Leland Roach
Person
Leland Roach is a value investor and analyst at LSR Research LLC who writes The Value Road newsletter. He focuses on post-bankruptcy, net-asset-value, and undervalued micro- and nano-cap stocks.
What Leland Roach has said on podcasts
19 statements
Leland sells when his original investment thesis plays out unless new information changes it.
“I sell once the thesis that I originally had plays out unless some random news dropped where I could see like, you know, a large potential for cash flow in the future or something that would have to physically change my thesis.”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 20:55
Leland will exit MAYS if its building does not sell.
“If that building doesn't sell on Mays and it just sits there. I'm going to take my money and I'm just going to go somewhere else with it, you know?”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 21:47
Leland has held EVC and BUKS for years.
“I do have some companies that I've held on to for years. EVC is one of them. BUKS, Butler National Corporation is another one.”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 22:50
Leland would sell companies that become extremely overvalued after catalysts.
“At that point in time, I would sell those, those companies”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 23:45
A catalyst can cause a stock to rise 50–60%.
“a catalyst would play out and like a stock would jump like 50, 60% or whatever it was.”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 24:39
Butler National could expand installations through licensed mechanics using its patented products.
“they're working on with regulators to, you know, launch kit systems so that basically other licensed mechanics can. do those installations at their facilities using their licensed patented product. So it just seems like they have a lot of room to expand on that front”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 26:30
Butler National has a backlog of approximately $47 million.
“they have a big backlog. It's like $47 million backlog.”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 26:52
A new management perspective could unlock value at Butler National.
“I think that maybe combined with somebody else that can look at that company just maybe from a little bit of different angle might lead to some easy value. Value realization, you know?”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 28:26
U.S. strip-club attendance is declining and the industry is a melting ice cube.
“In America, nobody, I don't think, goes to the strip club anymore. Well, I should say it's declining. It's a melting ice cube.”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 29:57
RCI Hospitality management destroyed value by expanding into low-margin, money-losing businesses.
“the management team just wanted to constantly expand into other extremely low margin money losing businesses that, you know, just completely destroyed value.”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 30:45
Broadcasting deregulation and consolidation remain an active investment thesis.
“I still think that thesis is in play, especially after a vote on August 6th.”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 32:13
If the FCC ends the 39% station cap, EVC will probably sell its broadcasting arm.
“I think that, I really do think that if the FCC votes to end the 39% station cap on August 6th, that EVC is probably going to sell their legacy broadcasting arm of their company off”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 33:37
EVC's SmartX digital advertising platform will probably become standalone.
“I think that their digital advertising SmartX platform is going to be a standalone business probably.”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 33:54
Most of SmartX revenue comes from one Hong Kong-based customer.
“Most of their revenue from SmatX is one Hong Kong-based customer.”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 34:29
Adding another SmartX customer could easily double EVC revenues.
“If they add another customer to that, their revenues could double overnight easily.”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 34:34
Losing EVC's main SmartX customer could halve EVC's share price.
“If that customer pulls out, it could really damage my thesis, and EVC's price could get cut in half.”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 34:40
Investors should ground downside with asset or comparable-company value.
“make sure that you're upside. The one that your downside is kind of grounded by, you know, some sort of asset value or comp value if that company gets sold off.”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 35:47
Investors should keep their cost basis low to make concentrated risks more tolerable.
“you just keep your cost basis low so that, you know, I can afford to take a risk like this because I bought into EVC so low.”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 35:57
Investing requires weighing probabilities rather than achieving certainty.
“This is a game of chance. You weigh your options. You weigh, you know, how likely it is that something will happen.”
Open the episode · Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVCListen at 37:25
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
