Festival of Stocks # 12

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November 27, 2006 | Others | Author Asif

Rick of Value Discipline is hosting the 12th edition of the Festival of Stocks on his blog this week. The post by George of Fat Pitch Financials about the spin-off company Sally Beauty Holdings (SBH) is a must read. My post about Coinstar was also included in this festival and Rick takes my short analysis of Coinstar (CSTR) further and has provided some Free Cash Flow (FCF) numbers for the last five years. However the FCF numbers I get by using the Cash Flow Statement from Coinstar’s 2005 Annual Report are significantly different from the ones posted by Rick. I plan to check with him to see how he arrived at his numbers. Here are the Free Cash Flow numbers for Coinstar over the last three years based on my calculations,

Year Net Income Free Cash Flow
2005 $22.27 million $59.22
2004 $20.37 million $17.81
2003 $19.55 million $28.61

As I mentioned in my post about Coinstar, I would not want to short this cash flow positive company but continue to find the $30 Jan 2008 naked LEAP puts (LUDMF.X) attractive.

I may not blog a lot until the end of this month as I get the last investment newsletter of 2006 ready for publishing on December 1st.


The Ninth Festival of Stocks

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November 11, 2006 | Others | Author Asif

SINLetter is proud to host the ninth Festival of Stocks, a weekly blog carnival featuring recent posts by contributing investment blog authors.

If this is your first time on SINLetter, please feel free to explore this blog, read the investment newsletters in the archives section or check out the model portfolio, which automatically updates itself every time you visit.

Here is the list of submissions for this festival.

1. Frugal of My 1st Million At 33 reverses his position on Canadian Trusts to Long-term Sell on account of the recent tax law changes that affect all Canadian Trusts. Check out some of the interesting comments following his post.

2.  Ask Uncle Bill makes the case for owning stocks in his post Mr. Market and the Upside Down PE Redux. The French stock market may be attractively valued based on the “Forward Earnings Yield” discussed in this post.

3. George of Fat Pitch Financials presents his current thoughts on REIT Exchange Traded Funds (ETFs). Editor Note: With the Indian real estate market booming along with the BSE Sensex, which has more than doubled over the last two years, international REITs are certainly worth consideration.

4. I make the case against owning online discount broker TD Ameritrade (AMTD) due to a drop in trading volume, a slowing economy and Bank of America’s decision to offer free stock trades. A comment by a subscriber sparked an interesting debate about the Bank of America offer.

5. Fedor of Forexblog feels that Leverage is not even a double-edged sword, it’s a guillotine. Editor Note: The collapse of Long Term Capital Management (LTCM) and the recent debacle at hedge fund Amaranth Advisors shows how dangerous leverage can be even in experienced hands. While Amaranth had borrowed about $8 for every $1 in assets, its leverage pales in comparison to LTCM, which had borrowed almost $250 for every $1 in assets.

6. Dan Carty of Traders Insights presents some well reasoned bullish thoughts about MGM Mirage (MGM) in his post MGM: Good Quarter…More to Come?.

7. The Inelegant Investor decides that Blair Corporation (BL) is too rich for him at these levels in his creatively named post The Which Blair (BL) Project.

8. Enough Wealth writes about the Australian government’s decision to sell-off their controlling stake in  telecom company Telstra in his post AU shares: T3 share float. (Scroll down to get to the actual post).

9. Super Saver of My Wealth Builder presents his thoughts about managing risks in his post Investing 101 – Managing Risk Successfully.

10. David of Worldwide Success asks When is the right time to invest?.

11.Paul Paulson weighs in with his thoughts about the “perceived bull market” in his post Bull Market?.

12. And finally to wrap us this Festival of Stocks, Gold Stock Bull takes A Closer Look  at Tagish Lake Gold Corp.

The next festival will be hosted once again by Geoff Gannon at his website Gannon On Investing. Submit your entries here.

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Festival of Stocks on SINLetter Next Week

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November 2, 2006 | Others | Author Asif

The ninth Festival of Stocks will be hosted on SINLetter next week. We have already started receiving submissions and if you are a blog author who writes about stocks, please send in your submission.

The previous Festival of Stocks was hosted on ValueBlogger.com, who has decided to start blogging actively on the AOL’s BloggingStocks.com. What I found interesting about his blog post describing his decision to move to BloggingStocks.com was that even on active weeks when he received 8,000 to 10,000 views, his advertising revenue was only $80 to $100.

Clearly advertising revenue (and specifically advertising through Google ads) is not as lucrative as people would believe. While there are millions of blogs out there, the number of blogs that have something original and interesting to say are few and far in between. Unfortunately I also see many of these excellent blog authors stop blogging after a while and the latest example of this is Kaushik Gala of GalaTime.com.

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Email Delivery of SINLetter November 2006 Delayed

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November 1, 2006 | Others | Author Asif

Email delivery of the November 2006 edition of SINLetter has been delayed by a few hours on account of a holdup at my delivery software provider. I have added the featured stock SanDisk (SNDK) and four options to the SINLetter Model Portfolio.

You can also access a printer friendly version of the newsletter here.

Hopefully you should get the complete investment newsletter by email soon.

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Two New Blogs Worth Checking Out

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October 5, 2006 | Others | Author Asif

With over 12 million blogs in the United States alone, it has become very clear to anyone attempting to navigate the blogosphere looking for useful information that good investment blogs are few and far inbetween. Two blogs that I came across just a few weeks ago and that are relatively new have become my favorites. I try to read them as often as possible because both these bloggers have in-depth knowledge of their industry (it shows in their writing) and do not go about repeating what everyone else is talking about.

The first one is Quant Investor written by George who is (as the about us section on his blog states) a full-time investor who recently retired from his day job as a quantitative programmer at an investment bank. His Worst Mutual Funds blog post makes for some interesting reading. I am not very surprised to see that his blog was mentioned multiple times in James Altucher’s blog watch column on TheStreet.com.

The second blog that I recently discovered is Information Arbitrage by Roger Ehrenberg. While Roger does not write about individual stocks a whole lot, his multiple years of experience on Wall Street clearly show in his writing. His recent blog post titled My Kind of Manager is definitely worth checking out.

Roger is also an angel investor and the President and Chief Operating Officer of Monitor110, a website that appears to be something like MustFeed.com on steroids. Both these blogs also appear under the stocks category on MustFeed.

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