Вы находитесь на странице: 1из 9

PORTFOLIO MANAGER’S REVIEW

Edited by the Research Team of

A Monthly Publication of BeyondProxy LLC  www.manualofideas.com  June 19, 2009

When asked how he became so successful, Buffett answered: “we read hundreds and hundreds of annual reports every year.”

With
John Mihaljevic, CFA
Managing Editor, INFLATION PROTECTION SERIES – PART I:
The Manual of Ideas
john@manualofideas.com

“If our efforts can further the


CHEAP COMPANIES WITH
goals of our members by giving
them a discernible edge over HIDDEN REAL ESTATE VALUE
other market participants, we
have succeeded.”
► Snapshot of 100 companies with real estate value
Top 5 Ideas In This Report ► 23 companies profiled and analyzed
Apartment Investment & Management
► Proprietary selection of Top 5 candidates for investment
(NYSE: AIV) …………………… p. 26
MI Developments
(NYSE: MIM; Toronto: MIM.A) p. 29
Companies mentioned in this issue include:
Playboy Enterprises
(NYSE: PLA, PLA.A) …………. p. 32
Alexander & Baldwin, Alexander's, Alexandria R. E., AMB Property, American
Steinway Musical Instruments
(NYSE: LVB) ………………….. p. 34 Campus, Apartment Investment & Management (Aimco), Assisted Living
Syms Corp. Concepts, AvalonBay, BioMed Realty, Boston Properties, Brandywine Realty,
(Nasdaq: SYMS) ……………… p. 37 BRE Properties, Bridgford Foods, Brookdale Senior, Brookfield Prop.,
California Coastal, Camden Property, CB Richard Ellis, CBL & Associates,
Also Inside
Cedar Shopping, Centex, Cogdell Spencer, Colonial Properties, Consolidated-
Editor’s Commentary …………….. p. 4 Tomoka Land, Corporate Office, Cousins Properties, Cresud, D.R. Horton, DCT
Notable Statements on Inflation …p. 6 Industrial, Developers Divers., Digital Realty, Douglas Emmett, Duke Realty,
Stocks with Real Estate Value …… p. 8 DuPont Fabros, Dynacq Healthcare, EastGroup Properties, Equity Lifestyle,
Investment Candidates 6-10 …… p. 39 Equity One, Equity Residential, Essex Property, Extra Space Storage, Federal
Other Investment Candidates ….. p. 52 Realty, Forest City, General Growth Properties, Great Wolf Resorts, Grubb &
Ellis, HCP, Health Care REIT, Healthcare Realty, Home Properties, IRSA
About Portfolio Manager’s Review Inversiones, KB Home, Kilroy Realty, Kimco Realty, Kite Realty, Lennar,
Liberty Property, M.D.C. Holdings, Macerich Company, Mack-Cali Realty,
Our goal is to bring you equity
investment ideas that are compelling Maguire Properties, Maui Land & Pineapple, Meritage Homes, MI
on the basis of value versus price. Developments, National Retail, Nationwide Health, Natuzzi, NVR, Panasonic,
John Mihaljevic, editor, is a fund Pennsylvania REIT, Playboy Enterprises, Post Properties, PriceSmart,
manager, former banker and analyst.
ProLogis, Public Storage, Realty Income, Regency Centers, Ryland Group,
He is a member of Value Investors
Club, an exclusive community of top Sears Holdings, Silverleaf Resorts, Simon Property, Skilled Healthcare, SL
money managers, and has won the Green Realty, Sonae Capital, St. Joe Company, Steak n Shake, Steinway
Club’s prize for best investment idea.
John is a trained capital allocator,
Musical Instruments, Syms Corp., Tanger Outlet, Target, Taubman Centers,
having studied under Yale chief Tejon Ranch, Thomas Properties, Toll Brothers, UDR, U-Store-It, Vail Resorts,
investment officer David Swensen Ventas, Vornado Realty, Weingarten Realty, Winthrop Realty Trust, and more.
and served as research assistant to
Nobel laureate James Tobin. John
holds a BA in Economics, summa (profiled companies are underlined)
cum laude, from Yale and is a CFA
charterholder. He resides in New
York City with his wife and two kids.

