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The Lonely Value Investor  

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  • Something At GameStop Doesn't Add Up [View article]
    Saying that GME is "making up sales" is quite an accusation. It seems the line the article is referring to is NOT the same as the "digital receipts" that the company is referencing. What "doesn't add up" is what smoking gun the author thinks he has found. Perhaps, just maybe, (sarcasm intended) a portion of "new video game sales" falls into the "digital receipt" category??? The author seems to not understand that the "digital" line item he was eager to highlight is a subsection of "digital receipts" NOT a GAAP representation of the same thing. You CAN'T make up a receipt. You either received it or you didn't. So there is no "gotcha" in this piece. So the number the company is reporting doesn't seem to be a non-GAAP number at all.

    GME has been pretty straightforward about the risks to its retail business. They merely stated that they think the decline in traditional gaming retail sales is slower than folks may think, that GME's imminent death is greatly exaggerated, and that there is nothing preventing the company from being a player in digital sales. The company's balance sheet and free cash flow seem to support much of this argument. Meanwhile, this article doesn't seem to address the author's point... rather it seems to be an anti-GME piece in search of a point. I'm not GME cheerleader, despite owning a few shares, but the author's assertions are pretty damning, while his evidence is weak at best. Not sure it is worth their time, but perhaps their legal dept. should take a look at this article. At the risk of repeating myself, it is very dangerous to accuse a company of making up sales.
    Mar 28, 2015. 12:47 AM | Likes Like |Link to Comment
  • GameStop Really Is Blockbuster [View article]
    Perhaps BBY or WMT overpaid for your items? Maybe it is those companies who don't know what they are doing in the used game business? Not sure that your experience is any indication of GME's eventual lifespan and/or its future in selling used equipment/games. Either way, when my "days are numbered", I hope to be generating $9 billion in annual revenue. Perhaps this will be the first company that is net debt free with healthy cash flow to ever die? I could be wrong.
    Dec 27, 2014. 03:35 PM | 6 Likes Like |Link to Comment
  • Cato: Time For A Turnaround? [View article]
    If you can find some of my OLD articles on here, it may illuminate some of the history on Mr. Cato. He holds a small equity stake and a huge voting stake. His rubber stamp board pays him enormously for "who knows what". Luckily, as I said, the staff is very capable. And I like the business... but I agree with your valuation and opinion. Fair value is my vote also.
    Dec 10, 2014. 05:09 PM | 1 Like Like |Link to Comment
  • Cato: Time For A Turnaround? [View article]
    It's about time... despite what 2Reb says above, I find John Cato to be a major impediment at the company. Horrible governance. But the numbers have always made sense and I like the business. Just not used to having to own a company in spite of its leader. CFO is excellent and it seems that rational minds have started to prevail at the company. Do you have a current price target?
    Dec 9, 2014. 08:16 PM | 1 Like Like |Link to Comment
  • Cato: Time For A Turnaround? [View article]
    Nice work, Nick... this idea is paying off for both of us! Congratulations.
    Dec 9, 2014. 05:18 PM | 1 Like Like |Link to Comment
  • Kyocera: An Undiscovered Growth Investment [View article]
    The real beauty of KYO is on the balance sheet.
    Mar 13, 2014. 05:17 PM | 2 Likes Like |Link to Comment
  • Geron: Buyer Beware [View article]
    Take heart Geron shareholders: The company has not diluted your ownership in the last 12 months... probably just a short-term reprieve, however, since GERN is still burning cash. Market value when I wrote this piece... $650 million. And shares outstanding have risen from 100 million to 129 million in those 3.5 years. The market cap is slightly lower now. But shareholders have been diluted even further.
    Mar 12, 2014. 01:12 PM | Likes Like |Link to Comment
  • Harmony: Bad News Factored In Is Good News For Investors [View article]
    Keep up the good work, Holmes. I love the contrarian bent and I'm long HMY. I find it amusing that you hold to quaint old time ideas like actually reading annual reports (sarcasm intended) ;-) As a value investor, I guess it should be seen as a good thing that so few people look at or care about financial statements anymore.
