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Matthew Lewis

 
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  • Chinese Graphite Leader Trades At A Quarter Of Its Book Value [View article]
    Any new thoughts on this now that their auditor has quit? These guys only did $3 million in revenue the entire 4th quarter.

    If you listen to Graftech's (GTI) call from Q4, the CEO stated they went and did due diligence on the books of several of the Chinese graphite electrode producers and they were all a mess. Tons of AR not being written off according to Shular (Graftech CEO) which was one of the reasons cited by BDO for quitting. Looks like bankruptcy is a real possibility with the graphite market being horrible again this year.
    May 12 02:03 PM | Likes Like |Link to Comment
  • Doug Kass/ Berkshire Hathaway (BRK.B) midday Q&A roundup: After calling himself "Daniel in the lion's den," Kass asks if Berkshire is now more like an index fund since it hunts primarily for "elephants" (e.g. Burlington Northern, Heinz) rather than "gazelles." Buffett says growth may slow, but BRK will still generate lots of value. Kass wonders if Buffett's successor will have the same opportunistic, deal-making prowess — Buffett says BRK will still be the place to which companies turn (think Goldman in '08) in times of distress. Kass wants to know if Buffett plans to breakup Berkshire à la Henry Earl Singleton. That would "create poorer results," Buffett responds. (WSJ, NY Times[View news story]
    Some decent points by Kass. Kudos to Buffett for having him there to shoot against the company. Good stuff.
    May 4 12:58 PM | 1 Like Like |Link to Comment
  • Exelon Corporation (EXC) declares $0.31/share quarterly dividend, 41% decrease from prior dividend of $0.525. Forward yield 3.33%. For shareholders of record May 15. Payable June 10. Ex-div date May 13. (PR[View news story]
    Old news.
    Apr 24 03:31 PM | 1 Like Like |Link to Comment
  • More on Apple: Quarterly dividend increased by 15% to $3.05/share (3% yield); Apple "plans to borrow" to return cash. FQ2 iPhone and iPad sales beat expectations, Macs a little light. Gross margin was 37.5%, at low end of guidance range of 37.5%-38.5% and -990 bps Y/Y. Apple expects to return $100B in cash via capital return program by end of 2015, up from prior $45B. Exc. retail, Americas revenue +7% Y/Y, Europe +11%, Greater China +8%, Japan +19%, rest of Asia-Pac +26%. Retail +19%. iPhone revenue only +3% Y/Y, iPad +40%, Mac +7%, iPod -20% on 5.6M units. AAPL halted, to resume trading at 4:50PM. (PR[View news story]
    They'll borrow at what, 50 bp over the treasury rate?

