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Doug Foster

Doug Foster
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  • KapStone: Looks Good On Paper [View article]
    Why is growth thru acquisition considered a good strategy? It just shows that mgmt can't grow with its existing assets. And why would you want to bet on the 4th or 5th largest player in the industry that lacks the scale of IP or RKT. Hoping for KS to be acquired is not a good strategy. I'm neutral to slightly negative.
    Apr 21, 2015. 09:51 PM | Likes Like |Link to Comment
  • Fracked Water, Meet SmartSponge [View article]
    I hate to break it to you, but burning a sponge soaked in hydrocarbons is not a renewable form of energy. And pumping a micro cap stock that makes sponges might work for a few months, may be even a few quarters. But how proprietary is a sponge that soaks up oil versus the sponge I used to wash my dishes. This is a ridiculous company and the fraud will be unveiled eventually. Google Spongetech and the fraud they perpetrated.
    Nov 27, 2012. 12:12 PM | 3 Likes Like |Link to Comment
  • Supervalu Vs. Roundy's: A Comparison Of Struggling Grocery Retailers [View article]
    Of the thousands of publicly-traded companies out there, why would you choose between these two dogs. Within the grocery industry I'd rather own KR or SWY. Both have much stronger balance schemes and better competitive positions within their markets. RNDY has been a complete disaster since its IPO. The dividend will need to be cut again and the PE backers are looking to dump even at prices below $5. SVU equity is completely worthless as the auction for its brands will bring less than the debt value. That includes Sav Alot. Avoid both and prosper.
    Nov 21, 2012. 07:31 PM | 4 Likes Like |Link to Comment
  • 'NIMBYism' Is Unlikely To Derail U.S. Coal Exports [View article]
    I don't recall any massive LNG spills either and LNG is much less polluting than coal. I guess we should instead listen to a bunch of corrupt coal executives over environmentalists. Get smart and realize this is an industry that is in secular decline and won't be making any miraculous rebound. There are so many better industries to invest in. Coal is near the bottom of my list.
    Nov 15, 2012. 07:37 PM | 1 Like Like |Link to Comment
  • 'NIMBYism' Is Unlikely To Derail U.S. Coal Exports [View article]
    Not entirely correct. Coal exported from the east coast and Gulf coast are destined for Europe not China or India. While there is demand for this coal, the real opportunity is getting American coal to Asia and it is cost prohibitive to ship from eastern ports. Simply put, you get the same quality coal from Australia so why ship from the other side of the planet? As for the author's suggestion that Powder River Basin coal can easily be shipped through Canadian ports, it's not that simple. Canada ships its own coal to China from BC and will always give priority to their own coal before allowing American coal entry for export. And Canadians have the same reservations as the Sierra Club in exporting coal to China. So the probability of increasing port capacity there is just as slim as OR or WA allowing coal exports thru their ports. The drop in coal stocks post election is completely justified.
    Nov 15, 2012. 07:26 PM | Likes Like |Link to Comment
  • Supervalu - The Saga Continues [View article]
    Is it really helpful to say you need to see strong consistent performance to be more bullish? Problem with SVU is that there is nothing within the company to generate this outperformance. In addition, the economy is working against them and the industry is also moving away from supermarkets to big box and dollar stores and healthier alternatives like WFM. How does one outperform given these challenges other than change the name of your store to Wholefoods?
    Oct 4, 2012. 10:13 AM | Likes Like |Link to Comment
  • Supervalu: About To Call Private Equity Or Circling The Drain? [View article]
    WFM not interested in buying SVU or their distribution and warehouse business. That is just idiotic. And no PE buyer will step in to buy SVU. Why? Because there is nothing they can do with it. The two tricks to PE investing, adding leverage and improving operations, won't work here. This is a dog.
    Jun 19, 2012. 05:34 PM | 1 Like Like |Link to Comment
  • What I Like About How Zuckerberg Runs Facebook [View article]
    The best thing to happen to FB is for Instagram to fail miserably. That will teach Zuck to quit this behavior and tone down his ego. The other thing he could do is cut the funding for a smartphone because it will be a money pit. Are we really lacking choices for good smartphones today?
