the aerospace, defense, and airline sectors, leveraging data analytics for informed analysis [2] - The analyst has a beneficial long position in AerCap shares, indicating confidence in the company's performance [2] Group 2 - The article emphasizes the limited number of publicly traded aircraft leasing companies, which may present unique investment opportunities [2] - The analyst's background in aerospace engineering provides a solid foundation for understanding the complexities and growth potential of the industry [2] - The investing group offers direct access to data analytics monitors, enhancing the investment research process [2]

Core Insights - True value in investments is derived from growth rather than short-term gains, emphasizing a long-term perspective on evaluation [1] - Great businesses provide significant societal value and exhibit durability, deserving of substantial growth [1] - Key characteristics sought in investments include selection, convenience, value, and durability, with a preference for non-cyclical businesses [1] Business Characteristics - Businesses that consistently outperform competitors through superior products and services are favored, with a focus on multiple revenue streams and anti-fragile structures [1] - The ability to recover from adversity is a critical test of a business's durability [1] - Uniqueness is identified as the primary driver of value, with low maintenance costs allowing for high reinvestment potential [1] Management and Strategy - Trust and network effects are essential indicators of a business's durability, alongside the importance of aligned management interests [1] - Effective management is characterized by continuous learning and a focus on empowering talent, avoiding political dynamics [1] - Successful examples, such as Amazon, illustrate the benefits of a customer-centric approach leading to extraordinary investor returns [1] Investment Timing and Strategy - The optimal investment period is when negative news is fully recognized, allowing real value to emerge [1] - Companies that initiate buybacks when they possess durable business models are seen as making sound strategic decisions [1] - Price movements are influenced by expectations and surprises, with a focus on undervalued factors amidst negative pricing [1]

Core Viewpoint - The article emphasizes the importance of identifying and maintaining trends in short-term investing, highlighting that sound fundamentals and positive earnings estimates are crucial for sustaining momentum in stocks [1]. Group 1: Stock Screening and Selection - The "Recent Price Strength" screen is a unique short-term trading strategy that helps identify stocks with strong fundamentals capable of maintaining an uptrend [2]. - BOC Hong Kong Ltd. (BHKLY) is highlighted as a suitable candidate that has shown a solid price increase of 2.3% over the past 12 weeks, indicating investor confidence [3]. - A price increase of 6.2% over the last four weeks further confirms that the upward trend for BHKLY is still intact [4]. Group 2: Fundamental Analysis - BHKLY currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [5]. - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988, indicating the effectiveness of this ranking system [6]. - The Average Broker Recommendation for BHKLY is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [6]. Group 3: Investment Strategy - The article suggests that BHKLY's price trend is unlikely to reverse soon, and encourages investors to explore other stocks that meet the "Recent Price Strength" criteria [7]. - It also mentions the availability of over 45 Zacks Premium Screens tailored to different investing styles, which can assist in identifying potential winning stocks [7].

Boston Omaha (NYSE: BOC ) is invested in a diversified collection of business interests across several industries, including several publicly traded positions that are much easier to value than the wholly owned subsidiary businesses. I believe the intrinsic values Compounding Chef combines a business education background with professional experience in a variety of industries to find opportunities across the investing universe including… Media, Marketing, and Public Relations Travel, Tourism, and Hospitalit ...