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John McCoy  

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  • What Bank Of America Shareholders Might Be Missing [View article]
    No one doubts that Wells Fargo is currently a superior bank, but at current vauation, is it a superior investment? Sure, if we could time warp back to early 2009, we would probably all buy Wells, but we can't do that, can we? WFC is very close to being fully valued, whereas BAC still has plenty of room to grow, both in share price and in dividend yield. As you accuratley stated in comments on another article, it's now that counts, and right now, BAC is the better investment.
    Aug 1, 2014. 11:49 AM | 1 Like Like |Link to Comment
  • High-Yielding JPMorgan Needs To Yield More For Me Then I'll Consider It [View article]
    Despite the Whale fiasco, I still consider JPM to be best of breed of the big banks (along with WFC), and also consider Jamie Dimon to be the best bank CEO going. Long term, this is a $70 stock, and we should continue to see increased dividends and buybacks. Since I'm holding at just under $40 per share, I'm more than happy to wait.
    Jul 31, 2014. 07:19 PM | Likes Like |Link to Comment
  • What Bank Of America Shareholders Might Be Missing [View article]
    Be patient Nikkor. At current share price, Buffett is sitting on a very large unrealized gain on his warrants for 700,000,000 common shares at $7.14 per share, yet he has repeatedly said that they have no intention of exercising these warrants until somewhere near their 2021 expiration. What does that tell you about where he thinks this stock is headed long term?

    I agree that clearing up the DOJ case will be a huge near term catalyst, as will be the Fed's pending approval of their re-submitted capital plan so they can (hopefully) resume their dividend increase and share repurchase plan.

    As for long term price targets, I won't quibble - I'm long at just over $8 per share, and I'll be very happy at the authors $26.16 suggested price, especially if it's yielding 2%-3% at that point.
    Jul 31, 2014. 06:59 PM | 1 Like Like |Link to Comment
  • Bar Harbor Bankshares: This Dividend Champion Is Hiding In Plain Sight [View article]
    BHB is one of my three favorite community banks stocks, along with SBSI in TX and WASH here in RI. Great article, thank you.
    Jul 3, 2014. 08:30 PM | Likes Like |Link to Comment
  • The Future Of J.M. Smucker Company [View article]
    I've had SJM on my watch list for a few years now, and I agree with you that it is at about fair value right now. As a value investor, I'm looing to get into this stock at around $85 - have to be patient and get that margin of safety. A very good stock to buy into during the next general market correction. Great article, thank you.
    Jul 2, 2014. 07:08 PM | 1 Like Like |Link to Comment
  • Bank Of America Reminds Us That Value Investing Is Not Popular Investing [View article]
    DE, UNP, MKL and AFL are all good ones to look at.
    Jun 18, 2014. 01:13 PM | Likes Like |Link to Comment
  • Deere & Company: Worth $137 Per Share [View article]
    I agree that DE is undervalued, and I also agree on your $137.00 intrinsic value estimation. Applying an approx 30% margin of safety, I am a buyer of DE stock anywhere under $95. DE is a great company - a real "get it and forget it" long term investment. Thanks for the nice article.
    Jun 2, 2014. 08:03 PM | Likes Like |Link to Comment
  • The Number 1 Risk To Berkshire Hathaway [View article]
    Interesting theory, but you have to remember that Berkshire is not run in the same manner as most other large corporations. The Exxons, Walmarts and Microsofts of the world are all large corporate entities, and the larger they become, the harder it is to move and grow, much like a person who keeps getting fatter and fatter - sooner or later they are unable to walk.

    Berkshire is different in that, for the most part, it is a collection of smaller, operating companies running independently of the mother ship, with very little in the way of directives and control coming out of Omaha. This structure pretty much allows the individual management teams to concentrate on growing and improving profitability in their own little corners of the empire. And remember, Berkshire's operating companies and management teams tend to be among the best in their respective industries! Remember what Buffett said shortly after the BNSF aquisition - "Now Matt Rose doesn't have to worry about satisfying Wall Street and can concentrate on running a railroad." And that's what they do, grow their businesses, improve profitiability, and make small, bolt on aquisitions of their own.

