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  • Ascent Capital: Rich Valuation To Peers And Recent M&A, While Competitive Threats Loom [View article]
    Why didn't you pro-forma your numbers for the owners earnings calculation? Wouldn't it make sense to especially since all the debt from the security networks acquisition is already baked into enterprise value?
    Apr 24 10:17 PM | Likes Like |Link to Comment
  • Don't Buy Sony Over The PS4 Hype [View article]
    They need to do alot more than change leadership and sell assets to even be considered a good investment. Why is the article so incomplete? When Charlie Munger was asked how to value a poorly performing company, he simply responded "You don't". Lack of a profit for the past five years, heavy amount of debt, increasingly competitive market place, and a huge exposure to Japanese interest rates are about all I need to convince myself to stay away.
    Feb 22 05:38 PM | 2 Likes Like |Link to Comment
  • Don't Buy Sony Over The PS4 Hype [View article]
    I agree. They are getting quite desperate at this point, and investors really need to ignore any hype around the PS4.
    Feb 22 11:09 AM | 2 Likes Like |Link to Comment
  • Lockheed Martin: An Excellent Long-Term Dividend Play [View article]
    Yes, it was unfortunate the B2 program was cut, but the B2 was obviously a very different plane than the F-35. It was a very unique bomber, and not as necessary as the F-35. It makes sense that a specialty program like the B2 would be cut, but I think the government's desire with the F-35 is different. As I said in my article, the ultimate plan with F-35 is to develop a plane that can be used across all armed forces. That goal will eliminate a wide range of future costs, including maintenance and training costs. The real question is will the government endure the costs now for the benefits in the future? I sure hope they have a long-term focus with their cuts.
    Jan 31 01:02 PM | Likes Like |Link to Comment
  • Lockheed Martin: An Excellent Long-Term Dividend Play [View article]
    I don't believe so. The government has invested quite a lot in the project, and to pull back now would result in some serious sunk costs. The government clearly wants to upgrade their fighter planes, but to completely stop a program and start a new one in the future would make little sense. The costs of doing that would surely outweigh what the F-35 costs now.
    Jan 31 12:20 PM | 2 Likes Like |Link to Comment
  • Lockheed Martin: An Excellent Long-Term Dividend Play [View article]
    I believe its a much different story with GE. A large portion GE's revenues are from GE Capital, causing it to be much more exposed to the credit crisis in '08. Lockheed doesn't have that kind of exposure.
    Jan 31 12:10 PM | Likes Like |Link to Comment
  • Lockheed Martin: An Excellent Long-Term Dividend Play [View article]
    Yes, I definitely agree the faulty fuel lines may hurt the company, but the government is already so invested in the F-35 project that there is no chance the government will pull away from the project. It will definitely hurt the company's margins on the F-35, but the project will still be an excellent source of cash flow in the long-run. I do believe the new CEO will do a fine job in her position, since she has been in the company for quite some time, and knows the business very well.
    Jan 31 09:53 AM | Likes Like |Link to Comment
  • Lockheed Martin: An Excellent Long-Term Dividend Play [View article]
    I appreciate the kind words! I am currently doing a lot of research to understand Prem Watsa's Fairfax Financial, as I believe it is very undervalued. I will make sure to include a thorough breakdown of the business in that article, so readers will be able to understand every detail of the business.
    Jan 31 09:46 AM | Likes Like |Link to Comment
  • Why Western Union Will Destroy Its Competition [View article]
    The reason is because 96% of Western Union's transactions involve cash. Basically, a large portion of their revenues come from immigrants sending money back home to their families. Most of these families don't even have bank accounts, let alone internet access. Sure PayPal may compete on the e-commerce front, but that is suited for more tech-savvy customers. Western Union is a global company that can attribute its success to focusing on underdeveloped countries that have little means to transfer money. The company will continue to grow by further extending their network all around the world. PayPal may be domestically free, but internationally, they are much more expensive than Western Union. A typical $500 transfer into the US costs about $20 compared to Western Union's current fee of $8, and that involves both ends having internet access. Western Union's large size gives it significant pricing power.
    Jan 28 04:59 PM | 2 Likes Like |Link to Comment
  • Rocky Mountain Is A Chocolate Covered Growth Stock [View article]
    It is way too small for Buffett to even consider it given Berkshire's large size. He says so right in his annual letters.
    Jan 28 12:02 PM | 1 Like Like |Link to Comment
  • Why Western Union Will Destroy Its Competition [View article]
    It's a combination of smaller companies, some banks, and credit card companies, with smaller networks around the world. Western Union gets its dominance by having the largest network available.
    Jan 28 11:20 AM | 2 Likes Like |Link to Comment
  • Why Western Union Will Destroy Its Competition [View article]
    What I meant by that statement is that WU has much more liquidity than MGI. The goodwill comment demonstrates that WU has had enough liquidity to continue making acquisitions, not just for maintaining settlement obligations. I had also mentioned in the article that the settlement assets were required by law, and instead pointed out the company's assets in excess of settlement assets. So yes, I understand those assets are not technically the company's. It also is not accurate to compare WU's acquisitions to HPQ's. Western Union makes a good amount of its acquisitions on a decentralized basis. For example, by acquiring FinInt and Angelo Costa, it just eliminates the company from paying commission fees to its agents. A very simple, and effective acquisition by letting those super-agents just run their business as usual. It is the same way Warren Buffett treats his companies. On the other hand, Travelex will be more centralized. Only time will tell how that acquisition fits into the company's B2B segment.
    Jan 28 11:10 AM | 1 Like Like |Link to Comment
  • Why Western Union Will Destroy Its Competition [View article]
    The chart represents net income growth over five and a half years. The annualized growth is 5.6%. I apologize for the confusion. The graph came out much worse using the net income figures since MGI was all over the place. The percent change in net income was much more organized.
    Jan 28 10:21 AM | Likes Like |Link to Comment
  • Rocky Mountain Is A Chocolate Covered Growth Stock [View article]
    How does the company ship its chocolate overseas? The problem with international growth is that its very expensive to ship chocolate because it melts. So, the fees for international, refrigerated shipping are through the roof. Its the same reason Cadbury and Hershey cannot greatly expand internationally. Hershey and Cadbury at least havr the size to make foreign acquisitions, but otherwise it's too hard for smaller companies to compete with foreign competitors. Foreign competitors can charge much lower prices since they wont have the expensive shipping costs. Unless the company plans on making factories internationally, I believe they'll have problems growing internationally. Even if they do plan on that, that will make them much more capital intensive, and therefore not a Buffett business. Notice that See Candie's has remained solely on the West Coast for all these years. Chocolate can be very capital intensive.
    Jan 26 05:34 PM | 2 Likes Like |Link to Comment
  • EZCorp Filled With Value [View article]
    No, I meant operating income for the quarter. So, it's the YoY difference between the third quarters.
    Jan 17 02:17 PM | Likes Like |Link to Comment
COMMENTS STATS
66 Comments
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