David Sims

Long/short equity, special situations, activist investor
David Sims
Long/short equity, special situations, activist investor
Contributor since: 2012
Company: Ridgehaven capital llc
I like seeing these nice long comments in my article. Thanks.
Seems like it. The market may have a bit further to fall, but a cheap stock is a cheap stock.
Michael, I am not sure if you are aware, but there is a housing shortage brewing in this country. And KBH is cheap.
I wouldn't mind a billion dollar loan with interest rates this low. Best time in 30 years to add debt financing.
If the employment numbers aren't good, we can expect lower rates. Possible reason for the Fed to ask banks to test for negative rates.
I'm not 100% bullish here, but selectively, I think you could find some bargains and begin buying some shares. Hold them and wait. I'm talking deep value stocks.
What are they paying on that debt and for how long?
It's difficult to pick a bottom and not at all necessary to do it.
Nibbling is good.
With most of my articles, I have been urging longs to average-into positions over the next few months. When I clicked your link, I saw a lot of technically-driven fear. Fundamentally, this stock is a buy. It's very hard to find the bottom. So, take advantage of volatility by averaging in.
More on the Extreme Fear.
More on averaging into positions.
Doesn't Dow Theory suggests that Transports lead the market? I might be watching them more closely.
Extreme fear is usually a symptom of a correction, not a cause. We are already in that phase. By the time the word "bear" shows up in the headline, you need to start selectively buying. The exception is when it is a severe bear market due to leverage and a collapse.
I apologize for that. Usually editors catch my mistakes, which I admit, I make often. I tend to move onto looking at the next thing. Edits submitted.
Preferred shares that currently pay a dividend and paid a dividend during the "Great Recession" never dropped to bargain prices. Proven winners don't provide the best returns. Companies rebounding from the "Great Recession" have the best upside.
By the way, that recession is now seven years in the rear view mirror. If a company survived it, then they are likely a completely different organization by now.
One of them told me he has gone long. He's one of the first shorts in the stock. So, he made good money on the short side.
It looks like rates are dropping after the jobs number this morning. The short thesis is completely failing.
I think people expect a recession around the corner and they are looking at the last real recession we had and feeling fear about certain stocks. The market is selling off stocks that are already cheap. I have been putting in buy ratings on small cap value stocks.
Meanwhile, if you look at Large Cap Growth stocks, many of them are flat year over year. These are the stocks that are overvalued. It's my opinion that we are shifting gears in the market and fear is being misplaced.
I think you are right. As I have heard from other Impac investors, timing is the question.
Considering the 300% increase in revenue this year, I'd be surprised to see them impair the Goodwill.
It looks like this all came at the same time that the company agreed to be acquired.
This is not a group any company wants to join. That is, profitable companies with suspended dividends to preferred shares.
I don't trade funds usually. I buy stocks. The best time to sell a stock is when it hits your target.
If you are investing for retirement, I'd stick with small cap value, or value in general. There are lots of expensive stocks out there.
There are lawyers giving everyone heartburn in the Impac situation. For more than two years, I've tried to get them to talk about doing something and for two years, I hear that the court system needs to work it out. It's a shame really. The current downturn in the market is presenting some great opportunities. The plaintiffs holding IMPHP shares could move onto their next lawsuit and sue some other company, or buy some cheap stock. Impac is looking pretty cheap now too. Can you imagine the profit to be reaped by settling this lawsuit and launching all the equity to normal valuations?
The fact that the Fed is asking banks to look at negative rates for the stress tests means you may be right.
It's possible people are remembering GMAC from the financial crisis. Everyone is afraid of being burned twice.
Please check back in a few months from now and let us know how everything worked out.
They have loss reserves booked. That's already factored in.
I picked the largest ETF marked Small Cap Value for this article. That's the rationale.
Thanks for that tip.
Thanks for that comment.
I think you are right. Usually when people bash my articles, its because they want the price to remain low. Seems like this company is a buyout target, in my opinion. I hold no shares, by the way.
Yes. That's exactly what millennials want. They want to leech off of you...
In a few years, when you are cashing your social security checks remember who is actually paying for it.