Thursday, May 30, 2013
It has been a disastrous year for Lakeland Industries (LAKE), and its stock price reflects this. While the rest of the market reaches for new highs, shares of Lakeland are getting bent over; shares are down 70% from their 2012 highs! But has the market overreacted?
Wednesday, May 29, 2013
A few years ago, I recommended Microsoft (MSFT) as a potential value investment. Since then, this cash cow has continued to generate enormous returns on its capital. But two unrelated developments now make it a 'sell' candidate in my opinion. Read more...
Tuesday, May 28, 2013
Tuesday, May 21, 2013
Charisma is something non-founder CEOs are simply born with...or is it? Most people believe CEOs rise to the top of their fields because of some innate quality that makes people follow them. But Olivia Cabane argues that charisma is learned; some may pick it up more naturally, but with the right tools anyone can learn it. In The Charisma Myth, she describes how.
Monday, May 20, 2013
Cisco has a dominant market share in an industry where scale is advantage. Considering this, its market price a couple of years ago was laughable. But it only looks laughable in retrospect. When I brought up the stock as a potential investment at that time, though commenters on this site generally agreed that the company was undervalued, commenters throughout the rest of the web (e.g. through Seeking Alpha) saw the company through Mr. Market's eyes. Here are some of the bewildering comments I received after arguing the stock is undervalued:
Thursday, May 16, 2013
InfoSonics (IFON) was already a deep net-net when it reported results earlier this week. But after reporting an EPS loss of 5 cents, the shares were pulverized, causing the company to lose almost one-third of its market cap, or 16 cents per share. Blood in the streets.
Tuesday, May 14, 2013
Alfred Sloan became CEO of General Motors in 1923, and stayed on for several decades. In that time, he transformed GM from a rag-tag collection of unfocused, poorly-performing businesses into the largest company in the world. In My Years With General Motors, he discusses how he did it. Bill Gates calls his book "[P]robably the best book to read if you want to read only one book about business."
Friday, May 10, 2013
Hammond Manufacturing (HMM.A) makes products like transformers, racks, enclosures and casing for the electrical products industry. You might expect a company in this industry to barely earn its cost of capital - and you'd be right. What you might not expect is that this consistently profitable company is a net-net and trades barely over 1/3 of it's book value!
Monday, May 6, 2013
Friday, May 3, 2013
As previously discussed on this site, shares of Alco-Stores (ALCS) trade at a deep discount to the company's net current assets. While that discount started to narrow late last year, it started to widen again over the last few months. At the same time, a large shareholder (who previously owned more than 15% of this illiquid stock), started to sell piecemeal! My guess is that the latter may have been causing the former.