Weekend Value Investing Reading – October 17, 2009

Oct.17, 2009 in Financial News Leave a Comment

If your weather is anything like it is here, you will likely be spending the weekend at home. Brew up a good cup of coffee and browse through these top Value Investing News stories:

  1. Debt coverage for sustainable dividends
  2. 5 Problems with a Long-term Stock Holding Period
  3. Dividend Payout vs. Free Cash Flow Payout
  4. Timing The Market
  5. The DIV-Net: Stock Analysis: Wal-Mart Stores, Inc. (WMT)
  6. Market volatility and how to handle it
  7. 9 John Wooden Quotes for Value Investors
  8. A look at 5 Defensive Plays 1 Year Later!
  9. Cash Flowing & Growing!
  10. MFI Stock Review: DynCorp (DCP)

Also be sure to check out this past week’s Festival of Stocks at TIPBlog.in. Keep dry and have a great weekend!

Weekend Reading From Value Investing News

Oct.09, 2009 in Financial News Leave a Comment

Start your weekend reading off with these top stories of the week from Value Investing News:

I also want to let you know about the October contest at Value Investing News. This month we will be giving away three subscriptions to MagicDiligence. You won’t want to miss this opportunity.

161st Edition of the Festival of Stocks

Oct.05, 2009 in Festival of Stocks 3 Comments

Welcome to the October 5, 2009 edition of the Festival of Stocks.  The Festival of Stocks is a blog carnival dedicated to highlighting bloggers best posts on stock market related topics. Fat Pitch Financials is the actual birth place of this online weekly event, so it is always a special occasion when I get the chance to host this roving event.

If you aren’t already familiar with my blog, Fat Pitch Financials, it is a value investing blog with a focus on wide moat companies selling at substantial discounts and Graham style workouts. I encourage you to subscribe for free to my blog feed to keep up with my latest postings.

You should also check my Fat Pitch Financials Contributor’s Corner while you are here. It is my premium members only community dedicated to unique arbitrage and special situation opportunities.

Now that you are familiar with Fat Pitch Financials, let’s take a look at this week’s Festival of Stock participants. Here are this week’s entries:

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Value Investing Weekly Wrap-Up – October 2, 2009

Oct.02, 2009 in Financial News 1 Comment

As we head into the weekend, be sure to check out these top stories of the week at Value Investing News:

  1. Magic Formula Weekly Roundup 9/26
  2. MFI Stock Review: United Online (UNTD)
  3. Dividend Report: Shoppers Drug Mart (SC)
  4. Book Review: The Essays of Warren Buffett by Lawrence Cunningham
  5. Utility dividends for current income
  6. Brokers Bah!
  7. Two Companies Trading at Their Cash Value
  8. Big bargains in beaten-down stocks – Bruce Berkowitz
  9. Protecting Your Dollars With Foreign Currency
  10. Miguel Barbosa Interviews Michael Mauboussin: Author, Investor

I also recommend the following financial blog carnivals:

I also announced the winners of the September Contest at Value Investing News. The three winners are getting a free copy of Building the Next Berkshire Hathaway.

Special Situations Real Money Portfolio September 2009 Update

Sep.30, 2009 in Special Situations Real Money Portfolio 2 Comments

A few days back, I reported that the Special Situations Real Money Portfolio ended the month of August with a balance of $25,602.10. I’m happy to report that the portfolio gained another 3.9% this month. The portfolio closed today with a balance of $26,594.77.

The year-to-date return on the portfolio is now up to 43.3%.  Looking back at the portfolio’s performance since inception on October 19, 2004, the Special Situations Real Money Portfolio has produced a total return of 166% as of the close of business today. The average annualized return since inception is now an amazing 30.2%.

Let’s take a look at some of the transactions that took place this past month. On August 14, 2009, I bought 249 shares of Zareba Systems (ZRBA) for $3.65 per share. Zareba Systems is planning to go private via a reverse stock split followed by a forward stock split. The company plans on cashing out shareholders holding less than 250 shares. Shareholders holding less than 250 shares will be given $5.20 per share in cash when the reverse/forward stock split occurs. On September 10th, the company decided to call off the deal. On the morning of September 14th, I sold the 249 shares of Zareba Systems (ZRBA) for $4.9001 per share. I made a nice net gain of 32.5% on this transaction ($297.37 it total profit). That’s extremely good (and lucky) given that this going private transaction was canceled.

