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Brian Powers

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  • $2 Med Stocks With Macro Tailwinds [View article]
    Of course the ticker is SLTM, I copied and pasted your quote with the typo. My bad.
    Mar 27 11:21 AM | Likes Like |Link to Comment
  • $2 Med Stocks With Macro Tailwinds [View article]
    You state, "STLM is clearly a better value proposition if only taking into account the Price to Book, Price to Cash Flow and Price to Revenue."

    In regards to price to book for STLM, 87.75% of total equity is goodwill. This compares to 11.35% for ELOS, 11.01% for CYNO and 0 for CUTR.

    Price to tangible book value is around 2 for all of them EXCEPT SLTM which is negative at -5.25. Not good in my opinion.
    Mar 27 11:20 AM | 1 Like Like |Link to Comment
  • Canadian Oilfields Set for a Rebound - UBS [View article]
    Shareholders who exercised their Precision rights received their shares today. At a price of $2.709 for the issued shares, there may be some profit taking near term. This could be a buying opportunity for long term shareholders.

    Long PDS
    Jun 4 10:55 PM | Likes Like |Link to Comment
  • Bet on Buying Boyd [View article]
    Although your analysis appears extensive, it is simply a filling in of text book blanks with outdated information. True investing analysis would never have missed the fact that BYD delayed the Echelon project months ago. The fact that you highlight the property as a near term positive is quite inaccurate.

    When BYD begins expensing Echelon costs next year instead of capitalizing them, its profitability and financial ratios will be affected making your models obsolete. Also, there is some risk over the next year that BYD's metrics will violate its covenants.

    I am long BYD, but I understand the risks to my satisfaction. I hope your readers understand they should be doing their own research before making any investing decisions.

    This may be a nice college project, but it does not contain real world diligence.
    Dec 4 09:54 AM | Likes Like |Link to Comment
  • Grey Wolf Shareholders Deserve Better Buyout Offer [View article]
    You mention, "is six percent below the offered price." You should factor in the fact that PDS' dividend ex-date is this week. When accounted for, GW is not that much under the offer.
    Aug 26 09:52 AM | Likes Like |Link to Comment
  • Fisking Ben Stein on Goldman's 'Wrongdoing' [View article]
    Whoops, Long GS.

    Dec 24 10:05 AM | Likes Like |Link to Comment
  • Fisking Ben Stein on Goldman's 'Wrongdoing' [View article]
    GS has very high end clients. Both business and individual clients. When these clients demand a product, Goldman has to offer it even if it goes against Goldman's advice.

    These mortgage products were hot, hot, hot and if Goldman did not offer them, their clients would have gone elsewhere. Despite Goldman's own opinion, the clients still wanted them likely due to the hype. That is good business to give the customer what they want.

    However, when it comes to Goldman's own trading and investing, I expect them to do the best they can. They new these real estate investing vehicles were overdue for a dose of reality and they invested accordingly.

    They did not hurt their customers, they were helping them by giving them what they demanded. They did not push these vehicles like a floating interest rate mortgage on a minimum wager. They left it to these customers to make the decision where to invest. Then, Goldman did their own investing. End of story.
    Dec 24 10:05 AM | Likes Like |Link to Comment
  • Jim Cramer's Mad Money, 12/7/07: Don't Nix NYX [View article]
    There is a simple reason for the problem with NYX stock: the company is hard to value.

    First, there was Arca and then Euronext, two big acquisitions that needed to be integrated. It is hard to estimate forward earnings with these variables. Then, you have speculation that NYSE could buy NYMEX, or ICE. Again, it is hard to forecast that kind of uncertainty.

    Now, investors have the loss this week of the NYSE CEO and CFO to Merrill Lynch.

    When you look at all of these variables, you see a company that, for many, is hard to value (especially over the short term that seems so in vogue). Nevertheless, the company has grown revenues and earnings by about 50% over the trailing twelve month period.

    The best opportunities often arise when companies are hard to value.
    Dec 10 09:59 AM | Likes Like |Link to Comment
  • The 13 Basis Point Portfolio [View article]
    Matthew, great job. I am curious if you calculated the yield of this portfolio?

    jamy, you could, for example, set up a Roth IRA with Zecco.com and pay no commissions. Then, you could rebalance at regular intervals (quarterly, yearly, etc.). The only drawback to Zecco is if you reinvest, they do not offer partial shares on equity positions. This may offer a very inexpensive way to invest for those just starting out with small balances.

