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May 2013



Capital Allocation

May 29, 2013 – Comments (8) | RELATED TICKERS: XOM , CVX

The manner that a company allocates its operating cash is a topic that I’ve been trying to delve into more and more in the past few months.  There are dozens of ways that companies’ management can use cash generated from business activities: return cash right back into the business via CapEx, use extra cash for acquisitions or other investments, buy back shares, pay a dividend, etc.  Sometimes management will use up a lot of cash before the cash even “gets” to the Operating Cash Flow line item on a cash flow statement.  Accumulation of inventory, which is an example of a working capital drawdown, is a cash deficit activity that could probably be viewed to similarly to CapEx – you’re essentially investing back into your business.   [more]



A couple macro articles worth reading today

May 21, 2013 – Comments (0)

Helicopter QE will never be reversed  [more]



One of the best-run shipping companies is looking incredibly bullish

May 16, 2013 – Comments (4) | RELATED TICKERS: DSX

Yes, here is another blogger claiming that it's time to jump into DSX.  Cool story, Hansel.  Right?  Well, whatever.  [more]



My largest RL holding

May 16, 2013 – Comments (3) | RELATED TICKERS: VGT , AAPL , GOOGL

My current largest RL holding is VGT.  I originally took an initial stake in it over a year ago, but over the past 6 months I've decided to stop trying to pick tech winners, and have transitioned out of individual tech stocks and into the VGT.  My only remaining tech position outside of the VGT is a small stake in EMC.  [more]

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