    This unique structure also allows Omaha to do what it does best. Rather than spending his time making decisions about how to run a railroad, or a utility company, or a car insurance company, Buffett is free to spend his time picking stocks, investing the insurance float and stalking the next elephant sized aquisition. This is what makes Berkshire a different animal than any of the other companies you compare it to, and is the reason why Berkshire will continue to grow larger and stronger where others sputter.
    May 6, 2014. 07:17 PM | 6 Likes Like |Link to Comment
  • Southside Bancshares And OmniAmerican Bancorp Merger Insights [View article]
    I've been waiting for a chance to get into SBSI for quite a while, and this looks like it. I'll be watching to see how it moves early in the week before deciding when to start a position. Thanks for the great write up.
    May 3, 2014. 07:44 PM | Likes Like |Link to Comment
  • Time to buy Berkshire is now says Barclays [View news story]
    "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

    -Warren Buffett

    I called a buy on BRK-B just before the Burlington split and have been buying it on and off ever since. BRK-B, and my newest long position, MKL, are going to be very long term holds in my portfolio.
    May 1, 2014. 07:00 PM | Likes Like |Link to Comment
  • Berkshire Hathaway: A Calculation Of Its Intrinsic Value [View article]
    Book value and intrinsic value are two entirely different things, and Buffett goes to great lengths to distinquish the difference between the
    two. Book value reflects the total of all the assets of the company at current carrying costs on the books, minus liabilities. Some of these assets have been carried on Berkshire's balance sheet for decades, and when calculating book value, are valued at their original aquisition costs.

    Intrinsic value reflects the actual real and current value of those assets, which is MUCH higher in most cases than the decades old carrying costs they are carried on the books at. IMHO, intrinsic value on the BRK-B shares is closer to $160 per share, or $240K per share for BRK-A.

    Buffett did set somewhat of a floor on the stock with his 1.2 x book value statement, but IMO that reflects intrinsic value minus a significant margin of safety that one would expect from Buffett. Remember, price is what you pay, value is what you get.
    Apr 29, 2014. 03:37 PM | 2 Likes Like |Link to Comment
  • Identifying Thriving Small Banks Using Federal Reserve, FDIC Data [View article]
    I like small community banks, and I've been looking at CFFI and a few others. I'm adding CFFI to my watch list, which also includes small banks WASH, SBSI and BHB. I'd be interested to hear your thoughs on those as well. Excellent article Matt, thank you.
    Apr 5, 2014. 03:27 PM | Likes Like |Link to Comment
  • Ford Motor: More Positives Going Into April [View article]
    In addition to record Fusion sales and strong F-Series sales, Ford also reported very strong growth across the Lincoln brand, up 31% over last year. Growth in Lincoln sales is very important, and should help add to our momentum. Stay long F, we should see $20 by the end of the year. Good article, thank you.
    Apr 1, 2014. 04:21 PM | 1 Like Like |Link to Comment
  • What Is Berkshire Hathaway Really Worth? A Comprehensive Look [View article]
    I missed your conservative value of $154.00 for the BRK-B shares by .29 cents (my current target sell price is $154.29). Great article, thank you!
    Mar 27, 2014. 08:16 PM | 1 Like Like |Link to Comment
  • What Is Berkshire Hathaway Really Worth? A Comprehensive Look [View article]
    "There's also the problem that BRK is a very investor-unfriendly company."

    How on Earth does anyone consider a 19.7% compounded return over the last 48 years to be "shareholder unfriendly"?
    Mar 27, 2014. 08:10 PM | 20 Likes Like |Link to Comment
COMMENTS STATS
259 Comments
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