The Stahl Report focuses on domestic companies with market caps above $10 billion and derives investment decisions based upon a philosophy consistent with value investing. Accordingly, recommendations will typically have low valuations based on earnings, sales, book value, cash flow or some other appropriate valuation measure. At times, these securities will trade below a reasonable estimate of their intrinsic value thereby providing a large margin of safety with respect to valuation contraction risk. However, to avoid the common mistake that befalls several low multiple stocks, to qualify for purchase, recommendations are based primarily upon foreseeable catalysts that will permit expansion in both profitability and shareholder returns. To a large degree, this service employs an event-driven strategy to identify those equity investments that are not only undervalued by the investment community, but are also uniquely positioned for share price expansion within a 6 to 12 month time horizon.

The Stahl Report focuses on companies with sustainable business models with the ability to generate high and sustainable returns on invested capital. While heavily leveraged companies are often avoided, occasionally such companies will be highlighted when considerable cash flow could be utilized toward debt reduction or share repurchases.

Recommendations will often maintain a leading or improving market position, undervalued asset or product portfolio, credible management or are in a position to capitalize on some impending event that will create a high level of future earnings growth. The Stahl Report also identifies, on occasion, special situations whereby the investment is currently out of favor or mis-priced, yet possesses the necessary financial assets or market position to reverse the current situation. In these restructuring or turnaround instances, a certain amount of risk is inherently present, yet is mitigated through a thorough understanding of the business fundamentals that which provides the appropriate level of confidence that a high or normalized level of profitability will resume within a reasonable
duration of time.

The Stahl Report specializes in identifying companies in which the consensus believes the business is permanently impaired by irreversible circumstances, while our analysis indicates that the company’s problems to be transitory in nature with a high likelihood of financial improvement.

The Stahl Report Compendium, published on a monthly basis, provides an effective forum for Murray Stahl to discuss additional recommendations and inefficiencies in the space not ordinarily addressed by Wall Street Research. Murray also discusses specific industries and concepts he believes are central to the investment environment. These situations will be revisited in the Compendium, with the most compelling situations expounded upon in full length research reports.