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  • Chinese VIE Investments Warrant A Change  [View article]
    just a small correction. you should refer to a WFOE (wholly foreign-owned entity) there is actually no such thing as a WOFE, although it is a common mistake, and repeated often in web-searchable articles. The common mix up probably occurred because we like to be able to pronounce an acronym, so folks mistakenly flipped the F and the O.
    Oct 5, 2011. 12:42 PM | Likes Like |Link to Comment
  • Why Google Could Crush the Coal ETF  [View article]
    Bet against coal based on this analysis, and YOU are the one the will feel crushed.
    May 18, 2010. 10:30 AM | 13 Likes Like |Link to Comment
  • SPACs: Fertile Fishing Grounds for Liquidation Value Investors  [View article]
    Actually, it is not necessary to assess which SPACs will return cash and which ones will complete an acquistion. If you wish to invest for the cash returned at liquidation, you simply buy the stock before the record date for any impending acquistion, vote your stock "no" and request redemption for your pro-rata share of the trust account. If the SPAC managers don't want you to vote no, they may approach you and purchase your shares before the vote (or contract with you to buy them at a fixed price just after the business combination). The good news for your yield: this gets you your cash a few months sooner than waiting for the SPAC to fully liquidate, so your IRR is higher.

    Meanwhile, if an announced merger turns out to have real value in the eyes of the market, then your stock will trade up and you can sell for above the "trust value" if you aren't a long-term believer.
    Jul 22, 2009. 01:06 PM | Likes Like |Link to Comment
  • Upgrading Our Daily Email  [View instapost]
    this change makes Seeking Alpha a lot less useful to me. I could quickly scan the old large email for articles. Click through was no issue, since I'd click all the articles I wanted before beginning to read any of them.

    At least you should change the description of the Daily Dispatch on the email selection page.
    Jul 20, 2009. 04:51 PM | 3 Likes Like |Link to Comment
  • Seeking Alpha Stock Market Email Alerts FAQ  [View article]
    I suddenly stopped receiving the Daily Dispatch. I went to email preferences and unchecked the box, saved, then re-checked the box, then saved. Still no Daily Dispatch. What should I try?
    Jul 19, 2009. 05:25 PM | Likes Like |Link to Comment
  • Seth Klarman Increases Stake in Borders and Invests Heavily in SPACs  [View article]
    Big mistake to think that SPACs are gambling, when in fact SPAC common shares are very low risk and essentially like buying treasuries at a discount. Klarman is quite correct to buy. When one buys SPAC common you are backed by the SPAC trust account. Funds buy at a discount to trust that deliver them a worst case yield to liquidation (a SPAC that fails to get a merger approved) that is somewhat above alternative uses for their cash. The trust account is all invested in Treasuries and agencies. The spread to Treasury is quite opportunistic. In addition, as a common-holder you have essenstially a call on a to-be-announced IPO (of the merger target). You don't like it, you sell or redeem at trust. You like it, stay in and reap the upside. SPAC warrants are another matter, since they may expire as worthless, but they have tremendous leverage.
    Aug 23, 2008. 03:08 PM | Likes Like |Link to Comment