Dana Gardner submits:SOA Software, a provider of governance solutions for services-oriented architecture , has acquired LogicLibrary, a leading SOA repository and governance vendor. The acquisitionof the Pittsburgh, Pa.-based LogicLibrary by Los Angeles-based SOASoftware creates a more comprehensive SOA governance and
Douglas Cress submits:Safeguard Scientifics (SFE) is aholding company that invests in growth-stage life sciences andtechnology. In addition to capital, Safeguard provides strategic,operational and management resources to its portfolio companies. As apublic company, Safeguard is not subject to the limits ofthe
John J. Phillips IV submits:In equity newsovernight Arch Capital (ACGL) added $500M to its existing buyback programovernight. Finmeccania announced an official deal to acquire DRSTechnologies (DRS) for $81/share for a total of $5.2B. The offer represents a4.9% premium to yesterday’s
Research Recap submits: World demand for biofuels will expand at a nearly 20 percent annual pace to 92 million metric tons in 2011, despite recent concerns about the impact of biofuels on the environment and food supplies, according to Freedonia
Ken Doctor submits: Ive long compared the cable and phone companies, on the one hand, to the newspaper companies, on the other. Newspaper companies saw their business being upended by the internet, made small bets and have lost out on
Tyler Savery submits: Sirius (SIRI) and XM (XMSR) both reported earnings Monday, and while the resultswere not stellar, there are many metrics which are scaling in a
ChinaBio Today submits: China Medicine Corporation (CHME.OB)of Guangzhou said Q1 results show a 54% increase in net income ($1.2million) on revenues that were 39% higher ($7.1 million) than
Research Recap submits: Big Pharma’s failure to develop enough new blockbuster drugs is combining with other forces to drive fundamental changes in pharmaceutical research and development, according to Deloitte. Chief among these will be the emergence of “NewPharmaCos” concentrating on
Justin Forest submits: I am glad the market in general has been giving such a doom and gloom view on Dell (DELL). Its stock price halved from $40 to $20 just 3 years ago. I think it’s great because it
Michael Filloon submits: The oil and gas story is alive and well and looks to be into the foreseeable future. San Juan Basin Royalty Trust (SJT) looks very well positioned on the higher moving price of natural gas, but has
Mathew Ingram submits: There have been lots of “whither Google (GOOG)?” stories in dozens ofpublications, and no doubt there will be dozens more to come. Some talkabout competition from Microsoft (MSFT) on the advertising side, and some talkabout how Google
Keith Fitz-Gerald submits:Money Morning Investment Director Keith Fitz-Geraldhas been leading an investment trip through China, taking in thatcountry’s culture and scenery, as well as its investment opportunities.Here is Part V of a short series detailing his observations anddiscoveries.Western investors have
Keith Fitz-Gerald submits:Money Morning Investment Director Keith Fitz-Geraldhas been leading an investment trip through China, taking in thatcountry’s culture and scenery, as well as its investment opportunities.Here is Part V of a short series detailing his observations anddiscoveries.The question came
Vahan Janjigian (Forbes) submits: According to the AAAs Daily Fuel Gauge Report, the national averageprice of gasoline just hit a record $3.72 per gallon, up 35 cents
Ant & Sons submits: Monday morning was one of those at your desk near-coffee spill moments when looking up to see shares of eResearch Technology Inc. (ERES) unexpectedly higher. The stock
Chad Brand submits: Shares of Apple (AAPL) rosenearly $5 yesterday to close at more than $188 per share. The company isfaring very well during an overall weak time for consumer spending,thanks
Clyde Milton submits: One of the tangible things (and there were also a multitude of valuableintangibles) we walked away with from the Value Investing Congress Westwas a copy of David Einhorns new book Fooling Some of the People Allof the
Tim Plaehn submits: VeraSun Energy (VSE)has reported 1st quarter earnings and the results could be consideredvery good, given the current sentiment for ethanol producers. VSEincreased quarterly revenue
Filed under: Industry, Nucor Corp (NUE), Stocks to BuyReaders of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend
Filed under: Small businessWith more than 5,800 locations in 34 countries, Baskin-Robbins is a powerhouse in the retail industry (the company is now part of Dunkin Brands). But like many great businesses,
Filed under: International markets, CommoditiesThe rise in commodity prices is set to complicate the growth plans for yet another sector. Projected costs for a new generation of nuclear power plants on the drawing boards are increasing at an enormous rate
Filed under: International markets, Other issuesActivity in the futures market may be pointing to a dollar rally, but that rally is off to an inauspicious start.The dollar Monday fell about 1.2 cents versus
Filed under: Personal finance, Politics, Presidential electionsAnyone looking for insights into Barack Obamas economic policy might want to take a look at how he has handled his personal finances. According to Slate.com,
Filed under: Hewlett-Packard (HPQ), Electronic Data Systems (EDS), OptionsHewlett-Packard (NYSE: HPQ) is closed down $2.48 to $46.65. The WSJ reported HPQ is in advanced talks to acquire Electronic Data Systems (NYSE: EDS) for between $12
Filed under: Major movement, Earnings reports, Management, IndyMac Bancorp (IMB)Today IndyMac Bancorp, Inc. (NYSE: IMB) reported that its quarterly loss was cut by 64% leaving investors with a small glimmer of
Filed under: After the bell, Earnings reports, Deals, XM Satellite Radio (XMSR), Clear Channel Commun (CCU), Research in Motion (RIMM), ImClone Systems (IMCL)Crude surpassed $126.00 before retreating down by $1.85 to $124.11 late in the day. Many are citing that
Filed under: International markets, Products and services, Industry, Competitive strategy, China, Boeing Co (BA), Headline news Several leading business journals have reported that China has created its own regional jumbo jet company
Filed under: Television, General Electric (GE), Time Warner (TWX), Walt Disney (DIS), Viacom (VIA), CBS Corp B (CBS), News CorpB (NWS), Media WorldTheres a great article over at The New York Times.
