My Epiphany and Horrid Health, Having A Baby, Writing An Investment Book, And I Started A Business

As you probably know if you have been following this blog for any amount of time I have been trying to find enough funding to open up my own investment firm and I have also been sending out my information and stock analysis articles to a bunch of value investing firms to try and land a job at one of these firms in the meantime while I try to raise capital to open up my own firm.  I figure that I would need around $5 million in assets under management to be able to comply with all regulations, have my results audited, pay accountants and lawyers to make sure I stay in compliance with everything, and still have enough left over to make some money for myself.

Since I do not have a lot of rich friends, know a lot of rich people, and myself do not have anywhere near that amount of money, I had to put this goal to the side for the time being and will explain why below.

As you also know if you have been following this blog for any amount of time, I have alluded multiple times to some pretty serious health issues that I have not fully explained to you and will do so later in this post.  Over the past several months I have been pushing myself extremely hard, too hard as it turns out, to try to get as good as possible as fast as possible at evaluating, valuing, and analyzing companies to determine if they are a good investment, in the hopes of either opening my own firm, or getting noticed by a value investing firm and paid for my research.

Since the summer of 2004, the year before my senior year of high school, up until today I have been, and still on a daily basis deal with extreme dizziness to the point where I have not been able to have a “normal” job since shortly after I graduated high school.  Due to this I have also not been able to go to college and get a bachelor’s degree which I have found out is apparently a MINIMUM requirement to even being considered for being hired at most investment related firms so I have also had zero luck in finding an investment related job up to this point.  My dizziness has gotten quite a bit better over the years (Finally making some progress after almost 9 years of dealing with this) as I have found a couple wonderful doctors who have helped me out quite a bit, but I still need to get over a few humps to get more towards “normal” or at least for me normal health, whatever that may end up being.

Due to me pushing myself to learn as much as possible as fast as possible relating to investing over the last several months I appear to be pushing myself too hard as I have gotten sick/flu/sinus infection/etc 5 or 6 times in the past 5 months or so.  These colds/infections  exacerbate my dizziness while I am sick and makes my dizziness worse than normal for at least a week or two AFTER I get over whatever sickness I have had, so for the past 5 months or so I have felt pretty miserable almost the entire 5 months.  This is one reason why you have seen a slowdown in my blog postings and stock analysis articles over this time period.

A different doctor that I saw has not found any reason why I keep getting sick so I figure it must be because I have been pushing myself so hard lately.  At the recommendation of ValuePrax for something investing related, and completely unrelated to the sickness situation, I read The Four Hour Work Week by Tim Ferriss, which I highly recommend especially for those who are skeptical like I was about pulling this kind of thing off and who wants to be an entrepreneur.  The book is amazing and I highly recommend everyone read it but the main part of the book that I want to talk about here that relates to my health issues is a part of the book where he says you should evaluate how you spend your time to see what you can cut out to become more efficient.  After looking over how I have been spending my time over the past several months I believe I have found the main reason why I keep getting sick, I have been pushing myself WAY too hard.

It turns out that since I dedicated myself to learning and becoming a true value investor in February of 2012 that between taking care of my now 2+ year old daughter full time and learning about investing, evaluating, analyzing, valuing, and writing about companies, I have been working around 100 hours a week for almost a year straight now, or the equivalent of 2.5 full time jobs!  Since I cut out free/relaxing/video game/watching sports, etc time to learn as much as possible as fast as possible literally the only free time I had where I wasn’t trying to learn something, take care of my daughter, or recovering from being dizzy was when I was sleeping.  Not exactly a healthy lifestyle apparently.

The last time I pushed myself like this was shortly after the dizziness started.  I kept trying to do the normal things I used to do at the time: Finishing high school, hanging out with friends, running track, working out, and combined with working a full time job at the time and having a girlfriend who is now my wife.  After having to go to the ER because I was so dizzy I fell down when I was at work and couldn’t walk without falling, I realized that I pushed myself too hard.  I ended up making my dizziness so bad that for a period of literally 2 or 3 straight years I could do literally nothing except lay around and watch TV because I felt so horrible all the time.  Since I do not want to feel that horrible again and set myself back like that, especially considering how much better my dizziness has gotten since then, I realized I needed to change course before I did that to myself again.

