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Vince Martin
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I've been contributing to SA since 2011, with a break to join the PRO editorial team from 2012-2014. I got my Series 7 and 63 back in 2000, and watched the dot-com bubble peak and then burst in real time at a small, tech-focused retail brokerage in NYC. I've been a value investor ever since.
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  • A Shipping Company Defying A Downturn led by Economic Fears?
    It's happening:

    BOX vs SPX 5-day chart
    courtesy Yahoo! Finance; BOX in blue, SPX in red click to enlarge

    Don't ask me why a company with an 8% dividend yield that makes its money leasing containers for worldwide shipping is holding up just fine as the stock market shows sheer terror about worldwide economic prospects. Acquisition rumors? Institutional buying? 

    Strange.

    Disclosure: No positions. 

    Tags: BOX-OLD
    Oct 03 9:06 PM | Link | Comment!
  • Tell Carol Bartz to Can It
    Amidst the public gnashing of teeth about the firing of Yahoo! CEO Carol Bartz -- over her cell phone, the horror! -- some common sense is needed. Bartz made some $60 million in 2009 and 2010, and is receiving another $10 million for getting canned.

    For $70 million, the board of Yahoo! could have hired a plane with a banner that read "You're fired, b----!" and flown it over her daughter's wedding, and I wouldn't care. She can give as many profanity-laced interviews to Fortune as she likes. She didn't get the job done. 

    I'd ask Bartz: how many of the Yahoo! employees that you laid off got offered to chance to "resign" so they could "spend more time with their family"? You fired people, now you got fired. Life's tough. Meanwhile, if Bartz truly thinks she earned $70 million, she's crazy. Though, to her credit, she has proven that even 70 million dollars can't buy an ounce of class.
    Tags: YHOO
    Sep 09 12:12 AM | Link | Comment!
  • Yahoo's Struggles Show the Perils of Betting on Future Growth
    Yahoo! CEO Carol Bartz was fired today, ending a long-criticized reign at the top of the Internet company.

    It's another lesson along the lines of those I wrote about last month: when investors choose high-growth, high-PE companies, they leave a very tiny margin of error. As I noted in that piece, Yahoo! has grown earnings by a factor of seven over the last decade-plus, and has seen its stock price drop some 80% off its bubble peak. Expecting explosive earnings growth for five or ten years -- necessary for the valuations of companies like LinkedIn (NYSE:LNKD) or Pandora (NYSE:P) -- necessarily implies a near-perfect execution of the company's business plan. In addition, macro factors, market factors, competitiors, government, consumer whims -- all must go according to plan.

    It's also important to note the difference between a company and a stock. Yahoo! is "the most-visited Web portal", according to the Bloomberg article linked above. Similarly, companies like Cisco (NASDAQ:CSCO) and Oracle (NYSE:ORCL) are market leaders, yet have valuations well below those of 2000. 

    It's not enough to point out that 2000 was a massive bubble, the likes of which we may not see for a very long time. That's true, but the larger point still holds. When betting on growth, investors need to understand the risks involved, within a company and without.
    Sep 07 7:28 PM | Link | Comment!
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