Filed under: Forecasts, Consumer experience, Penney (J.C.) (JCP), Kohls Corp (KSS), Economic data, Housing, Federal Reserve, RecessionI know that what you probably wanted to hear most is that the economys slowdown is
Filed under: Major movement, Good news, Industry, Valero Energy (VLO), Options, Technical Analysis, OilValero Energy (NYSE: VLO) shares are trading higher along with most other refiners, as crude oil
Filed under: Deals, Oracle Corp (ORCL)Several years ago, Oracle (NASDAQ: ORCL)s CEO, Larry Ellison, said there were too many software companies, and that as a result, there would be a trend towards
Filed under: Deals, Hewlett-Packard (HPQ), International Business Machines (IBM)Hewlett-Packard Corp. (NYSE: HPQ) will purchase about 24 data centers in Europe from BT Group (formerly British Telecom) for $2.9 billion, the Sunday Times
Filed under: International markets, Other issues, China, CommoditiesChina Monday ordered its banks to increase its reserve ratio for the fourth time this year, in an attempt to quell rising inflation, Bloomberg News reported.Banks in China must now park 16.5% of
Filed under: Major movement, Forecasts, Good news, Products and services, Consumer experience, Competitive strategyIts been brewing ever so slowly, but AnnTaylor Stores Corp. (NYSE: ANN) has finally been able to show the
Filed under: Morgan Stanley (MS)Morgan Stanley has raised $4 billion for a fund that will invest in global infrastructure projects, including energy and transportation systems, the company announced Monday. Morgan Stanley said the $4 billion in equity commitments exceeded the
Filed under: Major movement, Analyst upgrades and downgrades, Bad news, Options, Technical Analysis, ImClone Systems (IMCL)ImClone Systems (NASDAQ: IMCL) shares are falling after an analyst at Morgan Stanley downgraded the stock
Filed under: Major movement, Earnings reports, Good news, XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Options, Technical AnalysisXM Satellite Radio (NASDAQ: XMSR) shares are up after the company reported that
After last weeks pullback, the buy the dippers got busy. Once the S&P held its 20 day moving average (now support), confidence surged as buyers moved back into internet, real-estate, consumer services, retail, regional banking, and technology. Merger talk surrounding...
Is the U.S. in recession — yes or no? Recession odds tick lower Inflating our way out of trouble is tempting but its another buy now, pay later strategy, both for the economy and investors. - James Saft Why all...
Good morning. We start the new week with some M&A news between Cablevision (CVC) & News Corp. (NWS), some mixed news from financials (see MBI & HBC), and lowered earnings guidance at Fedex (FDX). The dollar is up amid chatter...
After three straight weeks of gains, the market lost its mojo this week as trouble stirred in the financials, oil prices set a new highs, and there were few positive catalysts to keep the worst is behind us rally going....
As always, thank you for sending in your questions to my mailbag! I had a lot of good questions to choose from and there were many I did not have time to answer but will keep them for the next...
Good morning. As oil prices hit fresh new highs, more bad news from the financials are bringing out the sellers this morning. As we head lower, traders will be watching whether any support can be found at the 20 Day...
White Houses economist sees no recession Happy days arent quite here again Oh, the doubts begin to creep back in More jobs report analysis The housing crisis is over Why $120 oil is good! SEC to require banks to disclose...
A few months ago I linked to FINVIZ and since then I keep hearing positive comments about the website. Upon further review, I like this website even more. Among the many neat features include a simple and easy-to-use stock screener,...
Good morning. Investors are hoping that yesterdays selloff has created a buy the dip opportunity. Premarket futures are up as better than expected retail sales reports and initial jobless claims inspire some confidence. As expected the Bank of England also...
It was a tough day for the bulls. If you wanted to find a reason to sell, it wasnt difficult. You could pick your poison: 1) another record high in oil, 2) weak home sales, 3) a huge increase in...
Were just about at the half-way point for the second quarter, so I thought you may find it of interest to see how your top stock picks are doing so far. At the end of every quarter I ask members...
Good morning. Premarket futures are pointing to a flat start as investors look for any reason (or no reason) to move the market higher. Earnings from Cisco Systems (CSCO) and Disney (DIS) along with a marriage of Sprint Nextel (S)...
The bears keep huffing and puffing, but they cant break this market down. As oil prices hit another new record, short-squeezed turnarounds in Fannie Mae (FNM) and D.R. Horton (DHI) put the bears back on the run. In fact, just...
Markets rally, but wider economy remains in limbo Other than headline noise, there’s nothing to suggest that the bears have reclaimed the upper hand. - Chris Tyler The Fed seeks to flood the market with even more liquidity Yeah, baby,...
Good morning. Premarket futures are lower amid record high oil prices and a Goldman Sachs prediction for $200 oil. In other news, a larger than expected loss, dividend cut, and more capital raising at Fannie Mae and disappointing news from...
Sorry, tonights after hours post will be reserved only for members. If you are not a member, I encourage you to sign up. If you enjoy the free blog AND find yourself visiting it frequently, Im sure youll find the...
One month ago I talked about the extraordinarily high concentration of energy stocks within my stock screen machine. Interestingly enough, the performance of those stocks have been very good. Their monthly returns - up +10.37% as a whole with 29...
Good morning. Premarket futures are lower after Microsoft walked away from its bid for Yahoo and investors were disappointed in Berkshire Hathaways earnings. However, it is a quiet Monday morning without a lot of actionable headlines following mixed performances in...
