Are you a believer? When I talk about FatAlpha, I always tell people who look at my strategy to ignore the stellar performance. This is something any investor should do when they look at any fund or portfolio manager. Two of the most important questions are: a) Do you currently have an allocation or interest in the manager’s investment universe? Someone interest in bonds … [Read more...]
David Dreman
David Dreman is regarded as the dean of contrarians by many on Wall Street and in the national media. Dreman is the Chairman and Managing Partner of Dreman Value Management, L.L.C., a firm that pioneered contrarian strategies on the Street and manages more than 5 billion dollars of individual and institutional funds. The author of the critically acclaimed Psychology and the … [Read more...]
Newsletter – November 2015
November saw the FatAlpha Active portfolio cover October’s lost ground as it rose 2.6% versus 0.4% for the S&P 500. The position in Abercrombie & Fitch (ANF) rose 21% on an earnings beat while Stage Stores (SSI) dropped -20%. The loss on SSI was larger but news of insider buying activity and a monster 10% dividend yield brought in buyers that took the stock from $6 to … [Read more...]
Potential 50% Upside in Trinity
Summary 2015 is a historical record year for TRN. Extreme pessimism regarding litigation and industry has pushed stock to opposite extreme. 2016 earnings and positive litigation outcome to push stock up. Trinity Industries (NYSE:TRN) is a stock I hold in my portfolio. It currently trades at a P/E of 5x despite good results due to extreme pessimism. Company … [Read more...]
Why I Sold My Shares in Micron
Summary MU surprised the market with its EPS guidance. Fundamentals appear to be deteriorating. Taking into account recent results, the Inotera acquisition and guidance, the stock valuation is not sufficiently cheap enough for me. Micron Technology (NASDAQ:MU) came out with results yesterday. As the graph shows below, it has been a difficult year for … [Read more...]
2008 Financial Crisis
If there is one video you should see, it's the Bird and Fortune brilliant satirical video on the investment banking community. The set is completed by the 4-part Meltdown series, and the highly rated Overdose documentary. … [Read more...]
Why I Converted All My Shares to HPE
Summary Last month I concluded that both stocks were cheap and more information was needed. Post the recent earnings, enough information was supplied by the company to make a decision. The evidence I saw and how I decided to make the switch. Last month I wrote an article on Hewlett Packard Enterprise (NYSE:HPE) & HP Inc (NYSE:HPQ) with the title "Two Cheap … [Read more...]