    Jun 10, 2012. 10:27 AM | 1 Like Like |Link to Comment
  • Massive Insider Buying Could Mark Bottom For Hewlett-Packard [View article]
    The investment is not with his own money, it's institutional money for a fund he manages. It means nothing, except that his fund is going to underperform in the future. He completely lacks any understanding of the tech industry and where it's going. I would get more positive if Ray Lane resigned from the board or Meg Whitman bought $20 million worth of shares. Both aren't happening. HP needs an innovator for CEO, not a cost cutter, which is all Whitman knows how to do. Stock will stay flat for many quarters.
    Jun 9, 2012. 08:00 PM | Likes Like |Link to Comment
  • Shhhh, MetLife Is Loaded With Long-Term Bonds [View article]
    Seems to me the commenters know more about MetLife and the insurance industry than the author. It would be a collosal mistake to not consider buying shares in MET or PRU given they trade at very attractive book values and historically low P/Es.
    Jun 7, 2012. 11:33 AM | 2 Likes Like |Link to Comment
  • The Silver Lining For Coal Company Cloud Peak [View article]
    On CLD, how can they compete with pricing from Australia and Indonesia miners when it comes to exporting to China or India. Transport costs must be more given CLD coal needs to be railed to the west coast then loaded on Panamex boats and shipped across the Pacific to China and India. Even if the mining costs are $5 per ton, the transport costs must bring the all in costs close to $90. I don't see how that's competitive with Australia for similar quality coal.
    Mar 29, 2012. 08:55 AM | 1 Like Like |Link to Comment
  • Coal: Time To Be Greedy [View article]
    Talking about clean coal is silly. The technology doesn't exist today and won't be economical for years. China and India are building hundreds of coal fired power plants and none of them are considered clean coal. What is interesting is the market for seaborne coal. I don't see how Appalachian coal can compete with mines in South Africa or Australia. American coal is an isolated market with demand mostly on the other side of the world. That's why I think coal exports won't be a huge factor for American companies. China and India have huge coal reserves themselves.
    Mar 23, 2012. 09:22 AM | 1 Like Like |Link to Comment
  • An Apple Bubble Is Forming [View article]
    If you like it as a trade, you probably didn't participate in the recent run up, do why should I listen to you now. This is a bush league article with some technical analysis dumped in to make a point. Saying he stock is a bubble is different from saying it will continue going up parabolically. It can stay at $600 and still not be in a bubble.
    Mar 18, 2012. 10:35 AM | 3 Likes Like |Link to Comment
  • Expecting Apple to Pull Back To $450 Before Going To $700 And Beyond [View article]
    This is just complete amateur hour which is why Seeking Alpha is so dangerous. The numbers used make no sense, the S&P doesn't trade at 22x earnings because everyone but the author uses forward earnings not trailing. So Apple won't earn $35 but more like $50. Oops, a slight oversight there. As for Apple's strategy not being scalable? Sure it's not scalable like Windows or Android but it's also not flooded with malware and viruses. And Apple has 5% of the PC market and taking share aggressively. Five years from now there will Fortune 500 companies completely using Macs ans iOS. And I understand the Apple strategy With its ecosystem and consumer focus to penetrate the enterprise market. Whereas I don't get Google's strategy of overpaying for Motorola and what they will do with it. So, the author shows a complete lack of understanding of Apple as does most of the market.
    Feb 19, 2012. 12:24 PM | 5 Likes Like |Link to Comment
  • Winn Dixie's Buyout Could Be The Catalyst For A Supervalu Breakout [View article]
    Let me guess, the author owns SVU, is underwater and needs to desperately bump up the shares. There is no way SVU will get a bid because as hard as it is to believe, it has an a mgmt thats even worse than WINN. Also the size of any deal is beyond the risk appetite of any acquirer, just look at the debt levels on SVU. As for some of the other points, PE is not really relevant given the debt levels, beating for the past 3 quarters means nothing when they missed badly the quarters before that, acquirers don't look at stocks building technical bases when they make buyout offers, insider buying is minimal and the dividend yield is not safe. And just because some trader on Fast Money likes the stock means nothing to me. Those guys have a shooting average below 50%. SVU is going no where and when you look at the competition, it is going to heat up with dollar and big box stores ramping up.
    Dec 20, 2011. 05:24 PM | Likes Like |Link to Comment