Category Uncategorized

Why Behavioral Finance Matters.

When you think of the stock market, what comes to mind first? Apple? Amazon? Algorithms? Those are some of my first thoughts. We’ve come a long way from the time when railroad stocks were hot and ticker tape was considered high-speed. One thing hasn’t change though, but I’ll save that for later. With so much […]

NYSE: MN Strong Buy on Net Net Basis

NYSE: MN Current Assets: $169,120,000 Total Liabilities: $92,154,000 Net Working Capital: $76,966,000 Shares Outstanding: 14,216,988 NWC/Share: $5.41 Market Price: $ 4.25

Is the Eurozone ready to slow asset purchases?

A coworker opined that Draghi will stop easing via asset purchases soon. I wasn’t convinced. He mentioned inflation coming in near target, which is true. It is 1.9% vs. a 2% target. I decided to dig in to see where this number was coming from.  Germany at 1.7 France at 1.0 Spain at 3.0 Italy […]

Returns as Expected

With talk of extreme valuations in equity markets abound, you would think the past decade has been the most wild and euphoric bull market in some time. Here’s the hitch: in the decade ended December 31, 2016, SPY has returned 6.86% annually.  Yes, we saw a crash and subsequent slow grind to all time highs, […]

Is Passive investing aiding the momentum boom?

Perhaps the prominence of momentum and the obscurity of value investing lately is telling us something. Perhaps I’m following  human nature and trying to connect two unrelated things  time will tell. Companies who innovate and adopt technology will survive and if the old stalwarts don’t they may die. Conversely, maybe momentum is working because of […]

Has the internet structurally changed the stock markets multiples?

To experiment in a statistically valid fashion, one should gather robust data that spans long time frames. When P/E ratios are referenced to history, they tend to go back a century. A century ago 8% of households have a landline telephone. A century ago the first supermarket was founded. A century ago the hamburger buns […]