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Nat Stewart  

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  • Female Health Company Transitioning To New Strategy, But Receiving Legacy Business Valuation [View article]
    If you have time I would be very interested to know why you think her (CEO's) actions have not been "shareholder friendly". I read the recent investor presentations and at least to me, it seems they have a clear plan. Once again, if you have time, I and perhaps others would like to know what specifically you are talking about.
    May 14, 2015. 07:04 PM | Likes Like |Link to Comment
  • National Beverage Corporation: A Growth Opportunity? [View article]
    My best guess is as follows: If it is off the table, it is most likely because it is not quite done baking. Perhaps he tried to take it out of the oven, checked the temperature, it was not quite "baked" to the desired temperature yet - to continue with my analogy. I doubt after dropping hints for quite some time now that the CEO has suddenly changed his mind, given his tenure, age, and concentrated ownership. Cash is seriously piling up. I am considering writing a piece similar to my recent USLM article a bit later in the year. Other than that I am just waiting for the 10K, proxy, and annual to get a read on what is going on.
    May 13, 2015. 05:03 PM | Likes Like |Link to Comment
  • Bank Of America A Warrants Are More Attractive Than The Common [View article]
    Ill stick with the warrants, thanks.
    May 12, 2015. 04:18 PM | 1 Like Like |Link to Comment
  • Bank Of America A Warrants Are More Attractive Than The Common [View article]
    "...it is to come up with a view on the price of Bank of America's stock over time and only compare the price of the warrants to the current price of the commons to determine if there is a mispricing relative to your view of the value of the stock."

    That is exactly what I do - I add a step where I distill the option or warrant price into an implied financing rate, and then compare that to my estimated IRR for the stock.
    May 12, 2015. 01:36 PM | 1 Like Like |Link to Comment
  • Bank Of America A Warrants Are More Attractive Than The Common [View article]
    I agree. Low cost non-recourse leverage on a good stock is a good thing.
    May 12, 2015. 11:44 AM | 2 Likes Like |Link to Comment
  • Tesla's Amazing Powerwall Reservations [View article]
    Your notion is common yet completely false. Larry Page himself was receiving grant money from the NSF when he developed the basic concepts of the Google search engine. Same with Sergey Brin. Same with most scientific research at universities. This type of thing has been true from the beginning of the technology revolution. Corporate fundamental science and technology research has been reliant on government contracts from the beginning. Look up the history of DARPA or the space program. Bell Labs, perhaps the greatest technology lab of all time, was funded by the monopoly on telephone service it was given by the state - an substantial subsidy. Without this work "consumers" would have nothing to "demand" because the basic technology would not exist.

    In other words, Musk getting a few subsidies does not contradict the history of scientific breakthroughs, it is completely consistent with it.
    May 12, 2015. 08:02 AM | 2 Likes Like |Link to Comment
  • Tesla's Amazing Powerwall Reservations [View article]
    I get kind of tired of people knocking every speculative stock or company as hype or smoke and mirrors. The truth is, our standard of living would be much lower if high priced, speculative trading values did not subsidize innovation and new business models. It is actually an important feature of the capital markets.

    As to subsidies, lets get serious - the entire technology revolution was spurred on by government spending in the space program and other fundamental research. Folks, things are not all bad - even if certain companies are overvalued.
    May 11, 2015. 10:50 PM | 2 Likes Like |Link to Comment
  • Why You Should Avoid Nathan's Famous [View article]
    From an 8-k filed today:

    "....Nathan’s expects that a portion of the special dividend will be treated as a non-taxable return of capital. Of the $25.00 per share distribution, Nathan’s currently expects between $10.00 to $11.00 per share to be characterized as a taxable dividend, and the remaining amount of the distribution to be characterized as a return of capital."

    So the effective tax rate on the dividend for someone in the top tax bracket looks to be around 8%.
    May 11, 2015. 09:07 PM | 1 Like Like |Link to Comment
  • Generation X: Time To Plan Our Retirement [View article]
    Trend following approaches are like that - a year of feast followed by years of whip-saws and relative famine. It might be a good asset allocation approach, but in my opinion very difficult for an individual trader or investor. Fun article.
    May 11, 2015. 04:14 PM | 2 Likes Like |Link to Comment
  • A Massive Tender Offer Has Created A Solid Buying Opportunity In Winmark Corp. Shares [View article]
    JY Park,

    The motives are pretty simple. They saw an opportunity to bring in a huge amount of stock while also giving the CEO and majority shareholder a chance to diversify his wealth. This is exactly what most any competent financial advisor would be telling him to do at this point, so I see no reason to question it.

    As to your claim that "no rational shareholder would tender" you are wrong. Your comment fails to consider the limitations of market liquidity, particularly in a thinly traded stock like this.

    Likewise, your believe that "his decision to sell at a 6% discount" will be meaningful is for this same reason not accurate. See the comment I made to Rocket10K above for details on this.

    The stock might very well go down, or it could go up - in the short term it is not particularly meaningful to me. I personally would love a correction down to 80 or so.
    May 11, 2015. 04:04 PM | Likes Like |Link to Comment
  • Generation X: Time To Plan Our Retirement [View article]
    I am curious, what is your statistical background/training? If you have a quantitative background, you might enjoy reading this blog aggregator:

    http://quantocracy.com
    May 11, 2015. 02:34 PM | Likes Like |Link to Comment
  • Why U.S. Lime & Minerals Should Consider A $20 Per Share Special Dividend [View article]
    It is possible that if price cracks the multi-month low, which we are just above right now, we will get some stop-loss type selling - very common for inappropriate retail order choices to have undue influence on these less liquid names. If that does occur I will definitely see it as a buying opportunity.
    May 11, 2015. 10:04 AM | 1 Like Like |Link to Comment
  • Confusion Causes 12,000% Run Up In Riviera Tools Company [View article]
    This is a true story. In the mid 1990's a elderly relative of mine asked her broker to buy more Sysco.. a stock she had owned for ages and bought more of on occasion with other dividend and interest income and had done extremely well with. However it was the junior broker not her normal broker, and he assumed she meant Cisco. She bought Cisco and only realized she owned it when she realized she had made a killing on a stock she never intended to buy.
    May 9, 2015. 11:34 PM | 4 Likes Like |Link to Comment
  • Female Health Company Transitioning To New Strategy, But Receiving Legacy Business Valuation [View article]
    To expand on the social proof idea:

    Why don't they issue 2 million somewhat out of the money options to a huge star like Rihanna and have her be the official endorser, like what Michael Jordan did for Nike in the 80's.

    The real battle is in perceptions, if they don't address that in a major way i think the entire consumer idea is dead. Youtube videos featuring average people showing how to use the product (yep, I watched a few of them) is not good enough.

    May 6, 2015. 04:39 PM | 2 Likes Like |Link to Comment
  • Female Health Company Transitioning To New Strategy, But Receiving Legacy Business Valuation [View article]
    A number of people have said that the company is not large enough to get this product off the ground successfully in the consumer market. If this is true - what would it be worth to, say, Church and Dwight (CHD)? Combine the gross margin of the product less the bloated overhead, the massive distribution and marketing muscle of a Church and Dwight type company, maybe it would be worth something there.
    May 6, 2015. 04:33 PM | 1 Like Like |Link to Comment
COMMENTS STATS
525 Comments
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