4Foolz

Plea to Dismantle Broadridge Monopoly

Please disclose your position in BR stock. Sounds like you are trying to profit from shorting the stock and posting this drivel. As I posted on your previous attempt to bash the company (and drive the stock price down,) your argument is full of holes. I'll copy/paste my comments to that publication as you did your letter in this one:

"So, your argument for breaking up the BR "monopoly" is bringing up the Yahoo proxy mistake as an example and claiming that surely there are other mistakes that were missed? BR is a software company. That's like saying that there are bugs in Windows that haven't been 'reported' yet. Oh no! All software companies make mistakes. Its human nature to miss something in the code or testing of the software. But all that aside, how does this tie into your argument that BR has a monopoly and it should be broken up? So, if there were another 10 software providers of proxy, surely there will NEVER be any mistakes made in proxy counts?

And you also imply that BR doesn't let other companies participate in the proxy business. What exactly is BR doing that is preventing others from entering the business? While you think up of an answer, I'll give you one - MOAT. Its a large infrastructure investment, along with building a reputation that is preventing other companies in participating in this business model. It was also their first mover advantage by having SEC accept e-proxy as a method of delivery. So, since when is MOAT considered a monopoly? Should SEC break up Apple because their iPod business has over 70% market share, with MOAT created by their iTunes software?

I can continue to poke holes in your letter, but I already wasted too much time..."

Berkshire Decreases Moody's Stake: Smart Investing or Payback?

"Is this smart investing, or could it be bitter payback, as Moody's downgraded Berkshire Hathaway's credit back in March 2009?"

- so Berkshire doesn't care about the other 17% of the company that they owns and the lost value of that position? Doesn't make sense...

SEC Should Break Up Broadridge Monopoly

So, your argument for breaking up the BR "monopoly" is bringing up the Yahoo proxy mistake as an example and claiming that surely there are other mistakes that were missed? BR is a software company. That's like saying that there are bugs in Windows that haven't been 'reported' yet. Oh no! All software companies make mistakes. Its human nature to miss something in the code or testing of the software. But all that aside, how does this tie into your argument that BR has a monopoly and it should be broken up? So, if there were another 10 software providers of proxy, surely there will NEVER be any mistakes made in proxy counts?

And you also imply that BR doesn't let other companies participate in the proxy business. What exactly is BR doing that is preventing others from entering the business? While you think up of an answer, I'll give you one - MOAT. Its a large infrastructure investment, along with building a reputation that is preventing other companies in participating in this business model. It was also their first mover advantage by having SEC accept e-proxy as a method of delivery. So, since when is MOAT considered a monopoly? Should SEC break up Apples because their iPod business has over 70% market share, with MOAT created by their iTunes software?

I can continue to poke holes in your letter, but I already wasted too much time...

Automatic Data Processing: Better Suited to Survive This Downturn than Its Competitors

Nice analysis. The only thing I would add about your compare to the 1982 unemployment numbers is that ADP at the time was a much smaller company trading at a higher multiple because of significant room for growth which it lacks now IMO. So, at that time, ADP had a lot more going for it than it does now as the company has matured.
Disc: Long ADP

Even with Barnes & Noble iPhone App's Popularity, Brick and Mortar Is Here to Stay

Maybe not a true apples to apples compare, but Blockbuster also offers a unique web+physical-store product as compared to Netflix' web only, yet Neflix is eating their lunch as Amazon has B&N's.

Dolby Faces Bearish Trade

There are many reasons people buy and sell puts but mainly they are part of some sort of a hedge, not outright bet against the stock. For every buyer, there is a seller that thinks the opposite. All this does not equate to a bearish sentiment on the street for DLB.

Netflix's Roku is Doomed to Fail

You are being shortsighted. Have you read the latest Netflix quarterly report? It clearly states that their goal isn't this box for Watch Instantly, but to proliferate their name across multiple (if not hundred) hardware manufacturers. They expect 3 more this year, they already have LG coming out with products Q3, and that is just the beginning. They talked about this on their conference call. XBox might just be one of them.

Also, you can hook up your PC/Laptop to the TV directly without XBox to view Watch Instantly content. You just have to have the correct cables and some computer savvy. But for those that don't have either will buy this box. It will get traction. Plus, NFLX margins aren't impacted by this box, so all the revenue will go straight to the bottom line.

So, while future hardware releases will undermine this product, from a NFLX point of view, it doesn't matter since the products that will undermine this one will replace the lost revenue and then some!