It is very difficult to forecast the future outlook for oil prices.  In relation to other forms of energy such as natural gas it is obscenely expensive.  Supply isn’t really constrained even with the difficulties in demand and production has been relatively solid.  Hundreds of billions of dollars are being spent to develop new deepwater...Read More

Radical changes in the regulatory landscape in addition to enormously expensive costs pertaining to dealing with problem mortgages, have elevated banks’ cost structures over the last several years.  Revenues have been flat due to lackluster economic growth particularly in the banks’ bread and butter areas of real estate and commercial lending.  To confront these issues...Read More

In the reps and warranties case including MBIA and Bank of America, a judge has increased the chances for a settlement by ruling that Bank of America CEO Brian Moynihan must testify.  I think it is in both companies interest to settle this case as MBIA needs the cash flow, and Bank of America needs...Read More

When most people think of Warren Buffett’s investment philosophy they think of his large positions in iconic companies such as Coca Cola, Burlington Northern, Geico, Wells Fargo, etc.  These investments are core positions where he was able to allocate huge sums of money with the understanding that the franchise values would continue to grow over...Read More

As we’ve stated before Chinese infrastructure spending has likely gone too far, too fast, and has provided a tremendous boost to many commodity businesses.  The most susceptible to a slowdown in China are mining companies that have created the materials for the heavy-industry infrastructure.  When you combine the inflated prices that this demand has caused...Read More

This article shortly and succinctly outlines the problems that some of these European countries are having in establishing a competitive economy.  Ridiculous labor laws that stifle business are devastating particularly in such a globalized economic environment where lower labor costs can allow a competitor to “eat the lunch” of the higher cost business.  These types...Read More

Chesapeake Energy (CHK) is blessed with wonderful assets and a management team that has regularly been leading innovators in the energy space as far as predicting trends and technological developments.  The problem with the company is that they are run like an aggressive “wildcat” firm as opposed to multi-billion dollar behemoth.  Balance sheet issues such...Read More

This article does a great job in outlining the importance of patents in the current environment in the tech sector. http://online.wsj.com/article/SB10001424052702303815404577335551794808074.html?mod=WSJ_hp_LEFTTopStories INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.Read More

With Best Buy struggling as a transformational shift from big box retail, to online distribution, more bad news occurred today with the announcement that the CEO is stepping down due to an internal probe.  Best Buy is a company that had a great model which is just becoming outdated due to the changing landscape so...Read More

Concerns over the European economy and the debt situation in Spain and Italy has roiled the markets substantially over the last few days.  These factors combined with lackluster jobs growth on Friday are raising borrowing costs for the periphery of Europe, and have caused steep market declines particularly in Europe.  While profit taking is certainly well...Read More