Using some of the techniques in the Four Hour Work Week I started to brainstorm business ideas and ways to start making money for my family but also lowering my hours worked dramatically in the hopes to stop getting sick all the time and putting off any kind of massive deterioration in my dizziness like what happened before.  The first idea was to write an investment book.  I have already shared the idea with a couple investors who have had investing related books published, gotten some feedback, changed some of my original thoughts, and they think that if I can write the book properly that the idea is good enough and unique enough to potentially be picked up by a publisher and fully published, not just self published by me!  Up to this point I have written the outline that still needs to be tweaked a bit, the introduction, and five full chapters.  I do not know when this will be done because of the business my brother and I have started which I will talk about below but I think that I can help a lot of newer and intermediate level investors and hope to have the transcript finished as soon as possible.

The second idea was something my brother and I have been kicking around for a while now and we decided to go for it.  My brother and I have started what is called a managed service provider, MSP, computer business to monitor local small businesses computers; do data back-ups, eliminate viruses, spyware, and malware, etc.  Make sure their servers, computers, and computer networks are working properly and keep them working properly and to help the particular businesses become more profitable due to saving them a lot of money, enabling them to have less or no down time, and having a lot less computer related headaches they have to deal with.  Our company is called Black Hills Tech Solutions.  If anyone is interested in this business please visit our website which I have linked.  We do not have any clients as of this time but once we start getting clients we will be making pretty good money and helping companies out by saving them a lot of money, time, and frustration.  If we do things right this will also enable me to work less once we get things rolling due to automation.  My brother is handling the computer and tech side of things and I am handling the business/marketing/sales side of things at this point.

The main reason I had to make a change in what I was doing on a daily basis was because of my horrid health.  The other major reason I had to change course was because frankly I am tired of not being able to make money for my family and I needed a way to make money sooner rather than later.  Why do I need to make money sooner rather than later?  Well besides the fact that I just want to start making my family money and not being able to due to my health reasons up to this point, we have another baby on the way which is very exciting but also expensive, and I want to contribute monetarily to my family.

Due to everything above I will probably post only every once and a while on this blog for the foreseeable future.  My hope is that once we start getting clients at our business and automate things properly is that I will be able to resume this blog on a more regular basis and start researching companies again as this is still my passion.  I also hope that writing this book and starting this business will make me enough money and gain me enough contacts that I will be able to open up my own investment firm sooner rather than later and resume my passion of searching for undervalued companies to buy into on a full time basis.

You all know that I am not a macro guy at all, but another reason I thought this was a good time to change course for a while was because how crazy the market is getting.  It seems to keep going up for absolutely no reason at all and I fear that there will be a major crash at some time in the near future.  Due to the starting of the business, saving up for baby, and my fear of an impending market crash, I have sold all of the stocks in my personal portfolio to help fund me and my brothers business start up and to put some money in savings in preparation for the baby that is due in late October.  The people that I manage portfolios for are sitting around 40% cash right now. Again my hopes are that I will start making some pretty good money relatively soon from the book and business that I will be able to open up my own investment firm relatively soon.

At this time I will urge anyone who is interested in contributing to this blog to please let me know as I am still very interested in having people write while I am working on some of the above things and if possible would like to keep the blog active until I can start writing on a more regular basis again.

I apologize that I have to take some time off from this blog due to my health issues but I do not want to go back to where I could literally do nothing for 2 or 3 years because I felt so horrible all the time. I am deeply saddened by this necessary step away from my passion of value investing but also excited at the same time for the ventures I will be concentrating on for the foreseeable future.

I want to thank you all so much for reading, I appreciate it so much and I hope you continue to read while I concentrate on these other ventures.  I hope to continue writing and researching companies as soon as physically possible.

Again, I would really love to keep content flowing on a somewhat regular basis so if you personally or you know anyone who would want to contribute to the blog it would be very much appreciated and please let me know.

Advertisements

BAB Systems Inc, $BABB, Owner of Big Apple Bagels and My Favorite Muffin Is Undervalued But Has A Glaring Issue

This is the beginning of my series on nano-cap companies.  Specifically in this series I will be turning my analytical eye towards companies with market caps of $10 million and under to see if I can find any good companies to buy in this very small and relatively unfollowed area of the market. Over the next several articles I will introduce each company, talk about its operations, pros and cons, valuations, etc. At the end of each article I will state my overall opinion of the company and whether or not I think the company would be a good potential investment.  At the end of this series I will go over and compare all of the companies’ margins, floats, the pros and cons of buying into each company, and valuations to determine which one(s), if any, I have decided to buy and state why I have decided to buy into at this time.  I hope you enjoy this series on nano cap companies.

