I have recommended cheap Chinese stocks as desirable as a way to bet on the possibility that China will be forced to let the yuan float against the dollar, and of course, a cheap stock anywhere is a cheap stock, although markets outside of the first world should be given a higher equity risk premium. […]
It was announced today that CenturyTel will buy Qwest Communications, subject to shareholder and regulatory approval, for $10.6 billion, or $6.02 per share, in an all stock deal. If you’ll recall, way back in June I recommended Qwest as a company with an ample free cash flow in excess of its reported earnings. At the […]
Much of the issues surrounding executive compensation is a concern that the manager’s interests should be aligned with the shareholders’. We have seen large cash salaries giving way to stock and options grants, and now the concern is that CEOs will do whatever they can to juice the price of the stock when their options […]
As my loyal readers may recall, my verdict on Chiquita brands was “Cheap, but evil.” It turns out that the law firm of Boies Schiller agrees with me, since they have recently filed a class action on behalf of 242 Colombians who were the victims of a Colombian paramilitary group that was running a protection […]
One of the chief benefits of value investing is the pleasant feeling of smugness it incites in its practitioners. The impression created among value investors is that we are really the only people who know or care about valuation or fundamental analysis, or who have the slightest hope of achieving long-term investment success. Well, on […]
Now that Easter is over and the spiritual affairs of the world are in order, we may look again at temporal matters. And when it comes to temporal matters, a coming trade war with China is a big one. We now read that there is pressure on the administration to declare China a currency manipulator, […]