Brinx Resources (BNXR) is an oil exploration and development company. The discount the company trades at to its cash balance (about 25%) prompted a reader to ask about its suitability as a value investment. Personally, I would...
Read MoreOrsus Xelent (ORS) is a Chinese cell phone maker that trades for $22 million on the AMEX. The company has a ton of risks:Almost all of its sales are to one distributor. Having one customer is always a risk, though this risk is...
Read MoreDemand for goods and services generally drops during recessions. It is for this reason that value investors prefer companies structured to withstand such drops. When incomes fall, certain industries suffer disproportionately....
Read MoreLast week, we discussed a method for estimating a company’s earnings power after it has undergone a restructuring. In such cases, the company’s past earnings may not serve as the best proxy for its future earnings,...
Read MoreMohnish Pabrai is an Indian-American businessman and investor. For a number of years, he turned heads with the performance of Pabrai Investment Funds since its inception in 1999. Pabrai has high regards for Warren Buffett and...
Read MoreMohnish Pabrai is an Indian-American businessman and investor. For a number of years, he turned heads with the performance of Pabrai Investment Funds since its inception in 1999. Pabrai has high regards for Warren Buffett and...
Read MoreParlux (PARL) originates, markets and distributes “prestige” fragrances licensed from celebrities. The company pays royalties to Paris Hilton, Kanye West and other celebrities to sell perfumes headlined with these...
Read MoreAs demand fluctuates, companies with variable costs can scale up or scale down their operations as neccessary. Companies with fixed-costs, however, have tougher decisions to make. While they can cut costs by disposing assets in...
Read MoreFor most companies, both income gains and income losses are attenuated to a large extent by taxes. In this regard, the government acts as a business partner, reducing the risk of loss in any one period (as long as offsetting...
Read MoreHardinge (HDNG) and Hurco (HURC) both design and manufacture computerized machine tools. During downturns, one of the most common decisions undertaken by companies looking to preserve capital is cutting capital expenditures. As...
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