After the pop in interest rates, I’ve grown used to having multiple savings accounts. Every so often I scope out the best interest rates then, shortly after, find myself deep in opening a new account. I’ve finally gotten tired of interest rate shopping, so now I’m just opening a number of accounts all at the same bank. Read more…
It has been said that technology companies just don’t last as long as their low-tech counterparts. But Radioshack, one of the oldest brands in the electronics space, has had quite a run. It’s probably about time that run came to an end. Read more…
For the first time in recorded history, investors have paid the US government to lend it money. That is, there was so much interest in today’s $10 billion TIPS (Treasury Inflation Protected Securities) auction that the winning bidders took home negative interest rates. Why did they do it? Read more…
One of the most important elements of a good business deal, whether a leveraged buy out or an investment in real estate is the cash on cash return. Read more…
Commercial real estate is in a world of hurt. A combination of faltering businesses, falling rents, record vacancy, and a second wave of financing resets are putting a pinch on commercial real estate investors of all stripes. But one major factor, a change in how we shop, will be the final nail in the coffin. Read more…
So I’ve been going on and on, and on, about this company called Netflix. Well, there may be even a better opportunity in GameFly, a copycat Netflix for video game rental. Read more…
Netflix is one of the few companies that can get a pass for missing earnings expectations. The company posted 3Q earnings of 70 cents per share, an annual increase of 26% and a penny below estimates. But analysts didn’t really care about the missed expectations, instead, investors sent the company higher to $167, up exactly $18 on the extended trading day. Read more…
It’s here. While the Federal Reserve looks to start a second round of quantitative easing, other central bankers are looking for ways to lower the value of their currency and increase exports. Of course, if everyone devalues their currency, no one wins. Read more…
The Wall Street Journal reported that at least three companies, AOL, Silver Lake, and Blackstone are all considering a play on Yahoo to take it private. The company, which was first offered $33 a share some two years ago by Microsoft is in a prime position for a sale. At the time, CEO Jerry Yang turned down several hostile offers by Microsoft, only to watch the stock slide precipitously by more than 60% in the weeks that followed. Read more…
So there’s a lot of talk about unemployment and the raw numbers. But while the unemployment numbers appear to be just simple tallies of who is employed and who isn’t, there’s a lot more that goes behind making the number. Here’s an easy explanation on how these numbers are calculated, and why it matters. Read more…
I’ve been pouring through some analyst estimates of companies that are right on the fringe of profitability. Normally, I want to know about these stocks because they are highly leveraged. A company earning 1 cent per share can increase revenue by only a fraction and double or triple its earnings. That’s a good stock to own, but Sirius, one of the best known of those on my list, is still one awful company. Read more…
I love mathematical modeling, and I love mathematics that helps explain certain events. The wisdom of crowds theory is a great mathematic model, and even though it it very simple, it is incredibly accurate. Read more…
With 2010 now winding down, it’s time to start thinking about 2011. Where you put your money next year is a crapshoot just like any other year. Except this time we’re deep in the midst of the worst recession in 80 years, regardless of what the NBER says. Read more…
We rallied big today, really big, and across all different asset classes. Stocks were up, commodities were up, the dollar was up, gold (I separate it from other commodities) was up, and treasuries were up too. So what’s going on? Shouldn’t at least something be falling? Read more…
The Forbes 400 list is interesting as it shines a light into how the richest people in the world became, well, the richest people in the world. This post will serve as my observations about the list, and the people that make it up. Read more…