Introduction And Overview

The company I will be talking about in this article is BAB Systems Inc, (BABB) a very small and unfollowed $4.4 million market cap that is traded on the OTC market, company based in Deerfield, Illinois which is the parent company and franchise owner of My Favorite Muffin, Sweet Duet Frozen Yogurt & Gourmet Muffins, and Big Apple Bagels stores.  BABB also sells Brewster’s Coffee at its restaurants. As of August 31, 2012 BABB had 97 franchise units and 6 licensed units in operation in 24 states and zero owned stores after selling the only one last year. BABB’s revenues are derived primarily from the ongoing royalties paid to it by its franchisees and from receipt of initial franchise fees. BABB also gets income from the sale of its trademark bagels, muffins and coffee through nontraditional channels of distribution including to Mrs. Fields Famous Brands (Mrs. Fields), Kohr Bros. Frozen Custard, Braeda Cafe, Kaleidoscoops, Green Beans Coffee, Sodexo and through direct home delivery of specialty muffin gift baskets and coffee.  Below are descriptions of the different operating segments taken from BABB’s annual and quarterly reports.

Big Apple Bagels

BAB franchised stores daily bake a variety of fresh bagels and offer up to 11 varieties of
cream cheese spreads.   Stores also offer a variety of breakfast and lunch bagel sandwiches, salads, soups, various dessert items, fruit smoothies, gourmet coffees and other beverages.

My Favorite Muffin

MFM franchised stores daily bake 20 to 25 varieties of muffins from over 250 recipes,
plus a variety of bagels. They also serve gourmet coffees, beverages and, at My Favorite Muffin and Bagel Cafe locations, a variety of bagel sandwiches and related products.

Brewster’s Coffee

Although the Company doesn’t have, or actively market, Brewster’s stand-alone
franchises, Brewster’s coffee products are sold in most of the franchised units.

Sweet Duet Frozen Yogurt

On May 7, 2012 the Company issued a press release announcing the launch of its new franchise concept, SweetDuet Frozen Yogurt & Gourmet Muffins, which it is preparing to roll out this year. While BAB will be offering franchises in all 50 states, its initial development focus is targeted for the Midwest, specifically Illinois, Michigan, Wisconsin and Ohio. As part of its introductory development plan, BAB will be donating 10% of the initial franchise fee from its first 50 units to the Cystic Fibrosis Foundation, of which BAB is a corporate sponsor.  SweetDuet, as its name implies, is a fusion concept, pairing self-serve frozen yogurt with BAB’s exclusive line of My Favorite Muffin gourmet muffins, broadening the shop’s offering and therefore differentiating itself from the numerous frozen yogurt outlets already populating the market. SweetDuet Frozen Yogurt & Gourmet Muffins shops will also include BAB’s. Brewster’s Coffee and a streamlined breakfast menu. The concept is designed to work in 1600 square feet of space.  The SweetDuet concept will be included as part of the Systems franchise operating and financial information.

Typically all of these restaurants seat around 30 people.

Operations And Management Discussion

Currently BABB’s is pretty much a holding company operation now that it does not directly run any of its restaurants and it derives its revenue from collecting royalty fees from its franchisees (5% of net sales.)  Initial franchise fees when a new store opens ($25,000 for a franchisees first “Full production” Big Apple Bagels or My Favorite Muffin.  Fee for subsequent stores opened by franchisees is $20,000.)  Big Apple Bagel and My Favorite Muffin franchisees also contribute 3% of net sales towards advertising and marketing to BABB.

Since BABB does not currently directly operate any restaurants, and BABB just does corporate back office work for the whole company, locates new franchisees and franchise locations, markets the company, and sits back to collect fees from the franchisees of course you would expect BABB to have absolutely exceptional margins.

The company does have some pretty good TTM margins: Gross margin at 96.2%, operating margin at 17.9%, ROE of 15.51%, and an ROIC of 14.51%.  However the companies operating margin, ROE, and ROIC could potentially double if payroll and payroll related expenses could be halved from their extremely high current levels (Which is probably a bit optimistic and I will talk about more below) and didn’t amount to more than $1 million, or about 25% of the companies entire market cap, and about 1/3 of its enterprise value.

