Tilson, $250, Einhorn, Dykstra
– Whitney does a great job here taking the NY Times to task. The only thing more transparently biased than their political coverage in their business coverage.
– Want to see people in the NE freeze?
– Do they really think he views it as gambling?
– He wasn’t even really that good of a baseball player
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Adam’s Options, Russert, Russert, Russert
– I do not pretend to know even a fraction of what Adam knows about options but find myself reading him everyday……..his stuff is very “visual“
– This is a tragedy
– The takeaway? He cannot be replaced….The MSM has deteriorated so much
– True……….
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Adam’s Options, Russert, Russert, Russert
– I do not pretend to know even a fraction of what Adam knows about options but find myself reading him everyday……..his stuff is very “visual“
– This is a tragedy
– The takeaway? He cannot be replaced….The MSM has deteriorated so much
– True……….
Visit the ValuePlays Bookstore for Great Investing Books
Some interesting items from Borders (BGP) 10-Q
Inventory:
“During the first quarter of 2008 the Company implemented an initiative to actively reduce inventory in its stores. As a result, the Company significantly reduced inventories in the music category, as well as space allocated to that category. In addition, the Company reduced inventories in book and DVD categories as well, in order to make its inventories more productive. These two factors significantly contributed to the reduction in inventories and generated $88.9 million in cash in the quarter. As a result of the decline in inventories, account payable decreased $56.5 million during the first quarter of 2008. The Company will continue to actively manage inventory levels throughout 2008 to drive inventory productivity and to maximize cash flows.”
CapEx:
“The Company expects capital expenditures to be between $80.0 and $85.0 million in 2008, compared to the $142.7 million of capital expenditures in 2007. The Company has critically reviewed all capital expenditures to focus on necessary maintenance spending and projects with very high return on capital. Capital expenditures in 2008 will result primarily from investment in management information systems, the Company’s new e-commerce Web site, as well as a reduced number of new superstore openings. In addition, capital expenditures will result from maintenance spending for existing stores, distribution centers and management information systems. The Company currently plans to open approximately 14 domestic Borders superstores in 2008. Average cash requirements for the opening of a prototype Borders Books and Music superstore are $2.8 million, representing capital expenditures of $1.6 million, inventory requirements (net of related accounts payable) of $1.0 million, and $0.2 million of pre-opening costs. Average cash requirements to open a new airport or outlet mall store range from $0.3 million to $0.8 million, depending on the size and format of the store. Average cash requirements for a major remodel of a Borders superstore are between $0.1 million and $0.5 million. The Company plans to lease new store locations predominantly under operating leases.”
The real good news is the level of disclosure prior to the filing. There aren’t any “what?” items in the filing. A good measure of this is probably because the book business is not overly complicated and more still is because Ackman is the largest shareholder. CEO George Jones does deserve some credit though, he has been totally upfront up until this point with shareholders.
Good…
Disclosure (“none” means no position):Long BGP
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Here is a nice back and forth between two bloggers I like to read. P
They cover Sears (SHLD), American Home Mortgage (AHM), Primus (PRS) and others
Read it Here:
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If you say something is or is not going to happen, you’d better be right…
AIG’s (AIG) Martin Sullivan became the latest “we will not need to raise more capital” casualty tonight being replaced by former Citigroup banker Robert Willumstad, who was already AIG chairman, effective immediately..
Sullivan joins Merrill Lynch’s (MER) Stanley O’Neal, Citigroup’s (C) Charles Prince, Bear Stearns’ (BSC) James Cayne, Ambac’s (ABK) Robert Genader, MBIA’s (MBI) Gary Dunton, Wachovia’s (WB) Ken Thompson and Lehman’s (LEH) Erin Callan.
We’ve been having this discussion here for pretty regularly since April and for some reason, the assurances are still being made. Up until just days before she was demoted, Lehman’s Callan was still out making assurances about the company I really think only she believed.
We aren’t talking about missing EPS targets by by a few percentages, we are talking about saying your capital position is sufficient and then going out and needing to raise the equivalent of 30% of your market cap only weeks later, in the case of Lehman. It just cannot happen.
