Seeking Alpha

Tom Au, CFA's  Instablog

Tom Au, CFA
Send Message
In the early 1990s, during the middle of a secular bull market, I began work on "A Modern Approach To Graham and Dodd Investing," that was not particularly suited for the decade of the 1990s, but was ideally suited for the following "Lost Decade" of the 2000s.
My book:
A Modern Approach to Graham and Dodd Investing
  • Some Thoughts on Earnings Misses 0 comments
    May 21, 2009 4:02 PM

    Two or three months ago, stocks of companies that missed earnings were considered "innocent until proven guilty." Now it seems that they are "guilty until proven innocent."

    Cases in point today are Gamestop and Hot Topic, which are getting hammered. But they are only giving back their recent gains. Consumer goods stocks have rallied more than most in the recent upswing.

    I used to own Hot Topic, at less than half its current price, below book value. I can't sell it today, haven't done so earlier. But I would if I could (but I don't have a short mandate). 

    A stock selling around book value, Graham and Dodd style, has a balance sheet to fall back on. A stock selling at a multiple of book is hostage to earnings.

Back To Tom Au, CFA's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • Europe's flying. Bought TEF and CEDC.
    Jan 3, 2012
  • Gold stocks didn't follow the underlying metal upward. Might be the thing to own when the metal rises again.
    Aug 30, 2011
  • Even (MCD) seems to be benefiting from the "coffee" craze
    Aug 23, 2011
More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.