If payroll and payroll related expenses which totaled about $1.4 million for the entirety of 2011, 53% of BABB’s gross profit, (Or an incredible $100,000 per employee at a $4.4 million market cap company) could be cut in half that would add 9 cents to BABB’s EPS, which would almost triple current EPS.  Cutting payroll expenses by half is just an estimate of what the company could do and may be a bit optimistic but BABB management should certainly be able to get close to halving payroll if it really wanted to become a more efficient company.  That 9 cents per share extra could be put towards growing the company further, paying an even bigger dividend (current dividend yield is 3.31%), or my favorite option, buying back shares outstanding since I am finding BABB to be undervalued currently and which I will talk about later.  Just the top three executives of the company made nearly $700,000 in 2011, not including the also generous options that have been given in the past, are still being given, and can still be exercised for even higher compensation for the three main executives of BABB.  Company insiders do own about 38% of BABB but that is down from a few years ago where insiders owned 48% of BABB.

At November 30, 2011 there are 360,400 of unexercised options that are not included in the computation of dilutive EPS because their impact would be antidilutive due to the market price of the common stock being higher than the option prices.  At November 30, 2010 there were 368,373 unexercised options that were not included in diluted EPS because their impact would be antidilutive due to the market price of the common stock being higher than the option prices.

Executive pay has also been rising in most recent years even as the number of total restaurants franchised and owned has dropped from 129 total restaurants in 2007 down to 103 total restaurants.  Since BABB no longer operates any of its restaurants the drop in number of total restaurants has also dropped royalty income, operating income and total company value.  Again, executive pay has continued to rise in recent years as this has been going on.

On top of all of this the CEO Mr. Michael G. Evans, is on BABB’s compensation committee which never looks good, especially in this case due to the high executive pay in comparison to the overall size of the company.

Also of note as it pertains to how the company operates is that as I talked about above the company receives 3% of net sales towards marketing and advertising for the restaurants.  This amount for several years now at year end has stayed consistently in the $300,000 a year range in unused advertising and marketing funds that the company could be putting towards better use than just sitting in company accounts waiting to be used.

Management could also be getting a bit sidetracked with opening up its new restaurant concept Sweetduet Frozen Yogurt as well and may be better served concentrating on and improving its already established Big Apple Bagel and My Favorite Muffin restaurants.

Valuations

This section will illustrate why I think management could be doing a much better job, especially when it comes to their own pay, and putting some of that money to better use for shareholders.

These valuations were done by me, using my estimates and are not a recommendation to buy stock in any of the companies mentioned. Do your own homework.

Valuations were done using BABB’s 2011 10K and 2012 third quarter 10Q. All numbers are in thousands of US$, except per share information, unless otherwise noted.

Cash and NOL Valuation (Absolute Minimum Valuation)

  • BABB has 1,239 in cash (17 cents per share) + total net operating loss carry forwards of $5,857, discounted 50% which I will talk about later to $2,928 (40 cents a share)= a total valuation of 57 cents per share.

EBIT, Cash, and NOL Valuation

Cash, cash equivalents, and short term investments are 1,239

Total current liabilities are 822

Number of shares are 7,266

Cash and cash equivalents + short-term investments – total current liabilities=

  • 1239-822=417/7266=$0.06 in net cash per share.

BABB has a trailing twelve month EBIT of 504.

5X, 8X, 11X, and 14X EBIT + cash and cash equivalents + short-term investments+$2,928 in NOL’s, or $0.40 per share:

  • 5X504=2520+1239=3759/7266=$0.52 per share+$0.40 in NOL’s=$0.92 per share.
  • 8X504=4032+1239=5271/7266=$0.73 per share+$0.40 in NOL’s=$1.13 per share.
  • 11X504=5544+1239=6783/7266=$0.93 per share+$0.40 in NOL’s=$1.33 per share.
  • 14X504=7056+1239=8295/7266=$1.14 per share+$0.40 in NOL’s=$1.54 per share.

Right now BABB’s operations at 5X EBIT are only adding 2,520 (35 cents per share) to its overall valuation due to overall restaurant count dropping and now only collecting royalty, license, and franchise fees but even at that valuation BABB is selling at a 35% discount to today’s share price of 60 cents a share.    I chose to discount the NOL’s by 50% in the above valuations for conservatism because a lot of these NOL’s will take years to accrue to BABB.

