HPQ
The Perils of One-time Charges
When it comes to pleasing Wall Street, some companies would do anything to spruce up their books. One of the most common shenanigans management would use is one-time charges.
Wall Street’s Other Nostradamus - Tom Au
This article look back at how Tom Au, author of A Modern Approach to Graham & Dodd Investing, made some great predictions in 2007 on the Dow stocks.
13 Stock Bargains… Without The Risk
Alexander Green recommends using trailing stops to limit downside risk on these 13 cash-rich companies.
Another Reason to be a Value Investor: Buyouts
Cheap stocks don't go unnoticed by competitors or private equity firms, often leading to quick profits for value investors when a buyout is announced. Magic Formula stocks are no exception.
These Stocks Will Burn You
The best stocks of the next decade are not huge companies today. Why not? This chart should explain. Look how large each of these solid businesses would become if they increased just 10 times in value over the next decade:
ValuePlays: Current Markets P/E's Show Room to Run
Much has been said of the run up in the past twelve months of both the Dow and the S&P to all time highs. But, even after this impressive run, are the stocks in those averages more expensive than last year, or are they still bargains?
Is Microsoft the IBM of the 21st Century?
A comparison of IBM's enterprise marketing efficiency and market share from 1991 through 2000 with Compaq, Dell and Hewlett-Packard. It's performance is likened to the enterprise marketing efficiency and market share of Microsoft in 2006 just prior to Google's purchase of Double-Click.
Dell Is A Contrarian Dream
I wanted to turn your thoughts toward Dell they currently have a, back of the napkin, Earnings Yield of around 10 though not particularly cheap it may be an excellent business at a fair price with Michael Dell running the show. Anyway, they should report their restated earnings tonight.
Here is an excerpt from the article: "We think that beaten-up Dell (NasdaqGS: DELL) shares may be a profit
Buying The China Syndrome
Ideas from various investment newsletter writers on how to play yesterday's market declines resulting from the sell off in China.
Toward the end of the article, John Christy made the following intelligent point: "Why would a Brazilian airline like GOL be hurt by this? How on earth would the fundamentals of, say, Turkcell be remotely affected. You should back up the truck on those names. Same on
Home Depot- Do I Owe Mr. Blake An Apology?
It appears I may have been a bit to rash with Mr. Frank Blake, the new CEO at HD. After reading the transcript from today's conference call it appears that he may not be the shareholder patsy I initially thought he was. This turn of events also has me now looking much closer at shares of HD. Let's get to the call before we run out buy any though. In it Blake said of the very supply business that only last week the rumor mill had on the block to be sold:
Altria is the Most Overvalued Dow Stock
Last time we looked at undervalued Dow stocks. This time we take aim at the most overvalued.
Dodge & Cox Shareholders' letter
The Dodge & Cox Stock Fund has had an average annual total return of 14.86% over a 20 year period, handily beating corresponding S&P 500 return of 11.74%. D&C discusses their current market views and picks in their newsletter.
Overvalued Company of the Week: Hewlett-Packard (HPQ)
Modern Graham takes a look at Hewlett Packard (HPQ). It isn't a pretty sight: "The company’s size, current ratio, lack of positive net income for the past 10 years, and high P/E and P/B ratios eliminate it from being attractive for a defensive investor. With a P/E ratio of 52.53 and ROIC of only 6.66%, Hewlett Packard does not pass any of our tests to identify a valuable stock selection. We find that the current share price is between 250-270% above the intrinsic value."

