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Jim Mullin  

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  • KapStone: Looks Good On Paper [View article]
    Broadly speaking, I would agree that organic growth is preferable to growth from acquisitions, but KapStone's management team has an enviable track record when it comes to acquisitions. When producing commodity-type products, growing with existing assets can be difficult. If KapStone were to simply produce more, the excess supply would lead to lower prices for the industry. That can lead to destructive competition. Through acquisitions, paper companies can grow and eliminate competitors at the same time.

    To your other question, while smaller players may lack scale, they have more room to grow. It's much easier to move the needle on a $2 Billion company than a $20 Billion company.

    Also, I agree that hoping for a buyout is not a good strategy.
    Apr 22, 2015. 10:27 AM | Likes Like |Link to Comment
  • KapStone: Looks Good On Paper [View article]
    Glad to hear you enjoyed the article.
    Apr 16, 2015. 06:21 PM | 1 Like Like |Link to Comment
  • Collectors Universe: A High Yielder Helped By High Barriers To Entry [View article]
    You’re right, we cannot be sure whether younger people will become interested in collectibles. This highlights the importance of international expansion as it may be needed to enable the company to continue to grow should US operations level off at some point in the future. With regard to fake items, this could prove to be a positive for PCGS. As forgeries become more sophisticated, better and better experts and technology will be needed to distinguish real from fake. I would think this would drive collectors to the better regarded authenticators.
    Feb 13, 2015. 11:45 AM | Likes Like |Link to Comment
  • Please Stop Using Ex-Cash P/E When Evaluating Apple [View article]
    While you may consider it "minutiae", interest expense (or income) can vary considerably between companies. While interest may not make a huge difference for Apple, I prefer formulas that can apply to any company.
    From what I've seen, subtracting cash and marketable securities from market cap and dividing by net income is fairly common, so it's interesting that you've never seen anyone do this.
    Aug 10, 2014. 01:33 AM | Likes Like |Link to Comment
  • Please Stop Using Ex-Cash P/E When Evaluating Apple [View article]
    I think there's been a misunderstanding. I'm not suggesting that cash be ignored. On the contrary, I conclude by saying that EV/EBIT should be used. I don't believe that subtracting cash from market cap and dividing by net income is an appropriate way to account for cash.
    Aug 10, 2014. 01:10 AM | Likes Like |Link to Comment
  • Please Stop Using Ex-Cash P/E When Evaluating Apple [View article]
    I agree, multiple ratios are useful when trying to determine fair value because no ratio is perfect.
    Aug 5, 2014. 09:50 PM | Likes Like |Link to Comment
  • Please Stop Using Ex-Cash P/E When Evaluating Apple [View article]
    I don't believe cash should be ignored. The point I was trying to make is that debt needs to be considered along with cash. It's also important to consider how much cash is truly excess. The balance sheet shouldn't be ignored, but there are right and wrong ways to include balance sheet items when valuing companies.
    Aug 5, 2014. 09:46 PM | Likes Like |Link to Comment
  • Please Stop Using Ex-Cash P/E When Evaluating Apple [View article]
    I never meant to imply that Apple should be penalized for holding cash. Rather, I believe EV/EBIT is a better way to account for this cash compared to simply subtracting it from the market cap as done in an ex-cash P/E.
    Aug 5, 2014. 09:37 PM | Likes Like |Link to Comment
  • Please Stop Using Ex-Cash P/E When Evaluating Apple [View article]
    littup,

    I don't understand how you've come to the conclusion that I am against netting out cash and debt. In fact, my point was that investors should consider excess cash AND debt among other things. I believe ex-Cash P/E is a poor substitute for EV/EBIT.
    Aug 5, 2014. 09:31 PM | Likes Like |Link to Comment
  • Please Stop Using Ex-Cash P/E When Evaluating Apple [View article]
    If you've spent any time reading about Apple, I find it strange that you've never seen anyone talk about ex-Cash P/E. Regardless, thank you for wasting even more of your ever so precious time by responding.
    Aug 5, 2014. 07:31 PM | 1 Like Like |Link to Comment
  • Please Stop Using Ex-Cash P/E When Evaluating Apple [View article]
    How did you possibly come to the conclusion that I am disregarding cash? Last I checked EV/EBIT accounts for cash.
    Aug 5, 2014. 07:28 PM | 1 Like Like |Link to Comment
  • Please Stop Using Ex-Cash P/E When Evaluating Apple [View article]
    Agree completely
    Aug 5, 2014. 07:26 PM | Likes Like |Link to Comment
  • Please Stop Using Ex-Cash P/E When Evaluating Apple [View article]
    littup,

    In case you are unaware, Seeking Alpha is about investing. If a lot people are using an inherently flawed calculation, I think it is worthy of discussion. The second half of your response was incoherent so I'm exactly sure what you are asking.
    Aug 5, 2014. 11:56 AM | 1 Like Like |Link to Comment
  • Please Stop Using Ex-Cash P/E When Evaluating Apple [View article]
    Thanks. Glad you liked the article.
    Aug 5, 2014. 11:50 AM | Likes Like |Link to Comment
  • Please Stop Using Ex-Cash P/E When Evaluating Apple [View article]
    Harbourdrive,

    Could you please explain how your comment relates to anything I wrote.
    Aug 5, 2014. 11:48 AM | 2 Likes Like |Link to Comment
COMMENTS STATS
146 Comments
122 Likes