Copyright Warning: It is a violation of federal copyright law to reproduce all or part of this publication for any purpose without the prior written consent of
BeyondProxy LLC. The Copyright Act imposes liability of up to $150,000 per issue for such infringement, and violators will be prosecuted to the full extent of the
law. See inside for subscription information, including having multiple copies sent to you. © 2008 by BeyondProxy LLC. All rights reserved.
Table of Contents

EDITOR’S COMMENTARY ............................................................................ 4 


NOTABLE RECENT STATEMENTS ON INFLATION................................... 6 
SNAPSHOT OF 100 COMPANIES WITH REAL ESTATE VALUE .............. 8 
BY TYPE OF REAL ESTATE OWNED .............................................................................................. 8 
BY MARKET VALUE ................................................................................................................... 10 
STOCK PRICE PERFORMANCE ................................................................................................... 12 
FREE CASH FLOW ..................................................................................................................... 14 
P/E MULTIPLES ......................................................................................................................... 15 
HISTORICAL AND PROSPECTIVE EPS ......................................................................................... 16 
LATEST QUARTERLY EPS SURPRISE ......................................................................................... 18 
REVENUE AND EPS GROWTH .................................................................................................... 20 
PERCENTILE RANK WITHIN INDUSTRY ......................................................................................... 22 
INSIDER BUYING AND OWNERSHIP ............................................................................................. 23 

PROFILED COMPANIES – WHERE’S THE REAL ESTATE VALUE ........ 24 


TOP 5 INVESTMENT OPPORTUNITIES ..................................................... 25 
APARTMENT INVESTMENT & MANAGEMENT (AIMCO) (AIV) .......................................................... 26 
MI DEVELOPMENTS (MIM) ......................................................................................................... 29 
PLAYBOY ENTERPRISES (PLA) .................................................................................................. 32 
STEINWAY MUSICAL INSTRUMENTS (LVB) .................................................................................. 34 
SYMS (SYMS) .......................................................................................................................... 37 

NEXT 5 INVESTMENT OPPORTUNITIES................................................... 39 


CONSOLIDATED-TOMOKA LAND (CTO)....................................................................................... 40 
CRESUD (CRESY) .................................................................................................................... 42 
GENERAL GROWTH PROPERTIES (GGWPQ).............................................................................. 45 
MAUI LAND & PINEAPPLE (MLP) ................................................................................................ 48 
STEAK N SHAKE (SNS) ............................................................................................................. 50 

OTHER COMPANIES WITH REAL ESTATE ASSETS ............................... 52 


ALEXANDER & BALDWIN (ALEX) ................................................................................................ 53 
ASSISTED LIVING CONCEPTS (ALC) ........................................................................................... 56 
DYNACQ HEALTHCARE (DYII) .................................................................................................... 58 
NATUZZI (NTZ) .........................................................................................................................60 
PANASONIC (PC) ...................................................................................................................... 63 
PRICESMART (PSMT) ............................................................................................................... 65 
SEARS HOLDINGS (SHLD) ........................................................................................................ 67 
SONAE CAPITAL (LISBON: SONC).............................................................................................. 69 
ST. JOE (JOE) .......................................................................................................................... 73 
TARGET (TGT).......................................................................................................................... 76 
TEJON RANCH (TRC) ................................................................................................................ 78 
VAIL RESORTS (MTN) ............................................................................................................... 80 
WINTHROP REALTY TRUST (FUR) ............................................................................................. 83 

© 2009 by BeyondProxy LLC. All rights reserved. www.manualofideas.com June 19, 2009 – Page 3 of 87
Editor’s Commentary
U.S. Equities — Cheapness Snapshot1 One no longer needs to turn to well-known Fed critics such as Jim Rogers or Marc
% of U.S. stocks All MV> Faber to hear warnings about the risk of accelerating inflation. Concerns have been
trading for less than… stocks $1bn
net net current assets 4% 0%
expressed recently by some of the investors we respect most, including Bill Ackman,
net cash 5% 1% Warren Buffett, David Einhorn, Tom Gayner, Julian Robertson, Paul Singer, and
tangible book value 24% 9% David Swensen. The rationale is as obvious as it is simple: Inflation is first and
5x trailing EPS 3% 2%
1
As of June 12, 2009. Includes all stocks traded on
foremost a monetary phenomenon, and recent Fed policies have been unprecedented
U.S. stock exchanges (NYSE, Amex, Nasdaq, OTC) in size and scope. As a result, the purchasing power of the U.S. dollar may erode at
that have a market value of more than $1 million and
have reported results for a period ending no earlier an accelerating pace over the next decade. As investors, the time to prepare is now.
than nine months ago.

