Johnson & Johnson: The Elephant in the Merck-Schering Living Room [View article]
This is a big issue that seems to garner little attention at the moment for JNJ. It is a heads i win, tails i don't lose anything scenario for JNJ. They have a pretty large free call option on the results of the arbitration with Schering-Plough/Merck.
JNJ 3Q: Misses on Revenue, and that Should Be a Concern [View article]
Meaningless?? Uh...When half of your earnings come from abroad (non-dollar denominated currency) if the dollar falls lower, JNJ's earnings increase by a huge amount. It is hardly meaningless. The dollars woes are JNJ's (and other large multinationals) gains.
I have to agree. Any value investor, that has a lick of analytical skills, can see that there is tremendous value here. I only hope the share price stays low long enough to buy back a good portion of the outstanding shares, while maintaining a good cash cushion.
In case you haven't come across it yet, I would listen to Mason Hawkins' recent conference call for shareholders in its LongLeaf Partners Fund. He briefly mentions his reasons for his bullish stance on Dell, in which is his largest holding in the fund at near 10% of Fund assets.
I have to agree. Any value investor, that has a lick of analytical skills, can see that there is tremendous value here. I only hope the share price stays low long enough to buy back a good portion of the outstanding shares, while maintaining a good cash cushion.
In case you haven't come across it yet, I would listen to Mason Hawkins' recent conference call for shareholders in its LongLeaf Partners Fund. He briefly mentions his reasons for his bullish stance on Dell, in which is his largest holding in the fund at near 10% of Fund assets.
Avoid the 'Group Think' on Melco-Crown [View article]
The company 'reported' a net loss on their income statement this most recent quarter because of a function of GAAP accounting. I'd suggest to look beyond the bottom line "Net Income" figure and see what the company is earning on its invested tangible capital. The company's first casino is actually very, very profitable. The Crown Macau is on track to earn a return on invested capital of 60% (You can refer to the most recent conference call transcript for an explanation and verification from the company's CFO, or you can analyze the income statement relative to tangible capital). That is actually quite amazingly profitable for a casino. Analyst estimates have come down, yet in spite of this most analysts rate the company a buy and explain why so in their reports.
As for a $10,000 accounting inflation...I am not sure what you are referring to. Regardless, $10,000 is an immaterial amount.
I appreciate your criticisms, however I lean to the bullish side because I am just that, Bullish on the company.
Avoid the 'Group Think' on Melco-Crown [View article]
The company 'reported' a net loss on their income statement this most recent quarter because of a function of GAAP accounting. I'd suggest to look beyond the bottom line "Net Income" figure and see what the company is earning on its invested tangible capital. The company's first casino is actually very, very profitable. The Crown Macau is on track to earn a return on invested capital of 60% (You can refer to the most recent conference call transcript for an explanation and verification from the company's CFO, or you can analyze the income statement relative to tangible capital). That is actually quite amazingly profitable for a casino. Analyst estimates have come down, yet in spite of this most analysts rate the company a buy and explain why so in their reports.
As for a $10,000 accounting inflation...I am not sure what you are referring to. Regardless, $10,000 is an immaterial amount.
I appreciate your criticisms, however I lean to the bullish side because I am just that, Bullish on the company.
I have no position in this company yet, however, I enjoy reading your well researched write-ups on this company. Just wanted to give you a pat on the back for good information/articles, in spite of the direction of the share price. Keep up the good work.
Melco PBL Entertainment: The Crown of Macau [View article]
Earnings announcements are a funny thing in the current invesment climate. Seems the market is currently rewarding write-downs and other mishaps and discounting companies with improving fundamentals and positive earnings surprises relative to street estimates.
I think many retail investors have the feeling that the Macau story has been "played out", and has led to overvaluations in their multiples. This may be the case with a few of the gaming operators that may have taken on a bit more leverage than they can handle.
Over time the "good" money should come into this company's ownership structure as they begin to see the whole picture and future pipeline. Seems there are currently a lot of speculators trying to catch a huge earnings surprise and providing a lot of short-term volitility.
I plan to do a follow-up on Melco-PBL, specifically refrencing its valuation and a comparables valuation.
Interactive Q&A: Brian Lin, CEO of China Fire and Security Group, Inc. (CFSG.OB) [View article]
Hello again, Brian. A couple more questions if you don't mind...
