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E.Rifer

E.Rifer
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  • Retired With Money To Invest? Consider Playing Defense With Utilities [View article]
    Thank for sharing your analysis with us Chuck. ED has been a favorite of mines for a long time now. Your comment on its valuation is on the mark. Keep up the good work.
    Jun 12, 2015. 05:38 PM | Likes Like |Link to Comment
  • Boeing: The Cut Is Coming... But The Gap Is Not Closed Yet [View article]
    Thank you for the informative and well written article. BA securing about 50 orders per year sounds about right. We'll see if anything changes in the meantime.
    Jun 12, 2015. 05:33 PM | Likes Like |Link to Comment
  • Wall Street Breakfast: Another CEO Shakeup - Twitter's Costolo Steps Down [View article]
    "Athens hopes to clinch a deal with its lenders at a Eurogroup meeting on June 18, Greece's state minister said on Friday, as time runs out for the country to fend off a looming default."

    How many times have we heard about this "looming default" in the news now. It is a looming default until they manage to reach some last minute "kicking the can down the road" kind of deal. Greece doesn't seem to be going anywhere fast.
    Jun 12, 2015. 05:23 PM | Likes Like |Link to Comment
  • Wall Street Breakfast: Another CEO Shakeup - Twitter's Costolo Steps Down [View article]
    "I find it astounding that anyone could believe that "only the Government can do it", given the government's repeated demonstration of gross incompetence in all things internet, from building websites to protecting private data. Government control and regulation will make the internet worse, not better."

    We wouldn't even be discussing anything about the government if our private sector could already do the job. Our private sector clearly could not as proven by why our internet infrastructure is so behind the rest of the world.
    Jun 12, 2015. 05:19 PM | Likes Like |Link to Comment
  • Wall Street Breakfast: Another CEO Shakeup - Twitter's Costolo Steps Down [View article]
    I agree with James on obtaining a global net superiority for the US but I don't see our current broadband companies going for it if left alone. They have been very slow on improving their current network and have been focused on fighting the FCC to retain their monopolies. Verizon has been giving out the excuse of "capitalizing on current investments" for many years now as a reason why they have not been upgrading their networks at all.
    Jun 12, 2015. 05:15 PM | Likes Like |Link to Comment
  • Lessons From The Golden Bear [View article]
    Well said tallguyz. This is a big reason why I don't like sketchy paper gold funds like GLD. Just read the part in GLD's prospectus where the custodian subcontracts to subcustodians but has no right to audit or visit the subcustodians' vaults. It then requires third-party audits. So we can have the custodian own or pay off the third-party auditor to give a clean audit, while knowing that the subcustodian leases out the gold into the market.

    If GLD shareholders suspect so and ask custodian to prove otherwise, custodian can simply say "we have no right to check the subcustodians, see the prospectus, but here is a clean audit result" however laughably compromised. If GLD goes bust, no holder of GLD has any claim to any gold. GLD holders simply become unsecured creditors along with all other creditors, with no precedence in bankruptcy court.
    Jun 12, 2015. 05:09 PM | Likes Like |Link to Comment
  • Will The Fed Push Back Down GLD? [View article]
    "But the rise in M2, which is another indication for the changes in U.S. inflation, hasn't driven up the price of GLD in recent years, as presented in the chart below."

    It is very hypocritical to talk about inflation and then turn around to jump into a mass printed paper gold fund. GLD does not give retail investors the right to redeem for any of their mystery physical gold which ensures that your GLD shares are nothing more than paper. Moreover, GLD has a glaring audit loophole in their prospectus that would allow them to get away without owning all the gold they claim to own.

    "the Trustee has no right to visit the premises of any subcustodian for the purposes of examining the Trust's gold or any records maintained by the subcustodian, and no subcustodian is obligated to cooperate in any review the Trustee may wish to conduct of the facilities, procedures, records or creditworthiness of such subcustodian."

    To this day, there have been no justification for the existence of this GLD backdoor / audit loophole. Some other GLD red flags that I find very relevant:

    "Did anyone try calling the GLD hotline at (866) 320 4053 in search of numerical details on GLD's insurance? The prospectus vaguely states "The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody." When I specifically asked for clarification on this clause and about how much of the gold was insured, the representative proceeded act as if he didn't know and said they were just the "marketing agent" for GLD. What kind of marketing agent doesn't know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors.

    I remember there was a well documented visit by CNBC's Bob Pisani to GLD's gold vault. This visit was organized by GLD's management to prove the existence of GLD's gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this "GLD" bar was actually owned by ETF Securities."

