Jackson America - Seeking Alpha 'Jackson America' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/author/jackson-america Diedrich Coffee: A Web of Misrepresentations http://seekingalpha.com/article/169814-diedrich-coffee-a-web-of-misrepresentations?source=feed 169814 11/8/09: This article has been removed due to the author's inability to comply with the terms of our policy on anonymous contributors.

]]> Thu, 29 Oct 2009 10:02:27 -0400 Jackson America 11/8/09: This article has been removed due to the author's inability to comply with the terms of our policy on anonymous contributors.


Complete Story »]]> DDRX GMCR PEET SBUX Jackson America CACC: Recent Events Add to the Short Thesis http://seekingalpha.com/article/88212-cacc-recent-events-add-to-the-short-thesis?source=feed 88212 Our most recent post on CACC generated many thoughtful comments and questions, and I wanted to provide an update on some recent negative events and address some of the questions. Based upon recent events and capital markets activity, I have increased my conviction in a $7.50 price target, which is 56% below yesterday's (7/30/08) close of $17.16.

Access to debt capital continues to be a massive overhang for Credit Acceptance (CACC), and the current stock price does not adequately discount the risk of deleveraging the balance sheet (or worse). Recent events at Wachovia (WB) are troubling for Credit Acceptance, and by extension, very troubling for CACC investors. By my estimate, which we detailed in our previous submission, Wachovia is currently funding 60% of CACC's required debt capacity. With its capital and credit issues under Wall Street's and the FDIC's microscope, Wachovia is currently in the processes of shrinking and deleveraging its balance sheet.

]]> Thu, 31 Jul 2008 05:43:26 -0400 Jackson America Our most recent post on CACC generated many thoughtful comments and questions, and I wanted to provide an update on some recent negative events and address some of the questions. Based upon recent events and capital markets activity, I have increased my conviction in a $7.50 price target, which is 56% below yesterday's (7/30/08) close of $17.16.

Access to debt capital continues to be a massive overhang for Credit Acceptance (CACC), and the current stock price does not adequately discount the risk of deleveraging the balance sheet (or worse). Recent events at Wachovia (WB) are troubling for Credit Acceptance, and by extension, very troubling for CACC investors. By my estimate, which we detailed in our previous submission, Wachovia is currently funding 60% of CACC's required debt capacity. With its capital and credit issues under Wall Street's and the FDIC's microscope, Wachovia is currently in the processes of shrinking and deleveraging its balance sheet.


Complete Story »]]> ACF CACC CPSS GKK UPFC Jackson America Short Westwood Holdings: Why Valuation Matters http://seekingalpha.com/article/87265-short-westwood-holdings-why-valuation-matters?source=feed 87265 Do Shareholder's Care About Valuation?

Asset managers have had a tough time over the past twelve months.  This seems perfectly logical given the fact most asset managers have seen down performance and asset flows continue to deteriorate.  The median asset manager (a list of 29 companies) is down over 30 percent during the past year.  Some great franchises have come under significant pressure [Gamco (GBL) down 20 percent, Calamos (CLMS) down 30 percent, and Legg Mason (LM) down 59%]. 

]]> Sun, 27 Jul 2008 09:20:55 -0400 Jackson America Do Shareholder's Care About Valuation?

Asset managers have had a tough time over the past twelve months.  This seems perfectly logical given the fact most asset managers have seen down performance and asset flows continue to deteriorate.  The median asset manager (a list of 29 companies) is down over 30 percent during the past year.  Some great franchises have come under significant pressure [Gamco (GBL) down 20 percent, Calamos (CLMS) down 30 percent, and Legg Mason (LM) down 59%]. 


Complete Story »]]> WHG Jackson America CACC: An Ideal Play on the Consumer, Auto, and Credit Markets http://seekingalpha.com/article/84283-cacc-an-ideal-play-on-the-consumer-auto-and-credit-markets?source=feed 84283 The current bear market in U.S. equities has been characterized by broad fears regarding credit, the subprime consumer, the collapsing auto market, and the health of financial institutions. Credit Acceptance Corp (CACC) has significant exposure to every single one of these pain points, yet the stock is flat in 2008 which seems illogical compared to the carnage of the KBW Bank Index (KBE) which is down 38% year-to-date. I believe that given worsening credit, a ridiculous valuation, opaque accounting, and concerns over access to debt, CACC has at least 50% downside over the next three to six months. I am short CACC with a $7.50 price objective, or a slight discount to book value.

CACC is a subprime auto lender focusing on the lowest end of the credit spectrum, the D credit market. These borrowers are consumers with FICOs between 0 and 520 and historically have been treacherous credits in economic downturns. CACC's main product, "Guaranteed Credit Approval Program," provides credit approval in under a minute and has very minimal discrimination among credit apps (think of a payday loan model for autos). According to past SEC filings, 75% to 80% of loans require collection effort during the life of the loan and typically 25% to 35% of loans are delinquent at a given point in time. This collection profile is only the tip of the iceberg for the problems brewing at Credit Acceptance.

