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It’s becoming more difficult to find investments that are worthy of buying at current prices, so in the meantime, it’s never a bad idea to keep reading useful information. Below are a few hyperlinks that I have collected over the past week that I found interesting and/or useful that I thought would be useful to others.
Stock Grader wanted to sort companies by the Quality of the company and their earnings. The result was a simple sorting of companies using dividend adjusted book value and volatility to determine the quality of the company. More simply, it’s just adding back dividends paid to book value, and determining the growth of book value over time along with the “lumpiness” of the earnings. If the earnings growth was lumpy than a lower R-Squared value is returned, but if earnings growth was a steady than a higher R-Squared value resulted. Based on these two calculations, a grade is assessed to each company and then ranked against the group. For more information on the concept, see the About section of Stock Grader.
This might be a good place to sort for some high quality companies and keep on a wait list until the stock price becomes attractive.
Arquitos Partner’s result for 2013 was very good, and one of the positions of the fund that was highlights was InfuSystems, which is a stock that I believe is still undervalued.
This article by Eric Bleeker on Motley Fool is very informative for anyone that is invested in the Cable, TV, Sports industries. It covers the details of how sports teams can afford to pay players more and more money (TV contracts) and how the local sports stations and national sports stations receive most of their revenue from affiliate fees. People think that TV stations are generating all revenues from Advertising, but they are not. Cable companies are paying affiliate fees to these stations and then passing that cost on to subscribers. This is the reason cable bills keep increasing. Sports play a big role in these increases, because consumers still want to watch sports live, and cable companies must provide the channels that broadcast sporting events to their subscribers. Somehow and in some time this will end, but who will break the current bundling stranglehold?
I agree with this piece by Jay Yarow. Apple’s management team is very smart, and they are not going to listen to all the criticism that they receive from analysts. The iPhone business itself is huge, and Apple is generating large profits from the device. Developers are happy to develop apps for the platform, because the iPhone users are purchasing applications and the base of users are wealthy.
As always, I share information on Twitter in addition to this blog, so you can follow me.
The content contained in this blog represents the opinions of Ray Bonneau and RayBonneau.com. Ray Bonneau or persons posting on RayBonneau.com may hold either long or short positions in securities of various companies discussed in the blog. The commentary in this blog in no way constitutes a solicitation of business or investment advice. Readers should do their own homework and research when making investment decisions. The blog is intended solely for the entertainment of the reader, and the author.
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