Why are the shorts winning? Because the actions of the above crew give the inclination that even they do not know how bad the situation of their company is. If those people with the most intimate knowledge cannot get a handle on it, then the people telling us it is really bad must be right. Management keeps telling us things are under control when it clearly isn’t. That doubt and the fear it causes on the part of investors will inevitably lead to an negative overreaction in their outlook.
If the bosses tell us it is going to be “x” bad the shorts will have a quick victory but when it turn out to only be “X” bad, that is it, the party for them is over. They will exit the shorts and the longs can start buying in. The longs will not buy in now because they do not believe the bosses and the shorts can keep piling it on.
One final thing. Please stop whining about “short sellers”. It is annoying and useless. How about just getting your act together and get a handle on what is going on around you…… novel idea I know but it would actually work.
Disclosure (“none” means no position):Long C,WB, None
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If you say something is or is not going to happen, you’d better be right…
AIG’s (AIG) Martin Sullivan became the latest “we will not need to raise more capital” casualty tonight being replaced by former Citigroup banker Robert Willumstad, who was already AIG chairman, effective immediately..
Sullivan joins Merrill Lynch’s (MER) Stanley O’Neal, Citigroup’s (C) Charles Prince, Bear Stearns’ (BSC) James Cayne, Ambac’s (ABK) Robert Genader, MBIA’s (MBI) Gary Dunton, Wachovia’s (WB) Ken Thompson and Lehman’s (LEH) Erin Callan.
We’ve been having this discussion here for pretty regularly since April and for some reason, the assurances are still being made. Up until just days before she was demoted, Lehman’s Callan was still out making assurances about the company I really think only she believed.
We aren’t talking about missing EPS targets by by a few percentages, we are talking about saying your capital position is sufficient and then going out and needing to raise the equivalent of 30% of your market cap only weeks later, in the case of Lehman. It just cannot happen.
Why are the shorts winning? Because the actions of the above crew give the inclination that even they do not know how bad the situation of their company is. If those people with the most intimate knowledge cannot get a handle on it, then the people telling us it is really bad must be right. Management keeps telling us things are under control when it clearly isn’t. That doubt and the fear it causes on the part of investors will inevitably lead to an negative overreaction in their outlook.
If the bosses tell us it is going to be “x” bad the shorts will have a quick victory but when it turn out to only be “X” bad, that is it, the party for them is over. They will exit the shorts and the longs can start buying in. The longs will not buy in now because they do not believe the bosses and the shorts can keep piling it on.
One final thing. Please stop whining about “short sellers”. It is annoying and useless. How about just getting your act together and get a handle on what is going on around you…… novel idea I know but it would actually work.
Disclosure (“none” means no position):Long C,WB, None
Visit the ValuePlays Bookstore for Great Investing Books
UPGRADES
Invitrogen (IVGN)- First Analysis Sec Equal-Weight » Overweight
Hercules Offshore (HERO)- CapitalOne southcoast Neutral » Add
Apollo Group (APOL)- First Analysis Sec Equal-Weight » Overweight
Yahoo! (YHOO)- Stifel Nicolaus Hold » Buy
Continental Air (CAL)- Soleil Hold » Buy
Partner Comms (PTNR)- UBS Neutral » Buy
Yahoo! (YHOO)- Soleil Sell » Hold
Petro-Canada (PCZ)- Banc of America Sec Neutral » Buy
Old Dominion (ODFL)- Robert W. Baird Neutral » Outperform
Con-way (CNW)- Robert W. Baird Neutral » Outperform
Campbell Soup (CPB)- Lehman Brothers Equal-Weight » Overweight
MeadWestvaco (MWV)- Citigroup Hold » Buy
DOWNGRADES
PDL BioPharma (PDLI)- Credit Suisse Outperform » Neutral
McClatchy (MNI)- Wachovia Mkt Perform » Underperform
