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Thursday Value Overview

August 18, 2011 | About:
Today’s overview has a great Charlie Munger link, a look at HP (HPQ), a link to the old and rare Paul Tudor Jones documentary as well as a few of his current holdings, comments on Barnes & Noble (BKS), and links to some charts showing that some leading indicators are predicting very bad things for this economy.

Here’s a link to the audio from the last Wesco annual meeting with Charlie Munger. Or, I should call it a Morning with Charlie. Many thanks to Matt Pauls.

It appears that Hewlett-Packard (HPQ) is on the verge of completely overhauling its business. Dealbook reports that the company is close to a $10 billion acquisition of software maker, Autonomy. They would be able to spend their big stash of overseas cash. The plan would then be to spin off HP’s PC business and focus on the higher margin software business. Richard Pzena, Dodge & Cox, and Mark Hillman are the gurus with the largest HP holdings.

Seeking Alpha had a link to the Paul Tudor Jones documentary, Trader. You can find it here. I hadn’t seen it in a few years and took the time to watch it again today. Wow, is it dated. The documentary is from 1987, but it may as well have been from the '60s. According to GuruFocus, which follows Jones’ trades, his largest holdings at the end of the second quarter were call options for FXI, and shares of TLT and EEM.

It’s been interesting to watch Barnes & Noble tumble all the way down to $12. Liberty Media (LCAPA) still has their $17 offer on the table, but word now is that John Malone has had trouble getting financing for the deal (or at least that’s what’s being floated), and he may invest in Barnes & Noble rather than pursue an outright deal. Barnes & Noble shares now trade below where they did before the offer was even made. The market is down during that period, yes, but Barnes & Noble is $2 cheaper now. However, there’s still plenty of room to get to their 52-week low of $8.45.

Amazingly, the 10-year went below 2% today. That’s even lower than it had been during the 2008 crisis. That’s just amazing and goes tos how much fear there is right now in the markets. Much of that fear came about today because of the extremely poor Philly Fed numbers. Business Insider has some charts showing just how bad it is out there.

Disclosure: No positions.

About the author:

Steven Kiel
Steven Kiel is the president and chief investment officer for Arquitos Capital Management, a Virginia-based investment management firm. He is a graduate of George Mason School of Law and a captain in the Army Reserves. He manages two spoke funds, The Freedom Fund, a value-oriented portfolio, and The Hayek Fund, a portfolio dedicated to free market principles. He can be contacted at steven.kiel@arquitos.com or through the firm's website at www.arquitos.com.

Visit Steven Kiel's Website


Rating: 3.0/5 (4 votes)

Comments

slkiel
Slkiel - 3 years ago
Just a note that after I wrote this, news came out that John Malone has taken a position in Barnes & Noble and abandoned the full acquisition. Information is here.

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