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March 2014



Comparing Amazon to other High Fliers

March 31, 2014 – Comments (2) | RELATED TICKERS: AMZN

For years now, Amazon has been almost impossible to try to value using many traditional measures.  Earnings, in addition to being razor-thin, have been inconsistent.  Amazon doesn’t pay a dividend.  Free Cash Flow was nearly zero last year.  [more]



The Power of a World Class Business Model: Overcoming Idiocy

March 26, 2014 – Comments (2) | RELATED TICKERS: HD

I've been doing quite a bit of historic financial data collection over the past several months.  I've collected complete financial statements on about 50 companies now, each with about 20 years of data.  [more]



Rule #1: Invest in a great company. Rule #2: Get a good price. Rule #3: Rule #1 > Rule #2

March 25, 2014 – Comments (15)

Being a value investor at heart, I tend to migrate toward articles, blogs, and headlines that speak to value or discount stocks.  For me, finding items at 10, 20, or even 30% off the sticker price feels like a bargain, psychologically.  (I find myself not only doing this with the stock market, but in other aspects of life, too.  I once purchased a coat at 70% off the retail price.  I ended up wearing it once.  It sat in my closet for 2 years before I finally took it to a Goodwill.)  I even read a tweet just this morning that said “ultimately, it’s all about the price you pay.  Everything else is secondary.”  [more]



Note to The Motley Fool - You're Missing your Opportunity with CAPS.

March 20, 2014 – Comments (3)

At the top of Seeking Alpha's homepage, they have added a hyperlink that redirects to a WSJ article.  The article is titled: "Study: Crowd Sourced Stock Opinions Beat Analysts, News."  [more]



Lululemon looks a lot better now than it did a year ago

March 19, 2014 – Comments (0) | RELATED TICKERS: LULU , NKE , KORS

Almost one year ago to the day, I submitted a blog post that looked at Michael Kors and Lululemon.  At the time, both companies were trading at similar P/E ratios.  Both companies had similar ROA, ROE, profitability metrics, no debt, lots of net cash, etc.  But one metric that stood out at me was the fact that KORS had same store sales in the 20-40% range, while LULU only had same store sales in the high single digits.  I came to the conclusion that of these two retail companies, KORS seemed like the winner.  [more]



A quick look at Ford (F)

March 16, 2014 – Comments (2) | RELATED TICKERS: F

Ford is trading at a P/E of 8 right now (about half the S&P 500), and I've seen a few articles highlighting the potential value in the cheap shares.  I did a little digging to see if it was something I might be interested in.  [more]



Returns on Equity and Assets of the "longest lasting" S&P 500 Companies

March 14, 2014 – Comments (1) | RELATED TICKERS: KO , MMM , HSY

A few months back, JohnCLeven posted a blog titled The 56 (non-utility) components from the S&P 500 (founded in 1957) that are still in the S&P 500 today.  I like this list of companies, because of the durability of the business models and the confidence I have that investments in these companies are (save a few) likely very safe.  For each of these companies, I jotted down their recent ROA and ROE and looked at some numbers.  I also removed the financial/insurance companies.  [more]



Comparing 2 dollar stores

March 13, 2014 – Comments (0) | RELATED TICKERS: DLTR , FDO.DL , WMT

While retail company stocks, in general, have been depressed the past few months due to weak quarterly sales, dollar stores have been hit particularly hard on new that Wal Mart is attempting pursue expanded growth of its "Express" format.  [more]



What constitutes impressive growth?

March 11, 2014 – Comments (2) | RELATED TICKERS: HAIN

It is very often that investors, media, bloggers, and newspapers completely ignore operating performance and focus on revenue, net income, and cash flow growth.  For this group of people, the fuel required to achieve this growth barely matters.  [more]



What P/E multiple should you pay for growth stocks?

March 06, 2014 – Comments (11)

In the 1977 annual letter to Berkshire Hathaway shareholders, Warren Buffet had the following to say about buying stocks:  [more]



2 Oil Giants - have the investments been worthwhile?

March 05, 2014 – Comments (1) | RELATED TICKERS: XOM , CVX

It seems that over the past year or so, with today being some "icing on the cake," ExxonMobil (XOM) has been heavily criticized for its inability to increase output.  Exxon's announcement today to taper CapEx spending for 2014 was accompanied by a prediction that production would be flat.  This criticism and drop in share price should not come as a surprise since retail investors, institutional investors, fund managers, CNBC, and just about anybody on the planet only cares about one thing: top line and bottom line growth (at the expense of just about anything, I might add).  [more]

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