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sid18

sid18
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  • Liquidity Services Is In For The Long Haul For Those Investors With Iron Stomach [View article]
    When you say "recently" do you mean in Feb 2009? Back when AXP was trading for $10 and LVS was trading for $2 and the sky was falling? Not exactly recent.

    Regardless, past price has no bearing on the future price. A high of $40 is just as meaningless as a low of $5.

    From a business perspective, do you know of any reasons why current customers might stop using LQDT in the future? What are the alternatives? Who does a better job than LQDT? Where will the business go?
    Apr 18 03:11 PM | Likes Like |Link to Comment
  • Liquidity Services Is In For The Long Haul For Those Investors With Iron Stomach [View article]
    Hmm can you expand on the "They are impossible to deal with" ? I think bigger clients like Walmart might beg to differ. Doesn't excuse any alleged mistreatment towards you but I'm trying to understand if that might taint your judgement about LQDT.
    Apr 18 02:08 PM | Likes Like |Link to Comment
  • Liquidity Services Is In For The Long Haul For Those Investors With Iron Stomach [View article]
    http://bit.ly/1eR0bso
    Apr 18 02:06 PM | Likes Like |Link to Comment
  • Liquidity Services Is In For The Long Haul For Those Investors With Iron Stomach [View article]
    There's about $130M in Cash + AR and comfortably exceeds total liabilities by $20M. There's nothing weak about that.

    I think share price deterioration/risk (if any) comes from deterioration in earning power not from a lack of tangibles. Unless the business is facing (excuse the pun) liquidity issues, this business ought to be valued for its earnings power, not the net asset value or the book value. Of course, like any other rollups, this company will have its share of the intangibles.

    The core question is - do you believe the company has a sustainable competitive advantage? That's basically the only question at this point.

    As for me, I'm not convinced with LQDT's competitive position as of yet to make a decision.
    Apr 18 02:04 PM | Likes Like |Link to Comment
  • Liquidity Services Is In For The Long Haul For Those Investors With Iron Stomach [View article]
    "Weak balance sheet" ? The company has ~$100 million net cash so what exactly is weak about that? Some off-balance sheet accounting or operating leases?
    Apr 18 01:26 AM | Likes Like |Link to Comment
  • Liquidity Services Is In For The Long Haul For Those Investors With Iron Stomach [View article]
    You say "There aren't similar companies for direct comparison" but what about Ritchie Bros. Auctioneers (RBA) ?

    And which entity could outbid LQDT by a wide margin and come out with a profit?

    How come the sell-off (because LQDT got outbid) began on April 1st while the official
    news of the outbid was out on April 2nd. Was there someone who front-ran and dumped the stock on inside information?
    Apr 16 07:32 PM | Likes Like |Link to Comment
  • Hedge Funds Are Betting On Outerwall. You Should Too [View article]
    Also let's not forget that quarterly numbers are notoriously lumpy, as we've evidenced multiple times in the past. We're only a bad-comp away from a 30% fall in the market price as the market loves to extrapolate bad (and good) news.

    If the revenue doesn't doesn't fall off a cliff and they continue to return cash to shareholders as they've promised, I think longs should be OK.

    I can sympathize with the typical hedge-fund manager who's rich enough that he has never stood in line to rent a dvd in his life, and is incredulous as ever, about how those damn red boxes manage to stay in business in the world of iTunes, Netflix and Amazon.
    Apr 14 04:00 PM | Likes Like |Link to Comment
  • Nearly Everything About Ally Financial IPO Is Promising For Investors [View article]
    I think consumer finance companies are valued on their tangible book value, not P/E.
    Apr 11 12:15 AM | Likes Like |Link to Comment
  • Hedge Funds Are Betting On Outerwall. You Should Too [View article]
    I'm not sure if I agree with your "Jana trims its stake, hence the buyers must be bag holders" argument.

    It's possible they are taking chips off the table because they are raising cash, found other investments or feel the market is overheated or simply had a change of heart regarding OUTR. We'll never actually know. So I'm not panicking when JANA takes the profit and run.

    With that said, I'll be watching the numbers and the management closely. From what I know about OUTR, I'm happy to take my chances on a cheap and (very) hated business that I think will be around longer than market currently imagines.
    Apr 10 05:50 PM | 1 Like Like |Link to Comment
  • Schorsch Creates More Magic, This Time It's Health Care [View article]
    Hey Brad, any thoughts on the tender offer by HCT? http://on.mktw.net/1g7...
    Apr 9 10:48 AM | 1 Like Like |Link to Comment
  • Hedge Funds Are Betting On Outerwall. You Should Too [View article]
    Thanks HFGirl and Sopholes - very insightful.
    Mar 25 03:02 PM | Likes Like |Link to Comment
  • Hedge Funds Are Betting On Outerwall. You Should Too [View article]
    Where did they sell their position btw? The price on the exchange did not hit $68 on that day. Was it via a dark pool or some other esoteric channel?
    Mar 23 12:29 AM | Likes Like |Link to Comment
  • Awilco Drilling: A Hidden Gem Yielding Over 21% [View article]
    Thanks. E*Trade isn't top notch at all! I actually like MerrillEdge better than E*Trade due to the 30 free trades every month (if you keep a $25K balance).

    InteractiveBrokers is top notch (overall) in my opinion, but in this case they don't support Awilco Drilling.
    Mar 22 02:45 PM | Likes Like |Link to Comment
  • Awilco Drilling: A Hidden Gem Yielding Over 21% [View article]
    I believe that tracking per-share price in the short term is a fool's errand. Drilling companies across the board are getting whacked there are fears that oil majors are slowing their capex plans which will put a downward pressure on day rates. From what I've read, this is expected to affect mostly the older ultra-deep-water rig companies, not the mid-water semi-subs in Northern Sea. In the medium-term, the day-rates are contractually expected to go up.
    Mar 22 02:19 PM | Likes Like |Link to Comment
  • Awilco Drilling: A Hidden Gem Yielding Over 21% [View article]
    You should've received your brokerage by yesterday. I hold Awilco in multiple US brokerages (but not E*Trade) and received dividend yesterday in all of them.
    Mar 22 02:15 PM | Likes Like |Link to Comment
COMMENTS STATS
230 Comments
181 Likes