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PeteE

PeteE
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  • Cisco Systems Vs. The Competition: Who Comes Out The Winner? [View article]
    I think your work has merit. These are obviously not the only factors to consider when evaluating these companies. Product lines, innovation, distribution, market acceptance and of course the technicals all come into play. But these metrics are certainly worth adding into the mix. Thanks for posting.
    Jan 23 01:10 PM | 1 Like Like |Link to Comment
  • L&L Energy looking for acquisition opportunities in China [View news story]
    L&L has already announced they will be paying a dividend commensurate with the Taiwan listing. The dividend will also be paid to US shareholders in the same amount. Chinese stocks are starting to rally after a 4 year consolidation. Money will always eventually flow to value and there is plenty of value here. Our day is coming.
    Sep 18 04:31 PM | Likes Like |Link to Comment
  • American Coal Company With Chinese Growth [View article]
    I share your enthusiam for L&L's future prospects and believe the company is grossly undervalued at its current trading price of $2.44/share, about 50% of book value. The earnings of $1.03/share you cite were actually for the fiscal year not the quarter. Earnings for the quarter were $.34.

    The shares have been held down since the company announced they would issue new shares for the stock offering in Taiwan in September. Funds from the offering will be used to acquire new larger lower cost mines in the north of China that will more than double L&L's capcity and lower their per unit cost. So, short term the offering will be dilutive and the market seems to have discounted that, longer term I believer the offering will be massively accretive.

    Management has guided toward $1.20/share for 2014. If they acquire the new mines in the north and get them into production quickly that number may turn out to be very conservative but we need to see how may shares are issued in the Taiwan ADR's to get a better read. However the Taiwan offering may boost the price of LLEN significantly. In the US L&L is viewed as a domestic US coal company by many investors not familiar with its Chinese based operations. Coal companies are out of favor in the US so don't get much support. That situation is different in China and Taiwan where coal is viewed as their primary energy source. China wants energy independence and for now they see coal and nuclear as their best options to achieve that. When investing in China you have to know where the governments interest lie re the company your are investing in. In L&L's case the government's interests are solidly aligned with L&L's objectives. I believe patient investors will be richly rewarded over the next couple of years as L&L expands it profits and its multiple. Today's share price offers a very low risk entry point with a large margin of safety for value investors.
    Aug 29 12:26 PM | 2 Likes Like |Link to Comment
  • Report: Google looking to develop its own self-driving cars [View news story]
    Just what we need. The government controlling and tracking all our movements. Pretty soon driving yourself where you want to go will be illegal without special approval. No thanks. Might be good for Californians though.
    Aug 23 05:52 PM | 3 Likes Like |Link to Comment
  • L&L Energy: Buy This Coal Stock Trading At Half Its Book Value [View article]
    I don't think that would be the best use of funds. The company is able to purchase high quality high production coal mines for the next couple of years under China's mandatory mining consolidation policy for less than 1x EBIDA in many cases. At that price they should use all available cash to acquire as many quality mines as possible while this window is open. They also have the obligation to mechanize their mines, increase productivity and lower unit costs substantially.
    Aug 8 02:05 AM | Likes Like |Link to Comment
  • Welcome To The Paradigm Shift [View article]
    Yes, to a large part the US's fate will be tied to the next 2 election cycles. If the voters continue to elect anti business anti capitalist leaders we will pretty much follow in the footsteps of failure that comes with that choice. You could not devise a better jobs killing plan than Obamacare. Any business hiring new full time employees is facing unknowable expenses so best to hire overseas or go the part time route. Hardly a recipe for growth. The US ace in the hole is our oil and gas reserves but we need leadership that seeks to exploit that opportunity not stifle it. Turning our 500 billion dollar annual energy deficit to a surplus would dramatically change our economic future. With the lowest energy cost of any nation we would see a huge upsurge in US manufacturing and the high paying jobs that would accompany that.
    Jul 7 02:42 PM | Likes Like |Link to Comment
  • Ireland is reportedly looking at closing the "Double Irish" loophole that allows multinational companies to keep their tax bills low by funneling their profits through two linked Irish subsidiaries. Apple (AAPL) is one beneficiary, and another is Google (GOOG), which enjoys what's called a "Double Irish Dutch sandwich" whereby its Irish operations make tax-deductible payments to a Bermudan subsidiary via a Dutch affiliate. [View news story]
    The greatest tax haven for foreign companies looking to avoid taxes is the United States. The US refuses to co-operate with many nations seeking information on their citizens' accounts in the US. No, if you are a foreign tax avoider, the US is the place to go.
    May 27 01:07 PM | 2 Likes Like |Link to Comment
  • Warren Buffett And John Hussman On The Stock Market [View article]
    Actually, even with his poor performance since the 2009 low Hussman has still outperformed the S&P handily since inception and thus 90% of active managers : http://bit.ly/AvYDUb

