Seeking Alpha

Heratio Alger Jr.

Heratio Alger Jr.
Send Message
View as an RSS Feed
View Heratio Alger Jr.'s Comments BY TICKER:
Latest  |  Highest rated
  • Obama wants action to halt the rush of U.S. companies moving abroad [View news story]
    No one can force you to remain in business can they? Well maybe they can.... This is now a country where your money is the government's money and your business (which the government built roads for) is now their business.

    Forget GOP or Democratic Party, they are both business partners like the WWF. Great theatrics and amusing entertainment, but the outcome is arranged in advance.

    The "Republic" is lost and we now have a Social Democracy in which the fleas are bleeding the dog to death.
    Jul 16, 2014. 10:25 PM | 9 Likes Like |Link to Comment
  • CarMax: Opaque Market Or Used Car Shortage? [View article]
    Three points;

    1. The used car shortage was caused by the number of consumers unloading debt in the form of bankruptcy during the "great recession". This trashed their credit for a time which forced them to the used car market. If they did not loose their jobs, they suddenly had higher disposable income because their debt was absolved and many were "camping out" in houses for lengthy periods of time while the foreclosure process worked it's way through the courts. This put them in a poor credit position, but they suddenly had cash for the larger deposits required for used cars and could afford to finance at higher rates.
    Most of this situation has now passed and credit files are back to where they can even qualify for a home loan if their bankruptcy was dissolved 3 or more years ago.
    2. CarMax now sells new cars, mainly Chrysler/Jeep, so they have diversified a bit.
    3. Lastly, we now can put CarMax on a correction buy list as we know that the worse the correction is and the more it effects the man on the street, the better CarMax may do as CarMax is likely to suffer only if the economy actually improves for the man on the street and not just Wall Street.
    Jul 16, 2014. 03:31 PM | Likes Like |Link to Comment
  • What Industries Could Uber Disrupt Next? [View article]
    Nice article. Well thought out and written. A great example of thinking ahead of the curve by identifying other applications for their business model!
    Jul 13, 2014. 12:06 PM | Likes Like |Link to Comment
  • Kroger, A Retail Giant Everybody Forgets About [View article]
    Looking at revenue increases only does not necessarily point to success.
    How much profit did they bring to the bottom line?
    Was a 3% gain in revenues accompanied by even a 1% gain in bottom line profit? Doubtful.
    Historically, this stock has risen in price along with that of the Bull Market. Just look at the chart.
    While Kroger has a capable management team and the stock has increased in actual value through some smart acquisitions, I suspect that like the rest of the market, I it is in bubble territory because institutional investors have over-bought this and other stocks just to have a place to put their excess liquidity.
    At current pricing, this stock represents a significant risk during times of correction.
    It is however on my correction buy list.
    Jul 13, 2014. 09:12 AM | 2 Likes Like |Link to Comment
  • The Madness That Is GoPro [View article]
    In retrospect, I should have paid more attention at the time of the IPO, but seriously saw as much downside as upside in this.
    It is a company built on one product. While it now has a good brand name and it could provide a number of spin-off products, those lines are not yet developed if even planned.
    While that product is very popular with the young millennials as it caters to the wild and adventurous among us, it is still just one product and that product, the Hero 3, has been out for more than a year now.
    My guess is those who stay in will get burned. This is no Google.
    Jul 7, 2014. 08:54 AM | 1 Like Like |Link to Comment
  • 'Will You Walk Into My Parlour?' Said The Spider To The Fly [View article]
    MLM recruitment is no more devious than Wrigley getting more stores to carry it's product.
    Wrigley (now owed by Kraft Foods) was a company which was built primarily by obtaining multiple distribution points for a product that cost (at the time) one penny.
    The idea that this company is some kind of cult where people are turned into mind-controlled robots is belied by the fact that yes, recruitment is needed to replace the losses of distributors who either fail, die-off or just get out for numerous other reasons. No one chases them down or threatens them if they decide to leave.
    In order to grow as any company or organization, new distribution points and markets are needed. No evil wizard behind the curtain here.
    My father was in Amway. He grew a large business, retired some years ago and continues to earn significant income from it. He raised a family with 4 children in a very good lifestyle and gained hundreds of life-long friends he called his distributors, in the process.
    The down-side is that it took him from home a lot and so much time was spent on the business side, that in our case, the kids raised themselves. That was his choice however, and not the fault of Amway.
    I can only appreciate the fact that two men from a little town in Michigan created so much opportunity and blessed so many people in the process of creating their dream.
    Jul 5, 2014. 11:21 AM | 3 Likes Like |Link to Comment
  • Some Thoughts On Slowing Home Price Appreciation In The U.S. [View article]
    That's a good point.

