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2016-05-25

2016-05-24

  • batbeer2 commented on Holmes Osborne, CFA's article 05-24 23:20
    Dutch Online Broker Binckbank Faces Substantial Headwinds
    Binckbank (BINCK) is a Dutch-based online broker and bank. The stock has had an excellent dividend payout over the last few years but has faced...
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    batbeer2 05-25 00:20
    • Hi Holmes, thanks for sharing.

      You say:

      >> A foundation holds what management calls “Priority Shares” to thwart a hostile takeover. This should be considered before buying shares. I don’t like European anti-takeover measures, and it can dampen demand for shares.

      Bear in mind that Sweden is not Switserland and Italy is not Ireland. Talking about "European anti-takeover measures" is even less meaningful than talking about "American anti-takeover measures".

      Specifically, for the Netherlands, most publicly-traded companies have a simialr foundation with "priority shares".

      1) Legally, the goal of the foundation is not to fend off hostile takeovers. In practice, I can not remember this structure ever being used to that end. On the other hand, I have seen many cases where the structure was used to protect the rights of minority shareholders.

      2) TNT Express, Ten Cate, Océ, Versatel.... all had similar structures and all have been acquired. The foundation was never a problem for their acquirers.

      In short, it is fair to say that Dutch companies are fairly strightforward to acquire. The Dutch market, including the stock market, is extremely open. The Amsterdam Exchange was founded in 1603. It is considered by some to be the oldest stock market. While this is debatable, there is no question that the exchange established new standards for the freedom of transation. I would argue it still does.

      Meanwhile in America, Bartholomew Gosnold was trying to map a place now known as Cape Cod. He stumbled on an island which he subsequently named after his daughter Martha. 

      As for BINCK.... I would not touch that with a ten foot pole. Their service is very limited and their costs are high. Also, they expanded aggressively in Belgium and that country has now introduced a  "speculation tax". That is not good for transaction volumes which is where BINCK gets much of its revenue.

      Just some thoughts, thanks for sharing.
  • efactor commented on John Huber's article 05-24 22:16
    Importance of ROIC: 'Reinvestment' vs 'Legacy' Moats
    I’ve talked a lot about the importance of the concept of return on invested capital (ROIC), and how it is a key driver of value in a business. Feel...
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    efactor 05-24 23:16
    • Very insightful. Thank you. BTW, that should be Constellation Brands, rather than Constellation Software.
  • WARcpa commented on Mitchell Mauer's article 05-24 21:10
    5 Scholarly Articles to Validate Your Value Investment Bias
    Let’s admit it. As value investors, we all have a value investment bias. In fact, all investors are biased toward their preferred...
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    WARcpa 05-24 22:10
    • Ok, article has been added... Thanks!
  • reddyrm commented on John Huber's article 05-24 19:57
    Importance of ROIC: 'Reinvestment' vs 'Legacy' Moats
    I’ve talked a lot about the importance of the concept of return on invested capital (ROIC), and how it is a key driver of value in a business. Feel...
    View all 1 comment
    reddyrm 05-24 20:57
    • Very nice write up.
  • pravchaw commented on David Goodloe's article 05-24 19:30
    Charles Brandes Trims Stake in South American Petroleum Company
    Charles Brandes (Trades, Portfolio) of Brandes Investment bought more than two dozen new stakes in the first quarter, but most were comparatively...
    View all 1 comment
    pravchaw 05-24 20:30
    • Brandes performance record appears to be quite bad.
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