The bulls can chalk up yet another weekly victory as the Fed continues to work their magic. If my email is any indication, it was a challenging week for most of you. Not only did we have the Fed meeting...
The mailbag was overloaded this week following the Q&A. Topics I will cover in this weeks mailbag include: What usually happens to the market when the Fed stops lowering rates The role of fair value analysis in my research A...
One of the last filings to come over the wire on Friday was this proxy filed by Pier One (PIR), which according to the SEC, was filed at 5:22. As footnoted regulars know, anything filed late on a Friday almost
On Wednesday, the New York Times announced that it didn’t get enough volunteers who were willing to leave the paper voluntarily and that as a result, there would be “relatively small numbers of layoffs”, prompting the Writer’s Guild to file
Last week, on May Day no less, investors in Furniture Brands International (FBN), the furniture company whose brands include Thomasville and Broyhill, appear to have elected three directors proposed by activist investors, Sun Capital, which owns about 9.5% of FBN’s
Last week, I was in Copenhagen and it was hard to miss the banners for Bodies The Exhibition attached to light posts around the city, especially near Tivoli, a major tourist attraction. I didn’t go to the exhibit — there’s
It must be nice to get a raise before you even start your job. Congratulations to Stephen P. Joyce, who received one the day before his official arrival at Choice Hotels International (CHH). Back in March, Choice announced that Joyce would
Back in January, I wrote this post about Rite Aid Corporation (RAD), noting how the Rite Aids in my neighborhood seemed incapable of keeping in stock mundane items like cleaning supplies and toilet paper. In its former life, one of these neighborhood stores had
Friedman Billings Ramsey (FBR) is still up to the same shenanigans as always. We first spotted their family ties way back in 2004, when the in-laws were feeding at the FBR trough.This time, it’s CEO Eric Billings’ sons who are
Until today, I had no idea that NASCAR sponsored a truck racing series (the Craftsman Truck Series). I was further puzzled as to why footwear maker Crocs, Inc. (CROX) was a sponsor of the event. Fortunately, Crocs’ latest proxy solved
When Steven Madden Ltd. (SHOO) first announced the exit of CEO Jamieson Karson in March, I didn’t think much of the boilerplate in the 8-K stating that Mr. Karson’s resignation was not the result of any disagreement with the Company’s
Quick note to let you know that comments will remain in moderation while Michelle’s on vacation.She’ll be back soon enough — and so will your comments!
Mining giant Freeport McMoRan Copper & Gold, Inc. (FCX) doesn’t have to keep scouring the world for new mineral properties – it’s got a juicy trough of gold that the Company’s Directors have been exploiting for years.Near the end of
The big merger news this morning is that Mars plans to buy Wrigley (WWY) in an $23 billion deal that carries a hefty premium for Wrigley’s shareholders, given Friday’s closing price of $62.45.But what’s really interesting to me is what
Last Tuesday, we footnoted about an interesting disclosure in Wachovia’s (WB) 8K announcing first quarter earnings. There was new language about a potential restitution involving a former Wachovia customer called Payment Processing Center that had bilked lots of people —
One of the more interesting footnotes in the proxy that Liberty Media (LMDIA) filed yesterday was a footnote — in Enron Beelzebub typeface, naturally — that disclosed “$745,832 of tax payments made on behalf of Mr. Malone”. That would be
Sometimes, a disclosure in a recent filing prompts you to dig a bit deeper and look back. That’s exactly what happened when I caught the following disclosure in Brandywine’s (BDN) proxy filed yesterday:Represents (i) $516,685 for the cost for use
Each year, when Wal-Mart (WMT) files its proxy, there’s usually an interesting list of related party transactions and this year’s filing didn’t disappoint. Obviously, Wal-Mart touches a lot of different sectors of the economy and given Wal-Mart’s size it’s hard
Yesterday, I came across what seemed like an odd disclosure in UCBH’s (UCBH) proxy — that among the many perks that CEO Thomas Wu received last year were company-paid car washes.While the dollar amount wasn’t given, it’s hard to get
Some say any publicity is good publicity, but the folks at Morgans Hotel (MHGC) may disagree. Since former CEO Edward Scheetz was associated with a young woman’s unfortunate death last year, Morgans has been in the press’s sights. When Morgans
Here at footnoted, we’re all about better disclosure. But as with most of the other good things in life, there are certain times when there is simply too much of a good thing. Take the proxy statement filed by CVB
Here at footnoted, we’re all about better disclosure. But as with most of the other good things in life, there are certain times when there is simply too much of a good thing. Take the proxy statement filed by CVB
A portfolio manager lent me an interesting small book from the late 1800s written by Dickson G. Watts and reprinted by Traders Press. Entitled Speculation as a Fine Art and Thoughts on Life, the book begins with a description of
My Technical Strength measure is a quantification of trending behavior over an intermediate-term time frame. The measure tracks five highly weighted stocks within eight
I just received a call asking about a nearby proprietary trading firm that trains their traders. The catch is that they charge tens of thousands of dollars for the training. We got a taste of this particular scam when Devon
Self-Efficacy - Its difficult to achieve something if you dont experience yourself as capable of achieving. Thanks to trading coach Doug Hirschhorn for pointing out this excellent Wall St. Journal article on self-efficacy. Heres one of my posts on self-efficacy
Several traders emailed me yesterday, tripped up by the narrow, range market. After a period of volatility such as we had during the first quarter of 2008, it is understandable that traders expect moves to extend. In a range market,
Any given trade and any given day may or may not go a trader’s way, depending upon personal and market circumstances. A three-month period, however, is ample opportunity for frequent traders to demonstrate progress in their development. Here’s a quarterly
1) We are most likely to behave in inhibited or impulsive ways, violating trading rules and plans, when we perceive events to be threatening;2) What we perceive to be threatening is a joint function of events themselves and how we
