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Brad Stanger  

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  • Accounting For Falling Margins At Telefonica [View article]
    I think the expense of the plan is the present value of longer term payouts which may number several years, or potential for the lifetime of some employees. What this means is that the company is effectively lowering its current costs in favor of longer term fixed payouts. Good now. Perhaps bad later.
    May 13, 2012. 10:07 AM | 1 Like Like |Link to Comment
  • 2 Stocks That Taught Me How Not To Invest [View article]
    Timing is critical - definitely a good point. But I'm curious, are you just a beneficiary of the stock's high volatility, or do you think it has a strong future?
    May 9, 2012. 09:31 PM | Likes Like |Link to Comment
  • 2 Stocks That Taught Me How Not To Invest [View article]
    Corporate governance could be better. Agreed.
    May 9, 2012. 09:28 PM | Likes Like |Link to Comment
  • 2 Stocks That Taught Me How Not To Invest [View article]
    Yes in fact Warren Buffett's purchase was in part what motivated me to look at BofA. But, as mentioned above, he is getting 10% on his preferred stock while he waits to see if his option will become valuable. Additionally this country has proven that it will never let an institution like BofA go under. So Mr. Buffett has all of the upside - and his downside is +10%. Under those terms, I would happily be in BofA. But, as an individual investor, the returns are less promising.
    May 8, 2012. 07:45 PM | Likes Like |Link to Comment
  • All Eyes Should Be On Financing For Telefonica's Q1 Results [View article]
    richjoy403 - great comments. You've gotten me thinking and I've produced some additional analysis dealing with a lot of the questions that you raise:
    Apr 30, 2012. 08:39 AM | Likes Like |Link to Comment
  • I'm Sticking To My Guns And Selling Starbucks [View article]
    AGREE. It's got a good brand, but nothing is a buy at any price. Definitely overvalued.
    Mar 12, 2012. 01:51 PM | Likes Like |Link to Comment
  • Why Warren Buffett is Wrong About Gold [View article]
    Agree with Buffett on this one. If not for investors like yourself, gold would have no value. You're making a bet on people like yourself, not on gold.
    Mar 11, 2012. 12:04 PM | Likes Like |Link to Comment
  • Research In Motion: Opposing Views From Our Users [View article]
    I think in this kind of a situation, it's better to sit on the sidelines. The company's future in incredibly uncertain, and it has already shown us that in this rapidly changing market, sales can fall off a cliff with little warning. Sure, it could bounce back. But there's so much risk on the table that it doesn't seem worth it.
    Mar 10, 2012. 07:35 PM | Likes Like |Link to Comment
  • Is Kimco Really A Stable Investment? [View article]
    Great article Brad; I really liked your analysis.

    You are correct, B++ represents valueline's rating of the company's financial strength, not the credit rating agencies'. This is my error.

    I think though, the underlying logic still holds. There is a lot of risk here as their financing is dependent on the value of their investments. In fact, it is likely the safest companies where most of the danger lies, because the risks are not well understood. During the financial crisis, it was the AAA rated CDOs that suffered the most, while the relatively 'more risky' CDOs dropped less in value because their risks were more well understood by the market.

    A dividend in the 4% - 5% range is relatively paltry. And while you point out that the company has enjoyed relatively high equity appreciation since the IPO, that IPO was in 1991. Since 2002, the price has been relatively flat. I think a 4% - 5% yield plus minimal equity appreciation potential is not very exciting, especially given the company's exposure to so much risk.
    Mar 8, 2012. 02:02 PM | Likes Like |Link to Comment
  • Did You Forget Wal-Mart Was A Growth Stock? [View article]
    Two thoughts on this:

    1) The nationalistic implications of an investment in Wal-Mart are important to consider, especially if we worry about the position of the US going forward. Wal-Mart is responsible for a large portion of our trade with China.

    2) Wal-Mart's debt should be a positive for shareholders, given the stability of its earnings and the strength of its credit. The additional capital will allow the company to grow faster, making the equity in the capital structure relatively more valuable than if the company had not financed its growth with debt.
    Mar 6, 2012. 09:05 PM | Likes Like |Link to Comment
  • Did You Forget Wal-Mart Was A Growth Stock? [View article]
    The market is kind to those who are patient
    Mar 6, 2012. 09:01 PM | Likes Like |Link to Comment
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