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May 2012

Recs

7

Margins, how much should they matter?

May 31, 2012 – Comments (9)

I always think the thing that matters most is earnings, and future earnings.  Companies with wide margins tend to have much higher multiples.  It makes sense because there is more room for error.  [more]

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10

Stock market sayings, in more thought

May 22, 2012 – Comments (7)

I tried posting this earlier but it got eaten by a glitch.  [more]

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2

If big banks are so evil...

May 21, 2012 – Comments (12) | RELATED TICKERS: BAC , JPM , C

Then keep your cash under a mattress.  [more]

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7

NAV does not matter

May 16, 2012 – Comments (8) | RELATED TICKERS: SVVC , GSVC , PHK

Fairly often i see blogs written about funds, suggesting to buy or sell the fund solely based on price/NAV.  To me, this is very flawed, in every scenario.  Let us explore:  [more]

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9

Stock world vs real world

May 15, 2012 – Comments (2) | RELATED TICKERS: JCP

To me, it is no surprise that JCP got smacked after hours.  JCP has a huge run based soley on the fact that Ron Johnson took position of the company.  But do you know anybody who all of a sudden got excited to shop at JCP since he took over? Did any consumer care?  Do you even know anybody who likes JCP?  [more]

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11

Long JPM

May 11, 2012 – Comments (13) | RELATED TICKERS: JPM , BAC

Trading profits and losses are not a fundamental part of a banks earnings and are subject to volailitiy.  JPM has a great track record of trading.  Their earnings power is still phenomenal and this is a one-time event, and it reduces their book value by like 1%.  IMO, a PERFECT time to jump in on a sell off that was way unwarranted.  [more]

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13

Macro vs Micro

May 04, 2012 – Comments (7)

I have been investing since I was 5, but really only got into it around 2 years ago.  A trend I have noticed:  [more]

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5

Holy cow...

May 02, 2012 – Comments (1) | RELATED TICKERS: SAN , BBVA

http://seekingalpha.com/article/541951-the-secrets-of-the-spanish-banking-system-that-99-of-analysts-fail-to-grasp

I did not realize spains housing bubble was so bad...

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3

Where does book value fit part 2

May 02, 2012 – Comments (5)

I just wanted to add Another quick thought I had to my previous blog about where book value it's into the equation
If you just care about earnings and not book value, imagine u had a company with no growth. You probably wouldn't buy this company but bare with me. They have a book value of 10, earnings of 2 a year, and a price of 20. If they never pay a dividend and instead retain earnings, in order to maintain a constant p/e of 10, the stock will never go higher If you don't factor I book value because they will always earn 2. After 500 years they've earned 1000 in cash. You're going to tell me the company is still worth the same thing it was before it had 1000 per share of retained earnings, as it was after it retained all those earnings? Impossible. I just don't really know where to fit it in to the equation
Also conversely, does p/e matter at all for banks, or only book value?  [more]

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