Mr Deep-Value

I help you find cheap stocks to beat the market.

[Mr Deep-Value @mr_deepvalue]

I used to acquire SME businesses in the real world. Negotiations, due diligence, managing people. It didn’t scale.

Now I buy businesses with a click.

I focus on deep value and special situations full time, compounding my own capital. UK nano caps, off-market deals, controlling stakes where possible.

I’m looking to connect with investors doing the same. There’s a lot of neglected opportunity in the small end of the market.

[Mr Deep-Value @mr_deepvalue]

@MikeFritzell * How much is it?

[Mr Deep-Value @mr_deepvalue]

Roughly 1.3x earnings and 0.37x tangible book.
Buffett found growing profits hidden behind three classes of shares.
I like this one because the bargain became clearer once someone did the arithmetic.
https://t.co/dU7KJl1ZwE

[Mr Deep-Value @mr_deepvalue]

A gas producer at $52.7m against $153.6m tangible equity gets my attention.
The assets are in Ukraine, so access matters; latest annual reported FCF is negative.
https://t.co/GSZHLTToJn

[Mr Deep-Value @mr_deepvalue]

@MikeFritzell It's your stock research.
Turns out hot chicks can't get enough detailed stock research...

[Mr Deep-Value @mr_deepvalue]

I had read The Intelligent Investor before its ideas really clicked.
Buying and selling businesses helped.
Then I dug into actual Buffett purchases: price, assets, earnings and context.
Specific deals gave me conviction that investing slogans never did.

[Mr Deep-Value @mr_deepvalue]

£2.8b market cap against £4.1b of reported tangible equity.
I like comparing a housebuilder’s price with its net assets.
The housing cycle still matters to what those assets earn.
https://t.co/WtRm6cIaaw

[Mr Deep-Value @mr_deepvalue]

@MikeFritzell True. I'm almost certain it will fail. People can't read or tolerate all that waffle...

[Mr Deep-Value @mr_deepvalue]

In Greenblatt's Strattec case, Chrysler accounted for over 16% of sales.
The filing said new customer Ford was expected to become even bigger.
Historical earnings included none of that Ford business.
The interesting bit was in the customer description, not the earnings table.

[Mr Deep-Value @mr_deepvalue]

From the original share price: up 21.8% over about 7 months.
That is 41.9% annualised over that period.
The cash generation is more interesting to me than guessing the next hit game.
https://t.co/x8vGsECkZD

[Mr Deep-Value @mr_deepvalue]

@MikeFritzell Right. Like Coca Cola etc..
Unfathomable when you really start thinking about it, but I guess that's people for you 😅

[Mr Deep-Value @mr_deepvalue]

¥4.1b market cap against ¥10b of reported tangible equity.
That asset discount interests me.
Latest annual reported FCF is negative, so I’m not pitching an earnings bargain.
https://t.co/CyvzKPxFrH

[Mr Deep-Value @mr_deepvalue]

I once flew to New York for a meeting, had dinner, then caught the flight home.
Awake for roughly 36 hours.
We agreed a newsletter partnership that eventually generated millions in revenue.
The business worked out considerably better than the travel arrangements.

[Mr Deep-Value @mr_deepvalue]

From the original share price: up 9.7% over about 5 months.
That is 22.9% annualised over that period.
I’m interested in what the ships are worth as well as what they earn.
https://t.co/2o0AU5yOgX

[Mr Deep-Value @mr_deepvalue]

Greenblatt's Marriott case has a lovely detail.
Host would keep the hotels and essentially all the debt.
The management business would be spun off.
Yet the executive designing the split was going to run Host, and the family would own 25% of both.

[Mr Deep-Value @mr_deepvalue]

Buffett examined the bonds, shares AND warrants in one announced deal.
Expected cash payout: $7.42 per share.
Actual distributions: $7.55.
I like how much opportunity was sitting in the small print.
https://t.co/fYHV6TJDls

[Mr Deep-Value @mr_deepvalue]

Food, groceries and physical cash still need moving.
I like that sort of logistics business.
¥19.5b market cap against ¥28b tangible equity and ¥2.9b latest annual reported FCF.
https://t.co/EvCJ68yftc

[Mr Deep-Value @mr_deepvalue]

If I buy at £1 because I think a business is worth £2, I haven't promised to own it forever.
If it stays at £1, I reassess the value, the margin of safety and what else the money could buy.
Patience still has an opportunity cost.

[Mr Deep-Value @mr_deepvalue]

I'd rather understand who makes the robots work than guess which robot wins.

This Japanese integrator combines other firms' equipment into factory systems. Useful expertise, but still exposed to customers delaying spending.

My research:

https://t.co/N7DeVQZsAF