Commentary | Value Investing News

Commentary

More cash parking options

Rating: 
No votes yet
  • I’ve written a lot about some cash parking options – whether they are short-term bond ETFs, or short-duration target-maturity ETFs.
  • Interactive Brokers currently gives out 111bps on Canadian cash, but there are higher yielding options with less risk.
  • They give out a net yield of about 2% (215bps minus 15bps expenses) with zero duration risk, and this is paid out monthly.

Inversion of the Canadian yield curve

Rating: 
No votes yet
  • Canadian government bond yields:
  • This would be one explanation why those 5-year rate reset preferred shares aren’t doing so good price-wise.
  • The 5-year yield also dropped under 1% between June 2015 to October 2016 – these were not happy times for rate resets.

Atlantic Power – selling a power plant

Rating: 
No votes yet
  • Atlantic Power (TSX: ATP ) today announced they are selling their largest power producing plant (Manchief) on May 2022 for $45.2 million.
  • In the meantime, Manchief will continue operating and contributing cash – in 2018, the cash generated from Manchief was 12.2 million (and indeed this number was somewhat lower than it could be given there was a turbine installation performed in 2018).

Successful Investors Need A Devil’s Advocate To Try To Kill Potential Investment Ideas

Rating: 
No votes yet
  • Then we move into stage three, which is our team tackle , and so this is something that’s a little unique about Cove Street, and it’s an outcropping of the fact that we’re going to limit our asset size because we’re a small-cap focused firm.
  • So really what it is, is taking all these peoples backgrounds, and all these different perspectives both on value and a focus on value investing, and meshing them together and coming up with a really, I think, good back and forth about this company, and so that’s stage three.

Walter Schloss: How To Invest Stress-Free For 40 Years

Rating: 
4
Average: 4 (1 vote)

Why the junk debt market is not dead yet – Alaris Royalty Corp convertible debt offering

Rating: 
No votes yet
  • Believers in Brookfield Asset Management can pick up a preferred share series (e.g. TSX: BAM.PR.Z ) and buy an easy 6% tax-preferred yield, with a reasonably decent potential for capital appreciation (it is trading well below par), and BAM’s underlying business provides significantly better inherent diversification, coupled with a much better credit profile.
  • Is the equity call option of Alaris’ unsecured convertible debenture worth it?

My take on the FCA Renault Merger

Rating: 
3
Average: 3 (1 vote)
  • Sure, Marchionne took $2bn to avoid a merger with GM.
  • Given the complexity, he needed a partner that saw things his way.
  • The larger value of a merged Groupe Renault FCA will reduce the logic for Nissan to try and acquire more of Renault (it is blocked from this anyway by Renault's control of Nissan's board).

Letter to a Young Investor

Rating: 
No votes yet
  • We asked for the following from the candidates: List the books you’ve read over last twelve months (not limited to just investment books); give us a sample of a stock idea analysis; write a few paragraphs about two people (dead or alive) who impacted you the most and tell us why; tell us about three books that have impacted you the most and why; and finally, write us a cover letter to tell us why we’d be making the biggest mistake of our professional lives by not hiring you.
  • The best way to learn investing is by doing it.
  • Learn to say I don’t know.

The death of Bitcoin – not so fast!

Rating: 
No votes yet
  • Bitcoin has been going through a remarkable surge in the past few months:
  • It looks like a classic short squeeze, but the open interest on the CME futures (4,800 times 5 coins) is not a material portion of trading that occurs on the higher volume exchanges (which is cleverly charted here ).
  • So who the heck is firing a bunch of capital at Bitcoin?

(Ep.12) The Acquirers Podcast: Ben Claremon – SMID Value, Opportunities In Small And SMID Cap Value

Rating: 
No votes yet
  • – Investors Should Spend More Time Focusing On The Culture Of The Business Behind The Stock
  • Ben Claremon: We can start.
  • I mean, these are things that, again we focus on process and not outcome, and if you have a good process and if you’re identifying good securities, we believe that the market will eventually recognize what we see in these businesses and then that’s the only way we can really outperform over time.

Does a CFA or MBA add Value?

Rating: 
No votes yet
  • This entry was posted in Uncategorized .
  • Bookmark the permalink .

Some links

Rating: 
No votes yet
  • Good article how German Aldi is “disrupting” American grocery retail Why “technical analysis” in stock prices makes no sense at all A great analysis of Zillow’s new business model The UK Value Investor with an in depth look at Cranswick Portfolio updates from the GlobalStockPicking blog Is Coca Cola Bottling an easy short ?
  • And finally the Graham and Doddsville Spring 2019 edition (including an interview with John Hempton, Bronte)

test1

Rating: 
No votes yet
  • Subscribe for Email Updates
  • Add a descriptive message telling what your visitor is signing up for here.
  • Full Name

Less Repairable Cars

Rating: 
No votes yet
  • Higher repair costs push insurance companies to declare more vehicles as total losses.
  • “Organic growth in the salvage market is driven, we believe, by an increase in total loss frequency.
  • What is not reflected in this metric is the increase in the instances in which insurance companies salvage cars without ever writing a repair estimate.

Read the fine print! Going-private transactions

Rating: 
No votes yet
  • The stock traded down to about $1.02-$1.03 after their announcement – nobody wants to hold an illiquid stock in a privately held firm.
  • Specifically, the Board recommended and approved a transaction whereby the Company would effect a 1-for-8,000 reverse stock split of the Company’s common stock (the “Reverse Stock Split”), followed immediately by a 8,000-for-1 forward stock split of the Company’s common stock (the “Forward Stock Split,” and together with the Reverse Stock Split, the “Transaction”).

Pages

Subscribe to RSS - Commentary