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  • Coca-Cola's Deal With Monster Implies A Valuation Of Up To $160 Per Share For Monster [View article]
    Nice article. It is confusing to fully understand all the deal aspects, but thinking about the transfer of KOs energy drinks to MNST is particularly hard. Presumably the drinks will still be bottled and distributed by KO. KO continues to own 16% of the outcome. It is not much of a "transfer" - more like a joint venture. Perhaps MnST will add some value to the process, but it is hard to say.

    The new incentives for KO are easier to understand and will create value for MNST. KO now has a real incentive to make MnsT even more successful. They can allocate resources to this and the enhanced distribution access and political entree will help MNST big time. Hard to quantify, but easy to see the new incentives.
    Aug 18 02:19 PM | Likes Like |Link to Comment
  • Wal-Mart takes advantage of Disney-Amazon pricing skirmish [View news story]
    It is really interesting. I never shop at walmart but we use amazon a lot. I will probably never go to a walmart store and I would not have placed the order except I am researching it for investment.

    But i can be a walmart customer on line and their price was better than Amazon and I didn't have to buy a bulk amount - i could buy the items one at a time. This is great cause, for example, I don't need 12 Purell hand sanitizers, I just want one.

    I cannot do that at costco or at amazon, but walmart did a great job. If they can market to a wider consumer range, they can match amazon on line, i think.

    They are doing 10 bill on line now, Amazon is doing approx 80bill. Walmart can take share if they keep at this.
    Aug 17 01:57 PM | 2 Likes Like |Link to Comment
  • Wal-Mart takes advantage of Disney-Amazon pricing skirmish [View news story]
    I did an on line order with wmt this week. Fabulous experience. Fast, accurate, free shipping (over $50). Would 100% buy again. Other than this I never shopped at WMT.
    Aug 17 12:53 PM | 2 Likes Like |Link to Comment
  • How Buffett Is Changing The Future Of Berkshire's Float - From Insurance To Uncle Sam [View article]
    It is Buffett himself that considers unrealized cap gains a "free loan from the US government." This is somewhat true at the individual US taxpayer level, though depending on the size of your estate, the loan might never be repaid at all. (Stepped up basis and exemption of 5.25 mill).

    Is this "float" useful? YES! You will receive dividends on the whole equity amount, including the portion potentially subject to tax. You will accrue the compounded returns from retained earnings, increased book value on the whole amount. You can use the entire equity as collateral to buy more equities.

    DTL doesn't have quite the same flavor as those are "loans" you have to purchase via capex. However, if that expenditure has more growth features than maintenance features you will still be ahead of the game. On the other hand, if the expenditures do not engender growth or the returns are below the cost of capital, you would be kidding yourself if you thought DTL was so great. It wouldn't be enuf to offset the inadequate returns on capital.

    At the end, it is still all about effective capital allocation, something Buffett does better than anyone.
    Aug 17 12:46 AM | 1 Like Like |Link to Comment
  • Long lines and empty shelves on Wal-Mart's fix list [View news story]
    As an experiment I placed an order to walmart.com. Very impressed. Ordered 8/13, part of the order came 8/14, the rest on 8/16. Order was accurate, free shipping and three items were above expectations as they were "bonus " sizes, with extra product for "free".

    Prices were excellent. I would absolutely order again.
    Aug 17 12:21 AM | 1 Like Like |Link to Comment
  • How Buffett Is Changing The Future Of Berkshire's Float - From Insurance To Uncle Sam [View article]
    Good article. Thank you!
    Aug 15 09:40 PM | 1 Like Like |Link to Comment
  • AbbVie's Acquisition Of Shire: Skepticism Creates Buying Opportunity [View article]
    Lol, true. gilead doesn't need to invert - already pays low taxes.
    Aug 15 04:20 PM | Likes Like |Link to Comment
  • Biglari Holdings: This Ain't No Berkshire Hathaway [View article]
    Coughing up the fee based money based on improved book value to the CeO destroys compounding for the common shareholder. It also sets up a situation where they will never pay a dividend and never buy back stock (at a premium to book).

    Would not own this.
    Aug 15 02:32 PM | Likes Like |Link to Comment
  • Long lines and empty shelves on Wal-Mart's fix list [View news story]
    Do you think the "neighborhood stores", designed to be smaller and faster to get in/out will help?
    Aug 15 02:26 PM | Likes Like |Link to Comment
  • Coca-Cola buying 16.7% stake in Monster, transferring businesses [View news story]
    Listened to the call this morning. MNST says the $ will be returned to shareholders, but declined to specify how, when or how much. They acknowledged they really do not need the money to grow as they throw off enuf cash from operations to fund growth.
    Aug 15 02:21 PM | Likes Like |Link to Comment
  • AbbVie's Acquisition Of Shire: Skepticism Creates Buying Opportunity [View article]
    See news today that the Uk has approved Gilead' HepC drug solvaldi for use in the UK. UK will pay $700 per pill. US will pay $1000 per pill. Gilead is not inverting, but the math works the same for all.

    The US charges higher taxes, but the product is sold in the US at a big premium. Pharma companies who are inverting want to keep the higher prices and roll back the tax. somethings gotta give.
    Aug 15 02:18 PM | Likes Like |Link to Comment
  • AbbVie's Acquisition Of Shire: Skepticism Creates Buying Opportunity [View article]
    Agree that US taxes are much too high. Unfortunately they are causing managements to undertake actions that may be value destroying.
    Aug 15 11:26 AM | Likes Like |Link to Comment
  • AbbVie's Acquisition Of Shire: Skepticism Creates Buying Opportunity [View article]
    Yes, exactly. ABBV already enjoys a lower than average tax rate. The inversion will annoy their best customer, the US government. I think ABBV is overpaying for Shire and beig somewhat greedy here.
    Aug 14 11:54 PM | Likes Like |Link to Comment
  • Coca-Cola buying 16.7% stake in Monster, transferring businesses [View news story]
    I think the brands KO is buying have been under appreciated and have room to grow.

    KOs equity ownership of MNST is also an affirmation of Monster's value. KO could have just bought the brands and not taken an equity stake. This is a good deal for everyone, except maybe BUD who may not be distributing MNST beverages for long.
    Aug 14 07:59 PM | 2 Likes Like |Link to Comment
  • Coca-Cola buying 16.7% stake in Monster, transferring businesses [View news story]
    There is nothing in the litigation that implies the disaster you mention. Arguably, KO would not purchase 2.1 bill of stock if they were worried about lawsuit. So it is reassuring they have done some due diligence.

    mNST already has $800+ mill on the balance sheet. Special investor call tomorrow early.
    Aug 14 06:25 PM | 1 Like Like |Link to Comment
COMMENTS STATS
171 Comments
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