Argentina has produced some wonderful composers, but they are not well known outside the country. They should be.
Here are two of my favourite compositions. You can play them for years and still discover new elements. And they're great for the soul.
Alberto Ginestera (1916 - 1983) is/was one of Argentina's national treasures.
The Danza de la moza donosa is one of his most haunting compositions. One of the beauties of this music is that it places a great onus on the performer to get to the soul of the music. The first interpretation comes from the mind of Daniel Barenboim. The second is by Martha Agerich, a close friend of Barenboim and a frequent musical partner on stage. Her tempo is a bit quick for my liking but the dynamics are fabulous. Of the interpretations, the third appeals to me the most.
Danza de la moza donosa
Danza de la moza donosa
Danza de la moza donosa
And then, there's this: sublime:
https://www.youtube.com/watch?v=C1PsLjSfMoE
Astor Piazzolla is better known, an exponent of the nuevo tango. For many years, I've been fascinated by his Milonga del Angel.
This version parallels the common piano score quite closely. Slow in tempo, the pianist extracts some true beauty and meaning.
Milonga
This version is quite wonderful - elegant yet restrained. Many other versions are "over the the top" and do a disservice to the music. If anything, this one is a bit long, but why not dwell a while in musical heaven?
https://www.youtube.com/watch?v=vYdZBLGO0jA
The following version misses the essence of the piece - in my opinion. You don't have to fill space with notes. Sometimes silence makes a very elegant statement. This said, the performer has a real connection with the piano ... the notes floating off the strings are delicious.
Milonga
The good professor was trying to replicate the sound of the orchestra and came up short ... a misapplication of the instrument. Here's the master himself ... it's one of several performances and interpretations.
https://www.youtube.com/watch?v=Z92szaC-Jds
My exploration of Argentine music continues. One of my dreams is to take in a performance or two in the Teatro Colon, one of the best performance venues in the world. Unfortunately it was closed when we were in Buenos Aires, the victim of a strike on the part of theatre staff.
Strikes are a regular feature of Argentine life. We also experienced a one day strike by garbage workers in BA and were lucky to have not been inconvenienced by another.
The day after we flew into Buenos Aires from the provinces, Aerolíneas Argentinas was hit by a strike. The pilot and co-pilot were from separate unions and the co-pilot felt insulted by a comment from his seat mate during a pre-flight check. Result = downed tools and no flights for the next few hours. Had it been a day later, we would have been grounded as it took place on the same flight. One can only wonder what the impact (pardon the pun) would have been if the dispute had taken place while the plane was underway.
Saturday, 7 January 2017
Thursday, 5 January 2017
Stevia: An unanticipated result of a search for investments for drought resistant varietals
A few years ago, I established a very speculative position with S&W Seed Company (SANW - Q).
The investment originated as an outcome of a few conclusions I reached about agriculture, and forage crops in particular; namely:
My research drew me to S&W Seed Company.
S&W provides expertise in agricultural breeding, production and processing for the alfalfa and stevia industries. Each day that passes, three major issues affect the world’s population. First, the population of the world continues to increase; secondly, the availability of arable land continues to decrease. This creates a dire set of circumstances for farmers trying to feed a population increasingly wanting a diet which includes many of the foods that alfalfa hay, the “queen of forages,” supports, including milk, cheeses and beef. Third, the rates of obesity, diabetes and other health-related issues continue to rise around the world, much of which has been attributed to the over-consumption of sugar. A natural alternative is needed in the marketplace, and S&W believes that alternative is Stevia. S&W Seed Company is capitalizing on these three very important trends to help farmers combat the challenges of today, while keeping an eye on providing sustainable solutions for tomorrow.
http://swseedco.com/about-us/
For that reason, I was prepared to sit back and await the results of my bet, knowing that it might be a decade before the investment bore fruit.