    GLD is nothing more than mass printed paper at the end of the day. Using mass printed paper to hedge against inflation seems like a comedy routine.
    Jun 12, 2015. 04:57 PM | 8 Likes Like |Link to Comment
  • Wall Street Breakfast: Tesla Moves Into Energy Storage [View article]
    "Tesla Motors has unveiled Tesla Energy - a suite of batteries designed for households, businesses, and utilities - as it shifts into calling itself an energy innovation company in addition to being an automaker."

    Props to SA author Paul Santos for calling this early with a sharp eye and keen attention to detail. That said, though there have been much criticism surrounding the success of these batteries, I have a feeling that it will do just fine. The addition of Tesla Energy will add much to Tesla's ecosystem much in the way certain Apple products contribute to their incredible ecosystem.
    May 1, 2015. 03:51 PM | 1 Like Like |Link to Comment
  • Lowe's Laminate Flooring May Have Issues Similar To Lumber Liquidators' [View article]
    I have been purchasing from Home Depot since they had the most convenient location for me anyways. If they're not cutting corners like all the other companies, more power to them.
    May 1, 2015. 03:45 PM | 1 Like Like |Link to Comment
  • Lowe's Laminate Flooring May Have Issues Similar To Lumber Liquidators' [View article]
    There is a significant difference between LL and LOW. LOW is in a much better position to recover from any negative effects of laminate flooring issues. This issue, if true, will likely drop LOW a few percentage points. LOW can easily rebound with its many other business segments.
    May 1, 2015. 03:43 PM | Likes Like |Link to Comment
  • The Chinese $2.16 Trillion Easing Impetus For GLD [View article]
    It is a trend I'm noticing. Paper pushers generally just vomit out GLD recommendations without any second thoughts. This is especially true here due to the contradictory objectives presented. The author claims or at the very least infers concern over inflationary pressures. Right after, he did a 180 and jumped into a mass printed paper gold fund that is guaranteed to be paper.

    "The way to hedge against this inflationary pressure would be to have exposure to gold one way or the other. The most convenient way to do so would be to take a long position on the SPDR Gold Trust ETF (NYSEARCA:GLD)."

    If this isn't the definition of hypocrisy, I don't know what is. The fact that GLD doesn't allow retail investors to redeem for its underlying physical gold ensures that its paper shares are nothing more than paper. Not to mention the red flags marring this question paper gold fund's holdings such as audit issues. The GLD prospectus states they have no right to audit subcustodial gold holdings. Why would they forfeit this right and leave such a glaring audit loophole? I've never heard of a single positive reason why. There are other red flags as well:

    "Did anyone try calling the GLD hotline at 866-320-4053 in search of numerical details on GLD's insurance? The prospectus vaguely states "The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody." When I specifically asked for clarification on this clause and about how much of the gold was insured, the representative proceeded act as if he didn't know and said they were just the "marketing agent" for GLD. What kind of marketing agent doesn't know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors.

    I remember there was a well documented visit by CNBC's Bob Pisani to GLD's gold vault. This visit was organized by GLD's management to prove the existence of GLD's gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this "GLD" bar was actually owned by ETF Securities. I've always suspected GLD of gold hypothecation but saw no real evidence until that visit. The lack of insurance is also incredibly convenient for bullion lending."
    May 1, 2015. 03:33 PM | 5 Likes Like |Link to Comment
  • Wall Street Breakfast: Kraft, Heinz Announce Mega Merger [View article]
    Looking at the broadband sector with consumers limited to 1 or 2 choices, was there ever such a thing as "government oversight designed to prevent the market dominance that harms consumers"?
    Mar 25, 2015. 02:39 PM | Likes Like |Link to Comment
  • Wall Street Breakfast: Kraft, Heinz Announce Mega Merger [View article]
    "I can't believe that this will get DOJ approval. If it does we'll know the system is rigged and that the anti trust laws are as unenforced as our borders."

    There have been many indicators of our regulators being bought and paid for by bankers long before this event. Even outside of the scope of anti trust laws.
    Mar 25, 2015. 02:34 PM | 2 Likes Like |Link to Comment
  • Wall Street Breakfast: Kraft, Heinz Announce Mega Merger [View article]
    "You will see that CEO pay has not kept up with shareholder gains and CEO pay SHOULD BE tied to that, not what some line worker makes."

    I'll have to side with JC on this one. That is a inaccurate claim to make considering the number of CEOs that are rewarded for failure.
    Mar 25, 2015. 02:33 PM | 1 Like Like |Link to Comment
  • The Future Of Seeking Alpha, From One Contributor's Perspective [View article]
    There are advantages to SA shifting itself from a strict dependence on advertisement based revenue (especially with its inherent conflict of interest).
    Mar 25, 2015. 02:25 PM | 1 Like Like |Link to Comment
COMMENTS STATS
65 Comments
80 Likes