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Ernest Wong  

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  • Apple: The Bull Comes Back [View article]
    One thing I wonder is whether its that easy for the market to simply change its valuation of Apple. For Apple to rise by 30% would require additional capital of $225 billion. By comparison, that is more than the entire market value of Facebook, Russia's sovereign wealth fund, and Canadian Pension Plan. Not saying its impossible, but the money has to come from somewhere.
    Apr 27, 2015. 12:35 PM | 1 Like Like |Link to Comment
  • Hargreaves Services: A Value Investor In Disguise [View article]
    congrats on a thought provoking and well-researched idea
    Apr 22, 2015. 11:03 AM | Likes Like |Link to Comment
  • Staples Clearance Sale Going On Now [View article]
    That's exactly my point. You didn't provide us with any reasons or insights at all on why its reasonable to expect the deal will pass through regulators, especially for such an intensely scrutinized deal.
    Apr 17, 2015. 02:23 PM | 10 Likes Like |Link to Comment
  • Staples Clearance Sale Going On Now [View article]
    I cannot understand how this was selected for PRO. There was virtually no details or unique insights in anything about Staples or Office Depot or the acquisition that we couldn't have discovered in maybe 5 minutes of reading.
    Apr 17, 2015. 01:51 PM | 12 Likes Like |Link to Comment
  • eBay's StubHub sues Ticketmaster, Golden State Warriors [View news story]
    Very interesting. I hope stubhub wins, because their tickets can be noticeably cheaper.
    Mar 30, 2015. 04:52 PM | 3 Likes Like |Link to Comment
  • Staples: Headed For The Waste Bin [View article]
    "Staples is always crowded" lmao, have you been to one lately?
    Mar 18, 2015. 05:47 PM | 2 Likes Like |Link to Comment
  • Brampton Brick: A Bright Future At 50% Of Tangible Book Value [View article]
    I definitely agree with that, but keep in mind that Brampton Brick likely makes up the majority of the Kerbel family's wealth, so any value destruction would affect them more than any minority shareholders.
    Mar 11, 2015. 10:55 AM | Likes Like |Link to Comment
  • Betfair: Unique Competitive Advantage Within The Sports Betting Market [View article]
    I don't really get the competitive advantage part. Can you clarify a bit about how their model takes market share away from say Bet365, or Pokerstars/Amaya's planned Sportsbook?

    Thanks a lot
    Mar 9, 2015. 04:47 PM | Likes Like |Link to Comment
  • Has More Upside Potential Than Its Peers [View article]
    What about the downside potential?
    Feb 23, 2015. 02:28 PM | 2 Likes Like |Link to Comment
  • 3 Reasons Why Morgan Stanley Is Wrong About BlackBerry [View article]
    Morgan Stanley is targeting $7, and you're saying that book is worth around $6-$8 per share, so I don't fully understand what you're trying to say. Perhaps you can clarify?
    Dec 30, 2014. 01:32 PM | 2 Likes Like |Link to Comment
  • 3 Reasons Why Amazon's 'Cash Flow' Is A Trap [View article]
    Its still meaningful, because you still need to estimate the number of shares in order to calculate a per-share figure, right? Like, its the same as income. It's only meaningful to shareholders on a per share basis, and share dilution from employee stock options would definitely affect that.
    Sep 19, 2014. 05:37 PM | 1 Like Like |Link to Comment
  • China Dongxiang: A Very Cheap Way To Buy Alibaba [View article]
    the ipo fallout isn't a big deal since you can simply short the underlying to hedge
    Sep 19, 2014. 05:24 PM | Likes Like |Link to Comment
  • 3 Reasons Why Amazon's 'Cash Flow' Is A Trap [View article]
    No, since you expensed it already (and is reflected in income), you add it back to operating cash flow and leave it as that. Amazon's accounting is 100% correct, and there's no one out there who's getting misled by Amazon adding back depreciation and stock-based compensation to get operating cash flows.
    Sep 19, 2014. 05:06 PM | 1 Like Like |Link to Comment
  • 3 Reasons Why Amazon's 'Cash Flow' Is A Trap [View article]
    Yes, but it doesn't make any sense to include it as a cash outflow when in fact there is no cash going out, and there never will be! As an equity holder, you can account for it by including it in your diluted shares calculation, but I can't see how you can possibly argue that stock-based compensation deserves to be recorded as an operating cash outflow. Your ending cash balance wouldn't even match.
    Sep 19, 2014. 03:54 PM | 2 Likes Like |Link to Comment
  • 3 Reasons Why Amazon's 'Cash Flow' Is A Trap [View article]
    In my view, stock-based compensation should not be added back to operating cash flow, even if it is a real cost. The purpose of calculating operating cash flow and free cash flow is to know how much cash flow is available for the company. For example, if you are a creditor to Amazon, you would obviously much prefer that Amazon pays its employees in stock, since the cash is still available to repay you.
    Sep 19, 2014. 01:43 PM | 1 Like Like |Link to Comment