Relative Valuations

  • BABB’s P/E is currently 9 with the industry average being 17.9. With BABB’s current share price of 60 cents per share, if it was selling at the industry average P/E it would be worth $1.20 per share.
  • BABB’s P/B is currently 1.4 with the industry average being 3.7.  With BABB’s current share price of 60 cents per share, if it was selling at the industry average P/B it would be worth $1.58 per share.
  • BABB’s TEV/EBIT is 7.07 and its EV/EBIT is 6.58.  Both of which are under 8 which is generally what I like to see in companies I think about buying into.

Valuation Thoughts

  • BABB’s, which is currently selling at 60 cents per share, is undervalued by every one of my estimates of intrinsic value and relative value estimates when compared to its industry.
  • BABB has $153,000 in total debt, or only 2 cents per share so even subtracting the company’s debt it is still undervalued.
  • By my absolute minimum estimate of value BABB valued about fairly right now but that only includes cash and NOL’s.  Adding in BABB’s operations into the valuation makes BABB undervalued by 35% currently.

Customer Reviews

As I have been researching and writing this article one thing has continued to bother me and not made very much sense about BABB.  The restaurant count dropping has been a bit perplexing to me as the company has been profitable every year since 2002 except for 2009, and I would not have thought that bagel sales would have suffered a massive drop during the recession, so the restaurant count dropping in 2007 from 129 total restaurants to now only having 103 total restaurants (Or a drop in total restaurant count of 20%) has continued to bug me as the process of researching this company has gone on.  I have not eaten at any of BABB’s restaurants before as the closest one of its restaurants are a six hour drive away from me so I decided to find customer reviews online to help me get a bit of perspective on how the franchise restaurants are generally thought of by its customers. After reading through dozens of customer reviews from different franchise locations I think that I am able to come to some conclusions about what its customers think about Big Apple Bagel restaurants and think that I have found the answer to the dropping restaurant count problem that has been bothering me.

  • Generally customers only think that the food is average to good.
  • Generally people think that the bagel/sandwich products are overpriced.
  • A lot of people think that competitors have better bagels in their respective local areas.
  • More than a few people mentioned that they only went there because of coupon promotions (buy 1 get 1 half off or free on bagel sandwiches.)
  • More than a few people who said they went there only because of the coupons said that even with the coupon they thought the products were overpriced.
  • The biggest overall concern that I saw stated over and over again from customer visits to multiple different franchise locations was that customer service was rated at best ok to absolutely horrible.

Through my studies of many different companies in many different industries I have learned many things that can help and hurt the company’s sales and profitability.  One of the biggest things that can help or hurt a company, especially in today’s world where people can write things like customer reviews on the internet for everyone to see, is customer service or the lack thereof.  I think that one of the reasons Amazon has been such a huge success is due to its customer service which is exceptional and one of the best I have ever dealt with.  The reverse can also happen if you have a reputation for poor customer service and can lead to customers not coming back to your stores and restaurants.  Combine the poor customer service with products that the customers think are overpriced (even with buy 1 get 1 free coupons) and the combination of these two things may be why restaurant count has dropped by 20% in recent years.  Maybe the restaurants are losing customers, sales, and the franchise locations are becoming unprofitable leading the franchisees to close restaurants.  There is not really a mention of why the restaurant count has dropped in BABB’s annual reports and to this point I have not been able to talk with company IR and have not had my phone calls returned to get these questions answered so for now this is my best guess as to why the number of restaurants have dropped in recent years.

Catalysts

  • If management decided to cut payroll expenses and put that money towards much better use the share price would no doubt rise.
  • Gaining more franchisees would up sales and profitability which would make the share price rise.

Pros

  • BABB is at minimum fairly valued, and undervalued sometimes substantially with my other intrinsic and relative valuations.
  • BABB’s margins are pretty good overall.
  • Insiders own around 38% of BABB.
  • If BABB’s management decided to cut payroll expenses it would raise EPS and overall profitability of BABB, potentially substantially depending on how much they decided to cut payroll.

