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Daryl Davis'  Instablog

Daryl is quick to point out he is simply a Buffett hack. As such, and because there is a distinct absence of commas in his net worth, he could be called the poor-man's version of Mohnish Pabrai. After winging it through college studying philosophy and religion, Daryl has since pursued his... More
  • A Very Leverage-Wary Partridge in a Pair Tree
    A Very Leverage-Wary Partridge in a Pair Tree
     
    The mere thought of effective pair trading is alluring: Earn relatively safe (and often sizable) profits using other people’s assets. Imagine two companies from the same industry with similar business models but quite disparate stock valuations. If Stock A is valued at “X times some factor,” and Stock B is valued at 1.50 times X using the same or a similar valuation method, then one can arbitrage the 50% disparity by shorting Stock B and buying an equal long position in Stock A. No matter what happens to the two stocks’ valuations in an absolute sense, if they eventually become more commensurate relative to each other, a trader can exit that singular position with a return on investment that is impressive, but a return on equity that might be expressed using at least one comma. The mechanics: a broker loans a trader (using his net account value as collateral) the shares for Stock B, which the trader immediately sells for cash (i.e., the monetization of someone else’s assets) which in turn is used to purchase a complementary long position in Stock A. The trader then waits, allowing the market to correct itself. Few market maneuvers are more satisfying for an investor than the effective execution of a pair trade.
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    Nov 29 03:53 pm | Link | Comment!
  • Weighing the Business and Thinking About Markets

    This is the seventh in a series of articles covering the home healthcare industry. See part 1 here, part 2 here, part 3 here, part 4 here, part 5 here and part 6 http://seekingalpha.co....

    Facts are simple and facts are straight, facts are lazy and facts are late,
    Facts all come with points of view, facts don’t do what I want them to,
    Facts just twist the truth around, facts are living turned inside out,
    Facts are getting the best of them…

    —David Byrne’s “Crosseyed and Painless”

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    May 26 07:39 pm | Link | 2 Comments
  • Old Hat Meditations

    This is the sixth in a series of articles covering the home healthcare industry. See part 1 here, part 2 here, part 3 here, part 4 here, and part 5 http://seekingalpha.co....

     

    In the last article, we used AFAM as a case study to assimilate the dynamic drivers of VN admissions growth we reviewed in the first four articles. AFAM had 7,737 admissions in 2001, of which almost 60% were referred from hospitals, about 30% from physicians and the remainder from various assisted living facilities. It had 39,666 admissions in 2008, of which about 45% were referred from physicians, 35% from hospitals and the remaining 20% from assisted living facilities. That 23% CAGR in admissions over eight years can be broken down as follows:

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    May 19 11:44 pm | Link | Comment!
  • Looking Forward to Patient Growth

    Looking Forward to Patient Growth

     

     This is the fifth in a series of articles covering the home healthcare industry. See part 1 here, part 2 here, part 3 here, and part 4 http://seekingalpha.co....

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    May 10 06:50 pm | Link | Comment!
  • Short Explanation

    Short Explanation

     

    This is the fourth in a series of articles covering the home healthcare industry. See part 1 here, part 2 here and part 3 http://seekingalpha.co...

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    Apr 29 05:14 am | Link | Comment!
  • Technology, Nietzsche and Weapons of Mass Destruction

    Technology, Nietzsche and Weapons of Mass Destruction

     

    (This is the third in a series of articles covering the home healthcare industry.  See Part 1 http://seekingalpha.com/article/130009-home-healthcare-industry-ghosts-in-the-demographic-machine and Part 2 http://seekingalpha.com/article/131170-home-healthcare-industry-systemic-breakdown?source=yahoo.)

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    Apr 22 06:54 pm | Link | Comment!
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