Last time we looked at Office Depot (ODP), it traded as though it were on the brink of bankruptcy. Since its low 3 months ago, however, the stock is up around 500%! While its debt situation and poor operating performance make it...
Read MoreStudies have demonstrated that companies with high standards of corporate governance outperform those with weak standards. However, individual investors can hardly be expected to be experts on corporate governance (though there...
Read MoreThis chapter is about trading and portfolio management from a value investing point of view.Portfolio management is described as an on-going process that is never complete. While certain businesses may be fairly stable, its...
Read MoreThis chapter describes some of the risks and opportunities associated with investing in distressed securities. While regular value investing involves dealing with a wide number of unknowns, distressed securities represent...
Read MoreJust two months ago, Sierra Wireless (SWIR), a provider of wireless solutions, was trading at a large discount to its net current asset value. With cash of $270 million, A/R of $67 million, and inventory of $33 million, the...
Read MoreLexmark (LXK), a manufacturer and supplier of printers, has seen its revenue decrease for the last four years, as stronger competition has forced it to reduce prices and exit now unprofitable product lines. While a string of...
Read MoreFor an analyst, the phrase “long term” appears to mean next quarter rather than this one. Indeed, it is difficult to find analysts who are focused on a company’s long term prospects. For a most recent...
Read MoreAre public companies too focused on short-term results?Just two weeks ago, we discussed how Abercrombie & Fitch’s (ANF) stated strategy through this recession entailed keeping prices high in order to protect the brand....
Read MoreWhen quarterly earnings reports are released, investors tend to focus on the headline numbers. Were earnings 12 cents per share or 11? What does this mean for next quarter’s earnings? For long-term investors, the...
Read MoreThis chapter examines opportunities at the time of writing that value investors had in the banking sector. In the mid-1980s to early 1990s, many banks were selling for less than book value. During the recession of the early 90s,...
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