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2015-05-22

  • AlbertaSunwapta commented on The Science of Hitting's article 05-22 22:03
    Spotting Hidden 'Cockroaches' In Investing
    “There’s seldom just one cockroach in the kitchen. You turn on the light and all those others start scurrying around. I couldn’t find the...
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    AlbertaSunwapta 05-22 23:03
    • I have a theory (possibly pretty flaky) that people in many fields are there because an intrinsic interest and passion for that field. Earning a lot of money is secondary for many, many people.

      Then there's those working with money. There my theory is that among those people choosing to work with money, for the accountants, it's more due to capitalizing on a skill with numbers and transactions and not necessarily any passion to run, or own, or build a business. It's more about the transactions. (More like people that go to casinos to play cards because they like the action more so than winning and making money.) Then there those that go for MBAs. They want to make money but tend to lack a passion for any particular field.  They just want to make a lot of money doing whatever it takes. So,basically,  the cockroaches follow the money.
  • Hpeterscheck commented on Thomas Macpherson's article 05-22 21:11
    Know What You Own
    In 16th-century China two businessmen walked to the daily opening of their village marketplace. One of the businessmen carried a bag of silver coins...
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    Hpeterscheck 05-22 22:11
    • I agree.
      My prior investment mistakes have almost all involved too much leverage followed by some kind of shock.

      I now have "less than 4* net income of TOTAL debt" and "does company roll over debt" on my checklist and I avoid those unless there's a really strong thesis (hasn't been one).

      I think your point is especially strong in a low interest borrowing environment. Companies that are growing revenue but not income by leveraging are going to have a hard time when rates go up and managements strategy no longer works...
  • pravchaw made a stock note of $ICON: undervalued. See if there is insider purchasing. 05-22 17:56
    $ICON: undervalued. See if there is insider purchasing.
    Comment
  • pravchaw made a stock note of $TSX:CWB: Div; valuation 05-22 17:39
    $TSX:CWB: Div; valuation
    Comment
  • Thomas Macpherson commented on Thomas Macpherson's article 05-22 17:02
    Know What You Own
    In 16th-century China two businessmen walked to the daily opening of their village marketplace. One of the businessmen carried a bag of silver coins...
    View all 2 comments
    Thomas Macpherson 05-22 18:02
    • Hi Tony. Thank you very much for your comment. In my humble (and often wrong) opinion, my feeling is there is a potential for more damage than the 2008-2009 crash. During that time, the Fed at least had a few arrows in its quiver such as lowering rates, etc. Most of those have played out so I think highly levered companies are going to find very little running room if/when we see a significant downturn. I hope you have a great weekend as well. My best wishes - Tom
  • batbeer2 commented on The Science of Hitting's article 05-22 16:44
    Spotting Hidden 'Cockroaches' In Investing
    “There’s seldom just one cockroach in the kitchen. You turn on the light and all those others start scurrying around. I couldn’t find the...
    View all 9 comments
    batbeer2 05-22 17:44
    • >> I am not certain whether one can generalize this to other industries. Incentives are key everywhere, but I don't think there are other industries with a similar level of complexity and opaqueness as banking.

      I would argue that the complexity is created to fool the uninitiated. In essence it does not get much simpler than a bank.... yet that is where you'll find endless layers of complexity. GE created a bank to smooth earnings. Management didn;t even make a secret of it. So that is at least one case where we find managers have adding layers of complexity specifically to create earnings if and when they wanted. I'm happy to see GE is now simplifying its balance sheet.

      That captive bank they're spinning out almost brought down the company. 

      In sum,

      Is it bad behaviour that creates the complexity (think Enron)? or is it inherrent complexity that causes bad behaviuor to go undetected?

      Either way, a big balance sheet (relative to revenue) and opaqueness are joined at the hip.... which was my point.
  • Vera Yuan posts: 05-22 16:17
    Mario Gabelli Comments on Kraft Foods Group Inc
    – $87.12 – NASDAQ), based in Northfield, Illinois, is the North American grocery business of Kraft Foods Inc., which was separated through a...
    Comment
  • Vera post a new topic 05-22 16:17
    Mario Gabelli Comments on Kraft Foods Group Inc
    Kraft Foods Group Inc. (0.2%) (KRFT – $87.12 – NASDAQ), based in Northfield, Illinois, is the North American grocery business of Kraft Foods Inc., which was separated through a tax-free spin-off to shareholders on October 1, 2012. As a result,...
    Comment
  • Vera Yuan posts: 05-22 16:09
    Mario Gabelli Comments on Exelis Inc
    – $24.37 – NYSE) is a leader in C4 (command, control, communications, computers) and ISR (intelligence, surveillance and reconnaissance) products and...
    Comment
  • Vera post a new topic 05-22 16:09
    Mario Gabelli Comments on Exelis Inc
    Exelis Inc. (0.5%) (XLS – $24.37 – NYSE) is a leader in C4 (command, control, communications, computers) and ISR (intelligence, surveillance and reconnaissance) products and information and technical services. The company provides mission critical...
    Comment
  • sesco_inc commented on ValueInvestor7's article 05-22 16:04
    Tracking Guru Robert Sillerman At His Latest Venture, Viggle Inc
    Robert F. X. Sillerman, an entrepreneur who has founded companies worth over $6 billion to date, is at work again as CEO of Viggle Inc. (VGGL). With...
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    sesco_inc 05-22 17:04
    • This is the most outlandish set of twisted and half truths I have witnessed. 

      First off Gateway industries became FNCX then VGGL and the Feb 8th crap realtes solely to that firm.  SFXE is entirely a different scam and only related to VGGL/FNCX/GWAY through Sillerman.  Your "facts" are thus so twisted, it is hard to comment.

      Some things that were "left out" of this glowing article:

      Viggle has lost over $350M and its losses INCREASE monthly.

      Vilggle has lost over 99.98% of its value and undergone two (three if you count the initial recapitalization) R/S since inception.

      Viggle's predessor's price rose over 30,000% in two days when Sillerman announced his buyout but "forgot" to publish the agreement wherein he stated he was going to dilute the existing sharers into oblivion during that transaction.  And he did just that with a 300 to one R/S followed by a financing at the pre R/S price but for Post split shares (ie an effective 97% "discount" to the street shareholders)

      Yes...in split adjusted values the stock went over $8,500/share.  So why is it now $2.50/share?

      Viggle may or may not prove to be a good idea.  But so far, the market has yawned at it on the whole. 
  • Vera Yuan posts: 05-22 16:01
    Mario Gabelli Comments on AMETEK Inc
    – $52.54 – NYSE) is a leading global manufacturer of analytical instruments for the process, aerospace, and industrial...
    Comment
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