So lets say that I take a large position in the market and wind up with a harrowing loss that forces me to cut back my lifestyle. What would you think of my decision to borrow additional funds to add
I want to thank Abnormal Returns for passing along this excellent New York Times article on the role of habits in learning and creativity.The article highlighted a few ideas that I think are very relevant to the development of trading
* Implications of Sector Rotation - A reader emailed me with the idea that the market was weak because the recent rise was accompanied by greater than normal sector rotation. Thats intuitively appealing, but may not match historical precedent. I
I just received an email from a developing trader who now has been learning trading at an excellent proprietary trading firm in Chicago for the last six months or so. He reported to me two positive events:* He has made
In my recent post, I outlined how a traders very achievement motivation can lead to pressing: trying so hard to make trades happen that trading plans and rules are abandoned. This often happens when traders become frustrated with losses or
The global slump of 2008-09 has begun as poison spreads - TelegraphThe above article is incredibly gloomy but it brings up a couple of points that are worth considering regardless of whether the outcome is as dire as posited in
Country funds often get a bad rap from MSM even though any S&P 500 index fund is also a single country product. The utility of country funds is that they allow access into an investment destination without having to pick
Another ETF filing with a hat tip to IndexUniverse.WisdomTree has filed for the Middle East Dividend Fund that will include Bahrain, Dubai, Egypt, Jordan, Kuwait,
Despite Flos excitement that headline is misleading.In posts that talk about stock picking versus all fund portfolios versus some combination of the two, comments get
Ive always wondered whether there really is a way make money long term by renting stocks for the dividend-dividend capture as it is known. There are of course funds that do this but the results while generally ok over longer
Feliz Cinco de Mayo, amigos.Yesterday on the Connie Mack show, retired Oppenheimer fund manager Bill Wilby made a very simple but very smart observation about
The market appears to be pricing in the chance that Argentina could default on its sovereign debt (hat tip Mish).Defaults are not everyday occurrences but
Those traders active in the market yesterday may have noticed that the S&P 500 did not open on time. In fact, it was not priced yesterday until about 10:14 am. Birinyi Associates has been concerned with systematic changes in modern
This weeks poll continues with bullish results.Blogger Sentiment Poll Participants:24/7 Wall Street (-) Carl Futia (+) Crowder Blog (-) Crossing Wall Street Daily Dose
The chart below highlights the percent different between the market and sectors current prices and their 52-week highs. As shown, financials have declined the most since their peak on 5/23/07, down 29.7%. Also shown is the number of days from
The annualized GDP number came in slightly better than expected this morning (0.6% growth vs 0.5% expected) which was taken as a positive by futures traders (S&P futures promptly traded up 9 points). Oil inventories at 10:30 and the Fed
Published monthly, Mr. Birinyis newsletter, Reminiscences, highlights key views on the market, changes in sentiment, updates on sector information and earnings, in addition to a 30 year market veterans views and commentary. This week only we are running a RARE
With talk of a possible bottom, definite strength in the US stock market, and potential reversals from technology and consumer stocks, we revisit a favorite measure of Birinyi Associates. Below we highlight the trading envelopes for the S&P 500, DJIA
Bill Miller recently signaled "The end of the panic," Barrons "Feels Good," and Lehmans Ian Scott thinks "These first-quarter numbers ought to provide fuel for a further rally in the market." Amid the hopeful outlooks, what does Laszlo Birinyi think?
Bill Miller recently signaled "The end of the panic," Barrons "Feels Good," and Lehmans Ian Scott thinks "These first-quarter numbers ought to provide fuel for a further rally in the market." Amid the hopeful outlooks, what does Laszlo Birinyi think?
Legg Masons value fund manager Bill Miller released his quarterly letter to shareholders this afternoon. Highlights include his view that the Bear Stearns sale to JP Morgan represented the "culmination" of the financial crisis. In his view the sale ended
Legg Masons value fund manager Bill Miller released his quarterly letter to shareholders this afternoon. Highlights include his view that the Bear Stearns sale to JP Morgan represented the "culmination" of the financial crisis. In his view the sale ended
Using the same universe for the U.S. investable market (excluding stocks that did not trade between 12/31/07 and 4/22/08) as the following study, we break down performance by industry below. The figures as shown are sorted with the largest group
Using the same universe for the U.S. investable market (excluding stocks that did not trade between 12/31/07 and 4/22/08) as the following study, we break down performance by industry below. The figures as shown are sorted with the largest group
Below we highlight the best and worst performing US equities so far this year. As shown, most of the winners fall under the "Micro-Cap" category, with WLT and MMR being the only gainers with over $1b in capitalization. The losers
Below we present one of Birinyis familiar indicators, an analysis of stocks that are either overbought, oversold or within their normal trading range. The blue range shown by the indicators below represents a stocks normal trading range, which is one
After GEs disappointment the bloggers have turned bearish for the first time in almost a month. Blogger Sentiment Poll Participants:24/7 Wall Street (-)
Below we highlight the best and worst performing US equities so far this year. As shown, most of the winners fall under the "Micro-Cap" category, with WLT and MMR being the only gainers with over $1b in capitalization. The losers
Some Posts Worth ReadingValue Discipline: Recurring Revenues and IndustrialsBill Rempel: Fundamental Portfolio Struggling YTDCheap Stocks: Premier Exhibitions (PRXI) – Value Not Without ControversyCheap Stocks: Net/Net Index In Positive Territory Some Books Worth ReadingInvesting The Templeton WayThe Little Book That Builds