We should be clear on one point: Portfolio Manager’s Review is not making


a macro call on inflation, nor will we present the case for accelerating inflation in
this report. Quite simply, we believe the risk of inflation is serious enough to warrant
preparation. Over the next several months, as part of our Inflation Protection Series,
we will analyze businesses that may represent attractive investment opportunities in
their own right — and may provide better-than-average inflation protection.
In this issue, we present companies that own significant real estate assets.
We pay particular attention to companies with hidden or unusual assets. In some
cases, these companies operate valuable non-real estate businesses, providing an
opportunity to acquire their real estate holdings at a low implied valuation.
Conversely, the real estate owned by some of the profiled companies accounts for a
large portion of their enterprise value, enabling us to acquire their operating
businesses on the cheap.
We highlight the following five ideas in this Portfolio Manager’s Review:
Apartment Investment and Management (AIV) is an apartment REIT
that owns or manages 160,000 apartments. While Aimco’s real estate value is fairly
straightforward, the company has two hidden “assets” on the liability side of the
balance sheet. First, 84% of Aimco’s debt is non-recourse, giving shareholders a put
option on properties whose debt exceeds property value, while preserving upside on
a property-by-property basis. Second, most of Aimco’s debt is fixed rate, with a
weighted-average maturity of nearly ten years. This makes inflation a friend of
shareholders, one of which is Bill Ackman’s Pershing Square.
MI Developments (MIM) is a virtually unlevered owner and operator of
industrial real estate worldwide, with property book value of $1.3 billion versus
equity market value of less than $400 million. The strong profitability of MIM’s real
estate business has been obscured by horseracing losses. However, the recent
bankruptcy filing of horseracing subsidiary Magna Entertainment and activism by
David Einhorn’s Greenlight Capital may finally move MIM away from horseracing.
Shareholders receive a 7% dividend yield while waiting for full value to be realized.
Playboy Enterprises (PLA) owns the widely recognized Playboy brand
and a valuable license revenue stream, but it also has two underappreciated “assets”:
cheap fixed-rate debt financing, with a 3% interest rate and 2025 maturity; and the
Playboy Mansion, a unique piece of real estate in Bel Air, California, which cost the
company $1 million in 1971 but could conceivably be auctioned off for $50 million
or more. Playboy’s poor performance has finally forced the company to make some
tough choice, including lay off employees, close the New York office, and replace
Hefner’s daughter Christie with a new CEO.

© 2009 by BeyondProxy LLC. All rights reserved. www.manualofideas.com June 19, 2009 – Page 4 of 87
Notable Recent Statements on Inflation
“In poker terms, the Treasury and the Fed have gone “all in.” Economic medicine
that was previously meted out by the cupful has recently been dispensed by the
barrel. These once-unthinkable dosages will almost certainly bring on unwelcome
aftereffects. Their precise nature is anyone’s guess, though one likely consequence is
an onslaught of inflation.”
—Warren Buffett, letter to Berkshire Hathaway shareholders, February 27, 2009

“Our current chairman of the Federal Reserve, Ben Bernanke, is an ‘inflationist.’


When times were good, he supported an easy money policy. Even when the Fed
raised rates, Bernanke took great pains to give the markets many warnings to insure
that the higher rates wouldn’t break up the credit party, i.e., bubble formation. Now
that the cycle has turned, the Fed has promised to resort to ‘all means necessary’ to
head off the effects of the collapsed bubble. Rates have effectively been lowered to
zero. The Fed is making loans collateralized by toxic waste and has now begun a
policy called ‘quantitative easing’ – a fancy term for ‘printing money.’ The size of
the Fed’s balance sheet is exploding and the currency is being debased. Combined
with an aggressive fiscal policy, it is clear that the authorities are going ‘all in’ to
try to mitigate the near-term effects of the economic collapse. Our guess is that if the
chairman of the Fed is determined to debase the currency, he will succeed. Our
instinct is that gold will do well either way: deflation will lead to further steps to
debase the currency, while inflation speaks for itself.”
—David Einhorn, letter to Greenlight Capital investors, January 20, 2009

“I am 100 percent sure that the U.S. will go into hyperinflation… The problem with
government debt growing so much is that when the time will come and the Fed
should increase interest rates, they will be very reluctant to do so and so inflation
will start to accelerate.”
—Marc Faber, interview with Bloomberg Television, May 27, 2009

“My main worry right now is the possibility of inflation due to the actions of the
government. Inflation is part of how the world is trying to get out from under the
excess level of leverage that exists. Not to contradict another gentleman who is
smarter than I am, Milton Friedman, but inflation is not just a monetary
phenomenon in my opinion. There are psychological aspects to it as well. If
inflationary psychology takes hold I don’t see how you could keep long term interest
rates anywhere near where they are today. If long rates go up then the price of every
asset goes down. While I think intellectual capital with repricing ability is the best
way to mitigate that risk it will not be fun to go through that process if inflation heats
up too much. There is a ‘tipping point’ as Malcolm Gladwell would say where a little
inflation is helpful, but too much is absolutely destructive. And I mean destructive
way beyond just the stock market but in terms of social fabric issues. I am constantly
thinking about this dimension and trying to be a good steward of the finances at
Markel in the context of this risk.”
—Tom Gayner, interview with The Manual of Ideas, April 6, 2009

