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C
Last Thursday’s Brexit vote led to a historically nightmarish day in the financial markets: Indexes across the globe were down between 3-10%. The British pound dropped from a high of $1.50 to $1.32, before finally recovering to $1.37, down an enormous 9% for the currency. European banks stocks were down between 15 and 20%. S....
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These last few weeks have been marred by extremely significant volatility as we prepare for the Brexit vote on June 23rd. While most of the impact of any Brexit wouldn’t likely be felt for several years at the minimum, the uncertainty that more countries would leave the Eurozone could mean more volatility for the market...
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Investing is when one buys an asset with the expectation of a profit over time, based on fundamental analysis that provides a strong rationale for this expectation. It is also known that publicly traded securities, by definition, fluctuate and can change prices violently based on short-term emotions of market participants. There is a reason why...
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The basic tenets to value investing and margin of safety are the following: Every stock is a fractional share of an actual business. Every business or stock has an “intrinsic value.” The “intrinsic value” of a business generally changes at a much slower rate than the price of a publicly traded stock can change. Over...
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It has been over 10 months since the S&P 500 has seen a new high and many market pundits are of the belief that the bull market starting in 2009 is now over.  It is my belief that stocks overall are priced within the realm of reason, and are neither extremely expensive or extremely cheap. ...
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The recent price action of the banking sector makes no sense whatsoever as I’ve been detailing.  Over the short-term, the stock market can be extremely inefficient particularly in a panicked situation such as that which exists today.  All of the facts indicate that the price of the common stock should be no lower than $60...
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Read the latest research report by our Chief Investment Officer Tim Travis on Citigroup (C). Citigroup: Bank on Mr. Market’s Unfounded Paranoia
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Today Citigroup reported 4th quarter earnings that beat analyst estimates.  Profits were about $3.4 billion in the quarter or $1.06 per share.  For the full year the company earned $17 billion dollars, or $5.40 per share.  Book value and Tangible book value increased to $69.46 and $60.61, respectively.  Citi Holdings Assets declined by 43% from...
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We are about midway through earnings season and most of the big banks have now reported.  The delay of an interest rate increase had a role in the recent selloff as did just the general terrible market sentiment due to the severe correction that took place.  What many market participants fail to understand is that...
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When investing, the fundamental question is what is the value of the business versus the pricing being offered?  If that value is substantially greater than the price offered, one has a strong expectation of attractive profits and a margin of safety, which means that the investor isn’t likely to lose money over the long-term.  Companies...
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