I don’t usually write on macro topics; however, I do get lots of emails asking me about the economy, markets, etc. I try to respond to these emails. Here are some excerpts from an email response I sent out tonight
In finance, liquidity is not a physical state it is a psychological state. Liquidity is a state of mind. Worse yet, liquidity is in the eye of the beholder. That is not merely to say that liquidity is subjective. Liquidity
Alive – definitely alive.This question – more than any other – dogs every discussion of Berkshire Hathaway (BRK.B). It isn’t immediately visible to those arguing on either side (“Berkshire is overvalued”, “No! Berkshire is undervalued”) but it underlies their arguments
Warren Buffett’s face graces (or disgraces) the cover of this week’s Barron’s. In big, bold print the weekly stock market mag says “Sell Buffett”. Inside, the message is equally gloomy: “Sorry, Warren, Your Stock’s
Books are an important part of value investing and an important part of this site. They were an important part of value investing right from the beginning – when Benjamin Graham and David Dodd published Security Analysis
Steven Rosales of Value Blog Review writes most of the book reviews that appear on this site. Steven is relatively new to investing. He posted his year-end results for 2007. Envious bloggers are hoping it’s a simple case of beginner’s
Heeelys (HLYS), which was included in Cheap Stocks list of Potential Bargains in Profitable, Cash-Rich Double Net/Nets Part II on December 8th, 2007 (last trade: $6.82/share; NCAV: $4.48/share), filed this resignation letter written by a member of the board and
Nautilus (NLS) issued the following press release yesterday:Nautilus…and Sherborne Investors LP said today that the voting results from the December 18, 2007 special meeting of shareholders confirmed that all four Sherborne Investors nominees have been elected to the Companys Board
Value Investing News completed its first full calendar year in 2007 – and my post entitled “Gannon to Barron’s: Berkshire Fairly Valued…As a Buffettless Empire!” won the title of best value investing article and link submission for 2007. It’s no
On April 1st, 2007 Clyde Milton of Cheap Stocks answered 20 questions. Today, he answers seven more.Read 20 Questions for Clyde Milton of Cheap StocksClyde Milton became enamored with deep value, off the beaten path investment ideas through years of
Shai Dardashti’s Reflections on Value Investing links to an excellent talk given by Steven Crist of the Daily Racing Form at the Legg Mason Capital Thought Forum.This is a great talk. Anyone interested in investing should read the whole thing
Asif Suria of SINLetter.com is running a stock picking contest where Top Financial Bloggers Face-Off. He invited me to join the contest, so I thought I would post my entry on this blog. The contest length is Q1 of 2008.
Here are some of this blog’s most popular posts from 2007:Gannon to Barron’s: Berkshire Fairly Valued…As a Buffettless Empire!Pompous Prognostication: Irish BanksBook Review: Active Value InvestingThe Eight Best Investing Blogs20 Questions for Clyde Milton of Cheap StocksThe Normalized P/E Ratio
Forget about the upcoming presidential primaries; it’s already election night at Nautilus (NLS) – and the early exit polls favor the challenger.Shareholders met Tuesday to settle a proxy fight between an activist hedge fund and the fitness equipment company’s incumbent
Barron’s “Sell Warren” cover story is now available to non-subscribers. Read it here.A few other blogs have commented on the story, some recent examples include a post from the Peridot Capitalist and a post from 24/7 Wall St. If you
If you enjoyed my response to Barron’s “Sell Buffett” cover story, you’ll also enjoy Jeff Matthews post. Visit Jeff Matthews is Not Making This UpAlso, note the comment I just added to the post below. I got an email asking
Warren Buffett’s face graces (or disgraces) the cover of this week’s Barron’s. In big, bold print the weekly stock market mag says “Sell Buffett”. Inside, the message is equally gloomy: “Sorry, Warren, Your Stock’s Too Pricey”.Is it? Barron’s says:The Street’s
Some of our favorite bloggers have been adding new positions.On November 13th, Fat Pitch Financials added Western Sizzlin (WSZL) at an average price of $13.12 per share. George subsequently wrote a post valuing Western Sizzlin.On November 23rd, Cheap Stocks added
As one would expect, deterioration in operating margins will occur in economic slowdowns. Marginal competitors frequently will try to clear inventories at ever lower margins in order to generate cash flow. I am particularly interested concerned if a company exhibits
In our last post, we discussed the notion of recurring revenues as it pertains to companies in the industrial sector. The genesis of this idea was a reaction to the prevailing wisdom of many investment strategists to find recurring revenue
Economic uncertainty generally steers investors toward steady eddy businesses such as foods, consumer staples, healthcare and utilities. But what investors should be seeking is recurring revenues, predictable and stable revenues with a high degree of certainty.Recurring revenues are highly desirable
Asymmetric information gets to the root of todays market problem in Bear Stearns. George Akerlof, Michael Spence, and Joseph Stiglitz won the 2001 Nobel Prize in Economics for their work in this area.Akerlof, who wrote the earliest paper in this
Growth has a seductive charm. There is a widespread belief that momentum drives growth and that a succession of knocking down challenges and consequent victories is what characterizes a successful business. But sustained growth is seldom straightforward. Sustained growth frequently
It has been an extraordinarily long time since I last published thoughts here for which I truly apologize. Needless to say, capital markets have been challenging and clients prefer a higher level of care and attention when markets are rocky.
Janet Lowe has authored a completely revised version of her Warren Buffett Speaks: Wit and Wisdom from the Worlds Greatest Investor. In order to provide complete disclosure, let me advise that John Wiley & Sons, the publisher, sent me a
Corrections happen. They are painful, come up spontaneously and unexpectedly, frequently take your breath away and replace your confidence with fear. It is important , at least in my view, to remember at times like these, all of those factors
About a month ago, I wrote a post on Ecolab (ECL) describing it as a model of consistency. As I quoted Dmitry Siulverstein who covers specialty chemical research at Longbow Research: I think the biggest appeal of Ecolab is predictability.
