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Stock Market Articles, Stock Reviews, Screens and Idea Stocks

The HP ($HPQ) Shocker – This Must be the Bottom, Right?

by November 20, 2012

Before you worry that Autonomy sucked the wind out of HP’s sails, remember, HP does not even know where the ship is going. My recommendation? Keep avoiding the stock.

[Member] MAXY Offers a Rare Low Risk Investment Opportunity

by November 15, 2012

Maxygen (MAXY) historically has been a biotech company engaged in discovery and development of protein pharmaceuticals for the treatment of chemotherapy-induced neutropenia and acute radiation syndrome. For the last several years, the company has stopped its operations completely and is actively trying to monetize its R&D assets and return value to the shareholders. As of [...]

Portfolio Update: 28.70% YTD vs 9.72% S&P, Out of $DEXO

by November 11, 2012

While updating the portfolio performance figures today I realized that I did not report the sale of DEXO from the Premium portfolio, as I typically do for my readers. So here it is DEXO Sale On Oct 25, I sold out of the remaining 50% of the DEXO I still owned and recommended the members [...]

Value Investing Stock Selection – The G.U.T – Part 3

by Shailesh Kumar October 22, 2012

More in Value Investing G.U.T Series Part 1: Business Lifecycle Part 2: BCG Matrix Part 3: Stock Selection and Portfolio Management Stock Selection Matters For value investors, active portfolio management remains much more an art then science. There is sufficient value investing literature available that describes the methods and processes fundamental analysis to find appropriate [...]

[Member] Universal Insurance Holdings (UVE) – Attractive for Non Typical Reasons

by October 15, 2012

Universal Insurance Holdings Inc. (UVE) is a Florida based home owner’s insurance company that is working on diversifying its footprint and risk profile by developing a presence in other states. The company started operating in 1990 in more or less the same manner as our earlier pick HCII by taking over policies from the Citizens [...]

Extreme Value Stocks: 1 of These Stocks Can make You Very Rich

by Shailesh Kumar October 8, 2012

4 Extreme Value Stocks for Your Portfolio Choose your own metrics and run these stocks through your own diligence process. You will find that these stocks tick most of the boxes for undervaluation. This is one of the most stringent screens I run, with the following filters P/E below 10 P/B below 1 Cash/Price > [...]

Q3 Wrap Up – VSG Portfolio Up 33.62% Vs S&P500 14.56% YTD

by October 1, 2012

As you recall, we ended Q2 with 18.74% YTD returns. Q3 turned out to be relatively eventful with several nice exits. Before we go into the details of the exits, let’s recap the quarterly performance to date for 2012. 2012 Performance, YTD Q1 Q2 Q3 Since Inception (Jul 23, 2009), cumulative Value Stock Guide Portfolio [...]

[Member] Recommend Continue to Hold American Greetings

by Shailesh Kumar September 26, 2012

American Greetings (AM) today received a buyout offer from a group led by its CEO, Zev Weiss, the President/COO Jeffrey Weiss, other executives and their families. The offer values the company at $580 million, or $17.18/share. While the offer is a 20% premium to the closing price yesterday, it still undervalues the company. The shares [...]

Thank You for Your Terrific Response!

by September 22, 2012

About a week ago I opened up the Lifetime membership to the premium service and the response from you has been spectacular. I just want to take a few moments and thank all the new members who have taken advantage of this offer as well as the current members who have upgraded. Based on the [...]

Using the BCG Matrix – The G.U.T of Value Investing – Part 2

by Shailesh Kumar September 20, 2012

More in Value Investing G.U.T Series Part 1: Business Lifecycle Part 2: BCG Matrix Part 3: Stock Selection and Portfolio Management In the previous article in this series, we looked at the lifecycle of a business from startup to growth, maturity and decline. We also learned that value investors typically look at the businesses in [...]

Value Investing as Explained by Danny DeVito

by September 19, 2012

This is a short and concise illustration of the value investing process and makes for an enjoyable viewing. I specially love the part about “but there is one small problem. The company is not profitable …”. Interestingly, he also alludes to the margin of safety concept in this clip Video courtesy: 40procent20ar on Youtube

The G.U.T of Value Investing – Part 1 – Business Life Cycle

by Shailesh Kumar September 16, 2012

More in Value Investing G.U.T Series Part 1: Business Life Cycle Part 2: BCG Matrix Part 3: Stock Selection and Portfolio Management Success in value investing is as much about your approach as it is about your ability to run models in Excel. It also depends on your understanding of the business. There are some [...]

35%, New Plan and Site Improvements

by September 16, 2012

Update: Monthly membership plan has been retired. Click to see why Sometime during the last week, the YTD return of the Value Stock Guide portfolio crossed 35%. It now stands at 36.43%. S&P 500 meanwhile has returned 16.55%, excluding dividends. Interestingly, 27% of the portfolio is still in cash and has been this way for [...]

Recent Sale: $TUES Sold at $6.26/share for 71.18% Gain in Less Than 6 Months

by Shailesh Kumar September 10, 2012

There are actually two sales to report. Tuesday Morning (TUES) was purchased on Mar 9, 2012 at an average cost of $3.64/share. Last week, on Sep 9, 2012,  the entire position was liquidated at $6.26/share for a gain of 71.18% Another partial sale was made on Aug 21, 2012 on a stock that I still [...]

On Liquidity in Small Cap Value Stocks – Why it is Seldom a Problem?

by September 3, 2012

Small cap stocks generally have a liquidity problem. This is one of the reasons why most investors stay away from small cap stocks. This is also one of the reasons why good undervalued stocks are easier to find in this asset class. The market for highly liquid stocks is also normally highly efficient. The price [...]

