warelf

5 Comments

    • AmEx's Pain Likely Discover's Gain [view article]
      Both DFS & AXP will do very well in the long run and I like both companies, but looking at short term charge-off rates and concluding that DFS is the better investment is plain "Rong=headed"... Way too myopic to be considered decent analysis. The key difference between the two is that Amex has far more clout and can charge higher discount rates to merchants. It consequently has a much higher ratio of fee income to loan interest income. It will always be a much better business than DFS. DFS has a much higher reliance on securitizations than AXP for funding.


      Charge=offs through the cycle       Aug 11 03:29 PM
    • Chesapeake Energy Appears Very Well Positioned [view article]
      PS I own CHK shares May 07 12:40 AM
    • Chesapeake Energy Appears Very Well Positioned [view article]
      Dutchmark is right - annoying errors + the article is little better than cheerleading and very light on analysis and detail

      McLendon bought shares, was right in the past & is probably right in the future doesn't pass for analysis

      For example: Hedging doesn't always add to shareholder value & will be a significant negative for 2008. 3 or 4 years ago this was also true but overall they do end up on the + side. CHK HAS to hedge because they can not risk low NG prices because of high debt and cash committed to capex. Unlike companies like Cimarex which are cleaning up now because they are largely unhedged

      It probably will double if NG stays in the $8 to $10 range but remember that it is a commodity & can just as easily fall back. Currently a very large facility is shut down in the Gulf and this is affecting NG prices which are virtually always down in the May shoulder season - this is an anomaly.

      This company has HUGE potential with he Fayetteville & Haynesville shale areas but pull costs are not known & likely to rise + they need high NG prices to be economic.

      It pays not to fall in love - even with Aubrey :-)       May 07 12:38 AM
    • Chesapeake Energy Appears Very Well Positioned [view article]
      Dutchmark is spot on - annoying errors. The article is pretty flip and doesn't consider any downside - good for cheerleaders who wish their stock would go up

      Let's have some better analysis for a lead off article       May 07 12:26 AM
    • Pershing Square: Buying Up Borders [view article]
      Hi Todd,

      I agree with most of what you have written except that my biggest concern now is that the incentive for Ackman to take Borders private at a share price well below intrinsic value is huge. He more than doubles Pershing's return and halves the potential for small shareholders       Mar 24 02:03 PM
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