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In investing you need to be able to separate the wheat from the chaff



December 18, 2012 – Comments (2) | RELATED TICKERS: EVEP , VZ

I just did a tour of the interesting Seeking Alpha articles there are out there today.  Like with anything there's some amazing stuff over then and some that's not so much.  To me, one of the keys to successful investing is sifting through a tremendous number of ideas, as many as possible, and separating the wheat from the chaff.  With all of the information on the Internet today, there's absolutely no reason to sit there banging your head against the proverbial wall trying to come up with new investment ideas when there's so many outstanding ones available at one's finger tips.  Again, the key though is picking the good ideas out of the noise.

Here's a couple of interesting articles that I have found over on SA today that I plan on looking into further:

EV Energy Partners: Utica Shale For A 50% Discount by MLP Trader

Key quote: "One company that's well positioned to benefit from interest in the Utica shale is EV Energy Partners (EVEP), an upstream Master Limited Partnership with a $2.5 Billion market cap. EVEP currently holds a vast working interest in the Utica shale, which it plans to sell because the speculative nature of the play makes it inappropriate for a distribution-focused MLP. As we'll see, the market has priced EVEP's Utica acreage far below its likely sale price. A sale that even comes close to previous prices gives EVEP enormous upside potential.

In the company's last conference call on Nov. 9, Executive Chairman John Walker confirmed that EVEP has received multiple offers for its Utica acreage and expects to close a deal before year-end 2012. The deal may involve either cash or a swap for other assets that are more suited for an MLP. So we expect to see a major move in EVEP's valuation over the next week or two...

In short, when you buy EVEP, you're not just getting a bargain on wildly undervalued Utica acreage, you're buying into a management team that has an amazing track record of recognizing value that others have overlooked."

Talk about an imminent catalyst.  This has me interested immediately.

Verizon: 3 Catalysts For This 4.6% Dividend Yielder by Smart Equity

I'm not buying Verizon, but I did find this quote very interesting:

"As mentioned previously, Verizon and AT&T sell the major chunk of smartphones. However, the key differentiator between the two is the smartphone penetration. If we analyze the results of the two companies, the difference is very much visible. AT&T reported a smartphone penetration of 81% in the third quarter, meaning smartphone sales account for 81% of its total postpaid sales. On the other hand, Verizon ended the most recent quarter with a smartphone penetration of only 53%, up 3% from Q2 2012."

America Loves Comeback Stories, And There Is None Greater Than AIG by Tim Travis

I continue to like AIG and own it in CAPS and real life

The Dirt Cheap Value Portfolio: 'Quality Rather Than Quantity' by Mark Krieger

I found this blurb particularly interesting:

"Diamond Foods: Selling at below book value (6% discount) and beaten beyond recognition, renders this snack food maker a prime buyout candidate. All its potential bad news and then some, has been baked into its share price, as hate selling has gone unabated. This one has really only one direction to go, and that is up. Even DMND's worst critic (Jefferies) raised its price target 10%. Weaknesses: Commodity oriented, everlasting toxic perception. Target price: $19"

Diamond has been a complete mess and it defrauded tons of investors by cooking the books, but I'd buy just about anything that didn't morally offend me at the right price...and I don't find popcorn and nuts to be very offensive.  Still I personally would like to see a larger discount to book value than 6%.  I can totally see how brands like Pop Secret, Kettle Chips and Emerald would be attractive assets for a potential buyout.

Well, that's all the time that I have for now.  Thanks for reading everyone.  Happy Holidays and have a great evening.


2 Comments – Post Your Own

#1) On December 18, 2012 at 11:03 PM, portefeuille (98.81) wrote:

my separation effort yielded this wheat list for biopharma equities :)

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#2) On December 18, 2012 at 11:06 PM, portefeuille (98.81) wrote:



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