Value Investing – Why You Fail?

by Shailesh Kumar September 2, 2012

Here is a riddle. Despite countless studies proving the superiority of value investing over growth or indexes, investors do not normally invest for value. Why is that? Don’t they want better performance and greater wealth? Christopher Browne of Tweedy, Browne in his presentation to the Columbia Business School (Nov 2000) talks about how most money [...]

The Bitter Truth About Stock Buybacks

by August 15, 2012

Monster Beverage Corp., (MNST) stock was brought to my attention yesterday as a potential investment due to its fast growth and increased share buyback program. I am going to take this stock as an example to illustrate why company management is often misguided when they buy back their own stock. Stock Buybacks can Destroy Value [...]

Investing in Solar Stocks – Where is the Bottom?

by Shailesh Kumar August 10, 2012
Solar Cells

Solar Stocks are in Cyclical Down Cycle The solar supply chain has been decimated and solar stocks are struggling due to over supply of Polysilicon and excess capacity. So what does this mean for the solar stocks and when is a good time to invest in them? Like semiconductors and most other industries that require [...]

Stocks are Dead! A "Gross" Mistake if You get Suckered in this Gloomy Forecast

by August 1, 2012

Be fearful when others are greedy and be greedy when others are fearful – W.E.Buffett Bill Gross of Pimco, the bond man himself, writes in his monthly market analysis that the "cult of equity" is over, and the consistent long term returns for stocks since 1912 will be viewed as a historical freak. Gross follows [...]

Sold $HCII, 96.23% Gain in 4 Months

by Shailesh Kumar July 18, 2012

Last week I sold off Homeowners Choice (HCII), a Florida based Property insurer. The stock was initially recommended to the Premium members in March of this year, and I purchased the stock for the Value Stock Guide portfolio on Mar 02, 2012 at an average cost of $11.18/share including commissions. The stock was sold at [...]

Q2 Wrap Up – VSG Portfolio up 18.74% vs S&P 500 8.31% YTD

by June 29, 2012

What a way to finish the first half of 2012! The relief in the markets is palpable with the possibility that a solution to European debt crisis may be on hand. The story, of course, does not end soon, but the market will take any improvement in the situation. The Value Stock Guide Portfolio ended [...]

3 Ways the Individual Mandate in Affordable Care Act Will Affect Your Investments

by Shailesh Kumar June 28, 2012

Affordable Care Act is Here to Stay With the Supreme Court ruling the individual mandate in the Affordable Care Act as constitutional, it is time to start looking at how this law can affect your investments. Some of the effects are direct while some others are indirect. 1. Some companies and their stocks benefit A [...]

Portfolio Company $NEI Acquired at 85.8% Premium to Last Close

by June 19, 2012

The saga of Network Engines (NEI) comes to an end with the agreement today with Unicom Systems to acquire the company for $63.2 m in an all cash deal and take it private. The price offered at $1.45/share is 85.8% above the closing price of NEI yesterday at $0.78/share. I recommended and purchased Network Engines [...]

Is $NOK Becoming Too Cheap?

by Shailesh Kumar June 14, 2012
Thumbnail image for Is $NOK Becoming Too Cheap?

Nokia (NOK) started today with the news that it is cutting 10,000 jobs by the end of 2013 and increased its loss guidance for the second quarter. The stock is down to $2.34/share or about 16% on the news. Sadly, this has become a familiar story for Nokia over the last year or so, as [...]

Curious, How Many Trust Stock Recommendations from Financial Media

by June 11, 2012
Thumbnail image for Curious, How Many Trust Stock Recommendations from Financial Media

Stock Recommendations – Popular is Not Often Profitable You would think that the financial media, even the reputable ones, have your best interest in mind when they publish their stock recommendations. You would be excused for believing that they actually do some research before they publish their analysis. If you do, you are giving them [...]

Cooper Tire ($CTB) – Attractive Long Term Investment

by Shailesh Kumar May 30, 2012

The automotive industry in the US has seen its ups and downs, and while it is resurging now, few years ago it was on life support. Many of the factors that were pulling the sector down, such as weak consumer demand, also affected the replacement tires market. Consumer’s were more likely to wait longer to replace their old tires, where possible. Cooper Tires is one of these tire companies that have seen worse days and is now rebounding with general improvement in the economy, and the economics of their business.

$ARCO – The Growth that May Not Come

by May 28, 2012

Arcos Dorados Holdings Inc. (ARCO), incorporated on December 9, 2010, is a McDonald’s franchisee. As of December 31, 2010, the Company operated or franchised 1,755 McDonald’s-branded restaurants, which represented 6.7% of McDonald’s total franchised restaurants globally.

The Corporate DNA – What Makes a Company Resilient?

by Shailesh Kumar May 26, 2012

Corporate DNA The Corporate DNA is not a mythical term. It is much more than Corporate Identity. It is not the same as branding. It is a sense of history that reflects in the way a company conducts its business. It is entirely internal. To be a successful person, you must first know yourself. The [...]

Newspapers are Getting More Buffett Attention

by May 25, 2012

Soon after purchasing the newspapers owned by Media General, Warren Buffett has now indicated that he may buy more newspaper assets in the coming years. According the the memo posted on the Omaha World-Heralds Buffett remarks "We will favor towns and cities with a strong sense of community, comparable to the 26 in which we [...]

Giving Away 200 Free Lifetime Memberships to Value Stock Guide Premium

by Shailesh Kumar May 21, 2012

Ever want to follow a value investor with excellent long term track record? Want to know which stocks he is buying or selling and why, as it happens? This is your chance to win 1 of the 200 Free Lifetime memberships to the Value Stock Guide Premium I am giving away. It is easy to [...]

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