Intel's New Architecture Challenges AMD's Graphics Lead [View article]
I'm pretty non-technical, but my perspective is that I don't intend to participate in the next refresh of game consoles (currently using xbox360). It seems that the graphics capability of my current PCs (desk & laptop) are fine even in previous generations. Thus, for me anyway, it will be a question of what company is present in my next PC upgrade later this year. So far, I'm looking at an ultrabook replacing pretty much everything in my home network (except the monitor of course).
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
What is your objective with this conversation? If I answer your question, would you treat it as simply another opportunity to contradict me? Is there any conceivable way this relates to the topic? Did you take a lot of undergraduate psychology classes? :)
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
I don't think I claimed to be right about anything, except what I think. Besides, a nuanced opinion generally indicates some ambivalence. I really don't understand why the original comment and subsequent exchange(s) draw such attention. Of everything I've said about this article, this thread has the least susceptibility to empirical verification. Would it help if I take it all back?
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
I've had a chance to read the notes to the financial statements (2012 annual report, p. 118 ff.) to test my initial thoughts. I think the key is that data centers have a number of pretty expensive systems installed that are capitalized, per the following (from p.118): "Improvements and replacements are capitalized when they extend the useful life, increase capacity, or improve the efficiency of the asset. Repairs and maintenance are charged to expense as incurred."
If you read the notes, they are very clear how and why they classify the way they do, and how it affects income reporting. The treatment has to pass IRS muster for depreciation of assets, and they are upfront about how they decide the period over which capital costs are depreciated. They acknowledge judgment is involved. Nothing is hidden.
As I looked at the info, there was actually an upside that occurred to me - even if specialized equipment is fully depreciated over the lesser of the estimated life of the equipment or the lease duration, whichever is shorter, there is still significant remaining asset value in my opinion (think raised floor, switchgear, upgraded fiber optic cabling, freestanding HVAC, etc.). I'm no accountant, but it smells fine to me. Also to KPMG, S&P, and a couple of upgrading analysts (for what THAT'S worth). Citi apparently directly addressed Jacobson's thesis at http://bit.ly/YwKhbU.
I'm finished looking at this, absent some new data.
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
My point of view is somewhat nuanced, and you seem to be pretty black and white on the subject, but still - a writer determines what he means whatever the reader may interpret. I get that you disagree with what I think. Surely you aren't denying that I think it? This might be a good beginning study for you. http://amzn.to/181oQTj
As for why I think what I do, I was pretty clear that it is a matter of power differential, not the direction of the desired movement. Read what misscbd says above if you don't get that.
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
Hi Richjoy403. I don't consider the short selling per se to be unfortunate. I just don't like the obvious attempt to move markets with the announcements, which I find to be more common than the same tactic on the long side.
The folks who sell into those reactions are likely pretty unsophisticated investors, and this seems like predatory behavior. The same standard applied to the reverse situation is very different - short sellers are (nearly) always sophisticated investors with risk management measures in place.
Yes, I believe everyone is responsible for their results, but still... it somehow bothers me.
Curls-100 actually got to the heart of it pretty quickly, I'd say. One of the good questions struck me - which you answered
"As for things I find in the footnotes, I write on this topic regularly. There is lot of material on this on SeekingAlpha, Forbes, MarketWatch, Barron's etc."
I can't remember anything footnote specific. Can you point to something? Maybe that would help.
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
@Thomas Lott - I don't disagree at all. But, again, where is Arthur Anderson now? I think that would affect how sanguine KPMG would be about simply washing their hands of the issue. Not to mention S&P, and the prison time for executives signing the annual report and/or potential personal liability of the Board. Sarbanes Oxley has changed that landscape substantially.
I've also been thinking about what might be subject to that interpretation based on my career experience (some very old data experience, but other equipment intensive project types and lease improvements). Basically, the purchase or replacement of any uninterruptable power, stand alone HVAC, etc. (usually under a FF&E category) that are attached to the building might qualify as a capitalized cost. Certainly tenant improvement reconfigurations are capitalized, and are expensive enough to explain the numbers I see. There would also be the year to year variability I see.
As I said, shenanigans are possible - I just don't assign them too high a likelihood.
Intel And Advanced Micro Devices Entering The Mobile And Tablet Space [View article]
@Sam Liu - that is exactly my situation. I'm waiting 'til the year end approaches to replace my laptop. There is a nice ultrabook - maybe a detachable - in my future.
BTW, @ Justin - for a couple years I felt like you do about the trusty desktop rig, but there are cobwebs on it now. However, a tablet in its present form is not an option for me because of the difficulty with content creation. But who knows - there could be a very portable thin film accessory keyboard that might make it work like this http://bit.ly/ZYIYAc if it would roll up small...
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
Gig49, I know that anyone can be fooled, but the annual report you looked at was signed by auditors (KPMG LLP). Remember Arthur Anderson?
Also, DLR's rating was just raised by S&P to investment grade. I am inclined to believe that these two organizations had access to more company data than Highfield. Moreover, they would be looking for just the kind of mischaracterization that has been alleged.
