Portfolio Company Getting Acquired at 48% Premium

by on May 16, 2012 | Click to Follow Me on Twitter | LinkedIn

Tii Network Technologies (TIII) is a small communications company that accepted an offer of $33 m from Kelta Inc on Monday. This offer values company’s shares at $2.15/share which is a 48% premium to the stock’s closing price on Friday. Based on the assets, I feel that this acquisition is a good price for Kelta [...]

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$JPM is Just a Symptom of Wider Corporate Governance Issue – Why Do Shareholders Matter Less and Less?

by on May 13, 2012 | Click to Follow Me on Twitter | LinkedIn

Credit crisis, mortgage meltdown, irresponsible risk taking and leverage, record bonuses and bailouts. Fast forward to today, and we have JPM with their “we were stupid” moment. We all know what the problem is. Or do we? The large bonuses give the traders every incentive to load up on leverage and risk. Most of the [...]

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Exited $UVV: 10.94% Gain in 8 Months

May 11, 2012

I initially purchased UVV (Universal Corp) in the Value Stock Guide portfolio on Oct 13, 2011 at an average cost of $41.03/share and sold out of the entire position on May 10, 2012 at $45.72/share. Including commissions, the average capital gains amounted to 10.94%. UVV has also paid $0.98/share in dividends in the interim. Including [...]

The Trouble with the Financials Today …

May 11, 2012

It is 2:00 am Eastern time as I write this and about 9 hours past since the JPM conference call. The bank with the self professed “fortress” balance sheet fessed up to a bit of binging on the synthetic credit derivatives. $2 B in losses have been realized in April and Dimon expects another $1 [...]

Trouble Brewing Over at JP Morgan Chase?

May 9, 2012

Have you ever looked at a product and wondered how in the world it makes the seller any money? Well, the Slate Card from Chase (JPM) is one of those products. It offers a 0% introductory APR on both purchases and balance transfers for 15 months and charges neither a fee for transferring a balance [...]

This Just In… Newspapers are NOT Dying. And Other Tidbits from Berkshire Shareholder Meeting

May 5, 2012

As long as they are not given away. Buffett seems to like the newspapers, according to his take on the industry in the Berkshire Hathaway (BRKA) shareholder meeting today. His purchase of Omaha World-Herald last year has been working out well and he is thinking of buying more. The recent trend of newspapers erecting paywall [...]

4 Small Cap Stocks to Watch for May

May 4, 2012

Reasonable valuation, matched with good growth used to be all the rage a few years ago. GARP, as this was commonly known, meant looking for growth at reasonable prices. This is still a great strategy and it makes sense to try and find these kind of stocks in the small cap asset class. After all, [...]

Want to Invest in Commodities? Consider Producers Instead

May 2, 2012
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I have been asked a few times why I do not invest in commodities. As a value investor, it is really hard to wrap my mind around the notion that commodities might be considered an investment. Here is why. Commodities have no intrinsic value. They have price. But the price is not the same as [...]

Westell Technologies ($WSTL) Stock is Trading Close to Its Cash Value

April 28, 2012

Westell Technologies stock (WSTL) can be bought for close to the cash on its books. With a profitable business, this net-net stock can be a great undervalued investment for patient investor. The catalyst to move this stock forward will be the management’s strategy to put its cash to use to grow its OSP segment either organically or through acquisitions.

VSE Corp ($VSEC) Stock – Cheap: Yes, Undervalued: Perhaps Not

April 25, 2012

VSE Corp (VSEC) provides engineering and consulting services to the Federal government in the USA, primarily to the Department of Defense and the US Postal Service. These include maintenance of defense equipment, naval ships, logistics support, field engineering, IT support and consulting, and foreign military sales support. The company was founded in 1959 and is [...]

Get Bloomberg Businessweek Magazine for 85% Off

April 24, 2012

I was alerted by Bloomberg team that they currently have an 85% off offer for new subscribers to the Bloomberg Businessweek Magazine. You have a keen interest in business, economy, public policy and the markets, so why not get your week started with the information and the trends that are likely to affect you and [...]

Stocks Under $5 That Have Incredibly Cheap Valuations

April 20, 2012

While there is nothing magical about a stock price of $5 or below, it is an important psychological threshold. I do want to point out that there is a world of difference between a low stock price and cheap valuations. Low stock price does not mean that the company is undervalued. The reverse is also [...]

47 Top Dividend Stocks for April 2012

April 20, 2012

For investors searching for dividend yield, the amount of dividends paid is as important as whether the dividend can be sustained or even grown over time. For a value investor, it makes sense to look at dividend paying stocks as these stocks have a way of realizing value with each dividend payment. For this edition [...]

Taking Free Options Position Applying Zero Cost Strategy

April 15, 2012

Zero Cost Strategy as the name suggests is an option trading strategy in which you could take a free options position for hedging or speculating in equity, forex and commodity markets. This strategy is also known as Risk Reversal Strategy. In this article, we will apply this option strategy on particular stock as an example [...]

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