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November 2012



Just when I thought I was out...they pull me back in

November 30, 2012 – Comments (4) | RELATED TICKERS: SHLD , AIG

Like many value investors, I have been tempted by the siren's song of Sears and the Eddie Lampert story once or twice over the years.  I've never been tempted enough to put real money into SHLD, but I have played it here in CAPS once or twice.  Now I know that he seems like quite a Sears cheerleader, but the famous fund manager Bruce Berkowitz once again made a very compelling case for the languishing retailer in a great recent interview with Fortune Magazine.  He also provides a brief update on a stock that I do own, both here and in real-life AIG.  He was one of the first bulls to the party on that one.    [more]



Optimists Make More Money Than Pessimists

November 29, 2012 – Comments (7)

Conventional wisdom says always protect the downside in investing.  To think of the worst possible things that could happen with an investment to try to poke holes in your initial bullish idea.  To short some stocks to hedge your bets.  Well, today I have decided to defy conventional wisdom and make the statement that "Optimists Make More Money Than Pessimists."  Investing is inherently an optimist's game.  Quickly, name for me the most famous investors in the recent history of investing.  Let's see, there's Warren Buffett, Peter Lynch, you get the idea.  You know what these individuals have in common...I'll give you a hint, they weren't short-sellers.  That's right they made money by going long stocks and being optimistic about their futures.  [more]



Heads: Win Big; Tails: Lose Nothing

November 27, 2012 – Comments (1) | RELATED TICKERS: PW

Hi everyone.  I hope that you all had a great Thanksgiving holiday.  I know that I personally have a lot to be thankful for...a wonderful family, a great job, a great place to live, good health.  With so much negativity out there in the news today it pays to take a second to count one's blessings.  I try to do so as often as possible.  It's actually been scientifically proven to change the brain for the better.  Try googling it some time.  Amazing stuff.  [more]



Stay far away from Harbinger Group (HRG)

November 20, 2012 – Comments (2) | RELATED TICKERS: HRG

As someone who has been following and writing about Philip Falcone's public investment vehicle Harbinger Group (HRG) here in CAPS for several years now, I felt obligated to bring the following scathing review of HRG that was recently published by someone called "Shareholder Watchdog" over on Seeking Alpha to everyone's attention.  First a disclaimer that other than in CAPS I have never personally been either long or short HRG.  I just think that there's enough shadiness surrounding Philip Falcone and the Harbinger Hedge Funds that one should stay far away from HRG.  [more]



The newest type of REIT...Casinos

November 16, 2012 – Comments (2) | RELATED TICKERS: PENN

OK, we have prisons, data centers, gas stations...and now casinos.  One company after another seems to be converting either completely or partially into "tax-efficient" vehicles like MLPs and REITs lately.  Today a company in yet another sector announced that it's taking the leap...gaming.  Penn National Gaming (PENN) announced today that it is planning to convert into two companies, one of which will be a REIT that owns all of the organization's real estate and leasts it to a Penn National operating company.  Not surprisingly, shares of PENN soared nearly 30% on the news of this move.  [more]



Special Situation Investing News - 11/1/12

November 01, 2012 – Comments (12) | RELATED TICKERS: NFLX , TROX.DL2

Hi everyone. I hope that all of you who are on the East Coast are safe.  I am still without power at my home and probably will not have any for at least another week.  Yikes.  Hooray for having in-laws with power who live near by.  Hooray #2 for filling up with gas in both cars before the storm rolled through.  There is almost no gasoline around here right now and the stations that do have it have lines that are hours long and fist fights.  [more]

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