    Dec 23, 2013. 01:51 PM | Likes Like |Link to Comment
  • Cooper Tire: Offering An Upside Of 43% In Two Months With Very Limited Risk [View article]
    Never been called politically correct before.... also never been called holier than thou. In any case, those who write articles for SA know that the author doesn't typically write the title. They made quite a few of mine into promotional materials. In any case, people looking for investment insights should be smart enough not to make any decision based on a headline. Part of the comment you posted was constructive and some of it was just gratuitously nasty. I'm sure you know which is which. I'll leave my comment stand. Interesting that I didn't mention any names.
    Dec 17, 2013. 06:24 PM | Likes Like |Link to Comment
  • Cooper Tire: Offering An Upside Of 43% In Two Months With Very Limited Risk [View article]
    So the author was wrong... most of us make mistakes every day. But there are those commenters who just can't leave anything alone. They have to get on here and spew insults. It is usually someone anonymous, who has not penned even one article. It is not healthy for the SA community and says a great deal more about the insulter than the insultee. Sad. I applaud the author for the effort and generating discussion. Everyone on this site is striving to improve their investing. How about we do it without the insults and personal attacks?
    Dec 16, 2013. 05:57 PM | 4 Likes Like |Link to Comment
  • Molycorp: Overpriced on Rare Earth Excitement [View article]
    Price when I wrote the above $34+... price now? ouch.
    Oct 3, 2013. 10:43 PM | Likes Like |Link to Comment
  • Vodafone: Value Without Verizon Wireless? [View article]
    VOD's sale of SFR to Vivendi was well timed and at a great price. This sale (should it happen) looks to be at a great price. The company has hardly been profligate with the VZ Wireless dividend money to date. I think management decision making in the recent past has been quite good. What shopping spree do you foresee? You level an accusation but don't do much to back it up.
    Sep 1, 2013. 01:01 AM | 1 Like Like |Link to Comment
  • Ignore Mr. Market And Focus On Digital Realty's Fundamentals [View article]
    Yes, the capital markets are wide open for the likes of DLR and rates are low. It will be forever thus? Sure. Hope springs eternal. Mr. Market registered his opinion again today. I think you are purposefully missing some of the salient points being made by those who disagree with you. I don't have a dog in this hunt, but I also don't believe that trees grow to the sky, at least not uninterrupted ;-)
    Aug 19, 2013. 11:28 PM | 1 Like Like |Link to Comment
  • Absolute Value: LinkedIn Vs. Dolby Labs [View article]
    Relax, Barribas... sold DLB at a tidy profit months ago... did you check the date of this article???
    Aug 19, 2013. 11:24 PM | Likes Like |Link to Comment
  • Ignore Mr. Market And Focus On Digital Realty's Fundamentals [View article]
    Buffett and other value investors have also warned investors about companies that have to constantly access capital markets. DLR clearly falls into this category. Are there risks in this? No?

    It would be nice to have the experts address some of the very real questions being raised by skeptics. The effect rising interest rates will have on DLR. FFO and capex/depreciation have been mentioned by some commenters. FFO seems to imply that depreciation is not a real expense... true, it is not a cash expense, but it is supposed to approximate an actual cost... Do DLR's buildings not deteriorate with age? FFO seems to overestimate the long term earnings power of any REIT. Is DLR's success in recent years due to some inherent brilliance on their part or just a function of declining interest rates? Seems that all REITs, regardless of quality, have been levitated. Is DLR doing anything that can't be duplicated? Won't competition (lower cap rates) and rising funding costs have a long term negative effect?

    It seems DLR has (at least according to Mr. Market) hit the first real speed bump in years, if not its history. It will be interesting to see how shareholders react to it. They have not had to deal with many clouds in the sky.

    The Highfield's "short" can be called "foolish" but that hardly addresses the issues they raise. Perhaps to DLR bulls the criticisms are not valid, but DLR's undervaluation is far from self-evident either.

    there are many reasonable arguments to be heard on both sides. It would be nice to hear more of them.
    Aug 18, 2013. 10:01 PM | 2 Likes Like |Link to Comment