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Yesterday

2017-03-26

  • Sivaram commented on Holly LaFon's article 03-26 21:57
    Bruce Berkowitz Buys More Shares of Sears as Stock Tumbles
    Hopes raised by a chairman’s letter on future strategy March 9 were crushed Wednesday when Sears Holdings listed a “going concern” statement in...
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    Sivaram 03-26 22:56
    • Does anyone have any idea why Berkowitz would buy Sears common shares? He could have bought the bonds.

      The thing that is interesting to me is that the vast majority of Berkowitz's forune is in Fairholme (as far as I know). He is investing his own money into Sears at this stage, while also being a board member. He has been wrong over the last few years but what does he see now? Why invest more now?

      Anyone else bullish on Sears or thinking of it?
  • Sivaram commented on John Huber's article 03-26 21:49
    The Behavior of Stock Market Manias
    I’ve heard more and more commentary/concern about the level of the overall market lately. With the market relentlessly marching to new all-time...
    View all 3 comments
    Sivaram 03-26 22:48
    • Stocks are overvalued and probably in a bubble for an indirect reason. I think the real bubble is in bonds. When investors in the bond market, which is much larger than the stock market, are buying bonds as if yields didn't matter, I think it is a bubble. For instance, huge quantities of capital are being invested in sub-2%-yield bonds, with some near negative yields in other parts of the world. This is likely pushing up stock market valuations. If the "exuberence" in bonds dissapears, I think stocks' overvaluation will be obvious.

      So to sum up, the real bubble is the notion that 'you can never lose money buying bonds, especially government bonds from developed countries.'
  • Mrinalini Chaudhuri posts: 03-26 20:45
    Taking a Look at Flower Foods Stock
    (FLO), one of the largest producers of a full line of frozen and non-frozen bakery and dessert products, reported fourth-quarter and full-year results. Sales during the fourth quarter and full year...
    Comment
  • Sangara Narayanan posts: 03-26 20:38
    Why a Long or Short Position in Facebook Is a Tough Decision
    Instagram, the photo-sharing app Facebook (FB) bought for a billion dollars in 2012, has been on a record-breaking growth spree, with more than 600 million users globally. Moreover, the company recently hit another crucial milestone of 1 million...
    Comment
  • Dave Ahern posts: 03-26 20:33
    Latticework of Mental Models: Better Decisions, Better Investors
    How do we become better investors? Better decision makers? Having a latticework of mental models to hang our thoughts and choices on is a great start. Creating these models is how we learn to become better decision makers. Before creating our...
    Comment
  • Sangara Narayanan posts: 03-26 20:14
    Have You Ever Considered a Dividend Play on Microsoft?
    In the last 12 months, Microsoft’s stock price has run up nearly 24%, and it is now trading above its recent 52-week highs. In fact, Microsoft is now regularly making new 52-week highs thanks to the steady increase in cloud-based revenues. But...
    Comment
  • Naman Shukla posts: 03-26 20:11
    Microsoft Is Betting Big on Artificial Intelligence
    Microsoft (MSFT) ended 2016 in the green, up more than 10%. Moreover, the stock is off to a good start this year, with a 5% rise year to date. As a matter of fact, the company’s upward movement started in early 2013. Since then, it has...
    Comment
  • Praveen Chawla commented on Rupert Hargreaves's article 03-26 18:11
    Replicating Berkshire Hathaway With Options
    The way Warren Buffett (Trades, Portfolio) has constructed Berkshire Hathaway (BRK.A)(BRK.B) is incredibly clever. From the very beginning (when...
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    Praveen Chawla 03-26 19:11
    • The problem with selling puts on stocks is that you got to be right.  The puts can be put to you at anytime and if so you will have to buy the stock.  The float can disappear very fast and unexpectedly.  Also if you are too far in the money then the premium is very low.  Anyway interesting concept but risky.
  • LwC commented on Holly LaFon's article 03-26 14:43
    Eddie Lampert's Statement on Sears Outlook
    March 9, 2017 by Eddie Lampert To Our Associates: Following our year-end financial results announcement this morning, I wanted to reflect on the...
    View all 2 comments
    LwC 03-26 15:43
    • March 9:  “We are in a financial position to continue to fund our operating needs and meet our financial obligations.”

       

      March 22:  "'Our historical operating results indicate substantial doubt exists related to the company's ability to continue as a going concern,' Sears said in its annual report for the fiscal year ended Jan. 28. (bit.ly/2mRUcce)”

       

      Sheesh! What a difference just a couple of weeks makes. Incredible!

