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  • Shorts Crowd In For Samsung S4 Play But Overlook The Forest For The Trees [View article]
    Post earnings thoughts?
    Jul 23, 2013. 05:02 PM | Likes Like |Link to Comment
  • An Education GARP Play That Everyone Can Love [View article]
    I love how you neglect to mention any of the negative points of view on the company. Since you chose to call out my article, and question my opinion, I think it only makes sense that I let anyone reading your article know a few things.

    - From the point in time that I published my article on APEI, the stock fell almost 25% in less than 30 days when questions about the sequestration impact were borne out and scared investors out of the stock.

    - You make no mention of the fact that other online universities are aggressively moving into this market because certain DoD funding does not count against the 90/10 rule which is why APEI.

    - I could go on and on, but at the end of the day, you write an article about how great this company is and then tell investors not to buy it at its current price. If you think this is a great company, trying to time the market and but the stock at a lower price is silly. Buy and hold great companies.
    Jul 23, 2013. 10:45 AM | Likes Like |Link to Comment
  • Meritage Homes: Homebuilder Making Strategic Shift [View article]
    Price to Sales is not a relevant valuation model for home builders.

    Good summary on everything else.
    Jul 18, 2013. 02:59 PM | Likes Like |Link to Comment
  • Angie's List: Flawed Accounting Leads To Overstated Profitability In Mature Cohorts [View article]
    Great article.
    Jul 18, 2013. 02:03 PM | 2 Likes Like |Link to Comment
  • Coldwater Creek: A Potential Lotto Ticket In The Retail Sector [View article]
    It is very hard to translate what you see as discounts in a store to profitability. Jos Banks has buy 1 get 5 free deals all the time. Yet the company generates 60pct gross margins.

    Also for CWTR, GM% expanded by 200bps on an adjusted basis in the last fiscal year. So if you we're waiting for that particular metric to improve as a signal to buy, the train has already left the station.
    Jul 17, 2013. 08:59 PM | Likes Like |Link to Comment
  • BlackBerry Can Engage In Value Creation Through Preservation [View article]
    Suggesting that an insider who holds 10% of all outstanding shares of BlackBerry would short the stock, prior to earnings, to hedge his long position is flat out asinine.
    Jul 17, 2013. 04:56 PM | 12 Likes Like |Link to Comment
  • Shutterstock Valuation Makes Me Shudder [View article]
    I recently changed my outlook as far as investing in stocks I write about. Specifically when recommending a short position, the amount of accusations I was receiving as to attempts to move the stock for personal gain were not worth have to defend my motive.

    I am not completely out of the game as far as taking positions when I cover a company, but will probably stay away from this with any short ideas.
    Jul 17, 2013. 04:39 PM | Likes Like |Link to Comment
  • BlackBerry Can Engage In Value Creation Through Preservation [View article]
    The PV calculation associated with NOL's, with significant restrictions placed on how quickly they can be monetized, would significantly dilute the value. You obviously know the GAAP accounting as I do.

    My point was that an acquiring company is not going to make a strategic decision based on NOL's
    Jul 17, 2013. 04:13 PM | 1 Like Like |Link to Comment
  • Cliffs Natural Resources Has Limited Downside And Can Double In 12 Months [View article]
    So your net worth is at least $2.4M if you own 140,000 shares of CLF at a $17 cost basis.

    I might consider diversifying, unless your just insanely rich.
    Jul 17, 2013. 03:55 PM | 1 Like Like |Link to Comment
  • BlackBerry Can Engage In Value Creation Through Preservation [View article]
    If you can find any investment opportunity that is not based on "assumptions" please send it my way. Every investment is made on some sort of assumption of future performance.
    Jul 17, 2013. 02:34 PM | 11 Likes Like |Link to Comment
  • Cliffs Natural Resources Has Limited Downside And Can Double In 12 Months [View article]
    For what it's worth, for all of those reading this article, since the author did not reply to my comment I will offer up my take.

    I think the WACC analysis is flawed and uses a lower cost of debt then the cost associated with the debt the company has outstanding.

    I point this out because if you look at the WACC chart in the article, a 100bps increase in the WACC drives down the price target by 20%. I think the WACC should be at least 100bps higher.

    Part's of the analysis are subjective and open interpretation, but the cost of debt is not one of those subjective items.
    Jul 17, 2013. 01:48 PM | 3 Likes Like |Link to Comment
  • Shutterstock Valuation Makes Me Shudder [View article]
    Thanks for the positive comments.

    Since the time I wrote the article, iStockphoto (main competitor) announced a 50% price cut for subscribers on a significant portion of its digital library.

    This is exactly why I am going to remain a permabear on this business.

    http://istockpho.to/13...
    Jul 17, 2013. 01:27 PM | Likes Like |Link to Comment
  • BlackBerry Can Engage In Value Creation Through Preservation [View article]
    The benefits of from losses, from a tax standpoint, only can be used to recoup previously paid taxes for a small period of time (which is close to being over). Losses going forward can be used to offset future profits, and are not all that valuable in the case of BlackBerry, and are next to worthless if the company were to be acquired.
    Jul 17, 2013. 01:18 PM | 6 Likes Like |Link to Comment
  • Coldwater Creek: A Potential Lotto Ticket In The Retail Sector [View article]
    Thank you Neil. Freudian slip.

    I have submitted for this typo to be corrected.
    Jul 17, 2013. 11:04 AM | 1 Like Like |Link to Comment
  • Cliffs Natural Resources Has Limited Downside And Can Double In 12 Months [View article]
    Out of curiosity, could you walk me through in more detail how you are determining the cost of debt in your WACC model?

    It appears you are using the outstanding debt from the latest 10-K, of which about $2.9B of the $3.9B carries an effective interest rate around 5% on average. The remaining $1B of term/revolving debt is just under 2% as far as the average interest rate.

    Just trying to understand how you come up with a 2.6% pre-tax cost of debt for your model. Thanks.
    Jul 16, 2013. 03:05 PM | 2 Likes Like |Link to Comment
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