    They could do 10 years at 2.25% or 20 years at 3%. Borrow at those rates at buy back stock with a dividend yielding over 3%. Do that all day.
    Apr 23 05:16 PM | 8 Likes Like |Link to Comment
  • Apple (AAPL): FQ2 EPS of $10.09 beats by $0.02. Revenue of $43.6B (+11% Y/Y) beats by $1.1B. 37.4M iPhones, 19.5M iPads, just under 4M Macs. Expects FQ3 revenue of $33.5B-$35.5B, below $39.3B consensus. Buyback increased by $50B. Shares halted. CC at 5PM ET (webcast). (PR[View news story]
    Intrinsic value isn't necessarily book value Ross.
    Apr 23 05:10 PM | 4 Likes Like |Link to Comment
  • MetLife (MET +5.2%) bumps its quarterly dividend to $0.275/share from $0.185 previously, a 48.6% increase. It's the first dividend hike since prior to the financial crisis, and brings the annualized yield to 2.9%. (PR[View news story]
    No company has been more screwed than MET throughout this whole crisis. They refused to take taxpayer dollars, never cut their dividend, stayed profitable, and the government still won't let them allocate capital how they would like. Hopefully this is a sign things are changing.
    Apr 23 11:03 AM | 5 Likes Like |Link to Comment
  • In response to the spike in volatility, CME Group (CME) says it's raising collateral requirements for trading in benchmark gold, silver and other precious metals futures contracts, effective at the close of business Tuesday. Margins to trade Comex 100-troy ounce gold futures will be increased by 19%, silver will increase 18%, palladium 14% and platinum by 19%. Natural-gas futures will also increase 5.6% as well. [View news story]
    Makes no sense. Like I said, margins go up for shorts too.
    Apr 15 09:33 PM | Likes Like |Link to Comment
  • In response to the spike in volatility, CME Group (CME) says it's raising collateral requirements for trading in benchmark gold, silver and other precious metals futures contracts, effective at the close of business Tuesday. Margins to trade Comex 100-troy ounce gold futures will be increased by 19%, silver will increase 18%, palladium 14% and platinum by 19%. Natural-gas futures will also increase 5.6% as well. [View news story]
    Shorts use margin too.
    Apr 15 08:21 PM | Likes Like |Link to Comment
  • Carbon, Nanotechnology And Possible Value In GrafTech International [View article]
    The large debt position is somewhat misleading. They have been stuck in a take or pay contract for needle coke with Phillips 66 which the justice department required when they bought Seadrift. As a result they have to buy a minimum amount of needle coke from Phillips 66, even though Seadrift provides them with all their needs. Hence inventory/working capital is high.

    The Phillips 66 contract runs out in 2013. As such, the CEO has stated they will be drawing down inventory to more normal levels and will cash flow almost $200 million from ops this year.
    Mar 11 04:38 PM | 1 Like Like |Link to Comment
  • GrafTech International: Shares Broken But Competitive Advantages Intact [View article]
    My cost average is a little over $9. I've averaged down, but appears I initiated my position a little early.

    I'll admit I didn't see the price decrease in needle coke and electrodes coming. GTI still in a great position being the low cost producer. Most of these electrode producers are producing at a loss at these price points. We will see what happens here, but Shular made it sound like they might make a play for a Chinese producer when the price is right.

    Best of luck.
    Mar 3 02:48 AM | Likes Like |Link to Comment
  • Has Buffett Got This Wrong? - Why IBM Does Not Appear To Be A Good Fit In The Berkshire Hathaway Portfolio [View article]
    "IBM's high level of debt is also reflected in its high interest coverage ratio."

    Comment doesn't make sense. Interest rate coverage ratio is EBIT/interest expense. A high ratio typically means low debt amounts. Was this calculated correctly?
    Feb 20 03:18 PM | 3 Likes Like |Link to Comment
  • Corning: A Glass Definitely Half Full [View article]
    Good article...I agree 100%. Boring stock but their cash flow and buyback abilities make it very unlikely the stock will go much lower.
    Feb 6 11:51 AM | 1 Like Like |Link to Comment
  • When Will Corning Be Cool Again And Break Out Of Its Range? [View article]
    Agreed. Management sure made it sound like more buybacks were coming from the board in 2013 on the conference call. The stock has been dead money for awhile, but I won't complain about a company buying back loads of shares at under tangible book while paying me 3% to wait.

    I'll add more if we get close to $11.
    Feb 4 02:39 PM | 1 Like Like |Link to Comment
  • Gorilla Glass Continues To Power Corning [View article]
    I wasn't hating at all. I own the stock. But if you own this thing for Gorilla Glass you need to re-think your investment thesis. Gorilla glass has not and never will drive earnings for Corning.
    Jan 30 12:35 PM | 1 Like Like |Link to Comment
  • Gorilla Glass Continues To Power Corning [View article]
    6% of the net income was attributable to "specialty materials (gorilla glass is included in here).

    The display segment is powering Corning....not Gorilla glass.
    Jan 29 11:20 AM | 1 Like Like |Link to Comment
COMMENTS STATS
317 Comments
323 Likes