Welcome to Envoy Global Research

Envoy Global Research focuses on uncovering opportunities by locating companies that are or will be undergoing strategic change and/or a corporate restructuring.
>>Learn More About Us

Recent Reports

Power-One’s Shares (Nasdaq: PWER) Could Recover Significantly in 2009

Originally Posted on September 5, 2008

Power-One Inc. (Nasdaq: PWER – Current Price: 2.10) could potentially rise 50% to 100% over the next twelve months, as financial results, driven by the company’s fast-growing solar and winder inverter business, begin to show significant improvement. In addition, a recent acquisition of a competitor to PWER by Schneider Electric , a huge European conglomerate, provides a solid metric for estimating the potential takeout value of PWER under various scenarios.

>>Read More
Member-Only Post

Invest First and Investigate Later: Sometimes Intuition is Misguided

Originally Posted on August 31, 2008

Since financial markets are incredibly efficient and since I cannot bring myself to fully research investment opportunities unless I have some real financial commitment, I’ve always subscribed to Soros’s maxim of: Invest First and Investigate Later. This strategy, though, can sometimes backfire, as is the case with UTSI.

Even though my gut instincts prove correct in many instances, in certain cases, such as that of UTSI, my intuition is misguided. In this post, I’ll highlight some additional information that I’ve recently uncovered that show that UTSI, though still an interesting speculation, is not nearly as cheap as my initial thesis implied.

>>Read More
Member-Only Post

Buying Some UTSI

Originally Posted on August 29, 2008

Even though the company is still losing money, UTSI seems like a good buy here, as the stock price appears to assign a negative value to the company’s current remaining business, which throws off over $700 million in annual sales.

>>Read More
Member-Only Post

SolarFun (SOLF): Taking a Closer Look at the Numbers

Originally Posted on August 29, 2008

SolarFun (SOLF), a Chinese manufacturer of polysilicon-based solar modules, recently announced financial results, which were greeted negatively by the market, but which were actually positive in certain respects. Specifically, the company’s detailed breakdown of capital outlays into cap-ex and pre-payments to suppliers, provide a more accurate measure of the company’s true profitability, and give some indication of future financing needs and cash-flow potential of SOLF. In addition, the deal with Q-Cells and the company’s gross margin projections for 2009, both signal interesting possibilities over the next year. Combined, the above factors can provide certain guidelines of how to speculate, and hopefully make money, in SOLF’s stock going forward.

>>Read More
Member-Only Post

Taking a Closer Look at Gafisa (NYSE: GFA BP: GFASA3.SA)

Originally Posted on August 27, 2008

In this post, I’ll take a closer look at Gafisa (NYSE: GFA BP: GFASA3.SA), a Brazilian homebuilder which I mentioned in a previous post. What’s interesting about Gafisa is that the company appears almost impossible to value, and yet it still attracts significant interest, both from Brazilian and foreign investors. Though it’s a difficult task, I’ll attempt to provide a general, and yet still very simplified, framework for an evaluation of Gafisa. My basic assumption, given the growing momentum of mortgage securitization in Brazil, is that the best way for an outside investor to value the company, is perhaps to assign some value to the company’s growing receivable balance, while taking into consideration outstanding debt obligations.

>>Read More
Member-Only Post

Speculating on a Brazil Bounce

Originally Posted on August 19, 2008

A good way to play a bounce in the Brazilian stock market (down over 30% in a few months) is via real estate shares.

>>Read More
Member-Only Post

ATS Automation (ATA.TO): Reports Exceptional Results Remains a Solid and Undiscovered Alternative Energy Investment

Originally Posted on August 13, 2008

This morning ATS Automation (ATA.TO) reported financial results that far exceeded my expectations. Overall, my feeling is still that ATA.TO remains undervalued and the stock price should increase significantly as more investors recognize that the company’s turnaround is progressing smoothly and the future outlook for the business is exceptional given the strength in solar and other alternative energy markets.

>>Read More
Member-Only Post

IncrediMail (MAIL): Solid Results Stock Looks Great for 2009

Originally Posted on August 13, 2008

This morning Incredimail (MAIL) announced solid financial results which support my belief that the stock could double in the next 12 months.

>>Read More
Member-Only Post

Canadian Solar (CSIQ): Financing of Growth Still a Major Concern

Originally Posted on August 13, 2008

This morning Canadian Solar (CSIQ) reported exceptional earnings results, and yet I still remain convinced that the company will need to dilute shareholders significantly in the year ahead in order to meet their lofty 2009 expectations.

>>Read More

Isolagen: The Company with Nine Lives

Originally Posted on August 6, 2008

The beauty about stock investing on the long side is that the game is never really over, unless a company declares bankruptcy. No matter how bleak the outlook is and how large the paper losses, a few slight changes can so positively alter the prospects of a firm that the biggest losing investment can turn into a winner almost overnight.

>>Read More

Testimonials

"I've done hedge fund strategy analysis and portfolio management. Your analysis is quite good, not just for its conclusions, but for your clear investment articulation. When evaluating managers, I prefer those who can explain why they are taking on an Investment, and you do this exceedingly well." K.D.R.

"I have read all of your information and I am impressed with your research.
This is the only site I have found to be honest in the art of stock picking and conservative in valuations! Thank you for your hard work and due diligence." Kent

"Your excellent analysis of IIP and your clear understanding of the company's problems have made me an avid reader of your site. I am very impressed at your stock picking acumen and your realistic assessment of risk and reward." Guy W.

"For anyone looking at this site for the first time, I met Mr. Fruchter at KDE's shareholder's meeting back in 1999 and I have read his posts from time to time. I have found his analysis to be thorough and well reasoned and have bought a few stocks he recommended and made money in every case. " Thomas B.

"You offer incredibly intelligent (and damn good) stock analysis and recommendations - I have made money on these stocks!!thanks." SCA