    Add to that the fact that the government is propping up the higher education industry by subsidizing low interest college loans. These loans have to be paid back, or the IRS will deduct anything due from your tax "return" until it is paid.
    The higher education industry( which includes universities, colleges, technical schools, textbook publishers etc,) responded to this glut of tuition funding by raising tuition (along with administrator salaries) and offering classes for skills not needed in the marketplace. I cannot tell you how many motorcycle mechanics there are who are paying (or not paying) back these loans because when it came time to get a job, there just wasn't any demand for it.
    If anyone raises an objection to this funding, they are branded as evil, selfish and wanting to keep the "under-privileged" as worker drones.
    I don't mind at all if my kids decide to live with me until they are 30. God knows most men only begin to grow up at that age, but while they are under my roof,they will develop their intellect and utilize it to become productive and not just sitting on the couch consuming the family food while playing video games.
    Jul 5, 2014. 10:53 AM | 2 Likes Like |Link to Comment
  • 'Will You Walk Into My Parlour?' Said The Spider To The Fly [View article]
    This type of article belongs on a gripe board like "Rip-off Report" and not on SA. To try to state that any motivational material promotes a cult type of atmosphere is ridiculous. Otherwise any organization with motivational wall hangings in an employee break room is trying to indoctrinate you into a cult.

    People join any company like Herbalife or Amway because they choose to and they leave whenever they want to.

    Articles like this are simply sour grapes.
    Jun 27, 2014. 09:10 AM | 9 Likes Like |Link to Comment
  • Uranium Energy Corp.: This Stock Is About To Go Nuclear [View article]
    I suggest reading the following SA article along with all of the comments before investing in this stock.

    As a result of the article above, much of the dilution in share price may have already occurred before any shares were even issued, but if Uraniume Energy Corp does pay for debts with another offering of shares, it will effect the stock value.
    Apr 23, 2014. 09:11 AM | Likes Like |Link to Comment
  • Tyson Foods Should See Increased Profits On Soaring Pork And Beef Prices [View article]
    Thanks for the tip on SEB
    Mar 18, 2014. 11:37 AM | Likes Like |Link to Comment
  • Tyson Foods Should See Increased Profits On Soaring Pork And Beef Prices [View article]
    Very good analysis.

    When Beef prices rise, TSN does well historically, Walmart usually suffers because they try to hold the line on prices which hurts profitability. One other company to mention is PPC which is very affordable.

    I hold short positions in TSN, PPC and BRFS.
    Mar 18, 2014. 08:40 AM | Likes Like |Link to Comment
  • Myrexis: Cheap Opportunity On Proven Management Team [View article]
    Excellently researched and written. Thanks.
    Mar 3, 2014. 03:12 PM | Likes Like |Link to Comment
  • True Gold: 8 Different Insiders Have Purchased Shares This Month [View article]
    Did the insiders "buy" the stock, or obtain it as a part of their compensation package?
    All of these "buys" occurred on the same date, which instead of a purchase indicating insider knowledge of and belief in their company and it's future, is more simply part of their total compensation.
    Their financials do not look good overall.
    In spite of recent run-ups in gold prices, I would call this one a gamble.
    If you are investing in Gold Miners, there are better bets out there with better financials and operating in more stable political positions.
    Feb 23, 2014. 10:42 AM | 3 Likes Like |Link to Comment
  • Time To Again Take A Flier On Coal [View article]
    The current administration is negative on coal to the point where they really do not care if coal fired plants, irregardless of their current usefulness, are put completely out of operation.

    While I see coal Industry as a great asset, in the current political climate, with the exception of it's Natural Gas component, dead in the water unless some profound new technology arises which resolves the emissions issues of coal burning, or the EPA completely changes it's course.

    Short-term inventory shortages and cold weather related demand issues do not make long term positions and even though I think that the intense focus on carbon emissions is beyond stupid, the reality is that it is driving government policies for the known future.
    Jan 25, 2014. 12:06 PM | 2 Likes Like |Link to Comment
  • Investors Finally Reducing Exposure To U.S. Stocks And The U.S. Dollar [View article]
    CAD is also manipulated and they do not want their goods to cost more to it's biggest customer and the world in general. Their economy is largely driven by exports of raw materials and commodities, thus a highly valued currency would actually make their goods less competitive to the world market.
    Jan 24, 2014. 10:21 PM | Likes Like |Link to Comment