Jo-Ann Stores (JAS)- Soleil Buy » Hold
Fifth Third (FITB)- BMO Capital Markets Outperform » Market Perform
Yahoo! (YHOO)- Needham Buy » Hold
NASDAQ (NDAQ)- Credit Suisse Outperform » Neutral
Benihana (BNHN)- KeyBanc Capital Mkts Buy » Hold
Finisar (FNSR)- Piper Jaffray Buy » Neutral
Brasil Telecom Part (BRP)- JP Morgan Neutral » Underweight
Anheuser-Busch (BUD)- UBS Buy » Neutral
Brasil Telecom (BTM)- JP Morgan Neutral » Underweight
Accuray (ARAY)- UBS Neutral » Sell
Applied Bio (ABI)- UBS Buy » Neutral
WD-40 Company (WDFC)- JP Morgan Neutral » Underweight
Universal Health (UHS)- Wachovia Outperform » Mkt Perform
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UPGRADES
Invitrogen (IVGN)- First Analysis Sec Equal-Weight » Overweight
Hercules Offshore (HERO)- CapitalOne southcoast Neutral » Add
Apollo Group (APOL)- First Analysis Sec Equal-Weight » Overweight
Yahoo! (YHOO)- Stifel Nicolaus Hold » Buy
Continental Air (CAL)- Soleil Hold » Buy
Partner Comms (PTNR)- UBS Neutral » Buy
Yahoo! (YHOO)- Soleil Sell » Hold
Petro-Canada (PCZ)- Banc of America Sec Neutral » Buy
Old Dominion (ODFL)- Robert W. Baird Neutral » Outperform
Con-way (CNW)- Robert W. Baird Neutral » Outperform
Campbell Soup (CPB)- Lehman Brothers Equal-Weight » Overweight
MeadWestvaco (MWV)- Citigroup Hold » Buy
DOWNGRADES
PDL BioPharma (PDLI)- Credit Suisse Outperform » Neutral
McClatchy (MNI)- Wachovia Mkt Perform » Underperform
Jo-Ann Stores (JAS)- Soleil Buy » Hold
Fifth Third (FITB)- BMO Capital Markets Outperform » Market Perform
Yahoo! (YHOO)- Needham Buy » Hold
NASDAQ (NDAQ)- Credit Suisse Outperform » Neutral
Benihana (BNHN)- KeyBanc Capital Mkts Buy » Hold
Finisar (FNSR)- Piper Jaffray Buy » Neutral
Brasil Telecom Part (BRP)- JP Morgan Neutral » Underweight
Anheuser-Busch (BUD)- UBS Buy » Neutral
Brasil Telecom (BTM)- JP Morgan Neutral » Underweight
Accuray (ARAY)- UBS Neutral » Sell
Applied Bio (ABI)- UBS Buy » Neutral
WD-40 Company (WDFC)- JP Morgan Neutral » Underweight
Universal Health (UHS)- Wachovia Outperform » Mkt Perform
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If you are planning to watch a movie this weekend, read this post first.
Perhaps the “college analyst” can have you watching movies just a little differently.
Disclosure (“none” means no position):none
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Icahn, Google, Tilson, Child Porn
– Where are all the top employees going?
– OK, why wasn’t this done 10 years ago? Are we supposed to congratulate them?
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Icahn, Google, Tilson, Child Porn
– Where are all the top employees going?
– OK, why wasn’t this done 10 years ago? Are we supposed to congratulate them?
Visit the ValuePlays Bookstore for Great Investing Books
(LEH) Lehman Brothers Discussion on Bloomberg Radio
Today at 9:10 am I will be discussing (LEH) Lehman Brothers and the ibanks, (MER), (GS), (MS) specifically. Where the industry now and what is next for the ibanks? I feel the opportunity for taking the high ground of mark to market and setting aside reserves in case the market deteriorates further is long gone. My call for this action along with full disclosure dates back to the fall on both Bloomberg radio and TV.
Tune in for the perspective.
Disclosure: Mr. Corn is CEO of Clear Asset Management Inc. and Clear Indexes LLC. He does not directly own any of the securities mentioned. Clear Indexes publishes the Clear Global Exchanges, Brokers and Asset Managers Index which is tracked by the ETF (EXB). Mr. Corn owns shares of (EXB).
Thank you,
Todd Sullivan
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Please let your readers know about the special event at Value Investing News tomorrow at 10:00 AM. We will have a live Q&A session with Thomas Au, author of A Modern Approach to Graham & Dodd Investing
in the VIN Forum. See
http://www.valueinvestingnews.com/blog/value-investing-news/interview-tom-au-friday-10-00-am-est4550
Please post a question for Tom at the end of the interview. Its a great opportunity to pick his brain.
Thank you,
Todd Sullivan
Sent from my BlackBerry® wireless device