© 2009 by BeyondProxy LLC. All rights reserved. www.manualofideas.com June 19, 2009 – Page 6 of 87
Snapshot of 100 Companies with Real Estate Value

By Type of Real Estate Owned


Recent Market Enterprise LTM Price / Date of FY
Price Value Value EBIT / Dividend Tangible Latest End
Company / Ticker ($) ($mn) ($mn) EV Yield Book Quarter Date Website
Apartments
Equity Residential / EQR 23.91 6,548 16,410 5% 8% 1.4x 3/31/09 12/31/09 www.equityresidential.com/
AvalonBay / AVB 61.20 4,890 8,601 2% 6% 1.6x 3/31/09 12/31/09 www.avalonbay.com/
Essex Property / ESS 65.91 1,810 3,655 4% 6% 2.2x 3/31/09 12/31/09 www.essexpropertytrust.com/
UDR / UDR 11.23 1,690 5,170 3% 6% 1.2x 3/31/09 12/31/09 www.udr.com/
Camden Property / CPT 30.15 1,621 4,446 0% 9% 1.2x 3/31/09 12/31/09 www.camdenliving.com/
Aimco / AIV 10.92 1,279 8,617 3% 4% 1.9x 3/31/09 12/31/09 www.aimco.com/
BRE Properties / BRE 24.69 1,265 3,216 5% 9% 1.3x 3/31/09 12/31/09 www.breproperties.com/
Home Properties / HME 34.60 1,139 3,408 6% 8% 1.8x 3/31/09 12/31/09 www.homeproperties.com/
American Campus / ACC 22.22 942 2,227 2% 6% 1.2x 3/31/09 12/31/09 www.studenthousing.com/
Post Properties / PPS 15.11 670 1,755 nm 5% 0.7x 3/31/09 12/31/09 www.postproperties.com/
Colonial Properties / CLP 7.77 379 2,111 0% 8% 0.4x 3/31/09 12/31/09 www.colonialprop.com/

Manufactured Homes
Equity Lifestyle / ELS 40.82 1,032 2,626 4% 2% 11.8x 3/31/09 12/31/09 www.equitylifestyle.com/

Shopping Centers
Kimco Realty / KIM 11.35 4,272 8,774 5% 2% 1.1x 3/31/09 12/31/09 www.kimcorealty.com/
Federal Realty / FRT 55.98 3,309 5,047 6% 5% 3.1x 3/31/09 12/31/09 www.federalrealty.com/
Regency Centers / REG 36.61 2,930 5,448 6% 5% 2.1x 3/31/09 12/31/09 www.regencycenters.com
Weingarten Realty / WRI 14.80 1,770 4,822 7% 7% 1.2x 3/31/09 12/31/09 www.weingarten.com/
Alexander's / ALX 270.20 1,380 2,184 7% - 6.1x 3/31/09 12/31/09 www.alx-inc.com/
Equity One / EQY 13.82 1,193 2,431 3% 9% 1.3x 3/31/09 12/31/09 www.equityone.net
Tanger Outlet / SKT 32.81 1,047 1,968 4% 5% 5.8x 3/31/09 12/31/09 www.tangeroutlet.com/
Developers Divers. / DDR 5.56 853 7,123 3% 14% 0.4x 3/31/09 12/31/09 www.ddr.com/
Cedar Shopping / CDR 4.95 223 1,393 5% - 0.5x 3/31/09 12/31/09 www.cedarshoppingcenters.com
Kite Realty / KRG 3.48 119 814 4% 7% 0.3x 3/31/09 12/31/09 www.kiterealty.com/

Regional Malls
Simon Property / SPG 54.13 13,815 30,348 5% 4% 4.4x 3/31/09 12/31/09 www.simon.com/
Macerich Company / MAC 19.62 1,511 7,417 0% 1% 1.2x 3/31/09 12/31/09 www.macerich.com/
Taubman Centers / TCO 27.40 1,456 4,223 2% 6% nm 3/31/09 12/31/09 www.taubman.com/
Forest City / FCE.A 6.26 979 9,587 4% - 1.2x 1/31/09 1/31/10 www.forestcity.net/
General Growth / GGWPQ 2.07 650 25,157 3% - 0.4x 3/31/09 12/31/09 www.ggp.com/
CBL & Associates / CBL 6.26 446 6,497 5% 7% 0.9x 3/31/09 12/31/09 www.cblproperties.com/
Pennsylvania REIT / PEI 5.77 232 2,838 3% 10% 0.4x 3/31/09 12/31/09 www.preit.com/