My investment thesis was simple:
The investment originated as an outcome of a few conclusions I reached about agriculture, and forage crops in particular; namely:
- the supply of arable land is declining globally
- to an increasing degree, the quality of arable land has been degraded through inappropriate irrigation techniques which have led to a hostile growing environment as a result of high soil salinity
- there will be a premium on water-efficient crops for at least three reasons:
- an absolute reduction in the quantity, reliability, and quality of water - the result of more frequent and more prolonged droughts, and the reduced availability of groundwater as a result of ground water mining
- increased competition for water e.g. the highest and best use is for urban and industrial consumption
- increased costs (in light of the foregoing, an increased price is being placed on water which heretofore was often heavily subsidized by government)
Least one think that these are "third world" issues, one need only look at the current state of almond growing in California. It has been a disaster and likely as not, the implications will be notable for other crops. https://newrepublic.com/article/125450/heres-real-problem-almonds
I tried to look for "pure plays" for this theme, for example:
- more efficient irrigation and other ways of conducting agriculture in arid environments
- indoor agriculture
- alternative crops
I concluded that a promising area would be the breeding of more water-efficient crop varieties for the following reasons
- it offers an opportunity for a "pure play"
- it is a "space" where small entities can compete
- the upside can be significant in the event that a company is successful in bringing a product to market, especially if taken over by a larger entity (larger companies don't often have the agility to develop new technologies and accordingly, have corporate models which look for take-overs in order to expand their product offerings).
S&W provides expertise in agricultural breeding, production and processing for the alfalfa and stevia industries. Each day that passes, three major issues affect the world’s population. First, the population of the world continues to increase; secondly, the availability of arable land continues to decrease. This creates a dire set of circumstances for farmers trying to feed a population increasingly wanting a diet which includes many of the foods that alfalfa hay, the “queen of forages,” supports, including milk, cheeses and beef. Third, the rates of obesity, diabetes and other health-related issues continue to rise around the world, much of which has been attributed to the over-consumption of sugar. A natural alternative is needed in the marketplace, and S&W believes that alternative is Stevia. S&W Seed Company is capitalizing on these three very important trends to help farmers combat the challenges of today, while keeping an eye on providing sustainable solutions for tomorrow.
http://swseedco.com/about-us/
For that reason, I was prepared to sit back and await the results of my bet, knowing that it might be a decade before the investment bore fruit.
My investment thesis was simple:
- The company is focused on the development of seeds for drought-tolerant alfalfa. Given the current pace of climate change and there will be a demand for more water efficient forage crops plants in light of water shortages/competition and higher soil alkalinity.
As an added bonus, I discovered that the company was also focused on the development of improved varieties of stevia. It may represent an unintended outcome of my original search: that stevia may present a better opportunity.
As noted earlier, I am patient when investing in technology companies. I am prepared to take on risk and to accept that the stock price will fluctuate wildly in response to the vagaries of the market.
While I do not pay too much attention to the market action of the moment, I do focus on:
- the honesty and transparency of management (for strategic reasons, however, many companies hold their cards close to their chests ... and I accept this)
- progress with the product (on the premise that it meets a real need that the market is prepared to pay for it)
- strategic alliances (this can take many forms: composition of the Board of Directors, relationships with other companies for marketing and distribution - things which lie outside the core competencies of the company but which are complementary to its activities
- the development of income streams to offset operational costs
- a consistent ability to secure financing
- promising field trials, preferably overseen by objective and competent third parties
S&W has survived and is making progress. It is boring: no major breakthroughs - just a steady slog with the occasional achievement. Like many nascent enterprises, this company has had some false starts as it has explored pathways to grow in its economic niche. The company has survived and learned. It is the nature of these enterprises that success is ultimately built on sustained and compounded effort. I am prepared to wait. And I don't pay much attention to quarterly reports - they are inimical to ventures of this nature.
With investments of this type, it is rare for companies to meet all of the above-noted conditions. However, when they do, the results can be gratifying. I took this approach several years ago with Questor Technology Inc. and was rewarded nicely with my first 10 bagger. And to think that my original investment sank by more the 50 percent. After a spectacular performance, the company tanked with the decline in the oil patch. My thought is that there is still great potential with this company. It is resilient and nimble and the recovery of oil prices and a broadening scope of products holds the prospect of a return to good times. It helps that the company has an excellent balance sheet and great management.
