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Karthikeyan Srinivasan Harith  

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  • The Dangers Of Shorting Nose-Bleed Valuations [View article]
    Thanks to those who gave me compliments for the article.

    I also think we should think about the allocation of money to equities having something to do with these valuations. Once you see treasuries becoming more attractive, the bubble stocks will fizzle out.
    Feb 15, 2013. 10:54 AM | Likes Like |Link to Comment
  • Green Mountain Coffee Has More Upside [View article]
    Hi Bill,

    Thank you for writing - I have enjoyed reading your articles in the past. You have made some valid points and while trying to address them all will take up the scope of an entirely new article - I will briefly address what little I can:
    1. Not many companies can sustain a 95% sales growth, every business cycle has an expansionary 'boom' phase where they grow near the 100% mark (not even FB could sustain those rates). However sales stabilize eventually and a double digit growth in sales is very healthy - very deserving of a 2.5x forward revenue valuation, case in point being Starbucks . The same can be said of the P/E as well while Starbucks has a slower EPS growth it is trading at 65% higher P/E than GMCR.

    2. Let us not forget that GMCR ended the fiscal 2012 with a free cash flow of $76m and forecasts $100 million to $150 million for fiscal 2013.

    As far as the SEC investigations and revised financials go, I am willing to bet that they are a thing of the past and it is key to note that they did not find anything significant in those investigations. After all you pay for what an asset can do for you, and not what it has done in the past.

    Let us revisit in 18 months to see if market share is impacted or not.
    Feb 1, 2013. 11:09 AM | 2 Likes Like |Link to Comment
  • 3 Kinds Of Stocks To Short (Part 1): The Frauds [View article]
    Excellent Article! 100x FCF is obscene. Especially if FCF is not growing. and yet they "beat" EPS every quarter.
    Aug 10, 2012. 03:18 PM | 1 Like Like |Link to Comment
  • Morgan Stanley (MS -1.6%) can't catch a break, says Hedgeye's Josh Steiner ahead of what could be a $9B collateral call if the Moody's downgrade happens. Maybe of most concern is the bank's vulnerability to "counterparty confidence flight," which can go from gradual to sudden overnight. As for now, the bank is trading as if it's no longer TBTF.  [View news story]
    MS has potential to Snap back on any european good news. think 5-6 dollars in the 4 days if greece elections are favourable to usa.
    Jun 11, 2012. 03:01 PM | Likes Like |Link to Comment