Here we are again in earnings season. Eddy Elfenbein at Crossing Wall Street took Moodys to task yesterday for its recent report that suggested an advantage of a company going private was that it was freed from quarterly earnings reports
In a recent post about Value Creation or Destruction, we had highlighted Angelica (AGL) as a company that in my opinion, was failing to create shareholder value and was consequently, subject to shareholder activism. We had cited Pirate Capitals involvement
Happy Thanksgiving wishes to our American readers! Certainly, no matter what the circumstances that life may bring you, there is always much for which to be thankful.It has been said that the hardest arithmetic to master is that which enables
Whitney Tilson is the founder and Managing Partner of T2 Partners, a hedge fund, as well as a mutual fund operation. He has co-founded a terrific newletter and established a semi-annual investment conference, Value Investing Congress, where he features a
There is an interesting dichotomy that exists in capital markets. Not so many months ago, pre-August, there was a widespread perception that we were running out of stocks. Private equity interests were gobbling up anything that had a reasonably steady
Cisco Systems (CSCO)s results of last night have cratered a lot of tech stocks today, particularly hardware. IBM. EMC, Network Appliance (NTAP) have all had a good drubbing in todays marketplace.Though the sector has exhibited standout performance relative to most
As some of you know, I am an occasional contributor to Shai Dardashtis Reflections on Value Investing. I think you will be impressed with the quality of serious contributors to the investment thinking that characterizes this blog. I commend it
Interesting goings on in the financials. UBS got the ball rolling (and a few heads) with the announcement of a write down of SFr 4 billion resulting in a forthcoming loss for the third quarter. Credit Suisse (CS) also taking
Here as we approach the 20th anniversary of the crash of October 19th, 1987, the academic world is starting to read the entrails of the hedge fund crash of 2007 as it relates to the sub-prime crisis.In August, the financial
Interesting how badly politicians can screw up supply-demand imbalances. As a Canadian who endured Canadas National Energy Policy of the early 1980s, it worries me to see the proposed royalty changes that the Alberta government panel has recommended. Our American
Todays Barrons highlights Nordson Corporation (NDSN) as an attractive capital goods company. I agree that this is a wonderful business at a fairly attractive price.The article describes the companys global positioning with some 70% of its sales from overseas, yet
In its initial version, Aggressive was an equal-weighted portfolio derived from two different quantitative stock screens, based on companies that trade on U.S. exchanges. Each screen produced an exceptional trading plan by itself, but when the two were combined, the
One thing I’ve tried focusing on, sometimes successfully and sometimes not, is simplification. It’s an extension of Occam’s Razor, wherein if two explanations for a phenomenon are viewed to be equally explanatory, the simpler explanation is the “best” one. This
1. Separate the economy from what happens in the speculative markets, because historically, they don’t track together 100% of the time.2. The speculative markets definitely had a stagflation/recession trade on until the last month.3. That trade was being unwound over
In last month’s review of the Rotational system, I wrote The current trends are consistent with the theme of a U.S.-led “economic slowdown” with high inflation, and the “recession trade” has been in effect for a few months so far.
Obama out with a statement this weekend about America’s foreign policy consisting of “bluster and saber-rattling.” Don’t be fooled by Obama. He’s no more anti-war or anti-MidEast-meddling than Clinton or McCain is. Remember that “Shrub” ran in 2000 on rhetoric
Sometimes, there is just no substitute for brute force. After all, if you have 41 different possible strategies, that only equates to 1,640 possible blend-pairs to evaluate. Be back in a while.
These are my personal trading returns as of month-end April 2008.Current Month Return: 7.7%Year To Date Return: 1.2%3 Month Return: 5.1%6 Month Return: -6.5%12 Month Return: 13.6%24 Month Return: 8.2%24 Month Annualized Return: 4%36 Month Return: 60.8%36 Month Annualized Return:
Yesterday I wrote about Three Definitions for Efficiency of a Trend. This morning, a warning: teleportation is very efficient movement.I’m talking about gaps. Big, honking, overnight gaps.This is more of a problem for stocks than it ever will be for
Earlier, I looked at Seven Quantifiable Ways to Define Trend; today I want to look more deeply at the Efficiency Concept. The Efficiency Concept From point A to point B in time, the market has moved from price A to
The definitions of trend range from the simple to the philosophical, with simple being something like “put the chart on the wall, back up and see what it looks like from the other side of the room,” and philosophical being
A reader asks, “Is a system more robust if it is tailored to a specific market condition?” This is response to a point in Blogging Cross-Talk: Psychology Observations where I said, Systems can be optimized to work in one market
I’ve covered the difference between OFHEO Home Price Appreciation Index and the S&P Case-Schiller Home Price Index data several times. Here’s ONE example. Compare and Contrast on Home Price Appreciation Indices. Both indices of home price appreciation have flaws, but
I tried to find an English version of the Cisco “Human Network” ad featuring a skateboard manufacturer, but all I could find was this one: First there’s a prototype; they get feedback from skateboarders in Austin TX that the front
Are markets a leading or lagging indicator of the economy? That’s what the echo chamber is debating this week. Myself, I don’t care too much either way – and neither should you. The point of participating in the markets is
I don’t know what spring mornings are like where y’all are, but I just stepped out into a pleasant pre-dawn morning to put some lead into an armadillo that’s been digging up my St. Augustine grass.
I don’t know what spring nights are like where y’all are, but I just stepped out into a mildly humid, warm night, and spent a few minutes listening to the coyotes howl at a rising moon.
