Month

May 2012
U.S. banks posted their highest quarterly profit since mid-2007 in the first quarter.  It’s amazing to see where these stocks are trading at right now despite their strong profitability.  Lending activity decreased in the quarter which is not a positive for the U.S. economy, but frankly is to be expected due to all of the...
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In the story that never quits I found a very interesting quote in a Bloomberg article about Facebook (FB) CFO David Ebersman approach to pricing the IPO. “Ebersman’s aim was to maximize the company’s IPO proceeds and to cap the first-day increase at 10 percent, said the people, who asked not to be identified because...
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What a brilliant investment by Howard Marks.  He is getting a 12% annual yield on $225 MM of debt and warrants to buy 4.4 million shares at $10.  Even if Diamond goes bankrupt Marks would likely make money by reorganizing the company which would still have its solid brand portfolio.  If the company thrives Marks...
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This is an interesting little article detailing how Byron Trott formerly of Goldman Sachs (GS), brokered the deal with Warren Buffett in 2008 for a $5 billion investment.  It’s nice hearing somebody under oath detailing how Warren Buffet’s decision making process works. http://www.bloomberg.com/news/2012-05-23/goldman-sachs-s-trott-tells-jury-of-secrecy-around-buffett-deal.html INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR...
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Carlos Slim didn’t become the richest man in the world by being afraid to invest in a distressed market.  Typical of Slim’s history, he is stalking some European telecom companies which are trading at distressed levels.  Many of these companies are large constituents of their respective stock indexes so the stocks tend to sell off...
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Toll Brothers (TOL) reported improving earnings today thanks largely to fewer write-downs, and increasing deliveries.  The fact that both signed contracts and prices both went up for Toll brothers speaks quite well for the emerging strength in the housing sector.  I am not particularly interested in the homebuilder stocks due to their optimistic valuations, particularly...
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In investing it is always essential to constantly reassess one’s investment thesis to ensure that the facts still remain the same as they were when the position was initiated.  At T&T Capital Management we regularly are updating our assumptions as earnings and markets developments dictate.  The major risks of the problems in Europe are primarily...
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While my disgust for Aubrey McClendon and Chesapeake Energy’s (CHK) board of directors ethics and self dealing prevents me from investing more than a very minimal amount into the company, I do believe the stock is undervalued.  I’m also very interested in the bonds if they go down a little further to yield 10% to...
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In one of the silliest stories of the year I’m continuously amazed at the “outrage” over the Facebook offering.  IPO investors are upset that they didn’t get the initial spike to make their day trades successful.  Any actual “investor” would be happy that the stock has dropped precipitously from the IPO price as now they...
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With every data point it is becoming more obvious that the housing market is recovering and the implications are massive.  While everybody is focused on Europe for the third year in a row, new single-family homes sales moved up 3.3% from March to a seasonally adjusted annual rate of $343,000.  Housing as been in a...
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