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Product cover image for Westshore Terminals Investment Corporation: The Discovery of a Value Investing Idea

Westshore Terminals Investment Corporation: The Discovery of a Value Investing Idea

George Athanassakos, Filippo Iuliani

Product #:W23175
Supplier:Ivey
Discipline:Finance
Setting:Canada, 2018
Details:Case (PDF) • 17 pages • 2022-03-04

Subjects:

Finance and investing

Industries:

Energy and natural resources sector

Geography:

North AmericaCanada
Your Price:$9.71

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A newly hired investment analyst at Oyster & Co. Capital Management (Oyster Capital) reviewed the most recent annual report for Westshore Terminals Investment Corporation (Westshore). On March 21, 2018, stock in the coal storage and loading terminal company was trading at CA$21.90, but the analyst believed the stock was undervalued at its current price. He wanted to propose to Oyster Capital’s investment committee that the firm invest $10 million in Westshore’s stock. The analyst needed to evaluate the data to be certain of his position and prepare a recommendation for the investment committee.

Learning Objectives

This case is intended for aspiring value investors interested in the bottom-up approach to investing. It would be appropriate for nearly all investing-related courses, in addition to courses where students are trying to quantify the value of a sustainable competitive advantage. After working through the case and assignment questions, students will be able to do the following:
  • Make an investment decision using a bottom-up approach to gather the necessary information while largely ignoring what top-down investors would consider to be reasons to not invest (e.g., commodity prices).
  • Understand Westshore’s business model and what makes the company uniquely positioned.
  • Understand Westshore’s competitive advantage and its durability.
  • Undertake a complete valuation where growth adds value (i.e., the return on invested capital is greater than the weighted average cost of capital with a durable competitive advantage).
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Case Study: Westshore Terminals Investment Corporation: The Discovery of a Value Investing Idea (English version) | Ivey Publishing