Interesting that you apply the matching principle of rates to future cash flows. I'm not so sure though because the discount rate yields a present value, and I think in order to get present, you have to use rates in the current environment, otherwise you may be comparing apples to oranges (cash flows in a future interest rate environment to the current interest rate environment). Just a thought and I'm not entirely sure myself. Thanks for the quick response, Alex
To build on the previous comment, an ERP of 6.5% is also slightly on the high side of things. I'm not suggesting you're wrong - more just curious about these inputs and why you picked them? Thanks! Alex
I liked this methodology but stopped paying attention when I saw the risk-free rate of 4.3%. Haven't seen many models using figures that high with the US 10 year currently at 2.15%
I've Never Owned A Rolex, But Maybe It's Time To Invest In Taubman [View article]
You perform some excellent analysis. Would be great to see this same quality applied to undiscovered small-cap equities outside of the REIT space. Thanks! Alex
Looks like a good one Paulo, any interest in doing a volatility trade and structuring it for a slight long bias? Don't know if the reward-risk is better...just feel that you can be more confident in the size of the move than in the direction it will go.
Holding My Nose And Buying 'Government Motors' [View article]
Totally agree Brett,
PEG at 0.47 and cash at almost 70% of market cap vs. Ford with PEG at 0.89 and cash at just over 45% of market cap. Both autos are good buys but GM has much bigger upside. Buyside agrees and this is a top 10 hedge fund holding. Einhorn spells out the value thesis better than anyone and he is arguably the king right now.
Bruce Berkowitz Expects To Make 4 Times His Money On His Core Holdings [View article]
Not sure if you were referencing my comment when you said "all the talk about doing due diligence" but yes I have taken the time to understand the industry (albeit, a cursory understanding), I knew the risks, and I also know if I had been paralyzed with fear - as you seem to be - I wouldn't be sitting on the gains I have now.
I agree there seems to be a 'bandwagon' factor now, but that has only developed to a significant degree over the past month. For those of us that were long for much of 2012 (or even earlier), this was a textbook value investment.
The Not So Hidden Catalyst For General Motors [View article]
^not the average market participant - responsible to taxpayers not shareholders, so there's an inherent difference of incentives. To "be out" is perhaps more valuable than waiting in hope of profit.
What Cooper Tire & Rubber Is Worth [View article]
What Cooper Tire & Rubber Is Worth [View article]
What Cooper Tire & Rubber Is Worth [View article]
What Cooper Tire & Rubber Is Worth [View article]
I've Never Owned A Rolex, But Maybe It's Time To Invest In Taubman [View article]
General Motors: The Stars Are Aligned For A Double [View article]
An Interesting Trade In Tesla [View article]
Holding My Nose And Buying 'Government Motors' [View article]
http://bit.ly/10ccOQK
Holding My Nose And Buying 'Government Motors' [View article]
PEG at 0.47 and cash at almost 70% of market cap vs. Ford with PEG at 0.89 and cash at just over 45% of market cap. Both autos are good buys but GM has much bigger upside. Buyside agrees and this is a top 10 hedge fund holding. Einhorn spells out the value thesis better than anyone and he is arguably the king right now.
Full disclosure I'm long.
Apple Could Learn A Thing Or Two From Qualcomm [View article]
Bruce Berkowitz Expects To Make 4 Times His Money On His Core Holdings [View article]
I agree there seems to be a 'bandwagon' factor now, but that has only developed to a significant degree over the past month. For those of us that were long for much of 2012 (or even earlier), this was a textbook value investment.
Respectfully, Alex
The Not So Hidden Catalyst For General Motors [View article]
The Not So Hidden Catalyst For General Motors [View article]
Diversifying Your Portfolio: The $100,000 Growth Strategy [View article]
General Mills Is A Top Choice For Risk-Averse Investors [View article]