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  • Richardson Electronics - Shareholders Confront Management About Its Failure To Create Value [View article]
    Classic value trap.
    Oct 12, 2015. 07:34 PM | Likes Like |Link to Comment
  • Avoid Luby's Inc. [View article]
    I think it is very poor taste to hijack an article and make it your personal daily blog as you are now doing.

    Use your StockTalk, write an article of your far as this article, you questioned the author, he answered you, let it be...pump it in your own area.
    Oct 12, 2015. 05:07 PM | Likes Like |Link to Comment
  • M&A Daily: Did Intel Just Seal The Deal? [View article]
    it was good info at the time it was posted.

    it also looks like they changed the story a little from what was first at the link.

    anyhow, good call on the shares.
    Oct 12, 2015. 04:11 PM | Likes Like |Link to Comment
  • Small-Cap Stocks Are Sounding The Alarm, Again [View article]
    "Savers should be punished to a degree, we are in a low risk environment therefore the return should be very low to save"

    What do you mean "we are in a low risk environment"? The fact that the Fed is back-stopping the market...for the time being?

    What happens when the music stops playing? You've jammed tons of folks in to the stock market because you've been smacking them around with 0% on their savings for a decade. You coerce them into taking risk putting money into the market that they would not normally. Then you claim this is a low risk environment? I'm just not seeing it - there are a number of forces in play at this time, and something is going to give. The stock market is probably the weakest link in it all - with the highest risk.
    Oct 12, 2015. 11:42 AM | Likes Like |Link to Comment
  • Small-Cap Stocks Are Sounding The Alarm, Again [View article]
    "As an example, the debt used to fund over $1 trillion in stock buybacks is not a solid foundation to those equity gains."

    Lawrence, this is very true and in general, I don't think investors understand, appreciate, or fully grasp the magnitude and importance of this point.

    The recent example I like to point to is Aeropostale ($ARO). Many folks are aware of the company and they are in teen retail and like most others in the space are in deep trouble at this time. Obviously they have a big problem with their business model as competition is coming from all directions and they've found themselves taking on debt, and facing an ongoing liquidity crisis.

    Now, what does Aeropostale have to do with any of this? Over the past 10 years, the company has repurchased $1 billion of its own stock at an average price of $16/share! Yes, $1 billion worth and the shares fight to stay above 60 cents today. That is $1 billion of shareholder value torched...$1 billion in additional equity they could have on the balance sheet today helping get them through this period. Instead, the company in all likelihood will end up in bankruptcy, or at the very minimum dilute existing shareholders as they will need to issue more equity to raise capital and stay alive...the equivalent of buying high and selling low.

    This is what people need to understand when evaluating the prudence of share repurchases by corporations - are they doing it because the shares are truly undervalued? Or is it that they are attempting to support a high share price that the market would not afford it without the artificial support being provided?
    Oct 11, 2015. 11:48 AM | 12 Likes Like |Link to Comment
  • Small-Cap Stocks Are Sounding The Alarm, Again [View article]
    agreed jsIRA.

    cash is as much an investment decision as any equity put your money somewhere based upon the level of risk you are willing to assume for the given amount of return/reward you expect.

    I have been happily extremely cash heavy the past few months. My personal plan has been to only nibble at equities taking small positions, taking profits quickly, being extremely nimble, and just bide my time until tax loss selling kicks in offering bargains to be had. Over the past week I have taken the opportunity to continue harvesting gains, and also unload a position that has been a loser, but unjustly quickly gained back 50% of the loss - Xmas in October for that tax loss...and happy to have the position out of the portfolio.

    We'll see how things go over the remainder of the year...very curious/anxious to see what the market gives us.
    Oct 11, 2015. 10:16 AM | 1 Like Like |Link to Comment
  • Small-Cap Stocks Are Sounding The Alarm, Again [View article]
    "those gains over the past 6 years are real. not fiction."

    those gains are real if you have cashed in those profits and taken your money off the table.
    Oct 11, 2015. 10:05 AM | 6 Likes Like |Link to Comment
  • Small-Cap Stocks Are Sounding The Alarm, Again [View article]
    Excellent article. I like that you provided the evidence for your views from multiple angles.

