Friday, November 29, 2013

More Than You Know

I very much enjoyed Michael Mauboussin's book The Success Equation a few months ago, so when a reader recommended another of his books, More Than You Know, I was happy to give it a try.

Wednesday, November 27, 2013

IBI Group Plummets Some More

A few weeks ago, I discussed IBI Group's debt as a potentially attractive risk/reward. Unfortunately, the company has since issued a very ugly quarterly report that has resulted in IBI's debentures falling to less than 40 cents on the dollar.Read more...

Tuesday, November 26, 2013

I Am Malala

While I take my freedom for granted, others have to fight for it every day. Malala Yousafzai was a young teenager when she spoke out against the Taliban taking over her community in Pakistan, as they banned education and other freedoms she previously enjoyed. So at the age of 15, she was shot in the head on her way home from school. Somehow she survived, and has written a book about how life changed in her community once the Taliban rolled in.

Monday, November 25, 2013

Nortech Offers Investors A Selling Opportunity

Just over 3 months ago, Nortech Systems (NSYS) was brought up here as a potential value investment. Last week, the company's shares traded as high as 100% above their levels from just 3 months ago, offering investors the opportunity to sell this company for more than its book value. Read more...

Monday, November 18, 2013

Good To Great

I had been putting off reading Good To Great for some time, but finally bit the bullet. It is one of the most popular business books of all time, but I would also say it is one of the most useless. I can kind of understand why it's so popular; everything written in it makes complete sense! You can nod your way through the entire thing, without realizing by the end that you haven't actually learned anything useful.

Monday, November 11, 2013

Where Good Ideas Come From

Warning: This is not about *stock* ideas. Instead, it's a review of a book I came across through a Bill Gates recommendation: Where Good Ideas Come From by Steven Johnson.

Wednesday, November 6, 2013

IBI Group: Cheap Debt That's Covered By Net Current Assets

Shares of IBI Group (IBG) have fallen off a cliff, and therefore may be substantially undervalued. Unfortunately, the company carries a decent amount of debt, which means even though the stock's potential upside is large, so is its potential downside!

IBI's debt, however, also trades at a large discount. As a result, investors in the debt are offered substantial upside without the same level of risk as that borne by equity holders. In particular, the company's 7% debentures, due at the end of 2014, currently offer investors a yield to maturity of 30% in a company that is profitable if you ignore intangible asset write-downs. Interestingly, this debt is also currently covered by the company's net current assets, as discussed further below.Read more...

Tuesday, November 5, 2013

Lean Analytics

One does not need to take huge risks in order to grow most businesses. Techniques to understand markets before scaling are explained very well in a book that has been previously discussed on this site, The Lean Startup. But what specific metrics should managers focus on, in order to ensure they are on the right path? Alistair Croll's Lean Analytics seeks to answer this question.