       

      http://www.reuters.com/article/us-sears-going-concern-idUSKBN16S2WG?il=0
  • mihajlosalamon post a new topic 03-26 13:27
    online investment company
    moneyonlineinvestment is a great website that allows investors to invest money online through stock exchange, users can buy digital shares of internet website which is a great investment technique especially for the beginners , it is very easy and very...
    Comment
  • mihajlosalamon post a new topic 03-26 13:21
    investing in the stock market
    Virtual stock market on the internet. Investment in the best profitable internet shares. At share market real-time the things which people are willing to do become further available including grow life investments and reach investment targets....
    Comment
  • mihajlosalamon post a new topic 03-26 13:07
    russian online tv
    Online Russian tv is the most popular in Russia means. And it indicates the media from Russia to the mass media based in the Russian Federation. Media from Russia and varied, with a wide range of broadcast and print media available to the consumer. And...
    Comment
  • batbeer2 commented on batbeer2's article 03-26 12:25
    Yesterday Is History, Tomorrow a Mystery, now DJCO is a Present.
    Leucadia, Fairfax, Berkshire and Loews can’t hold a candle to the Daily Journal Corporation (DJCO). The company has increased book value per share...
    View all 37 comments
    batbeer2 03-26 13:25
    • >> I will be getting BAC not cheap but almost market.

      Can't help you there. I like BAC. In my view not expensive at current prices.
  • softdude2000 commented on batbeer2's article 03-26 09:36
    Yesterday Is History, Tomorrow a Mystery, now DJCO is a Present.
    Leucadia, Fairfax, Berkshire and Loews can’t hold a candle to the Daily Journal Corporation (DJCO). The company has increased book value per share...
    View all 36 comments
    softdude2000 03-26 10:36
    • Thanks for the reply. DJCO is $270M. DJCO owns 1.59M shares of WFC. So it is 1/3 of DJCO. Another 1/3 is other portfolio. Another 1/3 DJCO is DJCO business. I am willing to swap WFC for WFC of DJCO and DJCO business. I am good with swap idea of 2/3 of DJCO. DJCO is like VC business and I want to risk that with a managing partner like Charlie and Guerin.

      But my problem is with 1/3 DJCO - BAC and other portfolio. Munger bought BAC very cheap but if I buy DJCO today, I will be getting BAC not cheap but almost market. Will I swap 2 shares of BAC for one share of WFC - I dont know. Is intrinsic value of $90M portfolio is same as intrinsic value of $90 of WFC.
  • batbeer2 commented on batbeer2's article 03-26 08:37
    Yesterday Is History, Tomorrow a Mystery, now DJCO is a Present.
    Leucadia, Fairfax, Berkshire and Loews can’t hold a candle to the Daily Journal Corporation (DJCO). The company has increased book value per share...
    View all 35 comments
    batbeer2 03-26 09:37
    • >> Batbeer2, what do you think of doing a tax-free conversion of my WFC holdings to DJCO at todays prices...

      Hmm.... interesting problem, thanks!

      WFC => 1.6 x book

      DJCO => 2x book

      But DJCO has some tax liabilities on book that they are never going to pay. Meanwhile one could argue WFC's liabilities are mainly deposits (non interest-bearing and without due date). I could not make a strong case for swapping one for the other for valuation reasons.

      Here's my speculative thoughts though:

      - I like the fact that Munger/DJCO has been investing in some other unknown foreign company in recent quarters. 

      - I suspect at some point DJCO will spin out their WFC (and some other) holdings to their shareholders so if you swap now you will end up holding WFC shares at some point anyway. 

      - FWIW I swapped some AXP shares for DJCO shares last month. 

      Let me say this then, if you swap WFC for DJCO and then WFC takes off like a bottle rocket you are somewhat hedged; you own WFC thorugh DJCO. You will get those WFC shares at some point. So if you have any other reason to swap, you can do it without worrying too much that you'll miss out on the upside (if any) of WFC.
  • The Science of Hitting commented on Holly LaFon's article 03-26 06:35
    Eddie Lampert's Statement on Sears Outlook
    March 9, 2017 by Eddie Lampert To Our Associates: Following our year-end financial results announcement this morning, I wanted to reflect on the...
    View all 1 comment
    The Science of Hitting 03-26 07:35
    • "We saw the disruption of retail coming more than a decade ago and built a differentiated online shopping and membership platform – Shop Your Way – to ensure our participation in the next wave of retail."

      Judging by top-line revenues or comp store sales growth (negative each of the past ten years), they have a lot of work left to do to ensure their participation in the next wave of retail...

2017-03-25

2017-03-24

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