Another observation: With innovative companies, it is common for prices to peak shortly after an IPO. The "story" rather than the realities of "performance" tends to dominate investor decisions. It is common for prices to decline thereafter and to languish for years. Tiny, technology-based innovators are fragile beasts BUT if they have a product that meets a real market need and have good management, their prospects of survival are enhanced. While one can never get the timing "right" (i.e. buy at a low and sell at the peak), it often pays well to look at yesterday's darlings - to get beneath the botox and see if the teeth and bones are good. S&W Seed Company may once again, return to the ballroom.
In future posts, I will report on my search for investments along the theme of water efficiency and alternatives to sugar.
Arotech - The Market Responds
NN ARBOR, Mich., Jan. 03, 2017 (GLOBE NEWSWIRE) -- Arotech Corporation (Nasdaq:ARTX) today announced the early termination of its employment agreement with Steven Esses, Arotech’s president and CEO and a member of the Board. Mr. Esses left the Company and resigned as a director of the Company and as an officer and director of all of the Company’s subsidiaries effective December 31, 2016. The early termination was by mutual agreement.
The market has reacted very positively to this announcement.
In December 2015, I presented my thesis for investing in Arotech:
I have a small position in Arotech http://www.arotech.com
It is was a speculative bet. At the time of purchase my view was that the company had some assets of value; however, they were compromised by management. The share price declined, but I held on in the hope that the company would eventually see sunshine.
It appears that a deep-pocketed investor is proposing to shake things up.
http://finanacialpassagemaker.blogspot.ca/2015/12/artotech-some-thoughts-to-consider-when.html
In the above-noted post, I also presented information about the CEO and President of Arotech. Having experienced the depredations of a President who was hired without any knowledge of the business I was in, I know on a first-hand basis, how such people can derail the operations of an enterprise: employees soon learned not to speak their minds; strategic mistakes were made; the individual lost respect within the "community", employee turnover rates approached 30 percent annually (I was a "leaver"), etc. He was finally booted out by the Board. A few years on, the organization is prospering under new leadership. I don't know if there is a direct parallel with Arotech - this cannot be known except by insiders.
It usually takes time for change to be effected: delaying tactics of the company executives and the board members appointed by them have to be overcome; there may be legal obstacles, financial controls take time to be implemented and so on. However, it appeared that Echo Lake Capital prevailed and that initial steps had been taken to turn the company around:
http://finanacialpassagemaker.blogspot.ca/2016/04/update-on-arotech.htmlIn December 2015, I presented my thesis for investing in Arotech:
I have a small position in Arotech http://www.arotech.com
It is was a speculative bet. At the time of purchase my view was that the company had some assets of value; however, they were compromised by management. The share price declined, but I held on in the hope that the company would eventually see sunshine.
It appears that a deep-pocketed investor is proposing to shake things up.
http://finanacialpassagemaker.blogspot.ca/2015/12/artotech-some-thoughts-to-consider-when.html
In the above-noted post, I also presented information about the CEO and President of Arotech. Having experienced the depredations of a President who was hired without any knowledge of the business I was in, I know on a first-hand basis, how such people can derail the operations of an enterprise: employees soon learned not to speak their minds; strategic mistakes were made; the individual lost respect within the "community", employee turnover rates approached 30 percent annually (I was a "leaver"), etc. He was finally booted out by the Board. A few years on, the organization is prospering under new leadership. I don't know if there is a direct parallel with Arotech - this cannot be known except by insiders.
It usually takes time for change to be effected: delaying tactics of the company executives and the board members appointed by them have to be overcome; there may be legal obstacles, financial controls take time to be implemented and so on. However, it appeared that Echo Lake Capital prevailed and that initial steps had been taken to turn the company around:
It will now be a matter of concentrating on the financials to see if the full potential of investing in the company can be realized.
I normally do not invest in turnaround situations, but this one was too good to pass up. It resonated with my personal experience. Maybe history will repeat itself.
I will maintain my position. The company is well positioned given the proclivities of the "new management" at the White House.
Subscribe to:
Posts (Atom)