Offices
Vornado Realty / VNO 48.54 8,446 20,376 4% 3% 1.8x 3/31/09 12/31/09 www.vno.com
Boston Properties / BXP 50.93 6,177 12,146 4% 5% 1.7x 3/31/09 12/31/09 www.bostonproperties.com
Brookfield Prop. / BPO 8.67 3,391 17,103 5% 6% 1.2x 3/31/09 12/31/09 www.brookfieldproperties.com/
Digital Realty / DLR 36.91 2,809 4,832 3% 4% 3.1x 3/31/09 12/31/09 www.digitalrealtytrust.com/
Liberty Property / LRY 24.39 2,575 5,012 6% 8% 1.3x 3/31/09 12/31/09 www.libertyproperty.com/
Duke Realty / DRE 9.60 2,149 7,476 7% 7% 1.2x 3/31/09 12/31/09 www.dukerealty.com/
Mack-Cali Realty / CLI 23.62 1,812 4,060 6% 8% 1.2x 3/31/09 12/31/09 www.mack-cali.com/
Corporate Office / OFC 30.52 1,751 3,607 4% 5% 2.0x 3/31/09 12/31/09 www.copt.com/
Alexandria R. E. / ARE 39.44 1,553 4,636 5% 4% 1.0x 3/31/09 12/31/09 www.labspace.com/
SL Green Realty / SLG 25.13 1,439 6,497 3% 6% 0.4x 3/31/09 12/31/09 www.slgreen.com/
Douglas Emmett / DEI 9.53 1,156 4,404 5% 4% 0.7x 3/31/09 12/31/09 www.douglasemmett.com/
BioMed Realty / BMR 10.40 845 2,574 5% 13% 0.6x 3/31/09 12/31/09 www.biomedrealty.com/
Kilroy Realty / KRC 20.76 687 1,956 5% 7% 1.2x 3/31/09 12/31/09 www.kilroyrealty.com/
Brandywine Realty / BDN 7.04 622 3,329 4% 6% 0.4x 3/31/09 12/31/09 www.brandywinerealty.com
Cousins Properties / CUZ 10.43 536 1,591 2% 10% 1.2x 3/31/09 12/31/09 www.cousinsproperties.com/
DuPont Fabros / DFT 9.45 383 1,063 4% - 0.6x 3/31/09 12/31/09 www.dft.com
IRSA Inversiones / IRS 4.92 285 598 11% - nm 3/31/09 6/30/09 www.irsa.com.ar/ing.htm
Maguire Properties / MPG 1.07 51 4,797 2% - nm 3/31/09 12/31/09 www.maguireproperties.com/
Thomas Properties / TPGI 1.65 42 374 4% 3% 0.3x 3/31/09 12/31/09 www.tpgre.com/
[Portfolio w 100 companies ● Top100_browser ● MOI_macros_100.xls, MOI100A, then MOI100B, then MOI100C, then MOI100D]