Your new linear heat detectors are highly recomended for companies in the Iron & Steel Industry. Are there any other industries where your new linear heat detectors are highly recommended that will provide additonal growth? Is there any legislation in the works (or that has already been approved) in either China or abroad in these other industries for those linear heat detectors?
Interactive Q&A: Brian Lin, CEO of China Fire and Security Group, Inc. (CFSG.OB) [View article]
Hello, Brian. Thank you for taking the time to answer my questions.
1.) It was recently annonunced that approximately 80% of the Iron & Steel manufacturers are not compliant with new legislation creating ~$800 million dollar market opportunity for this industry. Given your company's bid success rate of +50% for the iron & steel industry, would it be realistic to assume that CFSG can get at least 30% of this opportunity? Do you have the capacity to meet this large opportunity?
2.) Do you believe China's abundant low-cost labor resouces will give CFSG a competitive advantage against non-chinese companies when bidding on international contracts? Will this allow chinese suppliers, such as CFSG, to compete more effectively on pricing while maintaining your high margins?
3.) It is my understanding that China's LHD standards are set higher than internationaly accepted UL standards. Do you believe that this situation will make it more difficult for other fire safety companies (both large and small) to compete with CFSG in the Chinese market due to their non-compliance?
Johnson & Johnson: The Elephant in the Merck-Schering Living Room [View article]
JNJ 3Q: Misses on Revenue, and that Should Be a Concern [View article]
Why Smart Money Should Buy Dell [View article]
In case you haven't come across it yet, I would listen to Mason Hawkins' recent conference call for shareholders in its LongLeaf Partners Fund. He briefly mentions his reasons for his bullish stance on Dell, in which is his largest holding in the fund at near 10% of Fund assets.
Why Smart Money Should Buy Dell [View article]
In case you haven't come across it yet, I would listen to Mason Hawkins' recent conference call for shareholders in its LongLeaf Partners Fund. He briefly mentions his reasons for his bullish stance on Dell, in which is his largest holding in the fund at near 10% of Fund assets.
Avoid the 'Group Think' on Melco-Crown [View article]
As for a $10,000 accounting inflation...I am not sure what you are referring to. Regardless, $10,000 is an immaterial amount.
I appreciate your criticisms, however I lean to the bullish side because I am just that, Bullish on the company.
Avoid the 'Group Think' on Melco-Crown [View article]
As for a $10,000 accounting inflation...I am not sure what you are referring to. Regardless, $10,000 is an immaterial amount.
I appreciate your criticisms, however I lean to the bullish side because I am just that, Bullish on the company.
Sears: Going Private? Not So Fast [View article]
Melco PBL Entertainment: The Crown of Macau [View article]
I think many retail investors have the feeling that the Macau story has been "played out", and has led to overvaluations in their multiples. This may be the case with a few of the gaming operators that may have taken on a bit more leverage than they can handle.
Over time the "good" money should come into this company's ownership structure as they begin to see the whole picture and future pipeline. Seems there are currently a lot of speculators trying to catch a huge earnings surprise and providing a lot of short-term volitility.
I plan to do a follow-up on Melco-PBL, specifically refrencing its valuation and a comparables valuation.
Interactive Q&A: Brian Lin, CEO of China Fire and Security Group, Inc. (CFSG.OB) [View article]
Your new linear heat detectors are highly recomended for companies in the Iron & Steel Industry. Are there any other industries where your new linear heat detectors are highly recommended that will provide additonal growth? Is there any legislation in the works (or that has already been approved) in either China or abroad in these other industries for those linear heat detectors?
Thank you,
Frank
Interactive Q&A: Brian Lin, CEO of China Fire and Security Group, Inc. (CFSG.OB) [View article]
1.) It was recently annonunced that approximately 80% of the Iron & Steel manufacturers are not compliant with new legislation creating ~$800 million dollar market opportunity for this industry. Given your company's bid success rate of +50% for the iron & steel industry, would it be realistic to assume that CFSG can get at least 30% of this opportunity? Do you have the capacity to meet this large opportunity?
2.) Do you believe China's abundant low-cost labor resouces will give CFSG a competitive advantage against non-chinese companies when bidding on international contracts? Will this allow chinese suppliers, such as CFSG, to compete more effectively on pricing while maintaining your high margins?
3.) It is my understanding that China's LHD standards are set higher than internationaly accepted UL standards. Do you believe that this situation will make it more difficult for other fire safety companies (both large and small) to compete with CFSG in the Chinese market due to their non-compliance?
Once again, thank you.