Sometimes I break my own investing rules. For example in the last post I mentioned how classic value investors avoid financial firms due to the historical instances of weak balance sheets and cavalier use of leverage. I took a particular swipe at Fairpoint Group (FRP) commenting that: assets of £10.6 million is listed as ‘unbilled income’ – well if income is unbilled how … [Read more...] about Long Provident Financial at 585p
Classic value investors avoid financial firms such as Fairpoint Group (LSE: FRP) for the very plain and simple reason of an exceptionally weak balance sheet. Quite apart from Fairpoint being listed on AIM here at Shares and Stock Market financial firms have a special risk category that makes them a no-go area due to the historical instances of cavalier boards of financial … [Read more...] about Fairpoint Group: Why I Avoid Financial Stocks
Basic and diluted earnings per share are negative for Tullow Oil (LSE: TLW) the beleaguered FTSE 250 oil and gas exploration and production group. A pre-tax loss of $500 million certainly doesn't help. A $750 million rights issue in April 2017 reduced net debt by about $1 billion give or take but the balance sheet still looks weak with total liabilities at $7 billion and … [Read more...] about Tullow Oil Spews Cash, Pre-Tax Loss of $500 Million
it is the most aggressive and risky purchase within the portfolio and success or failure rests with the board and their ability to drive the business forward whilst maintaining the integrity of the balance sheet. This is what I had to say about it St Ives the last time I bought a position and today St Ives announced a property sale to the tune of £5.7 million which they will … [Read more...] about St Ives (LSE: SIV) Reduces Net Debt But There Is Still More To Do
If the share price declines from here say to it’s historical lows of 45p then I hope to have the discipline to buy more. This is what I published when I first bought a position in St Ives (LSE: SIV) on 25 April 2016 at 125p. They are now trading at 54p - an almost 60% decline since I first got in. So today I've bought more staying true to my word. What's Wrong With St … [Read more...] about Long St Ives (LSE: SIV) At 54p
The Shares and Stock Markets model portfolio is for informational purposes only and should not be construed as an incitement to purchase or sell stocks. It's dividend is suspended. It's CEO has left. It's balance sheet is a mess. These are just a few of the things wrong with the business behind the stock: Carillion Plc (LSE: CLLN) and the collapse of Carillion's share … [Read more...] about Long Carillion Plc at 67p
In a series of posts that sprang from Warren Buffett's latest 13F filing I have responded to two questions on social media regarding the improved fortunes of Southwest Airlines (NYSE: LUV): @djthomas would be interesting to post your GM% improvement for LUV against oil prices to see how much correlation there is. Bet it's a lot. — Peter Harris (@2peterharris) March 20, … [Read more...] about Southwest Airlines (NYSE: LUV) Gross Margin % v Oil Price: Is There A Correlation?
According to the retirement consultancy Mercer, at the end of 2015 the combined final salary pension deficit for the FTSE 350 was £39 billion. The FTSE 350 represents approximately 50% of all UK final salary pensions. At the end of 2016 the deficit increased to £137 billion. This massive deficit increase occurred even though firms were making huge contributions and … [Read more...] about Private Sector Pension Deficit Widens By 251% In 2016
LGO Energy (LSE: LGO) is an AIM listed oil and gas producer with onshore assets in Trinidad and Spain. From their annual report for the twelve months to 31 December 2014: During 2014, as in 2013, the operational management of LGO concentrated primarily on advancing the field development operations in trinidad. this involved drilling the first operated well in LGO’s history, … [Read more...] about LGO Energy: The Oil And Gas Vampire
Anybody who bothered to read last Thursday's RNS from New World Oil (LSE: NEW) would surely have run a mile from management's attempt to remain on life support by way of a placing and an open offer. This is desperate and unsurprising given the dire state of New World Oil's business operations: The past two year period has been a difficult time for the Company. The … [Read more...] about New World Oil & Gas: Just Who Are They Kidding?
I remember we owned stock in Schenley back in 1960 or so when it was selling below working capital. I went to talk to their treasurer. At that time, their stock was selling at $20 and they had $33 of working capital, including a huge inventory. I was asking how good their inventory was. In the course of our conversation, he said, "We've spent $100 per share on … [Read more...] about Walter Schloss On Book Value