Archive for April, 2009
An important metric when investing during a recession
Over the last year, “cash is king” has become the modus operandi for companies everywhere. In an environment where revenues are declining and credit markets are difficult to access, the conservation of cash is an important aspect of maintaining the business and living through the recession.
To gain a better view of the cash flow generation [...]
Dell, Value or Value Trap?
Recently read an interesting article on Dell posted by Peridot Capitalist and thought I’d post my two cents on the topic. You may remember my recent post admonishing Dell’s product strategy, but sometimes bad companies can still have good stocks. Could this be the case at Dell?
Dell’s Share Performance
Dell shares are down over 60% over [...]
The best retirement advice you’ll ever get
Most 401k retirement accounts limit you to the purchase of various employer specified mutual funds or ETFs. If you’re like me and have spent most of your time learning how to pick individual stocks, the idea of having to be forced into seemingly over-diversified funds can be a bit disappointing at first. Passive indexing, however, [...]
read more »A Retail Investing Framework
Generally speaking, I see myself as a value investor. Why then, would am I so often looking towards retailers and generally consumer facing businesses for my best investment ideas (see: A Retail Reversal and Irrational Retail Valuations)? After all, many of the best retail stocks are those that rely on growth to provide shareholder return. [...]
read more »A Retail Reversal
Anyone who reads this blog knows my affinity for retail stocks, particularly apparel retailers. Simple businesses with measurable demand yet so complex and diverse in execution and strategy. More importantly, retail stocks can be quite volatile as investors fall in and out of love with the stocks almost as quickly as consumers fall in and [...]
read more »GE still offers value even after 64% rally
As with the rest of the market, GE’s stock has rallied significantly off its March closing low ($6.66, 3/5/09). Maybe more comforting, the stock’s now seems to have firmly developed support above $10 per share. While not significant from a fundamental stand point. $10 stocks are sometimes a key threshold for certain mutual funds or [...]
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