It would not be very easy to accomplish what is alleged, since maintenance payees are pretty distinct from capital acquisition activities. Of course it is possible. Given the above, is it likely? If there is a concern here, why not question any other company. The only difference is what Highland says - admittedly profiting from the negative perception generated.
I'm prepared for more downward price action. It's possible. But I think it extremely unlikely that there is merit to the opinions of Jacobsen. The fact that it IS opinion is all that would insulate him from legal action, IMO.
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
"Speculators like Highfields will inevitably lose money..."
Unfortunately this is not (always) true. Someone sold into that downdraft. I don't know his cost basis, but Jacobson likely covered some at a profit, and is sitting on paper profits in the rest.
"...and investors who take advantage of Mr. Market's periodic irrationality have a good chance of winning."
This is definitely true in general. I hope it's true w/ DLR. I'm long with a cost basis a couple percent below current price.
Intel And Advanced Micro Devices Entering The Mobile And Tablet Space [View article]
Television will be obsolescent soon. Seeking Alpha will start dominating the entertainment world. Politicians will need to focus on re-election. They cannot afford to be relegated to C-span, as Seeking Alpha begins to penetrate emerging markets.
Intel's New Architecture Challenges AMD's Graphics Lead [View article]
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
If you read the notes, they are very clear how and why they classify the way they do, and how it affects income reporting. The treatment has to pass IRS muster for depreciation of assets, and they are upfront about how they decide the period over which capital costs are depreciated. They acknowledge judgment is involved. Nothing is hidden.
As I looked at the info, there was actually an upside that occurred to me - even if specialized equipment is fully depreciated over the lesser of the estimated life of the equipment or the lease duration, whichever is shorter, there is still significant remaining asset value in my opinion (think raised floor, switchgear, upgraded fiber optic cabling, freestanding HVAC, etc.). I'm no accountant, but it smells fine to me. Also to KPMG, S&P, and a couple of upgrading analysts (for what THAT'S worth). Citi apparently directly addressed Jacobson's thesis at http://bit.ly/YwKhbU.
I'm finished looking at this, absent some new data.
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
As for why I think what I do, I was pretty clear that it is a matter of power differential, not the direction of the desired movement. Read what misscbd says above if you don't get that.
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
The folks who sell into those reactions are likely pretty unsophisticated investors, and this seems like predatory behavior. The same standard applied to the reverse situation is very different - short sellers are (nearly) always sophisticated investors with risk management measures in place.
Yes, I believe everyone is responsible for their results, but still... it somehow bothers me.
Low-Cost Funds Dupe Investors [View article]
"As for things I find in the footnotes, I write on this topic regularly. There is lot of material on this on SeekingAlpha, Forbes, MarketWatch, Barron's etc."
I can't remember anything footnote specific. Can you point to something? Maybe that would help.
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
I've also been thinking about what might be subject to that interpretation based on my career experience (some very old data experience, but other equipment intensive project types and lease improvements). Basically, the purchase or replacement of any uninterruptable power, stand alone HVAC, etc. (usually under a FF&E category) that are attached to the building might qualify as a capitalized cost. Certainly tenant improvement reconfigurations are capitalized, and are expensive enough to explain the numbers I see. There would also be the year to year variability I see.
As I said, shenanigans are possible - I just don't assign them too high a likelihood.
Intel And Advanced Micro Devices Entering The Mobile And Tablet Space [View article]
BTW, @ Justin - for a couple years I felt like you do about the trusty desktop rig, but there are cobwebs on it now. However, a tablet in its present form is not an option for me because of the difficulty with content creation. But who knows - there could be a very portable thin film accessory keyboard that might make it work like this http://bit.ly/ZYIYAc if it would roll up small...
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
Also, DLR's rating was just raised by S&P to investment grade. I am inclined to believe that these two organizations had access to more company data than Highfield. Moreover, they would be looking for just the kind of mischaracterization that has been alleged.
It would not be very easy to accomplish what is alleged, since maintenance payees are pretty distinct from capital acquisition activities. Of course it is possible. Given the above, is it likely? If there is a concern here, why not question any other company. The only difference is what Highland says - admittedly profiting from the negative perception generated.
I'm prepared for more downward price action. It's possible. But I think it extremely unlikely that there is merit to the opinions of Jacobsen. The fact that it IS opinion is all that would insulate him from legal action, IMO.
Intel And Advanced Micro Devices Entering The Mobile And Tablet Space [View article]
http://bit.ly/168nQPx
Oh, and that's a cute kid. He looks just like you. Maybe people will go easier on you for his sake.
Intel And Advanced Micro Devices Entering The Mobile And Tablet Space [View article]
BTW, is Word Blurt yours?
Highfields Capital Is Wrong Because This Digital Cloud REIT Ain't Going Nowhere But Up [View article]
Unfortunately this is not (always) true. Someone sold into that downdraft. I don't know his cost basis, but Jacobson likely covered some at a profit, and is sitting on paper profits in the rest.
"...and investors who take advantage of Mr. Market's periodic irrationality have a good chance of winning."
This is definitely true in general. I hope it's true w/ DLR. I'm long with a cost basis a couple percent below current price.
Intel And Advanced Micro Devices Entering The Mobile And Tablet Space [View article]
How am I doing?