Sunday, December 13, 2009


Not being a member of the VIC, I don't have access to their database. I had sent in my long case for SNS a few months back, in late June when it was trading at ~9 bucks a share... despite making what I thought was a valid case, I was rejected. :(

I now see that there is a short case on the page, which I am assume revolves around the company's high P/E, exposure to commodity prices (since they don't hedge), and what I like to refer to as the company's 'phantom debt' of over $110 million; debt that is made up of future lease payments (per GAAP), which isn't what I would consider to be interest bearing. Regardless, I would love nothing more than to read the write up, as I would love to hear another short case made (especially if it is of VIC quality)!

Anyway, I was curious if someone would be willing to send me a copy of the SNS short thesis?

Disclosure: Long SNS

EDIT: Wow, in light of the comment I got, I feel dumb, as I realized that I had already read the thesis at the very link that was given to me- when the thread on the Corner of Berkshire and Fairfax was started! Furthermore, simply typing in "sns short vic" would have given me the link I wanted... This is a good lesson for me to keep in mind for next time. :)

To put it simply, I disagree with most of the points made in the article. While the value of the company's real estate has deteriorated and probably doesn't have great upside in the near future, due to the high potential of a commercial real estate crash; I still think that the cash flows that will come out of the company will be quite significant, and think that the company is still quite cheap.

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