]]> Wed, 09 Jul 2008 11:23:00 -0400 Jackson America The current bear market in U.S. equities has been characterized by broad fears regarding credit, the subprime consumer, the collapsing auto market, and the health of financial institutions. Credit Acceptance Corp (CACC) has significant exposure to every single one of these pain points, yet the stock is flat in 2008 which seems illogical compared to the carnage of the KBW Bank Index (KBE) which is down 38% year-to-date. I believe that given worsening credit, a ridiculous valuation, opaque accounting, and concerns over access to debt, CACC has at least 50% downside over the next three to six months. I am short CACC with a $7.50 price objective, or a slight discount to book value.

CACC is a subprime auto lender focusing on the lowest end of the credit spectrum, the D credit market. These borrowers are consumers with FICOs between 0 and 520 and historically have been treacherous credits in economic downturns. CACC's main product, "Guaranteed Credit Approval Program," provides credit approval in under a minute and has very minimal discrimination among credit apps (think of a payday loan model for autos). According to past SEC filings, 75% to 80% of loans require collection effort during the life of the loan and typically 25% to 35% of loans are delinquent at a given point in time. This collection profile is only the tip of the iceberg for the problems brewing at Credit Acceptance.


Complete Story »]]> CACC Jackson America DTS Even More Alarming After Q4 Earnings http://seekingalpha.com/article/66602-dts-even-more-alarming-after-q4-earnings?source=feed 66602 I felt that it was important to address several of the issues that came from DTS Inc.’s (DTSI) Q4’07 call, in light of my article ("Sounding the Alarm on DTS Inc.") published yesterday. While the “optics” of the quarter appeared strong, the disastrous guidance is even more ominous when one peels back the onion of the quarter just reported. Below is an update from the quarter on several of the points discussed in my recent article that should be very concerning for shareholders:

The Quarter

]]> Fri, 29 Feb 2008 02:23:07 -0500 Jackson America I felt that it was important to address several of the issues that came from DTS Inc.’s (DTSI) Q4’07 call, in light of my article ("Sounding the Alarm on DTS Inc.") published yesterday. While the “optics” of the quarter appeared strong, the disastrous guidance is even more ominous when one peels back the onion of the quarter just reported. Below is an update from the quarter on several of the points discussed in my recent article that should be very concerning for shareholders:

The Quarter


Complete Story »]]> DTSI Jackson America Sounding the Alarm on DTS Inc. http://seekingalpha.com/article/66449-sounding-the-alarm-on-dts-inc?source=feed 66449 DTS Inc. (DTSI) is a provider of digital multi-channel audio, or surround sound, to the consumer electronics market and Hollywood. The market is a duopoly for audio codecs, with Dolby (DLB) dominating the market. The “duopoly” is more like a monopoly with a second standard for the sake of competition (think Intel (INTC) and AMD (AMD)).

]]> Thu, 28 Feb 2008 06:05:32 -0500 Jackson America DTS Inc. (DTSI) is a provider of digital multi-channel audio, or surround sound, to the consumer electronics market and Hollywood. The market is a duopoly for audio codecs, with Dolby (DLB) dominating the market. The “duopoly” is more like a monopoly with a second standard for the sake of competition (think Intel (INTC) and AMD (AMD)).


Complete Story »]]> DTSI Jackson America The Sad Truth for Answers Corporation Bulls http://seekingalpha.com/article/30774-the-sad-truth-for-answers-corporation-bulls?source=feed 30774 After reading “The Long Case for Answers Corporation” (ANSW) I found myself befuddled about how quickly pockets of speculation can form in the markets. It’s amazing to me that investors can so carelessly ignore obvious financial and business risks and apply multiples on future expectations with no regard to appropriate discount rates or the likelihood that the those expectations ever become reality. Where to begin?

First, I agree with the assertions made in the two recent bullish posts on Answers.com (“Answers.com: Still a lot of questions” and “The Long case for Answers.com”), that suggest Answers.com has a nice product. However, by no means does that opinion equate to a company being a good investment. In fact, there are substantial business risks to this small, fledgling enterprise – with a not-so-small market capitalization - when one adjusts the fully diluted share count.

]]> Tue, 27 Mar 2007 10:10:27 -0400 Jackson America After reading “The Long Case for Answers Corporation” (ANSW) I found myself befuddled about how quickly pockets of speculation can form in the markets. It’s amazing to me that investors can so carelessly ignore obvious financial and business risks and apply multiples on future expectations with no regard to appropriate discount rates or the likelihood that the those expectations ever become reality. Where to begin?

First, I agree with the assertions made in the two recent bullish posts on Answers.com (“Answers.com: Still a lot of questions” and “The Long case for Answers.com”), that suggest Answers.com has a nice product. However, by no means does that opinion equate to a company being a good investment. In fact, there are substantial business risks to this small, fledgling enterprise – with a not-so-small market capitalization - when one adjusts the fully diluted share count.


Complete Story »]]> ANSW Jackson America