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  • Taking A Walk With The Sell Side [View instapost]
    David Merkel wrote a piece on this at the end of March. I think it is worth looking at regardless of one's position and point of view. http://bit.ly/1i0nkon

    I think pretty highly of his writing in general. I have no axe to grind with TWGP: no position and no opinion. I began to get involved and then read the article and realized I would not be able to make a good enough decision on my own without more preparation than I could afford to put into it.
    May 10 06:23 PM | 2 Likes Like |Link to Comment
  • Birner Dental Management Services: Accounting Masks Substantial Value Opportunity [View article]
    what about the scenario where a dentist builds clientele through Birner and then walks out with their book of clients? is this something that management addresses? i'd imagine that it happens at least somewhat regularly. it may be that it is okay and priced in -- like athletes prior to free agency.
    May 7 05:46 PM | 1 Like Like |Link to Comment
  • Hallelujah! Chorus Aviation Provides An Attractive Yield With A Margin Of Safety [View article]
    If you liked the idea, but wanted better value -- it is available as Chorus is now trading CAD $3.59.
    May 7 01:45 PM | Likes Like |Link to Comment
  • Closed-End Fund Forum [View instapost]
    ZF and ZTR are continuing stock buybacks. they've bought quite a bit over the past year or so and they are planning on buying more. currently ~12% discount for ZF.
    Mar 21 02:01 PM | Likes Like |Link to Comment
  • Closed-End Fund Forum [View instapost]
    Great tip, thanks. Using it right now.
    Mar 21 01:59 PM | Likes Like |Link to Comment
  • Hallelujah! Chorus Aviation Provides An Attractive Yield With A Margin Of Safety [View article]
    Again, thanks for the input. As I don't have the experience in the industry as you do, it is good to get your perspective.

    Hopefully, I was pretty clear in the article about my view of Chorus stock: it is attractively valued with a margin of safety and pays a great dividend. With the caveat that there are real risks and belongs as a portion of a portfolio -- not to bet the farm.
    Mar 20 09:37 AM | Likes Like |Link to Comment
  • Hallelujah! Chorus Aviation Provides An Attractive Yield With A Margin Of Safety [View article]
    Thanks for the link. I'll take a look. I have heard the same anecdotally, but it is good to have something to look at.
    Mar 20 09:34 AM | Likes Like |Link to Comment
  • Closed-End Fund Forum [View instapost]
    APF running a tender for 20% of their outstanding shares.
    Mar 18 10:33 PM | Likes Like |Link to Comment
  • Hallelujah! Chorus Aviation Provides An Attractive Yield With A Margin Of Safety [View article]
    To highlight concerns for airlines that don't have as good a franchise as Chorus:
    http://onion.com/1kZN6yo

    (Note this is from the Onion and is meant to be humor, not reality).

    (Thanks Chris DeMuth)
    Mar 18 09:19 AM | Likes Like |Link to Comment
  • Hallelujah! Chorus Aviation Provides An Attractive Yield With A Margin Of Safety [View article]
    Thanks for reading and for the kind words.

    I started buying CHR in 2013 prior to the pop after the arbitration decision. I have actually increased my position as I learned more about Chorus (at around current prices).
    Mar 18 09:10 AM | Likes Like |Link to Comment
  • Hallelujah! Chorus Aviation Provides An Attractive Yield With A Margin Of Safety [View article]
    Yes. The editors noted the illiquidity of CHRVF and I recommend transacting in CHR A shares. Due to technical reasons, SA was unable to list this under CHR-A so that CHRVF was the only choice.

    The withholding tax is a great point. Thanks.
    Mar 16 09:07 PM | Likes Like |Link to Comment
  • Hallelujah! Chorus Aviation Provides An Attractive Yield With A Margin Of Safety [View article]
    @caapt727, you make 2 different points. first, the airline business has been traditionally lousy. true enough. i've made clear that Chorus/Jazz does not have a traditional airline. they operate on a targeted margin basis based on flight hours and other inputs. if you feel that Chorus is still trapped in an old airline model, i'd argue the evidence of the CPA and the excellent record of consistent profitability does an excellent job of showing how Chorus is NOT your typical airline. so while i agree with your quote and otherwise avoid airlines, it does not apply to Chorus. in fact, i'd argue that it is this perception that partly contributes to the value in Chorus equity.
    your second point, that if they smaller carriers pay more that their advantage decreases is a truism. the question is whether Chorus is having a problem keeping or obtaining pilots. please provide evidence either way of this (i really mean it, i'm not trying to be argumentative, i very much want to see the evidence -- that is what is great about comments).
    one final thing -- Chorus operates under the Air Canada umbrella. the CPA operates to the advantage of both companies. Air Canada definitely will work to squeeze Chorus and that is why they went to arbitration. But these two companies are intertwined and Air Canada (at least for now) does not have an interest in putting Chorus out of business.

    thanks for reading and for your comments (and to Alexander Valtsev)
    Mar 16 03:38 PM | Likes Like |Link to Comment
  • Thoughts On The Berkshire Hathaway Annual Letter And Report [View article]
    you might think that selling the puts was a good idea. that's fine. but i suggest a little intellectual honesty: put selling is a bet on the market.

    by my calculations, these puts were sold at market highs and volatility lows. to me, that is the opposite of "the price is right." merely because a trade works out does not qualify it as a good trade.

    if you still don't agree that put selling is a bet on the market, i'd suggest you do a little research on options. and it doesn't matter whether they are european or american style. the puts are clearly worth more with the market lower than with the market higher. and even if he didn't need to post margin on them (good for him!), it still impacted his income statement.

    good luck.
    Mar 10 07:07 PM | Likes Like |Link to Comment
  • Thoughts On The Berkshire Hathaway Annual Letter And Report [View article]
    "These puts have generally been misunderstood. They were not bets on the market; they were insurance-type contracts that transferred volatility from the insureed to Berkshire for a premium."

    Really? It was definitely a bet on the market. That's what puts are. Their value fluctuates based on the value of the index and the price of volatility. And that is why Berkshire took such huge mark to market losses on them when the market tanked and volatility exploded. The losses directly impacted the book value of Berkshire.

    Whether the accounting was conservative or not does not impact the post-mortem of the trade. But it does note how Buffett is careful enough to not let even his bad trades keep him from not opening shop the next day -- just like how he does not guarantee subsidiaries debt by BRK.
    Mar 4 01:19 PM | Likes Like |Link to Comment
  • Thoughts On The Berkshire Hathaway Annual Letter And Report [View article]
    don't confuse the outcome with the decision process.

    overall, he is demonstrably very good at making decisions. and is overwhelmingly good at documenting not only results but how to make good decisions in his letters. that is what makes them valuable. not only that, but he is generally open about when he makes a mistake. i think readers of his letters would benefit more from understanding this properly.
    Mar 4 01:08 PM | Likes Like |Link to Comment
COMMENTS STATS
163 Comments
92 Likes