Aug 272014
 

If you’re new here, you may want to subscribe to get stock tips or have investing ideas delivered to your email. I’m also on The Twitter.Thanks for visiting!Tweet Well. That was a good clever start to an article if I’ve ever seen one. Oh. Turns out I already made the same joke. I even made the same joke about how witty I was in making the joke. It’s all very meta. Last week I re-joined Facebook, after being off the site for approximately the last five years. Why? It’s not Read More [...]

Aug 262014
 

Tweet Gather round kids, it’s story time. There won’t be snacks, mostly because there isn’t a way to deliver such things over the internet. Amazon is working on it, but there won’t be an accurate computer-to-computer potato chip drone system until 2016 at the earliest, so we’ll have to continue living like savages. Back when I was in Canada and I actually drove, I hit a hell of a pothole, which ripped a small hole in the side of one of my tires. I took it to the shop hoping for Read More [...]

Aug 252014
 

Tweet About once a month, I run various stock screens looking for my kind of investment — former high-flying companies that are beaten up and currently trade for less than liquidation value. These companies tend to have very little debt and strong balance sheets,  They tend to be small-caps, often companies most of you haven’t heard of. Sometimes they pay dividends, but that doesn’t factor into the screen at all. And for the most part, I ignore the mountain of regional U.S. banks, because a) I don’t have the patience to Read More [...]

Aug 232014
 

Tweet Just a few weeks after I announced I bought some shares, Danier Leather came out with its 4th quarter and full year 2014 results, which were more craptacular than having to explain for the 4,999th time why you don’t drink alcohol. For the full year, revenue came in more than 10% lower than last year, and the stock ended up losing $2.00 per share. The 4th quarter wasn’t great either, as sales were down something like 15% and the loss was more than double last year’s. A couple of Read More [...]

Aug 222014
 

Tweet Notice how the title says SHORTING Coke and not SNORTING Coke? I feel like it’s important that you know the difference between the two. I’ve talked about this a number of times before, but I really think you’re a sucker to buy Coca-Cola shares at these levels. It trades at more than 22x earnings, even though income (and revenue) has been pretty flat. It keeps buying back shares by using debt, even as it gives ALL the options to management, pretty much negating the effort. And it’s getting practically desperate Read More [...]

Aug 212014
 

Tweet Since last week went so well, here’s another post from Eddie. He blogs at Summaticus, which is worth a couple minutes of your time.  Every human being lives in a world governed by the laws, principles, and concepts of economics. Our lives are subject to the principle of scarcity, in that the earth only possesses limited resources to satisfy our infinite needs and desires. At a microeconomic level, a person has a limited amount of capital to satisfy their needs, wants, and aspirations. Therefore, we must hone our decision-making Read More [...]

Aug 202014
 

Tweet I stumbled upon an interesting article over at Seeking Alpha yesterday, talking about margin debt and how its growth nicely correlates with the stock market in general. Let’s steal a small part of his work. As you can see, the price of the S&P 500 and the level of margin debt have moved pretty much hand in hand throughout the whole chart. The author of the piece breaks it down even further, suggesting that most major stock market corrections were actually predicted by margin debt, which peaked a few Read More [...]

Aug 192014
 

Tweet As I’ve mentioned approximately 6,395 times before (author’s estimate, but I’m pretty sure it’s right), you need to read a ton if you’re going to be a successful investor. Personally, I read at least a couple hours a day, and maybe even more. I have a book that I’m working on (currently The Snowball, Warren Buffett’s biography, for the third time), I read Seeking Alpha and of course Motley Fool almost every day, and I cruise the interwebs for all sorts of interesting stuff. I also stumble upon interesting Read More [...]

Aug 182014
 

Tweet Remember the last time I told you kids to play a merger arbitrage? It was when Prem Watsa announced he was looking to take over BlackBerry at $9 (U.S.) per share. The stock traded at $8.02 at the time. And as we all know, the deal didn’t happen, sending shares reeling, all the way down to below $6 per share before finally recovering. It hit a high of $11.50 in July, before settling down into the $9.50-$10 range, where it sits today. Remember, these are all U.S. dollar prices. Related: Read More [...]

Aug 162014
 

Tweet I’m in the middle of launching something new. You’ll know more about it next week during the official premiere, which is enough of a tease for you to be interested, but not so much that you hate me. Financial Uproar usually walks that line, actually. Just look at the dick jokes. This project hasn’t required much in money (at least so far, it probably will later), but I’ve spent probably 20-30 hours going over the plans, setting things up, and so on. Throughout the process I’ve had doubts that Read More [...]