This article is a very favorable analysis of FNFG valuation. However, it fails to take into consideration corporate culture. This company is run for the benefit of its executives to the detriment of the stock holder. This is evident by the high compensation of executives (see Buffalo News article), unbridled expansion leading to higher executive salaries and severence packages and lower PPS, dilution of stock holder equity, reduction in dividends, and terrible stock price performance. Look at the 5 year chart, compare with M&T, with compare with major indexes and tell me whether this makes sense as an investment.
Thanks for the tips. I will look at FSIC and PSEC but, I am slowly reducing my exposure to REIT's, BDC's, and MLP's as I feel they wil be negatively effected by higher interest rates. I am looking to Motley Fool for possible growth prospects although I will have some cash for dividend payors after August 16 (covered call expiration).
A good reason not to short these bio-techs. If you don't want to gamble on them don't buy. When one of them hits it big and you are short, you could have a major problem.
So much for Janet Yellen's opinion on this type of investment (speculation, ganble?). If you feel inclined to short ACRX, SGEN, ISIS, etc. look at this action.
This is certainly a badly beat up stock. I believe a lot of investors are thoroughly disgusted with it and just want out therefore the spike over 2.20 looks like a good sell opportunity for long term holders. I predict a very gradual price increase with a 3.50 by the end or the year (an average increase of .015 per day).
This stock seems to be in a rango between 35 and 40. You must have a srong feeling or reasonable belief that earings will disappoint. Looks to me like the best you could do in the short term is a couple of bucks a share. Doesn't seem worth the risk given potential earnings report and management upgrade not to mention general market sentiment. By the way, I am up 6 points on this "POS".
I wouldn't risk a real short position. All of us who hold are hoping for a big hit or a high premium buy out. If either occurs, a price of 30 within a year is certainly posible. If it doesn't occur, the real short could make $10 a share in about 5 years.
I would like to remember one inane poster who said we would never see a close above 10 again. Real shorts, as opposed to those who want to see justification of their sale, are not thinking right. There is a potential for 10 points on the down side and unlimited up side. Selling a $10 stock short makes little sense when it is owned on the basis of hope that they wil hit it big, not that it has earnings.
Despite a number of negative comments on management, dilution, and the low price of the secondary, I just purchased 400 shares at 17.08. The reasons: 1) the recent decline due to the secondary offerring; 2) the 8.8% yield to be declared within a month; 3) the P/E. The argument that only the managers will benefit from the secondary is interesting and is made by believers in class warfare. I say "so what". Just keep my 8.8% coming and management is welcome to thieir gains.
Buying puts can be awfully dangerous. Even if the stock stays the same you wil lose money like playing slots at the casino. What if there is a buyout or fantastic drug development news? Selling them is bad but not quite. You limit your risk but you could end up with greatly devalued stock. I don't understand your enthusiam for puts.
I guess, If you believe that over paying for a European company to reduce U.S. tax impact. Then what about the dividend? Will it be paid out of Britain? What are British tax laws? I know with Spain, 20% is taken off the top.
With some reluctance, I got involved with 4 negative earnings bio-tech companies. From a point of fundamentals these would be lousy investments and deserve Janet Yellen's scorn. So why am I in? First off, I have little time and knowledge for a good DD so I rely on institutional participation and such investors as the Baker brothers. Secondly, I would like to see more appreciation in my mostly high yield holdings portfolio. I figure that if one of the four hits it big with a blockbuster drug and/or a buy out and the other three lose 10% of their value, I am still way ahead. How can one appropriately value such potential as hese companies may (or may not) have?
You have a point. Higher oil prices to some extent effect demand but refiners' profits are influenced by the spread between oil prices and refined oil sales (the crack). I still believe in the basic inflexibility of demand compared with cost allowing refiners to maintain the spread and making the demand for U.S. oil even stronger.
Market near a year high. Doing very well this month. Election results due July 20 zulu. This looks to have real money making potential for the next 6 months especially seling for an overall 10% plus to NAV.
Seems to make sense from someone who got an A in finance from Cornell BPA when Bieman taught with Ezra. To some it up, I think you are inferring that any purchase of this company would not occur within a year.
I don't like your posts, but, good call on INVE. I hope you're wrong on HALO. I'm curious at what point you will cover the short position. I, for one, would not short 10 ($) stock with potential to double and no potential to go to zero.