Literally! There’s a growing consensus, what Kirk calls “the worst is behind us” chatter, a wider expectation that the market has reached a bottom, either intermediate or long-term. Brett weighed in with his view last Wednesday. Everybody talking about a
Brett at Traderfeed posted recently about A Few Trading Psychology Observations he had made, in the form of eleven bullet points. Here’s a response, also in the form of eleven bullet points, from the POV of an intermediate- to longer-term
Yep, that’s what I’m looking for. Returns for the Cramer Berkowitz Fund!I don’t want that aggregate stuff, though, I’m looking for year by year returns for the Cramer Berkowitz hedge fund, including the years after Cramer left and Todd-o took
A writer’s conference that I attended last week gave me a new idea for the site. The idea is that people enjoy reading feature articles written in a narrative format much more than the enjoy those written in a news
Yesterday while speaking with our new contributor, Aaron Horvitz, the topic of calculating growth came up. The calculation of a forecasted growth rate is one of the most significant variables in any company valuations. Growth is often miscalculated, leading to
Many of our frequent readers may recognize our latest edition to the staff, Aaron Horvitz. Aaron has been contributing as a commentor on a regular basis and we recently decided to extend a position to him as a regular contributor.
Over the next few weeks, I hope to do an individual valuation of each of the components of the Dow Jones Industrial Average. For a brief overview of the Dow, please see our Glance at the Dow - a snapshot
Over the next few weeks, I hope to do an individual valuation of each of the components of the Dow Jones Industrial Average. For a brief overview of the Dow, please see our Glance at the Dow - a snapshot
We currently have over 1100 subscribers to our RSS feed, and almost 300 subscribers to our daily email of posts. But we don’t know who anyone who reads our work is. Please take a moment to leave a comment and introduce
Over the next few weeks, I hope to do an individual valuation of each of the components of the Dow Jones Industrial Average. For a brief overview of the Dow, please see our Glance at the Dow - a snapshot
Over the next few weeks, I hope to do an individual valuation of each of the components of the Dow Jones Industrial Average. For a brief overview of the Dow, please see our Glance at the Dow - a snapshot
This evening (3/16/08) it is being reported that JPMorgan will be purchasing the struggling investment bank for $2 a share. Yes, that is correct I did not forget a digit, the purchase price was $2 when this stock was trading
It seems to me that all the fuss yesterday about the Fed’s $200 billion dollar “loan” - I’m sure you’ve all heard about it so I’ll skip the details - was completely uncalled for. Since when does the Fed pumping
In the WSJ today there was an interesting article regarding P/E ratios and using them to determine appropriate buying and selling opportunities. The article was on C1 and the author contended that although the S&P is trading at 13.2 times
I decided to put together a list of the Dow Jones Industrial Average and see how our valuation formula values each component. I’ve listed the result below. I also ran the test for each component to determine if it would
With the recent jobs report, it is clear that a recession is either extremely likely at some point in 2008 or it is already here. There’s no more denying it - only dealing with it. And most people out there
Yesterday I wrote a response to an opinion article in the Wall Street Journal regarding $100 oil. Later in the day, one of our readers, AaronH, made some good points in a comment. Here is an excerpt of what Aaron pointed
Company Review: H&R Block, Inc. (HRB)Company Profile: H&R Block Inc. (obtained via Google Finance)H&R Block, Inc. (H&R Block) is a financial services company with subsidiaries providing tax, investment, mortgage, and accounting and business consulting services and products. The Company’s Tax
Today there is a very good opinion article in the Wall Street Journal. The article is titled The World has Plenty of Oil and was written by Mr. Nansen Saleri, president and CEO of Quantum Resevoir Impact in Houston. Mr. Saleri
Mark Travis said he likes “redneck stocks.” On April 24, The CIO of Intrepid Capital Funds recommended:Comcast (CMCSA)Anheuser Busch (BUD)Speedway Motorsports (TRK)International Speedway (ISCA)Sponsor: Financial Education Everything you need to know about finance
My latest column is up at RealMoney.I think Rent-A-Center (RCII) can benefit from the slowdown in consumer spending and the tightening of credit standards.If Rent-A-Center were to receive the same price-to-book multiple as Aaron Rents, it could trade above $28
On April 25, Tech Check’s Jim Goldman blogged on Microsofts Yahoo bid. How did he describe Microsoft CEO Steve Ballmers rule ?Goldman speaks of Steve Ballmer’s decade-long, iron-fisted rule of the world’s largest software maker
On Monday, April 28, James Altucher of Formula Capital recommended which food-inflation trade to CNBC viewers?Picks included Sysco (SYY) and Sadia (SDA) while pans included General Mills (GIS), McDonald’s (MCD - Annual Report) and Kellogg (K).
