I’ve been meaning to mention this, but my latest article at seekingalpha (and third editors’ pick in a row) deals with DST Systems, a company that provides IT and automation services for the mutual fund industry, among other clients, has a portfolio of stock and private equity investments that is worth a little under half […]
I have been indisposed recently, but I will be ready to resume m usual schedule of posting in the near future. But before then I have some old news that needs addressing, and that is Windstream’s planned merger with PAETEC. Whenever there is a merger announced, at least one and usually more than one plaintiff’s […]
I was hoping to have a nice relaxing end to a difficult week, but Standard and Poor’s has officially downgraded the United States’ credit rating to AA+. And of course, they did it when the markets are closed for the weekend just to ensure that we’ll all be good and stressed for Monday. Obviously, one […]
There are many routes to becoming a successful company. The standard one is to provide a desirable product to customers at a profitable price. However, another highly effective approach is to provide an essential service to other companies that are engaged in the above action. CSG Systems International (CSGS) has adopted the latter approach, by […]
I have to say that I’m surprised how quickly things happen. My comments on the Real Mex bonds, which have been up for barely two days, seem sort of quaint now that the major ratings agencies have issued a cut on the grounds that the company has announced missing an interest payment. As I stated […]
UPDATE: On the night of July 20, 2011 the company informed the major ratings agencies that it did in fact miss the latest interest payment on the bonds. As I stated below, the cash flows to the company are sufficient to support the ultimate value of the bonds, but now that value is likely to […]
Acxiom, a company that is very difficult to pronounce, is a large marketing consulting firm, with a specialty in data mining. The firm uses customer data gathered from clients, and its own proprietary database, to develop a multi-channel marketing strategy (e-mail, web advertising, mobile advertising, and direct mail, among others) for clients. Acxiom claims to […]
The comparisons between Wall Street and a casino predate the current financial situation by decades. I, of course, have an interest in casinos of all kinds, as shown by my approval of various Indian casino bonds. And now, I have found an enticing opportunity in a casino supplier. Gaming Partners International (GPIC) is the largest […]
In my last article at seekingalpha.com on the dramatically low price of Best Buy (BBY), it was pointed out to me by a commenter that I have a nonstandard definition of operating cash flow. Specifically, when calculating a company’s operating cash flow, and consequently free cash flow, I ignore changes in working capital as a […]
They do say that value opportunities are usually found in small, out of the way places. I have found this to be true, but sometimes even large companies we’ve all heard of can hold significant value. Best Buy has a free cash flow yield of roughly 15.8% as of this writing, once its excess cash […]