Also on September 14th, I sold all 1,500 shares of Heely’s (HLYS) in the Special Situations Real Money Portfolio at $2.75 per share. Shares of Heely’s were up almost 20% on September 14, 2009 with no real news, so I thought it would be prudent to sell, especially considering $2.75 is close to my original calculation of $2.96 in net current asset value per share. It is likely that Heely’s NCAV has declined since my original estimate and I’m not comfortable holding this company above its liquidation value. I originally bought those 1,500 shares on May 20, 2009 at $1.83 per share. My cost basis is $2,751.95. I received $4,118.05 in proceeds from the sale. That’s $1,366.10 in profit from that investment, which comes out to a 49.6% net gain in less than four months.

At the end of September, I now find myself with a relatively large cash balance of $22,950.61. Market conditions are changing and hopefully the new wave of M&A activity will help me find some new opportunities to deploy my cash. However, I want to avoid taking on too much market risk. I think the economy could go either way at this time, so I’m going to remain cautious.

Sign up for my premium Fat Pitch Financials Contributors Corner to track my research and follow my next moves in the Special Situations Real Money Portfolio.

Disclosure: I no longer own shares of Zareba Systems (ZRBA) or Heely’s (HLYS) at the time of publication.

Special Situations Real Money Portfolio Summer 2009 Update

Sep.25, 2009 in Special Situations Real Money Portfolio 6 Comments

It’s been a few month’s since I’ve last reported on the performance of my Special Situations Real Money Portfolio. The Special Situations Real Money Portfolio ended the month of June with a record balance of $23,579.28.  By the end of July, that account balance increased to $24,563.65 and by the end of August, the Special Situations Real Money Portfolio climbed to $25,602.10. That’s a nice steady climb, which is rather unusual for the Special Situations Real Money Portfolio.

At the end of August, the portfolio was up 8.6% since the end of June.  Better yet, the Special Situations Real Money Portfolio was up 38.0% year-to-date on August 31, 2009. That crushes the S&P 500 year-to-date total return of 14.97% over the same period.

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Top Value Investing News – September 18, 2009

Sep.18, 2009 in Financial News Leave a Comment

Here are the top stories of the week at Value Investing News:

  1. Banks And Value Investing
  2. Are High Dividend Stocks worth it?
  3. Magic Formula Stock Review: Corus Entertainment (CJR)
  4. Yahoo Are You Kidding Me?
  5. Magic Formula Weekly Roundup 9/12
  6. 9 Stocks Increasing Their Dividends
  7. Maintenance Capex Calculation Bruce Greenwald Method
  8. Value Investing Framework
  9. Why I am Short Apple (AAPL)
  10. Warren Buffett on Lehman Brothers

Also, be sure to check the September contest at Value Investing News. We are giving away three copies of the latest value investing book, Building the Next Berkshire Hathaway.

Warren Buffett on Lehman Brothers

Sep.16, 2009 in Warren Buffett 1 Comment

Warren Buffett was recently interviewed at Fortune’s Most Powerful Women Conference. The video of the interview is available below and I highly recommend it.

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158th Edition of the Festival of Stocks

Sep.14, 2009 in Festival of Stocks 2 Comments

Welcome to the September 14, 2009 edition of the Festival of Stocks.  The Festival of Stocks is a blog carnival dedicated to highlighting bloggers best posts on stock market related topics. Fat Pitch Financials is the actual birth place of this online weekly event, so it is always a special occasion when I get the chance to host this roving event.

If you aren’t already familiar with my blog, Fat Pitch Financials, it is a value investing blog with a focus on wide moat companies selling at substantial discounts and Graham style workouts. I encourage you to subscribe for free to my blog feed to keep up with my latest postings.

You should also check my Fat Pitch Financials Contributor’s Corner while you are here. It is my premium members only community dedicated to unique arbitrage and special situation opportunities.

Now that you are familiar with Fat Pitch Financials, let’s take a look at this week’s Festival of Stock participants. Here are this week’s entries:

Read the rest of this entry »

Festival of Stocks 155

Aug.24, 2009 in Festival of Stocks 5 Comments

Welcome to the August 24, 2009  edition of Festival of Stocks. The Festival of Stocks is a blog carnival dedicated to highlighting bloggers best posts on stock market related topics. Fat Pitch Financials is the actual birth place of this online weekly event, so it is always a special occasion when I get the chance to host this roving event. Here are this week’s Festival of Stocks participants:

Warren Buffett Stock Pick Portfolio posted at Old School Value, saying, “A look at the intrinsic value and stock holdings of Berkshire Hathaway run by Warren Buffett. Graphs and fair value estimates included.”