Cons

  • BABB’s restaurant count has dropped by 20% since 2007 which has lowered the amount of royalty fees collected, thus lowering sales and profitability for the overall company.
  • Management’s pay is excessive in my view taking up 53% of gross margin.  Last year overall payroll and payroll expenses amounted to $1.4 million dollars with the company only having a $4.4 million market cap.  Stated another way payroll and payroll expenses make up 32% of the companies entire market cap.
  • Just the top three executives of BABB made around $700,000 last year, not including options, or 16% of the entire market cap.
  • BABB’s margins could be a lot higher if management cut payroll expenses.
  • A few years ago insiders owned 48% of the company and now only own 38%.
  • At the very least the company is perceived to not have very good customer service.
  • Several reviewers online also thought the products sold at BAB restaurants were overpriced, even when they had a buy 1 get 1 half off or fee coupon.

Conclusion

I will save in depth talk about margins, float, and the other normal things I talk about in my articles for the conclusion piece in the series of posts but my overall investment thesis is very simple with this company: BABB is at worst fairly valued when only counting cash and NOL’s and is undervalued by a substantial margin (about 35%) when including its operations.  If management were to cut payroll and other payroll expenses, especially executive pay and options, and put that money (Potentially as much as 9 cents per share if they were to halve payroll expenses) towards improving company operations and/or expanding the number of franchises, paying a higher dividend, or buying back shares the company could potentially appreciate by even more.

In my opinion management could be doing a much better job helping this company expand and to improve operations, especially the customer service side of things.  I do not think that BABB is necessarily a buy and hold forever company like some of the other companies I own, but I do think that BABB could grow its restaurant count, become more profitable, and turn into a much more attractive company to own, and potentially turn into a buyout candidate.  Payroll expenses taking up 53% of gross profit is absolutely insane, and if BABB decides to cut some corporate excess/waste and put that money to much better use for shareholders and the overall company, BABB could potentially double or triple from today’s current share price of 60 cents per share.

I still have a few more companies to write articles about before making a definite buy decision or not about BABB, but overall it looks like a potential investment opportunity at this point, especially if management would cut payroll expenses and put that money towards much better use for shareholders.

The next article in this series will be about Paradise Fruit Company Inc (PARF).

Warren Buffett’s Alpha, Student of Value, Making Mistakes, Free Session on Investing, and A New Blog

Chasing Warren Buffett’s Alpha is an article from the CFA Institute about Warren Buffett’s performance since 1976 to 2011 where they try to determine what has made Buffett’s performance over that time period so special.  This article also contains the link to the original paper about the conclusions that the writers came to.

Yuri Gagarin ($4PX:BU) is another fantastic valuation and analysis article from Student of Value.  Pay close attention to how he thinks about the company.  As always the way he thinks about things and presents them is amazing to me.

Why Letting Yourself Make Mistakes Means Making Fewer of Them is an article from Psychology Today with lessons that I wish I would have learned in my teenage years instead of only recently.  I used to be so afraid of failure that I never tried new things. Only over the past 4 years or so have I started to try a lot of new things.  Trying new things, and making mistakes, has not only made me a vastly better investor, I think it has also made me a much better person as I have been able to improve in every aspect of my life.

Free Session on Global Value Investing click on the interview transcript link for the free download of the interview.

I found a new blog that looks very promising, I hope you enjoy, and if you do enjoy the blog I recommend following him on Twitter @SilvioDixon. http://instant-genius.info/

Next up will be my valuations and quick thoughts on the rest of my portfolio from before my transition to actual investing and what I am doing now.

Article published and some links

My CMT article has now been published on Seeking Alpha for those who would like to follow the conversation in the comments section.

While I was researching CMT I was also reading and saving some articles that I thought contained some kind of insight or lesson.  While I am looking for another company to research, I will be sharing these links with you over the next several days.

Why Investing is The World’s Most Difficult Profession is an article by John Standerfer about what makes investing so difficult for most people.

There’s Warren Buffett, and Then There’s the Rest of Us is an article from the Financial Post about Warren Buffett’s amazing track record of picking companies since the 70’s.  Always amazing to how well he has done over these many decades, Incredible

Three (Incredibly Simple) Questions The Most Successful People Use to Change the World is an article from Forbes about how successful people think when a problem arises and how they overcome those problems.

Compound Interest is a Very Powerful Thing is an article from The Value Perspective on the massive and mind numbing effects of compounding over a long time period.  Very useful for us value investors.

Test Your Risk Intelligence-And Become A Smarter Investor is an article from Covestor which has a 5 minute test that will test your risk intelligence, the higher the better.

I will keep the links coming over the next several days and will update you when I find another company to research.  I hope you enjoy the links in the meantime.