    I have no connection to Zecco other than using it myself for my Roth IRA.
    Dec 6 12:29 PM | Likes Like |Link to Comment
  • LHC Group: Strong Management Says it All [View article]
    My sources for the above article:

    EDGAR at SEC.GOV
    sec.gov/cgi-bin/browse...

    LHC Group's homepage
    lhcg.com/PageDisplay.a...

    Centers for Medicare and Medicaid Services
    www.cms.hhs.gov/

    Big Charts
    bigcharts.com/
    Nov 29 10:10 AM | Likes Like |Link to Comment
  • Investing in Water and Water ETFs [View article]
    John,

    If you are looking for a desalination company, check out Consolidated Water (CWCO). They are based in the Cayman Islands and use reverse osmosis to desalinate water. They develop and operate water systems primarily in the Caribbean.

    It is a small company with a market cap of $450 million. Their P/E has been between 30 and 60 for almost 3 years. P/Sales was between roughly 8 and 12 for the same time period. Short interest has exploded since August with the ratio now over 22. Insiders own about 10% of the shares outstanding and institutions about 55%.

    Of course, do your own research.

    I do not own CWCO, but it is held in PHO which I own.
    Nov 26 07:42 PM | Likes Like |Link to Comment
  • Investing in Water and Water ETFs [View article]
    Dano, I replied to your comment on my blog and will add it here as well. You make some good points. I agree that there is not a pure water fund that exists right now. It would be hard to do. It is difficult when many of the companies making the biggest profits from water are large conglomerates.

    In my article I wanted to look at the global water situation and then compare the ETF's that were available in that industry right now. I do not claim they are perfect, but I am satisfied so far with my holding in PHO. I feel that in and of themselves, most of the companies are solid despite their importance as a pure play on water. Honestly, I think it is a good fund despite the fact that it is called a water ETF.

    GE has 3% of its business in water. This is small. However, they are one of the most important companies in the water industry. It would be hard to ignore them completely in a water fund despite the dilemma. As I stated above though, I am comfortable with how this position is treated. In addition, I will say that GE, or Siemens are still excellent companies. I have no problem with exposure to them.

    Franklin Electric? They design and build water well pumping systems. They had two acquisitions this year to pump up that division - Pump Brands, Ltd. (South Africa), completed in June 2007, and the pump division of Monarch Industries (Canada), completed in September 2007. Water sales were down in the most recent quarter.
    (10-Q)
    sec.gov/Archives/edgar...

    Millipore cites strong demand for laboratory water products and higher sales in growing Asia/Pacific markets. It is not 100% of their business, but it is large and growing.
    sec.gov/Archives/edgar...

    Agilent also noted strong growth in water and waste testing despite the size of that business.
    sec.gov/Archives/edgar...

    Yes, some water utilities are in a tough spot, but in the long run, they will need to raise prices to deliver water. There is simply no way around it if the world wants water delivered to their homes. It will not happen overnight, but this is a long term investment for me, so I can be patient.

    In truth, I look at these ETF's more broadly than just pure water plays. I look at PHO as an industrial ETF with exposure to utilities and tech. It is a focused fund and I like the companies. Perhaps I should have spent more time addressing this point.

    Are these four specific water ETFs a gimmick? You may be able to make that point, but I do not think the need for water is a gimmick. Water is a fundamental need for all life and is not like "alternative energy" and "nanotech" which are emerging, untested industries.

    The truth is this that these ETFs are not "right" or "wrong" investment vehicles. Your research may show you they are not for you. That is fine. If we all had the same strategy, no one would make money. I have done the research and am satisfied to have the 3/4 sized position I hold in my Roth IRA.

    One other point, the alternative to holding a water ETF is to hold several individual companies. My account targets 12-15 security positions, so for me, this is the best way to play the industry despite its imperfections.

    Thanks for your comments. They really made me think.

    Good luck.
    Nov 26 07:29 PM | Likes Like |Link to Comment
  • PowerShares Water Resources: Capitalize on the Clean Water Trend [View article]
    Good post.

    I find PHO a little more diversified than CGW and PIO in holdings, but a little less geographically. That said, many of the US based companies that are held in PHO have strong international sales.

    I have written a comprehensive post on my blog about water which also compares the four water ETF's if you want to check it out at:

    cavemanus.com

    Long PHO
    Nov 24 01:29 PM | Likes Like |Link to Comment
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