Short interest posted at StockWeb, saying, “What is short interest and where to find useful information. Short interest filter, short interest in chart and reports.”

Jim Rogers On CNBC August 11, 2009 posted at All Things Jim Rogers.

Best Way to Profit from Over Valued Oil Prices posted at Investing in Canada: Best Investment Blog, saying, “Why oil is over priced and a simple way to make a huge profit if oil does come off strong.”

Investment Real Return posted at ABCs of Investing, saying, “A simple explanation of investment real return.”

Religare Enterprises | Financial Services posted at Indian Markets – Your investments in India.

Investments for Beginners: Types of Mutual Funds posted at Internet Stock Trading for Beginners.

Do Leveraged ETFs Have a Place in Client Portfolios? posted at ETFdb.

Update on QLTI posted at Experiments in Finance.

Quick Take: Hillenbrand Inc (HI) – MagicDiligence posted at MagicDiligence, saying, “Hillenbrand, a recent spin-off of Hill-Rom, is the holding company for Batesville Casket, the leading player in the casket industry. With a strong brand, a good dividend, and a predictable business, Hillenbrand is an interesting look for conservative or dividend investors.”

Kimberly-Clark Corporation (KMB) Dividend Stock Analysis posted at Dividends Value, saying, “Kimberly-Clark Corporation is a global consumer products company produces tissue, personal care and health care. Its brands include Huggies, Pull-Ups, Kotex, Depend, Kleenex, Scott and Kimberly-Clark. Linked here is a detailed analysis and commentary.”

Starwood IPO Benefits Underwriters – Investors Take Losses posted at ZachStocks, saying, “The Starwood IPO has traded off largely due to the fact that 6% of the IPO price was funneled to the underwriters. Weakness in the commercial mortgage market may present a challenge for STWD investors”

Chubb (CB) Dividend Stock Analysis posted at Dividend Growth Investor.

How to Choose the Right ETF posted at Diversified Focus.

Option Hedge Strategy: 2 by 1 Put Spread is Cheap and Effective posted at Everyday Finance, saying, “This article provides a low-cost way to hedge the recent rapid runup in the stock market by using a ratio spread, which can return over 2000% with a nominal cash outlay.”

Unlock Your IRA: How to Cash Out an IRA Without Penalty posted at Blueprint for Financial Prosperity.

India Fund (IFN) Trade Example posted at My Simple Trading System.

John Wiley & Sons – Stock Analysis for Dividend Portfolio posted at Dividend Tree, saying, “I like JW.A diversified revenue stream and geographical presence. Overall, it is a US based company that will provide hedge against dollar fluctuation and proxy for foreign developed/emerging markets. It has been raising dividends for last 16 years.”

Five Good Stocks for Long Term Investor posted at TIPBlog.in, saying, “The 20s and 30s investors must realize that the fast pace investing (or trading) does have potential high returns in a very short time. However, it also comes with very low probability of success and very high risk.”

The Outlook for Distressed Debt posted at Distressed Debt Investing.

Euro vs Dollar (USD): Weak US Dollar Ahead? posted at The Smarter Wallet.

Facing Investment Risks: Watch Your Money! posted at Investing Toolkit, saying, “On investment risks.”

What the Heck is an Asset? posted at Investing School, saying, “We always use the term but what is it really? Here’s a brief explanation.”

How To Survive a Stock Market Crash posted at Jeff Rose.

Scottrade Review posted at Money Ning, saying, “Scottrade has demonstrated its customer focus as a key driver to its growth. If you haven’t checked them out yet, definitely do so.”

Scottrade Remains Our Broker of Choice posted at My Dollar Plan.

Scottrade, OptionsHouse, and tradeMONSTER Review posted at Cash Money Life, saying, “Reviews of Scottrade, OptionsHouse, and tradeMONSTER, three of the top online discount brokerage firms.”

Best Online Stock Brokers For Cheap Stock Trades posted at The Digerati Life.

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That concludes this edition of the Festival of Stocks. Be sure an leave comments as you visit each of the blogs that participated in this week’s Festival of Stocks. They’ll appreciate knowing folks are reading their articles.

Next week’s Festival of Stocks will be hosted at Modern Graham. Submit your stock related blog article to the next edition of Festival of Stocks using our carnival submission form. Past posts and future hosts can be found on our Festival of Stocks index page for those of you interested in reviewing the archives.

If you are interested in volunteering to host a future edition of the Festival of Stocks, just contact me right away with the name of your site, blog URL, email address, and the date your prefer to host.

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