TD Ameritrade: When Cash Isn't Cash

A lot of time is spent discussing hidden liabilities (e.g. lease commitments, potentially damaging legal obligations etc.) on this site, as the value investor is always looking to protect his downside. But occasionally, it's also worth discussing assets that really aren't assets, so the investor doesn't assume a company owns something it doesn't. In this case, consider the cash balance of TD Ameritrade (AMTD).

A New Rating Agency Model

If you follow the financial news, you probably already know that the ratings agencies have done a poor job of informing investors about risks before market events have made those risks clear. (To their credit, however, the ratings agencies are quite good at telling investors about risks after the market has already made them clear.*)

Furthermore, the business model whereby issuers pay the agencies for their ratings creates conflicts of interest that may be tainting what should otherwise be independent work. But a new rating agency model is upon us, and it puts the ratings in the hands of the people: Wikirating

Net-Net Plus Catalyst: Paulson

Paulson Capital has already been discussed on this site as a potential value opportunity. But while the company remains deep in net-net territory, somewhat of a catalyst is now present, which could entice those of you value investors who have a catalyst bent.

Competition Demystified: Chapter 6

The author of the excellent book for beginners, Value Investing: From Graham to Buffett..., is back, this time with a book about how to understand and analyze competitive advantages. Investors interested in better understanding what gives a company a competitive advantage must give this book a read.

Competition Demystified: Chapter 5

The author of the excellent book for beginners, Value Investing: From Graham to Buffett..., is back, this time with a book about how to understand and analyze competitive advantages. Investors interested in better understanding what gives a company a competitive advantage must give this book a read.

Staples For The Long-Term

Wednesday, office products distributor Staples (SPLS) fell by as much as 10% after the company reported its latest quarterly numbers. As a result, Staples now trades with a P/E of around 10 despite recessionary margins (that temporarily lower the "E" in P/E) and an operating history that suggests this company has a strong moat. For long-term investors, Staples may represent a very attractive buying opportunity at its current price, as it is likely to continue to generate strong free cash flow for years to come.
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IFON No Longer Cheaper Than An iPhone

Just over a year ago, InfoSonics was discussed on this site as a potential value investment. The stock promptly rose in the ensuing couple of months, but then got absolutely annihilated in the 3rd quarter of last year when double-dip and sovereign default fears reigned over the market. The stock has now bounced back, and while it may still be undervalued, value investors may want to take some off the table in order to pursue today's best opportunities.