David, this is a great find. This caught my eye recently when I saw that Peter Lynch had bought this in the past (like 2003 time frame). Not sure if he still owns it but on Edgar's website I found him owning this in the past . here is the link: https://www.sec.gov/Archives/edgar/data/0001137607/000090873703000108/calloway_13ga2.txt. In any case, it is great to see you have a write up on it. I found you via P10 from Richard Sosa's podcast and have really enjoyed your letters. Thanks for sharing your ideas.
The link above has no information post May 2023. I am a shareholder, but have received no information whatsoever from the company. Any idea, how to access the filings.
David. Great writeup. Thanks. You were expecting 2020 to be a big year when you wrote this. 2021 was even bigger. However last qtr is a bit down. Any updated thoughts on this name?
Have you by any chance asked the company about any other possible future share count increases-convertible preferred and the like? Net income actually was positive for Q3 (which is generally not the case in the garden center business) but the increased share count dropped EPS from Q2. Any idea when/where the "junior preferred" security originated? The company is performing wonderfully and it is fabulous that they send the earnings right out to shareholders, but it would be nice to know how much dilution is possible.
I am surprised that you did not mention the value of the real estate.
One of their Houston locations is in A++ territory.
It was that location that initially prompted me to buy shares way back when for $.75/share. At that point in time, that Houston location was maybe worth the whole of the company?
I should have! I omitted mention in the interest of brevity. The value of the operations now greatly exceeds asset value, so the land is not as important to the thesis as it once was.
As the owner of a small, upscale garden center, I can report that sales have continued to be very strong this spring. It seems as if the desire to garden that many cultivated last year has persisted. And now without the uncertainties and difficulties that last spring presented. I would think that Calloway's should have a very strong Q2. This is the one public company I could find that mirrored our own small enterprise- upscale, focused, and service oriented. I invested May 2020 after observing our own surprisingly strong sales trends. The kicker is Klarmin's involvement. He is not going to steal from shareholders. I like that they divy out any cash not required for cautious, prudent investment. Big is not better here. Not the deal that it was but returns should be quite satisfactory as long as the increased interest in gardening and "outdoorscapes" persists.
I agree. Kamin has had every opportunity to take his holdings private at market lows, but he doesn't. His companies don't lead the way on communications or transparency, but they do treat shareholders fairly. Thanks for your input.
Very strong Q2 indeed! No dividend announced, so perhaps planning to open another location with the retained cash? Back out the cash and it is still trading only ata PE of about 8. But the question is if this level of sales can be maintained. (and if the big freeze was a one-off boost.)
How can we get access to filings / financial reports? Is this a copy where you need to own a share before they'll send you materials
All quarterly and annual reports are available here. https://www.otcmarkets.com/stock/CLWY/disclosure
Proxy statements are sent to shareholders only.
David, this is a great find. This caught my eye recently when I saw that Peter Lynch had bought this in the past (like 2003 time frame). Not sure if he still owns it but on Edgar's website I found him owning this in the past . here is the link: https://www.sec.gov/Archives/edgar/data/0001137607/000090873703000108/calloway_13ga2.txt. In any case, it is great to see you have a write up on it. I found you via P10 from Richard Sosa's podcast and have really enjoyed your letters. Thanks for sharing your ideas.
Hi Dave,
The link above has no information post May 2023. I am a shareholder, but have received no information whatsoever from the company. Any idea, how to access the filings.
Thanks,
Vinod
David. Great writeup. Thanks. You were expecting 2020 to be a big year when you wrote this. 2021 was even bigger. However last qtr is a bit down. Any updated thoughts on this name?
Calloway's results will be down this year as the housing market slows. I continue to be extremely bullish for the mid-to-long term.
Have you by any chance asked the company about any other possible future share count increases-convertible preferred and the like? Net income actually was positive for Q3 (which is generally not the case in the garden center business) but the increased share count dropped EPS from Q2. Any idea when/where the "junior preferred" security originated? The company is performing wonderfully and it is fabulous that they send the earnings right out to shareholders, but it would be nice to know how much dilution is possible.
Why is there no SC13D from Kamin? I know Calloways is non reporting but I would think he should file it.
There is no filing requirement on non-SEC registered shares.
I am surprised that you did not mention the value of the real estate.
One of their Houston locations is in A++ territory.
It was that location that initially prompted me to buy shares way back when for $.75/share. At that point in time, that Houston location was maybe worth the whole of the company?
I should have! I omitted mention in the interest of brevity. The value of the operations now greatly exceeds asset value, so the land is not as important to the thesis as it once was.
Is this the same Peter Kamin that previously worked with Jeff Ubben/ValueAct?
The same!
As the owner of a small, upscale garden center, I can report that sales have continued to be very strong this spring. It seems as if the desire to garden that many cultivated last year has persisted. And now without the uncertainties and difficulties that last spring presented. I would think that Calloway's should have a very strong Q2. This is the one public company I could find that mirrored our own small enterprise- upscale, focused, and service oriented. I invested May 2020 after observing our own surprisingly strong sales trends. The kicker is Klarmin's involvement. He is not going to steal from shareholders. I like that they divy out any cash not required for cautious, prudent investment. Big is not better here. Not the deal that it was but returns should be quite satisfactory as long as the increased interest in gardening and "outdoorscapes" persists.
I agree. Kamin has had every opportunity to take his holdings private at market lows, but he doesn't. His companies don't lead the way on communications or transparency, but they do treat shareholders fairly. Thanks for your input.
Very strong Q2 indeed! No dividend announced, so perhaps planning to open another location with the retained cash? Back out the cash and it is still trading only ata PE of about 8. But the question is if this level of sales can be maintained. (and if the big freeze was a one-off boost.)