    I believe after the next downturn he will rise again. What he did not anticipate was a Federal government willing to print $85 billion a month indefinitely to prop up the market. Whether that staves out deflation, creates rampant inflation or leads to a dollar collapse with soaring interest rates that brings down the entire economy is something we are all still trying to figure out.
    Mar 27 12:42 PM | Likes Like |Link to Comment
  • L&L Energy: Why I Bought This Small-Cap Coal Company [View article]
    Comments questioning the integrity of L&L are made frequently particulary in the bulletin boards where small investors can be shaken down by short sellers with no consequences to the rumor mongers. L&L is not a Chinese company. It is a US company headquartered in Seattle. It is subject to US SEC regulations and the board and management are mostly US citizens subject to US security laws. Board members include Norman Mineta, former Commerce Secretary under the Clinton Administration and Transportation Secretary under the Bush Administration, Leonard Moy, former director or the US mint under the Bush Administration, Clayton Fong, high level official in the Bush White House, Syd Peng Phd, formerly with the US Bureau of Mines, chair of mining engineering at West Virginia University, and recognized as one of world's foremost authorities on longwall mining. Comments impuning the integrity of these men or L&L management are baseless and I and many other shareholders are tired of hearing them. If you have any facts bring them forth. Otherwise I suggest you refrain from making them and accept the fact that L&L is a solid company with an impressive growth record and a bright future.
    Mar 15 11:38 AM | 1 Like Like |Link to Comment
  • L&L Energy: Why I Bought This Small-Cap Coal Company [View article]
    The history of LLEN is to pop on earnings and then trade back down. I suspect that will happen again here and create a very good entry point. Its pretty clear from the earnings call that L&L has turned the corner and rapid growth is pretty much baked in here. There was about .12 in a one time gain in the last quarter so I expect we will see mid .30's next quarter and a steady climb over the next year as they continue to expand their existing mines and, flush with cash, they continue to acquire premier mines throughout Asia. For patient investors this stock will be a major winner. They are doing just about everything right.
    Mar 13 12:05 PM | Likes Like |Link to Comment
  • L&L Energy: Why I Bought This Small-Cap Coal Company [View article]
    I think yesterday's .42 quarter considerably ups the potential in L&L. This is the first quarter they were allowed to run all 5 mines at full capacity. Planned organic improvements to these mines will raise existing production by 100% over the next two years even with no acquitions. As a consolidator they will, of course, be making more acquistions at fire sale prices. Hard to find stocks growing 100% + a year with a 2 PE and no debt. I think over the next two years L&L moves above $10/share possibly much higher. I especially like that L&L is a US company doing business in China with a lot of proven talent in senior management.
    Mar 12 12:01 PM | 1 Like Like |Link to Comment
  • Warning: Stocks Likely To Crater From Here [View article]
    I agree that the potential for a major downleg is high. But on the other hand the alternatives to equities are few. Bonds are more overvalued by a long shot compared to stocks. Cash is paying nothing and with record money printing do you want to be in fiat currency? Gold is falling like a rock for now. With interest rates this low there is little competition for stocks. Residential housing is one of the few areas left for bargains. The average PE of the stock market when rates are below 2.5% is about 22. S&P earning estimates for 2015 are $136.2. Based on that number (if its reliable), we are currently trading at a 2015 PE of 11.2 so stocks could double from here over the next 3 years and still be in the normal PE range for low rates. A lot could of course go wrong with that forecast but my bet is that any correction of 10% or more will be heavily bought by those who missed this rally. Its very hard to make all or nothing calls in the market so you have to have some exposure because lets face it nobody really knows whats going to happen. I always say God created economists to make weather men look good.
    Mar 1 01:15 PM | 1 Like Like |Link to Comment
  • Absenteeism and the Role of Work Incentives [View article]
    Sweden is a joke. In 1980 Swedish per capita income was 20% higher than the US. Now the US is 56% higher than Sweden. In fact if Sweden were a US state it would rank last in per capita GDP. Incredibly, the average family income in Sweden is slightly below the lowest poverty group in the United States: African Americans.
    This is for a mostly homogenous blonde haired blue eyed population whose minority unemployment rate is off the charts. Socialism has worked its magic in Sweden with predictable results.
    Jun 26 03:03 PM | Likes Like |Link to Comment
  • One Man's Search For A Safe And Growing Income Stream - Part 4 [View article]
    You may want to take another look at Wal-Mart. Its breaking out of a ten year trading range today, taking out the high of 2002. Its EPS is 4x what it was then and the dividend has increase 400% as well. Current yield 2.5%,
    May 22 03:17 PM | Likes Like |Link to Comment
  • Agnico-Eagle: Golden Opportunity From A Stumble [View article]
    AEM has stabilized over the past several months while the rest of the index has continued to plunge. The recent earnings report was encouragingand and the dividend is well covered. Would rather own a growing AEM with a 2.4% dividend taxed at 15% than the 10 yr Treasury at 1.7% taxed at 35%. Real interest rates are negative and likely to stay that way for years. Gold has another leg up coming.
    May 22 02:09 PM | Likes Like |Link to Comment
COMMENTS STATS
26 Comments
40 Likes