In this article, I will briefly present the Piotroski F-Score and show the output from screening the Russell 3000. Joseph Piotroski received a B.S. in accounting from my alma mater, the University of Illinois in 1989. He worked as a senior tax associate at the firm Coopers & Lybrand before receiving an MBA from Indiana University in 1994, and a Ph.D. in accounting from … [Read more...]
What Works On Wall Street
I’ve decided to begin this new ‘Review’ section with a review of the book that inspired me and was the trigger or turning point to begin forming my strategy. This book is non-other than “What Works on Wall Street” by James O’Shaughnessy. If you have any doubt that value investing doesn't work then I guarantee you that this book will change your mind. The beauty of the book … [Read more...]
Staples: Is a Meltdown Coming?
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...]
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...]
