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Small Companies (like Small Banks) As "Jobs Programs"

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  • Unfortunately, a lot of the remaining Oddballs that have not had their "one day" are continuing along earning low returns on equity, cheap relative to the liquidation value of their assets - but that asset value has to be discounted because they function as jobs programs for insiders.
  • But the amazing thing is that net income was actually down year over year, falling from $398k to $374k – a sub-4% ROE both years.
  • Having half of the bank's equity tied up in premises makes the 57% discount to book value feel much less generous.

Small Companies (like Small Banks) As "Jobs Programs"

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Michael Burry: Don’t Try To Dig Your Way Out

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  • One argument that has been used to sell and to sustain this rally as the real thing is the idea that the stock market rallies 25% or so 4-6 months in advance of an economic recovery.
  • Interest rate changes become more significant in stock valuation when valuations are very high.
  • That is, investment in a stock with a price/cash earnings multiple of 25 will be much more sensitive to interest rates than investment in a stock with a price/cash earnings multiple of 5.

Investing In ‘Freer’ Countries Helps Avoid Taleb’s Absorption Barrier Risk

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Short Squeeze

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  • Posted for ReferenceIt’s the short squeeze of a vegan’s paradise .
  • 51% of the company’s float is still being held short, which means the short squeeze can continue if the positions can’t be maintained, which would be especially relevant if the broader market starts to fall while Beyond keeps rising.
  • There is about $800 million left in short positions on the stock.

Emerging Markets Provide Investors With Opportunities To Capture A ‘Freedom Premium’

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  • During her recent interview with Tobias, Perth Tolle who is the Founder of Life + Liberty Indexes discusses how emerging markets provide investors with opportunities to capture a ‘freedom premium’.
  • These are all very free countries and they’re fairly homogenous as far as their freedom levels, but when you get to the emerging markets you see huge discrepancies.

Walter Schloss: Criteria For Liquidations Where Money Is Held By A Company

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  • Following is a May 1952 memo written by Walter Schloss which outlines his criteria for liquidations where money is held by a company:

Beyond Meat, beyond amazing

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  • As of March 30, 2019, we had one issued U.S. patent and 21 pending patent applications, including eight in the United States and 13 international patent applications.
  • Since patent applications in the United States and most other countries are confidential for a period of time after filing (in most cases 18 months after the filing of the priority application), we cannot be certain that we were the first to file on the technologies covered in several of the patent applications related to our technologies or products.

Buying Companies with Great Products – Cummins (CMI) – Part II

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  • Cummins’ balance sheet isn’t as strong as SNA’s, though.
  • The company’s Piotroski score was recently only a 6, but improved 2 points in the most recent quarter due to improvements in its gross margin and a slight uptick in its current ratio.
  • With $2B in owner earnings, though, why does the company need to reduce its dividend growth and use commercial paper to finance itself?

If 98% of the Funds don’t Beat the Market, Why doesn’t Everyone just Invest in a Low Cost Index like S&P500?

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Here is why you should not invest in index funds

Oddball Stocks Newsletter - Also Available à La Carte

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  • The June 2019 Issue (#25) of Oddball Stocks Newsletter covering the 2019 annual report season will be published shortly, and the only way to get it is to be a subscriber.
  • Some comments from happy subscribers:
  • " I think you guys are selling yourself short on your company visits.

Oddball Stocks Newsletter - Also Available à La Carte

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7 Stocks Acting Like a Money Machine With Increased Dividends

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Growing up in the late 60’s early 70’s, I spent a fair amount of time reading comic books. I don’t remember much about them, but I do remember several of the classic ads. Of course, there was the Charles Atlas ad where the beach bully kicked sand on the skinny boy and his girlfriend. But the ad that I remember the best was the “Magnificent Marvelous Money Machine“. It was a wooden block with some rollers in which you would put a one dollar bill in one side and a five dollar bill would come out the other.

“What is an Oddball Stock?”

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  • From time to time we talk about companies with larger market capitalizations or balance sheets (most always dark, OTC-listed ones) but an Oddball is much more likely to be a $1 million company than a $1 billion one.
  • So, as small as the market capitalizations are, this makes the effective investible size of the companies even smaller.
  • Also, because the Oddball businesses are older, they tend to be asset intensive.

“What is an Oddball Stock?”

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