© 2009 by BeyondProxy LLC. All rights reserved. www.manualofideas.com June 2009 – Page 8 of 87
By Type of Real Estate Owned (continued)
Recent Market Enterprise LTM Price / Date of FY
Price Value Value EBIT / Dividend Tangible Latest End
Company / Ticker ($) ($mn) ($mn) EV Yield Book Quarter Date Website
Industrial REITs
ProLogis / PLD 9.24 4,090 13,644 7% 6% 0.7x 3/31/09 12/31/09 www.prologis.com/
AMB Property / AMB 19.60 2,866 6,059 nm 6% 1.1x 3/31/09 12/31/09 www.amb.com/
EastGroup Properties / EGP 33.19 837 1,551 4% 6% 2.1x 3/31/09 12/31/09 www.eastgroup.net/
DCT Industrial / DCT 4.39 773 1,955 4% 7% 0.7x 3/31/09 12/31/09 www.dctindustrial.com/
Self-Storage REITs
Public Storage / PSA 67.66 11,468 14,902 5% 3% 2.2x 3/31/09 12/31/09 www.publicstorage.com/
Extra Space Storage / EXR 8.53 737 1,977 5% - 0.8x 3/31/09 12/31/09 www.extraspace.com/
U-Store-It / YSI 4.27 249 1,213 4% 2% 0.5x 3/31/09 12/31/09 www.ustoreit.com
Triple Net Lease
Realty Income / O 22.48 2,345 4,023 4% 8% 2.0x 3/31/09 12/31/09 www.realtyincome.com/
National Retail / NNN 17.21 1,376 2,474 6% 9% 0.9x 3/31/09 12/31/09 www.nnnreit.com/
MI Developments / MIM 8.31 388 495 nm 7% 0.3x 3/31/09 12/31/09 www.midevelopments.com/
Winthrop Realty / FUR 9.80 155 380 15% 10% 0.8x 3/31/09 12/31/09 www.winthropreit.com/
Healthcare, Senior Living Facilities
HCP / HCP 23.41 5,946 12,149 1% 8% 1.4x 3/31/09 12/31/09 www.hcpi.com/
Ventas / VTR 30.25 4,734 7,581 5% 7% 2.2x 3/31/09 12/31/09 www.ventasreit.com/
Health Care REIT / HCN 35.90 3,990 6,849 6% 8% 1.3x 3/31/09 12/31/09 www.hcreit.com/
Nationwide Health / NHP 27.25 2,796 4,260 5% 6% 1.8x 3/31/09 12/31/09 www.nhp-reit.com/
Brookdale Senior / BKD 11.24 1,145 3,657 nm - 1.8x 3/31/09 12/31/09 www.brookdaleliving.com
Healthcare Realty / HR 17.36 1,030 1,968 2% 9% 1.3x 3/31/09 12/31/09 www.healthcarerealty.com/
Skilled Healthcare / SKH 7.09 264 736 12% - nm 3/31/09 12/31/09 www.skilledhealthcaregroup.com
Assisted Living / ALC 14.38 172 313 4% - 0.7x 3/31/09 12/31/09 www.alcco.com/
Cogdell Spencer / CSA 4.19 82 524 nm 21% nm 3/31/09 12/31/09 www.cogdellspencer.com/
Dynacq Healthcare / DYII 3.37 52 13 nm - 0.8x 2/28/09 8/31/09 www.dynacq.com
Land Developers
St. Joe / JOE 26.27 2,430 2,369 nm - 2.5x 3/31/09 12/31/09 www.joe.com/
Vail Resorts / MTN 28.92 1,054 1,375 11% - 1.9x 4/30/09 7/31/09 www.vailresorts.com
Alexander & Baldwin / ALEX 24.97 1,024 1,507 16% 5% 1.0x 3/31/09 12/31/09 www.alexanderbaldwin.com/
Cresud / CRESY 10.30 489 798 4% 1% nm 9/30/08 6/30/09 www.cresud.com.ar/
Tejon Ranch / TRC 28.75 489 449 0% - 2.8x 3/31/09 12/31/09 www.tejon.com/
Consolidated-Tomoka / CTO 32.71 187 198 4% 1% 1.7x 3/31/09 12/31/09 www.consolidatedtomoka.com/
Maui Land Pineapple / MLP 8.02 65 152 nm - 3.5x 3/31/09 12/31/09 www.mauiland.com
Homebuilders
D.R. Horton / DHI 9.57 3,033 4,430 nm 2% 1.2x 3/31/09 9/30/09 www.drhorton.com/
NVR / NVR 504.91 2,921 2,620 5% - 2.0x 3/31/09 12/31/09 www.nvrinc.com/
Toll Brothers / TOL 17.25 2,781 3,279 nm - 0.9x 4/30/09 10/31/09 www.tollcareercenter.com/
M.D.C. Holdings / MDC 28.59 1,338 755 nm 3% 1.3x 3/31/09 12/31/09 www.richmondamerican.com
Lennar / LEN 7.98 1,280 2,985 nm 2% 0.5x 2/28/09 11/30/09 www.lennar.com/
KB Home / KBH 14.09 1,241 1,958 nm 2% 1.6x 2/28/09 11/30/09 www.kbhome.com/
Centex / CTX 8.48 1,056 2,915 nm - 1.2x 3/31/09 3/31/10 www.centex.com/
Ryland Group / RYL 16.73 720 904 nm 1% 1.1x 3/31/09 12/31/09 www.ryland.com/
Meritage Homes / MTH 17.21 539 817 nm - 1.1x 3/31/09 12/31/09 www.meritagehomes.com
California Coastal / CALC 1.45 16 225 nm - 0.2x 3/31/09 12/31/09 www.californiacoastalcommunities.com
Retailers with Large Real Estate Holdings
Target / TGT 40.38 30,377 47,775 9% 2% 2.2x 4/30/09 1/31/10 www.target.com/
Sears Holdings / SHLD 68.93 8,267 10,170 4% - 1.7x 4/30/09 1/31/10 www.searsholdings.com/
PriceSmart / PSMT 17.51 518 526 11% 3% 2.1x 2/28/09 8/31/09 www.pricesmart.com/
Natuzzi / NTZ 2.09 115 52 nm - 0.2x 3/31/09 12/31/09 www.natuzzi.com/
Syms / SYMS 6.31 92 90 nm - 0.5x 2/28/09 2/28/10 www.syms.com/
Various Businesses with Real Estate Holdings
Panasonic / PC 13.64 28,234 24,292 3% 3% 1.0x 3/31/09 3/31/10 www.panasonic.net
CB Richard Ellis / CBG 9.81 2,599 5,480 nm - nm 3/31/09 12/31/09 www.cbre.com/EN
Steak n Shake / SNS 7.86 226 356 nm - 0.8x 3/31/09 9/30/09 www.steaknshake.com/
Playboy Enterprises / PLA 2.83 95 169 nm - nm 3/31/09 12/31/09 www.playboyenterprises.com/
Steinway Musical / LVB 11.01 94 244 8% - 0.8x 3/31/09 12/31/09 www.steinwaymusical.com/
Great Wolf Resorts / WOLF 2.78 87 603 nm - 0.4x 3/31/09 12/31/09 www.greatwolf.com/
Bridgford Foods / BRID 7.34 69 58 nm - 2.2x 4/17/09 10/31/09 www.bridgford.com/
Grubb & Ellis / GBE 0.92 60 340 nm 45% nm 3/31/09 12/31/09 www.grubb-ellis.com/
Silverleaf Resorts / SVLF 1.32 50 436 12% - 0.3x 3/31/09 12/31/09 www.silverleafresorts.com/
[MFI100 ● Top100_browser ● MOI_macros_100.xls, MOI100A]

