In very encouraging news for the municipal bond sector, the amount of insured municipal bonds jumped 60% in the first quarter of 2012 from a year ago, to $3.7 billion.  One of T&T Capital Management’s core positions is in Assured Guaranty (AGO) which is really the only bond insurer writing new business. http://seekingalpha.com/article/476071-assured-guaranty-an-undervalued-diamond-in-the-rough The only...Read More

This was a really interesting article on some of the concerns that advertisers are having about Facebook, and the inability to track whether sales are coming directly from their advertising efforts.  I remember hearing similar concerns about search advertising earlier in its development and I think it is likely that Facebook will make it easier...Read More

Sears seems to be doing a better job at managing their inventory and halting the decline in same store sales.  These are definitely positive trends but it doesn’t change my agnostic outlook towards the viability of their retail operations.  I think Sears is an asset play and the key thing for investors is to understand...Read More

This article provides interesting insight into the buoyant market for junk bonds.  Investors hungry for higher yielding investments have been willing to offer very favorable terms to companies in less than ideal financial condition.  This is actually a decent time to be investing in junk bonds as the economy is improving but has likely not...Read More

This article showcases the high quality lending that banks are doing currently.  Improved underwriting and more disciplined pricing are the results of the consolidation that the industry has undergone.  While these are fairly normal characteristics for the recovery period in the credit cycle, markets aren’t giving the banks any credit for their solid financial strength....Read More

According to the Wall Street Journal Coca-Cola Co. (KO) is evaluating an $11 billion plus acquisition of Monster Beverage Corp. (MNST).  At over 30 times earnings I think this acquisition is not a good idea of Coca Cola.  While I’m sure Coke could increase Monster’s sales through improved distribution, this is too large of an...Read More

We have T&T Capital Management have been saying for sometime now that companies that are dependent on China to propel their growth, particularly in the areas of  real estate, and other hard assets, are at risk and likely don’t warrant a peak earnings multiple.  China has gone on a spending spree that is unprecedented for...Read More

This article argues the consensus opinion that housing will take many years to recover. I tend to disagree with this consensus view.  Because so few people are actually optimistic that housing will stage a significant recovery, I think the odds are actually quite good that it will happen.  Psychology is essential so if sentiment is...Read More

In a very average economic climate the European banks put out excellent numbers this week.  I was particularly impressed by Barclays and Santander’s respective performances.  It seems like Barclays investment banking operations are starting to perform better, and Santander’s Latin American operations are still thriving.  Santander could be a compelling investment at these levels.  As...Read More

Earnings are getting a lot stronger in the home builder industry as increased traffic and closings is certainly helping financial performance.  Profits are still lagging due to the lack of pricing power and lower volumes, but I certainly wouldn’t be surprised to see volume pick up quite dramatically over the next two years.  The large...Read More