Use access key #2 to skip to page content.

December 2011



Gold, Gold, Everywhere but Not an Ounce to Spare

December 29, 2011 – Comments (0) | RELATED TICKERS: GLD

There has been a great deal of brouhaha lately about gold, whether it’s entering bear territory and where it’s headed in the next year or so. To make things even more interesting, everyone I talk to seems to own gold in one form or another. Without trying to predict a crash or anything of the sort, this whole situation reminds me of the technology boom, the mortgage boom etc. where even the waitress at the local dive bar seemed to have a profoundly well informed opinion on who was going to IPO next or where housing prices were headed.  [more]



My Predictions for 2012

December 28, 2011 – Comments (3)

The coming election year portends nothing but gloom with forecasts of a respite from losses for real estate investors, continued punishment for overly optimistic hedge fund managers (Paulson comes to mind here) and increased opportunities for the teachers’ pension funds to continue being the target for ill-conceived IPOs.  Most of the problems of 2011 remain unresolved and Europe still does not seem to have quite gotten over its issues even given the recent bailout offered by the ECB.  [more]



Of Investing Mistakes, Mea Culpas and Schemes Galore

December 12, 2011 – Comments (4)

Warren Buffett has on occasion stated that the worst investment mistake was buying Berkshire Hathaway, the textile company (not the Holding Company), after the CEO reneged on his word to honor Buffett’s $11.50 tender offer. Buffett then went on a vengeful stock accumulation spree to gain control of Berkshire, eventually firing the CEO. He’s also been quoted as saying that he bought Conoco Phillips at the wrong price.   [more]



The USPS is Dead, Long Live the Postal Service

December 11, 2011 – Comments (10) | RELATED TICKERS: WMT , FDX , UPS

The USPS is getting ready to line up at the bailout counter as revenues and mail volumes decrease and staff costs continue to climb even as layoffs and post office closures grow. The situation looks even bleaker with the expected increase in fuel costs and continued decline in mail volumes and DVD rentals going forward. With $65B in revenues, the USPS lost $5B during the fiscal year ended September 2011.  [more]



Zynga: Riding a Tiger

December 05, 2011 – Comments (3) | RELATED TICKERS: P , LNKD.DL , GRPN

Zynga is the latest in a long line of IPOs slated for 2011. Famous for Farmville and a corporate culture that would make Enron blush, Zynga is distinctive from the likes of Groupon (GRPN) and Pandora (P) in that it is already profitable, carries about $900M in cash on its balance sheet and boasts a line-up of experienced and savvy management executives.  [more]



Airlines are Officially a Historic Relic

December 01, 2011 – Comments (7) | RELATED TICKERS: AAMRQ.DL , LUV , UAL

A lot has been said about the non-viability of high speed train systems in the United States, even citing China’s teething problems with it. Well, for how long are we going to keep propping up airlines that have failed to figure out a profitable business model?  [more]



Lululemon Investors Need to Start Acting Rationally

December 01, 2011 – Comments (2) | RELATED TICKERS: LULU , NFLX , NKE

Lululemon (LULU)’s stock price fell by 11% at the start of trading this morning and I couldn’t help but wonder if my shot-in-the-dark thesis that not that many people needed fancy Yoga pants was beginning to get realized. On the contrary.  [more]

Featured Broker Partners