I hope my American friends had a fun Halloween. The entire month of October was Halloween to me as the Active strategy witnessed volatility with the alpha gyrating in a 6% range (specifically -3% to +3%). When all was said and done, the market had a monster up month with the S&P 500 rising 8.9%, while the FatAlpha Active portfolio rose 6.3%. The best performers were … [Read more...]
Archives for November 2015
Stage Stores On Clearance For Thanksgiving
Summary Post-earnings, the stock dropped -30% resulting in this undervalued opportunity. The stock trades at a 8.1% yield, and at a huge discount to both historicals and the industry. Insiders have been buying between $6-7. The insider buys in the past were good entry points. The buyback announced a day before insider purchases could result in a repurchase of … [Read more...]
1998 Collapse of Long-Term Capital Management
BBC2 Documentary on how these Nobel prize winners lost $4.6 billion in under 4 months and needed a bailout by 16 banks! … [Read more...]
Avnet: How To Play This ‘Cheap’ Low Margin/Low-Growth Stock
Summary A global player trading at around 10x LTM earnings. A look at the fundamentals, variety of valuation methods, guidance, historical guidance and headwinds. Investors interested can profit by focusing on the low end of the valuation and the 200-day MA. Avnet (NYSE:AVT) is a global electronics distributor and along with competitor Arrow Electronics (NYSE:ARW) … [Read more...]
Two Cheap Stocks But Both With Worries
Summary The article takes a look at both HPE and HPQ pre and post separation. Each company has issues to deal with, but are both cheaply priced. Each company has its set of problems, but more information is needed before taking sides. If forced, to choose HPE looks slightly more attractive. Personally, am holding onto both stocks until I have more clarity. As … [Read more...]
Proofpoint Proves It’s Worth Shorting
Summary Stock trades at over 10x sales with an increasing share count. Despite product leadership and market penetration, it has never made a profit. Faces competition from larger and better-funded competitors that offer a wider range of products. The CEO owns 1 share. Company insiders have sold over $73 million worth of stock as they constantly cash … [Read more...]
Arrow Electronics Is Pointing Sideways
Summary Arrow is a global leader in tech distribution, trading at under 10x earnings. Financial results indicate sideways performance at best with growth mostly coming from buybacks. Despite cheapness the stock should be avoided based on FX headwinds, weak benefits from acquisitions, and cash flows that don't justify a long. Arrow Electronics (NYSE:ARW) is a … [Read more...]
