June 2nd, 2008
On Friday, Rebecca Darst said options traders are looking at chips. What reason(s) did she cite?
Here’s the video. It seems to me like she mentions Infineon’s (IFX) guidance cut, a recent Barron’s article and TI’s (TXN - Annual Report) lukewarm share price. In other words, all of the above.
Infineon doesn’t show up on my screens and Texas Instruments ranks pretty neutrally. I personally think the semiconductor industry should do well, and own the Semiconductor HOLDRs (SMH) and Maxim Integrated Products (MXIM.PK) - though the latter position is a little stub spun out from the SMH when the company was delisted.
Disclosure: William Trent has a long position in SMH.
May 20th, 2008
According to Paul Forward of Stifel Nicolaus, how much coal does America have?
Late in this video, he discusses a 250 year supply.
May 16th, 2008
Donald Trump told CNBC he sold his Palm Beach house for $100 million. What literary reference did he make?
“I’m a little bit of a tale of two cities. I just sold a house in Palm Beach for a number of approximately $100 million,” Trump said. “I bought it a little while ago and sold it for a lot of money.”
May 15th, 2008
My latest column is up at RealMoney. It is part of an ongoing series on “wallflowers” - stocks that have little or no analyst coverage from Wall Street. In this case, it is Seacor Holdings (CKH).
Over the last 12 months, Seacor has generated about $325 million in free cash flow, which equates to a very juicy free cash flow yield of nearly 17%. This wasn’t just a fluke number, either. Over the last three years, free cash flow has averaged $295 million per year.
At 1.2 times book value, Seacor is trading well below the industry average (according to Zacks Research Wizard) of 2.7 times. On the basis of its return on equity, I estimate a sustainable growth rate in the high single digits. Adding in a potential valuation expansion to the industry average, total return could range from 20% to 30% per year, with the main variable being the estimated time for Seacor’s price/book to converge to the industry average.
Disclosure: At time of publication, William Trent has no financial position in the companies mentioned in this article.
Zacks Investment Research has provided Stock Market Beat with a complimentary trial subscription to Research Wizard.
May 14th, 2008
In the story “Homebrew Heads To Your Gas Tank,” what’s the “true cost” of the EFuel100 MicroFueler?
The true cost is actually around $5,000.
May 14th, 2008
In the slideshow, 10 Biggest Entrepreneurial Mistakes, what is the No. 5 (Five) error?
Dazed & Confused - No Rallying Point
May 14th, 2008
How much did super sports agent David Falk sell his agency, FAME, for in 1998?
Darren: You sold your agency, FAME, for $100 million in 1998 to SFX, but continued representing players.
May 13th, 2008
How did Larry Kudlow’s blog Bush Whiffs on the Dollar end?
“Truly, we need a return to King Dollar and an end to the U.S. peso. Senator John McCain, are you listening?”
May 13th, 2008
According to Rebecca Darst, what “slammed” the Pawn-and-Payday firms?
Fears are on the rise that state legislatures, alarmed by the short-term interest rates typically charged by these companies, may move to curtail the industry, Rebecca Darst of Interactive Brokers said on CNBC’s “Squawk Box.” Just this week Ohio made such a move.
“All the payday-loan companies, the companies that operate these sort of franchises in states around the country, they just got slammed yesterday, and I think the reason is that we’re suddenly alarmed by the sort of wham-bam legislation,” she said.
May 13th, 2008
On the MACD indicator, a reading above _____ is considered to represent positive momentum.
According to the video, it is 0.