I wanted to address some issues that have been expressed in the comment section to my article on Town Sports International Club (CLUB).

The Company’s financial position:

There is an old Wall Street adage that there are two types of companies: those with problems and those that will have problems. Due to my value discipline, I tend to buy the former and lust after the latter.

Viropharma (VPHM) is a biotechnology company searching for a second act. In the past several years, the company has been hit hard by the possible lose of its Vancocin franchise to generic competition and the failure of its Phase 2 drug for hepatitis.

As a value investor who struggles to find growth stocks, I am always drawn to brands in their infancies. I spend a lot of time trying to understand their models, the industries, and whether they have a unique benefit that will make them a great brand. I am searching for the next McDonald's (MCD) or the next Staples (SPLS), but at a point in their development where I can buy them cheap.