© 2009 by BeyondProxy LLC. All rights reserved. www.manualofideas.com June 2009 – Page 9 of 87
undertake any investment strategy. It does not constitute a
About PORTFOLIO MANAGER’S REVIEW general or personal recommendation or take into account
the particular investment objectives, financial situations,
or needs of individual investors. The price and value of
© 2008 by BeyondProxy LLC. All rights reserved. All securities referred to in this newsletter will fluctuate. Past
content is protected by U.S. and international copyright performance is not a guide to future performance, future
laws and is the property of BeyondProxy and any third- returns are not guaranteed, and a loss of all of the original
party providers of such content. The U.S. Copyright Act capital invested in a security discussed in this newsletter
imposes liability of up to $150,000 for each act of willful may occur. Certain transactions, including those involving
infringement of a copyright. futures, options, and other derivatives, give rise to
substantial risk and are not suitable for all investors.
PORTFOLIO MANAGER’S REVIEW is published monthly by
BeyondProxy. Subscribers may download content to their Disclaimers
computer and store and print materials for their individual There are no warranties, expressed or implied, as to the
use only. Any other reproduction, transmission, display or accuracy, completeness, or results obtained from any
editing of the content by any means, mechanical or information set forth in this newsletter. BeyondProxy will
electronic, without the prior written permission of not be liable to you or anyone else for any loss or injury
BeyondProxy is strictly prohibited. resulting directly or indirectly from the use of the
information contained in this newsletter, caused in whole
Terms of use: Use of this newsletter and its content is or in part by its negligence in compiling, interpreting,
governed by the Terms of Use described in detail at reporting or delivering the content in this newsletter.
www.manualofideas.com. See a summary of key terms
below. Related Persons
BeyondProxy’s officers, directors, employees and/or
Contact information: For all customer service, principals (collectively “Related Persons”) may have
subscription or other inquiries, please visit positions in and may, from time to time, make purchases
www.manualofideas.com, or contact us at BeyondProxy, or sales of the securities or other investments discussed or
P.O. Box 1375, New York, NY 10150; telephone: 415- evaluated in this newsletter.
412-8059.
John Mihaljevic, Chairman of BeyondProxy, is also a
Editor-in-chief: John Mihaljevic, CFA. principal of Mihaljevic Capital Management LLC
(“MCM”), which serves as the general partner of a private
Annual subscription price: $999. investment partnership. MCM may purchase or sell
securities and financial instruments discussed in this
To subscribe, visit www.manualofideas.com/pmr.html newsletter on behalf of the investment partnership or
other accounts it manages.