The latest Fortune Magazine has an article titled: Can this man save the grid? According to the Edison Electric Institute, utilities over the next 20 years will spend hundreds of billions of dollars on infrastructure improvements, including computers, sensors, and
My latest column is up at RealMoney.I examine the electronics manufacturing industry, and say that if I had to choose I would buy Celestica (CLS) and avoid or short Jabil (JBL).Cisco (CSCO) is the largest customer for both companies, but
My latest column is up at RealMoney as part of my series on wallflowers - stocks that have little or no analyst coverage.In this column I look at Innospec (IOSP), which makes fuel additives and other specialty chemicals that are
Hansen Natural (HANS), which makes Monster energy drink, reported lower-than-expected quarterly results as cost increases drove down profitability, sending its shares down 13 percent after hours.The company posted a first-quarter net income of $28.8 million, or 29 cents a share,
My latest post is up at RealMoney.I think there is still quite a bit of run left in the energy bull market. That belief has led me to some good picks, such as Patterson Uti (PTEN) and Flowserve (FLS) ,
I began expressing concerns about Cognizant Technology Solutions (CTSH) a year ago. Even when earnings were stronger than expected in February, I stuck to my guns, saying “Cognizant executed so well on so many different metrics this quarter that anything
It was all fun and games when WallStrip and AlphaTrends jumped on the Landstar bandwagon. Now that the company is profiled in BusinessWeek I’m getting a little worried.Landstar: Trucking Ahead We think Landstar System (LSTR; recent price, 53), a non-asset-based
I have not written in some time about a theme that I think is an important one. Skeptics could probably argue that the reason I haven’t written about it was that the recent facts have contradicted my belief, though the
A while back I complained that several stocks I had been bearish about had gotten boosts from takeout offers. Namely, Diebold (DBD), Delta Airlines (DAL) and Yahoo! (YHOO).Delta stock finally broke down, and then agreed to a merger at much
I have begun a new series of posts at RealMoney focusing on Wallflowers - stocks that have limited analyst coverage. By identifying stocks that fall below Wall Street’s radar screen the hope is to find some undervalued gems.It may seem
Originally published May 1, rebuilt here due to site issues.Engineering simulation software provider Ansys (ANSS) reported revenue of $109.5 million in the first quarter of 2008 and non-GAAP earnings per share of $0.40. This compared with a consensus estimate of
I originally posted this on April 30, but had to rebuild the site after encountering some problems. Reprinted here.Readers who have been trying to access the site over the last couple of days, I apologize. There’s no telling what you
Business software maker MicroStrategy Inc. (MSTR) said Thursday its first-quarter profit declined, as increasing operating expenses overshadowed growth in product license revenue and support. Investors appeared to be surprised by the news, taking the shares down more than 16%.They shouldn’t
Landstar (LSTR - Annual Report) has long been one of my favorite stocks. I have said before that I would be willing to own Landstar up to a parity yield with Treasuries, because I think the growth alone is sufficient
Allied Waste Industries, Inc. (AW), the nation’s second largest waste services company, today reported financial results for its first quarter ended March 31, 2008. For the quarter, income from continuing operations was $72.6 million, or $0.17 per diluted share, inclusive
I received an email from a representative of Fox Business Network telling me about the special they are doing at the meeting this weekend. I agreed to publicize it for them, but have to wonder why Liz Claman didnt request
I have been hesitant to jump to many conclusions about the Wrigley deal because I think there are still a lot of unanswered questions about Berkshires involvement in it. Hopefully many of the details will be explained this weekend at
This blog is not dead. I am just taking a break. Lots of personal stuff going on, including the recent birth of my first son. Anyway, dont give up on me. I will post again soon.
I thought I might help publicize the University of Missouri Trulaske College of Business 2008 Forum on Emerging Issues & Trends in Real Estate. That is mouthful. What it means is that on Friday as part of a symposium on
The first lesson that came to my mind when I heard about this debacle was straight from Buffett: Don’t buy what you can’t understand. Was Bear a simple and understandable business? Of course not. Their investments were so complex that
If you are interested in financial research you may want to check out a new project I am starting with a friend of mine who is a PhD student at the University of Chicago. It is called Empirical Finance Research:http://empiricalfinanceresearch.blogspot.com/Our
I captured the following screenshot from Yahoo Finance shortly after the market closed today:This was kind of surprising to me given the performance of
If you are interested in financial research you may want to check out a new project I am starting with a friend of mine who is a PhD student at the University of Chicago. It is called Empirical Finance Research:http://empiricalfinanceresearch.blogspot.com/Our
As usual, Mr. Buffett touches on both classic and contemporary issues in this year’s letter. Two stand out to me as worth quickly addressing.The classic issue most interesting to me is his discussion of See’s Candies (see page 7). It
It sure seems Mr. Buffett is more willing than ever to appear publicly. Next week he will be on CNBC discussing the new letter to shareholders. Here is a link to details on that:http://www.cnbc.com/id/23359277On March 14 (which is coincidentally my
Here is another sports-related post…To me, the biggest justice of the Patriots’ losing of the Super Bowl was not that Tom Brady had snickered with overconfidence at Plaxico Burress’ ultimately accurate prediction or even that Bill Belichick had stormed off
Have you heard about this? Cleveland Indians minor league pitching prospect Randy Newsom is securitizing his future earnings in the major leagues by selling off 4% of any future major league earnings he may realize. For $20 you can buy
I don’t claim to be a macroeconomist, so take what I have to say with a grain of salt. And I am certainly not a market prognosticator, so please don’t interpret what I say as a prediction for the direction
Today I choose to write about something that I don’t know.I cannot, nor can anyone, predict what this turbulent market will do in the short term. The nonsense that is going on in the lending industry may turn in to
Well it turns out US News & World Report is stealing my thunder. I promised a few weeks ago to devote a few posts to “alt-Berkshires” and will continue today anyhow, but it turns out this is exactly the topic
If there is one cliché that I hear value investors (including me) use more than any other it has got to be “Company XYZ is the next Berkshire Hathaway” or maybe “XYZ is a miniature Berkshire Hathaway.” Everyone wants to
The stocks of Chipotle Mexican Grill are both down today on an analyst downgrade, which is fine. The company’s price has certainly been bid up. What continues to amaze me, though, is the lack of attention to the very obvious
As the name of this blog should indicate, my goal is not to make stock picks but rather to muse about current events in the stock market and the field of finance generally. Nonetheless, a website called SocialPicks has taken
Now on to the question at hand. Is Berkshire better off without Warren Buffett? Todd seems to be asserting that holding cash of $40 billion alone is grounds for Mr. Buffett’s removal from office. Is Todd suggesting that Mr. Buffett