    I think many folks who were pulled in by the rally this past week are going to be sorry very soon. Smart money was using it as an opportunity to sell and take money off the table.
    Oct 10, 2015. 05:42 PM | 5 Likes Like |Link to Comment
  • Deutsche Bank At 60% Of TBV And Restructuring: I Am Finally Buying [View article]
    IP - the situation you describe and your questions are no different than what would have been stated at the last CEO change.

    "Suggest stick to factual debate's not productive just to simply state things will be bad etc.... "

    Yet it is productive just to simply state things will be good etc...?

    As much as I would love to continue participating in this debate, I'm going to have to drop out of it.
    Oct 10, 2015. 03:14 PM | Likes Like |Link to Comment
  • Customers Bancorp: A Rare Banking Growth Story [View article]
    Very well-balanced article as you did a very good job presenting both sides of the thesis.
    Oct 10, 2015. 12:12 PM | 1 Like Like |Link to Comment
  • How Safe Is BGC Partners? [View article]
    I have never liked BGCP because of the incestuous relationship among/between Lutnick/Cantor/BGCP. I had considered investing in BGCP in the past, but have seen what I personally consider questionable transactions between BGCP and Lutnick/Cantor and decided it wasn't worth the risk.

    When I saw some of the acquisitions that BGCP then made over the years and the far-flung/unrelated businesses they were getting into, I was happy with my decision to pass on it.
    Oct 10, 2015. 09:48 AM | Likes Like |Link to Comment
  • Deutsche Bank At 60% Of TBV And Restructuring: I Am Finally Buying [View article]
    Some folks here are being much too optimistic and are simply walking into the unknown. In these cases, the risks are enormous, and generally the potential reward does not justify the level of risk being assumed. pgrace123, this is not a small US-based community/regional bank, and you cannot analyze it in the same way.

    "His moves over the next couple of years will be nothing but good news."

    That statement may be correct in substance, however, I would wager that there is more bad news coming - and we're talking bad news of the sort that will cost billions at a time...i.e. there are likely more kitchen sinks coming. Will it be interpreted as "good news"? Of course there will be some who interpret it as good news even when costing billions of dollars per episode - it will just be more purging of the past - right?

    When Enron type fraud takes place, the obliteration of the company happens all at once when the fraud is uncovered, like a nuclear bomb causing instant/total destruction. With a too big to fail bank, it's different, because regulators are slow to move and historically have done nothing more than slap wrists when they've done wrong. As we've seen over the past 5 years with DB, it's been a series of missiles taking their toll little by little ... a few billion here, a few billion there - what's a few billion dollars, right?

    In the past, as most folks are aware, investment banks would never admit to wrongdoing when they've been caught. They'd pay their fine without any admission of guilt. If you know the investment banking sector, you know the reason is that these entities rely on their reputation as the most important asset that they've got. DB has already admitted guilt/wrongdoing in a number of settlements over the past few years. Again, this is unheard of, and obviously has been a major blow to its reputation.

    The author, and others here are being too simplistic with their analyses. I continue to say that you cannot rely on the financials being reported as the basis for your analyses and there are likely more (big/bad) skeletons in the closet.

    Bottom line - don't go gambling with more than you can afford to lose.
    Oct 10, 2015. 08:57 AM | Likes Like |Link to Comment
  • M&A Daily: Did Intel Just Seal The Deal? [View article]
    EMC - "Dell offering EMC $27.25/share and special VMware stock: Re/code"
    Oct 9, 2015. 06:26 PM | 3 Likes Like |Link to Comment
  • Deutsche Bank At 60% Of TBV And Restructuring: I Am Finally Buying [View article]
    "Deutsche at no time during financial crisis took one dollar or euro from the state"

    Not quite true.
    Oct 9, 2015. 09:07 AM | Likes Like |Link to Comment
  • Netflix's Price Increase: Good In More Ways Than One [View article]
    "I was quick to comment that this is by no means a way to evaluate every company under the sun, as some stocks simply do not trade on valuation."

    And thus we have the difference between "trading" and "investing".
    Oct 9, 2015. 08:18 AM | Likes Like |Link to Comment