It is the policy of MCM and all Related Persons to allow a


General Publication Information and Terms of full trading day to elapse after the publication of this
Use newsletter before purchases or sales of any securities or
financial instruments discussed herein are made.
PORTFOLIO MANAGER’S REVIEW is published by
BeyondProxy. Use of this newsletter and its content is Compensation
governed by the Terms of Use described in detail at BeyondProxy receives compensation in connection with
www.manualofideas.com/terms.html. For your the publication of this newsletter only in the form of
convenience, a summary of certain key policies, subscription fees charged to subscribers and reproduction
disclosures and disclaimers is reproduced below. This or re-dissemination fees charged to subscribers or others
summary is meant in no way to limit or otherwise interested in the newsletter content.
circumscribe the full scope and effect of the complete
Terms of Use.

No Investment Advice
This newsletter is not an offer to sell or the solicitation of
an offer to buy any security in any jurisdiction where such
an offer or solicitation would be illegal. This newsletter is
distributed for informational purposes only and should not
be construed as investment advice or a recommendation
to sell or buy any security or other investment, or

© 2009 by BeyondProxy LLC. All rights reserved. www.manualofideas.com June 19, 2009 – Page 85 of 87
The Manual of Ideas research team is gratified to have won high praise for our
investment idea generation process and analytical work.

“I highly recommend MOI — the thoroughness of the product coupled with the quality
of the content makes it an invaluable tool for the serious investor.”
—TIM DAVIS, MANAGING DIRECTOR, BLUESTEM ASSET MANAGEMENT

“We do similar work ourselves.”


—GLENN GREENBERG, MANAGING DIRECTOR, CHIEFTAIN CAPITAL MANAGEMENT

“Very well written and useful.”


—KYLE CIPPERLEY, ANALYST, BARKER CAPITAL

“The Manual of Ideas is a tremendous effort and very well put together.”
—MOHNISH PABRAI, MANAGING PARTNER, PABRAI INVESTMENT FUNDS

“Outstanding.”
—JONATHAN HELLER, CFA, EDITOR, CHEAP STOCKS

“Your reports provide serious investors with a plethora of bargain stocks and sound
advice. I highly recommend them.”
—MIGUEL BARBOSA, EDITOR, SIMOLEON SENSE

“Very impressive.”
—SHAI DARDASHTI, MANAGING PARTNER, DARDASHTI CAPITAL MANAGEMENT

“It’s little surprise MOI is a winner. When you start with superior stock screening and
combine it with good judgment, you put yourself in a great position to outperform.”
—MARKO VUCEMILOVIC, FOUNDER AND MANAGING DIRECTOR, ALKAR GLOBAL

“This is the best institutional-quality equity research to come along in a long time. It
not only unearths companies with compelling risk-reward profiles but also analyzes
them with a clear understanding of business economics and competitive dynamics.”
—PAVEL SAVOR, ASSISTANT PROFESSOR OF FINANCE, THE WHARTON SCHOOL

“I am (as always) impressed with your work.”


—MARK SPROULE, SCOPIA CAPITAL

“Keep up the great work, you are quickly becoming one of my must-read sources.”
—CORY JANSSEN, FOUNDER, INVESTOPEDIA.COM

FIND OUT WHAT THE BUZZ IS ABOUT.


WWW.MANUALOFIDEAS.COM
Pay-By-Check Subscription Form
Publisher: BeyondProxy LLC

For faster enrollment, subscribe online at www.manualofideas.com

To Do: Please print this form and fill in the following information legibly and completely.

Mail the completed form and payment to: The Manual of Ideas
P.O. Box 1375
New York, NY 10150

Your Information:

Name: _____________________________________________________________________________

Firm: _______________________________________________________________________________

Mailing Address: _____________________________________________________________________

City: ____________________________________________ State (if applicable): ________________

ZIP / Postal Code: __________________ Country: ________________________________________

Email: ______________________________________________________________________________

Your Subscriptions:
PORTFOLIO MANAGER’S REVIEW:  one year, $999 (12 issues)  two years, $1,799 (24 issues)
EQUITIES AND TOBIN’S Q:  one year, $399 (4 issues)  two years, $599 (8 issues)
DOWNSIDE PROTECTION REPORT:  one year, $149 (12 issues)  two years, $249 (24 issues)
10X45 BARGAIN HUNTER:  one year, $99 (26 issues)  two years, $179 (52 issues)

Payment Information:
 Check enclosed (make payable to “BeyondProxy LLC”)

Confirmation:
We will confirm by email the receipt of your request and welcome you to The Manual of Ideas. Thanks!
Questions about your order? Email us at subscribe@manualofideas.com or call 415-412-8059.