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Wade Slome

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  • The Most Hated Bull Market Ever [View article]
    To all the skeptics, thank you for the hate-filled comments. I think you may be just helping me with my argument?
    Jul 31 10:44 AM | Likes Like |Link to Comment
  • Examining The Hype Over Facebook's $100 Billion IPO [View article]
    Stu: I simply meant that if I like the deal at the offer price (say $34 per share), but I am not privileged enough to receive shares, then I will be in tears if the first "traded" shares come out at $46, up +35%...less upside potential for me.
    Jan 31 09:04 PM | Likes Like |Link to Comment
  • Predicting Market Movement Is A Game Of Whack-A-Mole [View article]
    ArtfulDodger:

    Thanks for the comments. I've given up on trying to convince the cynics. Successful market timers have no need to read my articles anyways. Good luck with all your investing...

    ~WS
    Oct 5 01:46 AM | Likes Like |Link to Comment
  • In Equity Markets - 'It's the Earnings, Stupid' [View article]
    I generally agree with the buyback commentary you provided - I have written about this topic before in my article titled, Share Buybacks and Bathroom Violators: is.gd/2ZH0gC
    May 28 03:43 PM | Likes Like |Link to Comment
  • In Equity Markets - 'It's the Earnings, Stupid' [View article]
    Yes, I would agree. You are absolutely right, money has flowed into bonds, which explains why bond prices are at a peak after a 30-year bull run. Money goes where it is treated best. If you are earning 3% on 10-year Treasuries and the earnings yield on stocks (inverse P/E) of 7.5%, then something has to give. Bond prices either crater to narrow the gap with stocks, or stock prices go higher to lower the earnings yield.
    May 28 03:37 PM | Likes Like |Link to Comment
  • Citigroup: The Illusion of the Reverse Split [View article]
    You're right, Berkshire "B" shares did a 50-1 split last year out of necessity to complete the Burlington Northern Santa Fe deal for tax purposes. He frowns upon stock splits though in hopes of mitigating the number of speculators trading in his stock.
    Mar 22 04:09 PM | 1 Like Like |Link to Comment
  • Smallcap Nanotech Company NVE Is Wade Slome's Highest Conviction Holding - Here's Why [View article]
    Dividend Inc:

    I rarely write about my positions, but if you comb through my previous articles on SA or InvestingCaffeine.com, I have written about AMZN, PETM, and ERTS as well.

    ~WS
    Jan 1 11:53 PM | Likes Like |Link to Comment
  • Positive Prognosis for Genoptix [View article]
    Great report!
    Sep 22 10:15 PM | Likes Like |Link to Comment
  • Japan: What Deflation? What Depression? [View article]
    Spot on Scott! I have written on the topic too, contrasting the differences between Japan and the U.S.:

    investingcaffeine.com/.../
    Aug 13 03:13 PM | Likes Like |Link to Comment
  • Steve Jobs: The Gluttonous Cash Hog [View article]
    I agree with you. I'd like to see them create more industry-leading products too. They spent $1.3 billion on R&D last year, so they could double it this year and not even put a dent in the $42 billion.
    ~WS
    Jul 8 01:45 PM | 4 Likes Like |Link to Comment
  • Stocks vs. Bonds on Steroids [View article]
    Not all bonds and bond funds are created equally. In order to determine the sensitivity of your bond portfolio to potential increases in interest rates you first need to find out the "duration" of the bond(s). If you take an interest rate change (e.g. 200 bp increase in rates) times the duration of the bond(s), then divide by 1 + Yield-to-Maturity. Running this exercise will provide an estimate of how "killed" your bonds will get hit IF rates rise. Long-term Treasuries are the most susceptible to interest rate risk, but bonds with shorter durations face lower rate exposure (however more inflation risk). Other risks include credit risk, liquidity risk, and reinvestment risk, among others.
    May 25 07:51 PM | 1 Like Like |Link to Comment
  • Market Valuation Dipstick Shows More Room to Run Higher [View article]
    Bad analogy. I agree. Sorry.
    Apr 6 12:20 AM | 2 Likes Like |Link to Comment
  • Foreign Exchange, The Carry Trade, And Arbitrage Vigilantes [View article]
    Good points Clive. From my perspective, the U.S. dollar is the best house in a bad neighborhood, if you look at the currencies of other European and G-7 countries like Japan. If the U.S. cannot get its debt/deficits back in order (while other developing countries show better fiscal constraint and growth), and we find a new de facto global reserve currency besides the "greenback", then I agree...the dollar could be a good short.
    Mar 8 06:40 PM | Likes Like |Link to Comment
  • Electronic Arts Will Lead the Gaming Industry When the Time Comes [View article]
    Good news for EA if TTWO walks away from struggling sports franchises. www.cnbc.com//id/34584818
    Dec 24 03:02 PM | Likes Like |Link to Comment
  • Hypocritical? Einhorn Likens CDS to Asbestos [View article]
    Kansas City:

    I hear what you're saying, however it's my belief that the conflict of interest concerns in your Goldman example would be alleviated by setting up standardized central clearing houses (like we see with options and futures) with required collateral from counterparties.

    RE: Einhorn and CDSs...yes, he did use and profit from them.

    ~WS


    On Nov 17 10:30 AM Kansas City Shuffle wrote:

    > Mr. Slome,
    >
    > I respectively disagree with all your points above. By comparing
    > CDS to standard derivatives and explaining the ancient history of
    > derivatives, you hope to shed CDSs in the same light as futures on
    > corn. However, CDS contracts are different in that they implicitly
    > give the holder the desire to see the company..not just the equity
    > fail. The most dangerous aspects of this relationship lie in banks
    > like Goldman Sachs holding CDS on companies with which they have
    > banking relationships resulting in many scenarios were banks will
    > refuse to lend money in order to drive up the price of their CDS.
    > Due to a mispricing (more beneficial gain from CDS rise than fees
    > from origination) this scenario can occur many times over and does
    > not reflect any underlying holes in the company.
    >
    > Not to mention you call Einhorn hypocritical, did or does Einhorn
    > use CDSs? If not then he is not a hypocrit.
    Nov 17 12:25 PM | Likes Like |Link to Comment
COMMENTS STATS
26 Comments
10 Likes