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Tim Travis
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Tim Travis is a veteran deep value investor and money manager. Travis has extensive experience in traditional investments such as stocks and bonds, in addition to having a unique methodology of combining options and distressed investing with value investing to generate income, reduce risk, and... More
My company:
T&T Capital Management
My blog:
T&T Capital Management Blog
My book:
Learn to Treat Your Portfolio as a Business
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  • Coke In Talks To Buy Monster Beverage-WSJ

    According to the Wall Street Journal Coca-Cola Co. (NYSE:KO) is evaluating an $11 billion plus acquisition of Monster Beverage Corp. (NASDAQ:MNST). At over 30 times earnings I think this acquisition is not a good idea of Coca Cola. While I'm sure Coke could increase Monster's sales through improved distribution, this is too large of an acquisition on a company that is facing increased competition, and which I would argue lacks the brand value to warrant such a price. I think as an investor if Coca Cola were to invest $11 billion into their own energy brands, it is very likely that the result would be something greater than what Monster offers. I'd be really curious to hear what Coca Cola's largest investor Warren Buffett thinks of this deal, but I would doubt that he is really excited about it at this price.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Tags: KO, MNST
    Apr 30 3:40 PM | Link | Comment!
  • Buffett Raises Guardrails For Successor-Morningstar

    I totally agree with the premise of this video in that Warren Buffett has hedged his bets, by investing a great deal in high quality capital intensive businesses. While this doesn't mean he doesn't have confidence in his successor, it would be foolish to believe that any investor could emulate Buffett's track record, particularly with the inherent disadvantages of running an investment portfolio as large as Berkshire Hathaway's (BRK.B, BRK.A). Therefore buying high quality businesses which are likely to earn more than their cost of capital, is a profitable and attractive outlet for Berkshire's cash. I believe that Buffett will continue to acquire larger companies when given the opportunity. Berkshire is a core position for clients at T&T Capital Management, as we believe the company is deeply undervalued due to the market pricing Berkshire as though it is still just an investment portfolio, as opposed to a conglomerate with the majority of its profits produced by best in class companies, across a variety of different industries.

    Disclosure: I am long BRK.B.

    Tags: BRK.B, B
    Apr 30 3:39 PM | Link | Comment!
  • Barnes & Noble Surges After Microsoft Investment-Bloomberg

    Barnes & Noble Inc. (NYSE:BKS) and its Nook product became a lot more viable this morning, after Microsoft (NASDAQ:MSFT) invested $300 MM into a subsidiary holding the Nook college books business. The implied valuation of the entity is $2 billion. I don't think that the Nook would have lasted without a company with more clout and cash stepping in to assist in the endeavor. It seems like a reasonable bet for Microsoft except I do think the implied valuation seems pricey. I would prefer to see Microsoft buy Research in Motion (RIMM) which would boost earnings even if they offered a reasonable premium, and would certainly make the company a more viable competitor in the mobile phone market. This is a huge win for Barnes & Noble as they retain 82% of the subsidiary and they have a partner in addition to John Malone ready to bring in additional cash.

    Disclosure: I am long MSFT, RIMM.

    Tags: BKS, MSFT, BBRY
    Apr 30 10:31 AM | Link | Comment!
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