Month

December 2013
Barrick Gold (ABX) has been chronically mismanaged and has suffered through dismal capital allocation.  This has pressured the balance sheet and subjected the company to significant risks as the price of gold has declined from its record highs.  New management has taken over and has begun making some painful but necessary decisions, which should help...
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Tomorrow is the day that Hilton will begin trading publicly again after what has undeniably been quite a wild ride.  The hotel chain was bought by Blackstone at the peak of real estate boom at an extremely rich multiple.  For a long time the deal looked like it going to end up being disastrous but...
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The Board of Directors at Abercrombie & Fitch seems to be making a questionable move by agreeing to a new contract with CEO Michael Jeffries after dismal performance over the last couple  of years.  Jeffries is considered to be the founder of the modern company after its spin-off from Limited Brands, but Abercrombie has missed...
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Below is a link to another outstanding letter from the managers of the Third Avenue Funds led by the legendary Martin Whitman.  There is tremendous insight about a variety of companies across the globe and extremely sound investment advice.  It is a bit lengthy but is certainly worth your time.  I hope that you enjoy!...
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Below is my most recent research report on SandRidge Energy (SD).  This is a company that has been cutting costs and improving its capital allocation, which were both serious problem areas under the leadership of former CEO Tom Ward.  Moving forward and assuming that oil and natural gas prices stay high, I believe the stock...
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Below is our most recent research report on 3D Systems Corporation (DDD).  This seems to be an obviously overvalued company that will likely be extremely disappointing for market participants speculating on it.  I hope that you enjoy!     http://seekingalpha.com/article/1879061-3d-vision-is-not-necessary-to-see-3d-systems-is-overvalued?v=1386232017&source=tracking_notify
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It looks like Kyle Bass sees the same value in GM that we at T&T Capital Management (TTCM) have been pounding the table on for quite some time. http://seekingalpha.com/article/453621-general-motors-stock-price-is-far-too-pessimistic  GM has traded at an extremely low multiple to earnings and on an EV/EBITDA basis.  The government ownership overhang has likely been a big contributor and I...
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Below is a fantastic interview of the former head of Capital Cities Tom Murphy from the year 2000.  Murphy was a tremendous businessman that grew Capital Cities from an extremely small base to eventually buy ABC, with the help of his good friend Warren Buffett.  Eventually, Murphy sold Capital Cities to Disney, which has obviously...
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Below is a great article about the changing dynamics in the mortgage industry where smaller companies are stealing market share from the big banks’.  The biggest reason for this are the new capital rules and regulations that effect the largest financial institutions.  They make it unattractive to originate loans and slowdown the process.  Retained or...
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When Blackstone took Hilton private in 2007, it was a time of extreme optimism in the LBO market.  The deal was funded with a low percentage of equity and in the depths of the financial crisis, the deal looked to be a complete loser with bond prices plummeting.  I give a lot of credit to...
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