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Sean Erickson

Sean Erickson
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  • Did Warren Buffett Move The Goalposts In The Latest Letter? [View article]
    Just more information shareholders and all the information is there for shareholders to make a decision. The old column is still there so no he didnt move any goal posts and book value performance has been satisfactory. the s&p has been very strong, but thats only looking at 1/2 of a cycle. Of course hes right that how goodwill is accounted for makes book value growth a poorer proxy as berkshire has become an operating company as goodwill is never adjusted upwards
    Mar 1, 2015. 02:40 PM | 14 Likes Like |Link to Comment
  • Wal-Mart Increases Dividend 2%; I Wouldn't Have Increased It At All [View article]
    sure owning walmart would have its advantages, you get to forgo the 20% dividend tax and capital gains taxes but there are downsides too, permanent loss of liquidity, nearly all your eggs in one basket and less access to capital markets
    Feb 20, 2015. 02:27 PM | 1 Like Like |Link to Comment
  • Dow Chemical: Be Contrarian And Buy The Shares Before Earnings [View article]
    I dont consider the movement in dow a merciless beatdown, just the normal type of movements you see in the stock market. 20% moves are not that rare. That said, I do think that dow represents decent value here which is hard to find in this market.
    Jan 26, 2015. 11:42 AM | Likes Like |Link to Comment
  • SolarCity: Failure To Close The Electricity Loop Looms Large [View article]
    Shich is why scty is king. The ability to sell at higher prices is a huge advantage and speaks to its value creation
    Jan 20, 2015. 11:31 AM | 1 Like Like |Link to Comment
  • Vivint Solar's Smart Business Model And The Solar Opportunity Make It A Good Buy [View article]
    Keep in mind that about 75% of the stock based compensation was a one off due to the difference between the ipo price and an equity sale to insiders, so probably really closer to $3.30. Of course leverage can make a big difference when it comes to value created but at this time vivint doesnt have the access to the low cost capital that scty does. I think a move into sales would be hugely beneficial as i believe it already has been for scty.
    Jan 20, 2015. 11:19 AM | Likes Like |Link to Comment
  • Is It Sunset Time For SolarCity? [View article]
    Does that include financing for purchased systems?
    Jan 11, 2015. 09:02 PM | Likes Like |Link to Comment
  • Is It Sunset Time For SolarCity? [View article]
    Except that they do produce panels
    Jan 11, 2015. 08:59 PM | Likes Like |Link to Comment
  • General Motors Continues To Be Inexpensive [View article]
    Look at gms balance sheet now compared to its balance sheet in 2006, the difference is incredible
    Dec 27, 2014. 01:52 AM | 3 Likes Like |Link to Comment
  • Gain Exposure To The Investment Plan For Europe With VGK [View article]
    Somethings wrong with the p/e here, should be closer to 17 or so
    Dec 22, 2014. 01:15 AM | Likes Like |Link to Comment
  • Wal-Mart's Boost From Lower Gas Prices Should Be Sold [View article]
    Did i read this right? Only six years until terminal growth rate of 3%?
    Dec 20, 2014. 02:17 PM | Likes Like |Link to Comment
  • Sears Holdings Corporation: Is Any Price Overvalued? [View article]
    Bulk real estate deals are definitely whats needed, its the brightest spot there is. In my opinion, sears is no longer a value play on the value of its assets which may exceed book value by about $3.5 billion (real estate assets in the $6 billion range) but instead a play on its profitable stores and online business. To me, the bleeding is too severe (which bulk deals could help to slow) and sears does seem to be experiencing diseconomies of scale as it reduces its store count. I cant justify an investment at this time, but will continue to watch
    Dec 19, 2014. 02:05 AM | Likes Like |Link to Comment
  • Sears Holdings Corporation: Is Any Price Overvalued? [View article]
    Well same store sales have only stabilized because they're pricing in a way where profits are impossible. As far as the closed stores, they can hardly make a dent in sears' profitability. Sears announced earlier that the closed stores generate negative ebitda of $50 million a year. Sears generates negative ebitda of about -$380 million a quarter with true losses significantly above that as interest is definitely a real and growing expense and depreciation shouldnt be completely ignored either. Just last quarters debt offering added $50 million in annual interest expense and had to give away warrants for more than 20% of the comoany just to get that done. Its tough to see a path to profitability for sears.
    Dec 18, 2014. 10:35 PM | 2 Likes Like |Link to Comment
  • Are Sears And Staples More Valuable As Domain Names Than Brick And Mortar Stores? [View article]
    Of course eddies blog indicates sears needs to close down stores, its business is failing. It has a tangible negative book value of -$2.2 billion, loses $500 million a quarter and is approaching insolvency. Sears online business is still a very small percentage of their business however and its unlikely that portion is profitable
    Dec 18, 2014. 09:11 PM | 1 Like Like |Link to Comment
  • Kinder Morgan: Buy The Dip, It Will Not Last [View article]
    Kmi is a strong company but not without risks. The drop in oil does effect them negatively, more so than some realize if crude stays depressed and kmi doesnt get the benefit from the hedges. Another risk is the possibility of producers going bankrupt, take or pay doesnt do any good in that situation. Risk/reward still seems reasonable here but its important to recognize that kmi is not insulated from these risks.
    Disclosure for wade: long kmi (but constantly evaluating)
    Dec 11, 2014. 11:49 AM | 3 Likes Like |Link to Comment
  • My Best Idea For 2015: General Motors [View article]
    A significant part of gms value is in its deferred tax assets so really the valuation is way less than 9x earnings
    Dec 9, 2014. 12:43 AM | Likes Like |Link to Comment