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When you shouldn’t trust mining analysts with professional training

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  • I’m aware that there’s information on mining stocks from guys like Angry Geologist , Exploration Insights (Brent Cook and Joe Mazumdar) and investment bank analysts with mining degrees (P.Geo, P.Eng, etc.).
  • TAG and Exploration Insights didn’t come to this conclusion because they didn’t come across key technical data.
  • Arguments about a deposit/project having a fatal flaw can be extremely helpful.

Mineral exploration has been a disaster since 2000

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  • The deposit is somewhat close to Eagle’s Nest, so the remoteness of this deposit is what makes the deposit uneconomic.
  • If Kinross Gold thought that this deposit was economic, they would have built a mine after acquiring Ryan Gold.
  • I would look for extensions of existing high-margin deposits (e.g. keep following a deposit and see how far it goes).

TAM Stock Screener – Undervalued Lam Research Corporation (NASDAQ: LRCX)

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  • Therefore, Lam has a net cash position of $2.455 Billion (cash minus total debt).
  • If we consider that Lam currently has a market cap of $29.168 Billion, when we subtract the net cash totaling $2.455 Billion that equates to an Enterprise Value of $26.713 Billion.
  • If we move over to the company’s latest income statements we can see that Lam has $3.218 Billion* in trailing twelve month operating earnings which means that the company is currently trading on an Acquirer’s Multiple of 8.30, or 8.30 times operating earnings.

TAM Stock Screener – Stocks Appearing in Greenblatt, Simons, Griffin Portfolios

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  • One of the new weekly additions here at The Acquirer’s Multiple features some of the top picks from our Stock Screeners and some top investors who are holding these same picks in their portfolios.
  • Charles Brandes – 15,476 total shares
  • From January 2, 1999 to November 29, 2017, the Large Cap Stock Screener generated a total return of 2,797 percent, or a compound growth rate (CAGR) of 19.3 percent per year.

Enbridge Enterprise Partners MLP

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  • Before this point, EEP was trading at about a 11% distribution yield and after the April 28, 2017 announcement it was trading at about 9% (incorporating the reduced distribution).
  • On May 18, 2018 , EEP announced they received a proposal from ENB to take over EEP for 0.3083 shares per unit of EEP.
  • Just on distributions alone EEP is trading at 12.5% yield, but there is a lot more potential in the MLP post-Line 3 construction.

The Dangers of Persistence

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  • So I have been persistent enough but have not made money even in the long run.”
  • Before I could utter a word in favour of long-term, sensible investing in stocks, the first gentleman asked, “By the way, do you have any stock ideas to buy now?”
  • But when you grow into an adult, your worldviews (like stock market is a casino, real estate is great, people are untrustworthy, etc.)

Best Stocks Below Their Graham Number - August 2018

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One popular approach to investing based on Benjamin Graham's methods is to use the so-called "Graham Number."  There are some important differences between the Graham Number and the Graham Formula, but using the Graham Number is definitely useful even if the investor only uses it as a screening tactic.

Tesla / Going Private / Trading

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  • I am simply not intelligent enough to know how to trade Tesla (Nasdaq: TSLA) properly, nor have I traded Tesla in my life, but man, my eyeballs have really been glued to the quote monitor and also their option chains today and yesterday.
  • Some interesting charts with captions:
  • Cost to Short TSLA, August 8, 2018Tesla October 350 Put options, overlayed on TSLA stock priceTesla October 400 Put options, overlayed on TSLA stockI’m not sure what medication you need to trade this, but my doctor hasn’t prescribed it.

5 Select High-Yield S&P 500 Dividend Stocks

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The S&P 500 Index is owned and maintained by Standard & Poor's, a division of McGraw-Hill. The index was first published in 1957 and is the second most recognized index in the U.S. behind only the Dow Jones Industrial Average. Stocks included in the S&P 500 are large publicly companies that trade on either the New York Stock Exchange or the NASDAQ...

Warren Buffett: How to Minimize Investment Returns

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  • We’ll call them the Gotrocks.
  • After a while, most of the family members realize that they are not doing so well at this new “beatmy-brother” game.
  • Today, in fact, the family’s frictional costs of all sorts may well amount to 20% of the earnings of American business.

Jim Rogers: “Anytime That You Think You’ve Become A Financial Genius—It Is Time To Sit Back And Do Nothing For A While”

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  • There’s a great passage in the book in which Rogers provides a great lesson for investors that are enjoying success.
  • Whenever you see people acting in the same way, it is time to investigate supply and demand objectively.
  • By the year 2000, the price of gold had sunk to about $250 an ounce.

Dear Michael Clarke, there are worse things you can do than tamper with the ball using sandpaper

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  • His twitter stream contained the following amazing tweet:
  • For my many readers from non-cricket playing countries, have a look at the amazing press conference when Steve Smith, Australian Captain, was caught cheating.
  • I wonder if Mr Clarke will have that decency.

Being A Father

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  • Being a Father?
  • They are wonderful, thoughtful young adults who don’t have pretentious lifestyles (they live in $200,000 houses and drive modest cars).
  • He works eight hours a day and spends all of his free time with his three young kids.

China Thoughts and the Circle of Competence

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  • I think there will be lots of opportunities for investors who put in the effort to understand China and the companies that do business there.
  • It’s crucial to be intellectually honest about what you know and about what you don’t know, and there is a lot that I don’t know about China.
  • If not, then it’s best to keep learning, and not invest.

Whitney Tilson: Analysis of Berkshire Hathaway’s Blowout Earnings

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  • The headline numbers for the quarter were startling, with net earnings per share almost tripling from $4.3 billion to $12.0 billion.
  • • Book value per share grew to $217,677 per share, up 3% year to date.
  • Net net, our estimate of intrinsic value, using cash and investments plus an 11x multiple on normalized pretax earnings, is now $348,000 for the A shares and $232 for the B shares, meaning that Berkshire today is trading at a 12% discount to intrinsic value.

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