All too often, the media is concerned with a company’s absolute profit level in determining how successful a company is. However, what’s more important is the company’s return on its invested capital, since...
Read MoreCompanies with large depreciation charges usually require matching capital expenditures just to keep revenues stable. But in the rare instances where this is not the case, earnings are often a poor proxy for a company’s...
Read MoreAsta Funding (ASFI) purchases consumer receivables at large discounts to face value, and then tries to collect more on those receivables than it paid for them. Asta was first discussed on this site as a potential value...
Read MoreAnalysts have been chided quite a bit on this site for their poor predictions and focus on the short-term. So when they get it right, they deserve some credit. As recently as two months ago, management of Research In Motion...
Read MoreValue investors can spend a lot of time evaluating the quality of a company’s management. We look at management’s track record, and attempt to gauge the level of management’s candor in providing information to...
Read MoreValue investors believe the market is not perfectly rational. To understand why, an examination of human behaviour is required. In How We Know What Isn’t So, which is recommended by a number of value investors and...
Read MoreValue investors believe the market is not perfectly rational. To understand why, an examination of human behaviour is required. In How We Know What Isn’t So, which is recommended by a number of value investors and...
Read MoreWhen you are presented a story, it’s quite likely you are not given the whole picture. The story teller usually has a motive; he wants to keep you interested. As such, he will filter from the story any factors that are...
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 MoreMany investors, value and non-value alike, subscribe to the idea that a company is worth the sum of its future cash flows discounted to present value, minus net debt. (The main difference for value investors is that they will...
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