Summary Staples has been struggling for some time. Things are getting worse rather than better. Can't expect anything good from potentially very bad management. The company needs an activist investor. Wall Street estimate of 97 cents is optimistic. Expected EPS will come down over the next six months. Probable value trap for the time being until operations … [Read more...]
The Ascent of Money: A Financial History of The World
Also available at PBS website. https://www.youtube.com/watch?v=fsrtB5lp60s … [Read more...]
Playing The DirecTV Acquisition
Summary 3 risks to the AT&T/DirecTV deal are: 1) acquisition is blocked, 2) NFL deal falls through, 3) AT&T stock drops. Environment appears to favor the deal. AT&T's stable stock price is a positive. Assuming deal goes through then an investor could make money going long the stock alone or with some puts on AT&T for protection. On May 18th, … [Read more...]
Twitter: Why You Can Still Short It
Summary Pre-market drop makes perfect sense. The pace of user growth has declined at a much early stage than expected. Valuation is not justified based on this growth. Using a variety of scenarios, Twitter is at minimum 10% overvalued even including the pre-market decline of 11-12%. Around 4-5 hours before the market opens, Twitter (NYSE:TWTR) shares are down … [Read more...]
Sanmina: How Watching Guidance Lead To This Profitable Trade
Summary Tracking management guidance and conference calls can give you hints of what is to come. Sanmina's quarterly performance was improving and management was optimistic about 2014. Management's credible historical guidance convinced me that the market would like 2Q14 results. This is a simple yet powerful example of a plain analysis that can be applied to … [Read more...]
