3 Comments

    • Home Depot / Lowe’s Pair Trade Beats S&P 500 [view article]
      In my response to the claims of dishonesty....This is not a quick rich scheme...If you have read my previous posts on successful pair trades, you must look for equity pairs that have a high correlation. Regarding the % gain calculation, I feel that I am calculating the % gain appropriately by basing the gain (after commission costs) against my total capital employed ($20,000 in the example). I encourage all my readers to do their own due diligence on every investment. Sep 20 11:06 PM
    • Home Depot/Lowe's Pair Trade - Hedged Opportunity For Housing Despair [view article]
      In response to the anticipated % gain, 4.1% represented net gain but before taxes against the total amount of capital deployed. In my initial article, investing $20,000 ($10,000 on each trade)and returning ~$800. I don't agree that the gain will by an infinte % becuase you should peg your gain against capital employed, also there isn't a broker that will allow you. Sep 20 11:01 PM
    • Why I'm Not Dipping Into Walter Industries [view article]
      Jonathan -
      Thanks for your feedback. First let me start by disclosing that I am not long nor short Walter Industries and that all investors are advised to do their own research. The main basis of this article was that this is my personal analysis/screening criteria to decide if I should include WLT in my portfolio. With that said, the main drivers of my decision were #1. the debt levels (adjusted for the mortgage backed securities) as a % to book value were over 100% for multiple years, something that I am not comfortable with and #2 having the business completing many acquisitions and/or divestitures in the past, I can't get a handle on the historical normalized cash flow trends.
      Elias
      Dec 05 10:42 PM
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