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  • A Pair-Trade On The U.S.'s Biggest Banks: Short Goldman Sachs, Long BofA  [View article]
    > 41.6227498 <

    Wow, that is a lot of digits. Nine significant digits of precision would imply knowing the company's EPS to an accuracy of $0.0000001, or about $50 of earnings. Don't they round their financial statements to the nearest $1,000?

    If the company issued or bought back 10 shares of its stock since you started typing this article, that number would no longer be valid.
    Nov 5, 2015. 12:03 PM | 2 Likes Like |Link to Comment
  • Mead Johnson: Spoiled Milk?  [View article]
    > The street is overwhelmingly positive on the stock, even though it is down 20% YoY. <

    "Even though"? Are you one of those people who prefer to buy stocks when they are more expensive?
    Oct 23, 2015. 08:54 AM | 1 Like Like |Link to Comment
  • McDonald's All-Day Breakfast: Initial Success Will Be Overshadowed By Long-Term Despair  [View article]
    I was hoping to see a Net Present Value analysis of free cashflow, but instead saw a collection of non-sequiturs.

    How do three years of declining earnings imply that "the future looking rather bleak"? What makes you think no new customers will eat at McD because of the all-day breakfast, and the the only ones to do so are those who would have otherwise ordered the more expensive Big Mac? How does a difference of $2.30 between a Big Mac and a breakfast imply that the stock will never rise above $105?

    I am not bullish on MCD, but this "analysis" comes across as amateurish work.
    Oct 18, 2015. 06:39 PM | 8 Likes Like |Link to Comment
  • How Telltales Told You Not To Own Wal-Mart, And Continue To Do So  [View article]
    > my Grandma continues to frequent Walmart.. but me and everyone else I know buy on amazon.. <

    Some grandma you have! Over the past twelve months, she bought over $400 billion worth of merchandise from those brick and mortar stores.
    Oct 16, 2015. 03:42 PM | 18 Likes Like |Link to Comment
  • How Telltales Told You Not To Own Wal-Mart, And Continue To Do So  [View article]
    > In 2004 Sears bought K-Mart <

    No, it didn't. K-Mart bought Sears, and changed its name to Sears Holdings Corp.
    Oct 16, 2015. 03:11 PM | 4 Likes Like |Link to Comment
  • Sell Greenbrier; It's Best Days Are Long Gone  [View article]
    > It's Best Days <

    Not to be That Guy, but no matter how good an analyst you are, you'll need to learn the difference between "it's" and "its" before you can be taken seriously as a journalist.
    Oct 5, 2015. 03:04 PM | 7 Likes Like |Link to Comment
  • Can A $100K Investment Produce A $50K Yearly Income? Walking The Model Step By Step  [View article]
    What a ridiculous slight of hand! Your calculation assumes that the share prices will remain the same for 30 years, despite dividends growing at 3% a year. This means that based on your model, after 30 years, those shares would be yielding 11.6%. Did you think we'd all fall for this?

    If dividends are expected to grow at 3% a year long term, so is the share price. This means that in year 30, after-tax dividends will be $24,491, not $69k. Which isn't really all that shocking, since (1.03*1.036)^30 = 6.57. Simple compound interest.

    What is even more troubling in this model is the blind assumption of a 3% growth rate with a 4.8% yield. This implies a 7.8% long term return on capital, in a 2-4% GDP growth rate world. Given enough time, the companies in that magical portfolio will be worth more than the entire world's GDP. Good going, Mr. Honig!
    Sep 18, 2015. 08:41 AM | 9 Likes Like |Link to Comment
  • Canada Supreme Court says case against Chevron can proceed  [View news story]
    > Any examination of the trial material exonerates CVX, IMHO. <

    The question before this court was not whether CVX is exonerated or not, but whether the plaintiff can proceed to trial, where such arguments will be heard.
    Sep 4, 2015. 05:51 PM | Likes Like |Link to Comment
  • Canada Supreme Court says case against Chevron can proceed  [View news story]
    > And, thank you for your knee jerk liberal push back. <

    I have no idea what you're talking about. "Liberal"? Me?

    The difference between us has nothing to do with our political views. It has to do with the fact that one of us would rather study the facts of the case before declaring a judge to have adjudicated incorrectly, while the other knows the court is wrong just by checking his portfolio.

    Who needs to check facts when you have a strong opinion, right?
    Sep 4, 2015. 05:49 PM | Likes Like |Link to Comment
  • Canada Supreme Court says case against Chevron can proceed  [View news story]
    > This is a travesty & misapplication of law. <

    Yes, I am sure you and the seven scholars who clicked the "Like" button studied this case thoroughly, examining all relevant jurisprudence, and reached their learned conclusion that the judge erred, unbiased by any ownership of CVX stock.

    Thank you for your exhaustive legal analysis, 2Fatcats.
    Sep 4, 2015. 12:47 PM | 4 Likes Like |Link to Comment
  • hhgregg Price Target: $0  [View article]
    Strange analysis. The company has somewhere between $6 and $7 per share in net tangible assets, mostly inventory, and a clean balance sheet. They could liquidate tomorrow if they wanted to, and get at least that amount from a BestBuy or a Crutchfield for the inventory and stores, not to mention the benefit to the acquirer of reduced competition.

    Your analysis assumes that the company is forced to continue as a going concern, selling merchandise at a loss. While it is likely they'll do so, it is by no means an imperative. A proper valuation of an asset should be done based on the value of the asset to whoever can most benefit from it, not based on its value to its squandering owner. A $2,000 gold watch on the wrist of a drunken sailor is worth more than the $20 bottle of bourbon that sailor might be tempted to trade it for.
    Sep 2, 2015. 05:33 AM | 1 Like Like |Link to Comment
  • Cheniere Energy: A Riddle Wrapped In A Mystery Inside An Enigma  [View article]
    I'd be remiss if I didn't ask: based on your model and assumptions above, what is the fair market value of LNG?
    Aug 31, 2015. 01:21 PM | 2 Likes Like |Link to Comment
  • Arlington Asset's Market Multiple Creates Huge Downside Risk  [View article]
    > Tangible book value-to-price is 0.89, way above the peer group at 0.73. <

    I think you mean price-to-book-value. A higher book-value-to-price would mean it is _cheaper_ than the peer group.
    Aug 31, 2015. 07:41 AM | 1 Like Like |Link to Comment
  • Spyder's Technical Accounting Analysis Of Rent-A-Center Indicates Earnings Are At Risk  [View article]
    Thank you for your reply! Interesting points and useful analysis.
    Aug 28, 2015. 09:33 PM | Likes Like |Link to Comment
  • Spyder's Technical Accounting Analysis Of Rent-A-Center Indicates Earnings Are At Risk  [View article]
    Good article!

    What makes you think RCII may be capitalizing normal operating costs? What are the amounts involved?
    Aug 28, 2015. 08:15 AM | Likes Like |Link to Comment
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