Regal Entertainment group owns the largest theatre network in USA, mainly under the Regal Cinemas and United Artists brand. I initiated this position due to the reputation of movies being a robust industry in a depression, and also because I had a price target of $15, which is a PE of 20 over its previous [...]
Entries Tagged as 'Investment articles'
RGC : Liquidation at small profit
July 1st, 2009 · No Comments
Tags: Investment articles
My new strategy and recent outperformance
June 21st, 2009 · No Comments
To the 5 people who are still reading this blog, I apologize for not writing any posts for the past 2-3 months. I was experimenting with several new strategies incorporating a technical analysis component in my stock analysis. I felt that, as an amateur investor, I could not compete with professional stock analysts, all of [...]
Tags: Investment articles
Strategy : Short-term channel trading within a value-oriented framework
March 20th, 2009 · 1 Comment
In recent months, I have adopted a strategy of channel trading. I pick an undervalued stock according to fundamental considerations to ensure capital preservation (strong balance sheet, valuable business franchise etc.), identify short term support and resistance levels, and then buy when the price is closer to the support level than to the resistance level. [...]
Tags: Investment articles
The failure of labor specialization
February 15th, 2009 · No Comments
Division of labor has played an large role in the economic achievements of mankind. The ability to specialize and accumulate knowledge in a narrow domain has allowed incredible efficiency gains that have lifted living standards for all of us. When I want to get a pair of shoes or a new shirt, I do not [...]
Tags: Investment articles
Does a plummeting share price affect underlying value? The lesson of Citigroup
November 23rd, 2008 · 2 Comments
Value investors take it for granted that a company’s stock price does not necessarily reflect or impact the underlying business. Of course, declining stock prices often reflect fundamental problems in the business, but in times of crisis, stocks may sink for no reason whatsoever, frequently overshooting even the most pessimistic economic scenario. While a declining [...]
Tags: Investment articles · Stock reports
Calendar effects and October crashes
November 4th, 2008 · No Comments
The finance literature is littered with examples of many calendar effects in the stock market; the following is a partial list :
The weekend effect : The mean return from buying stocks on Friday and selling them on Monday is larger than buying stocks on Monday and selling on Friday. This is especially unusual since the [...]
Tags: Investment articles
Turbulent times
October 11th, 2008 · No Comments
In the past month, I have increased my exposure to the stock market, primarily in the technology sector, only to see my positions decimated. Stock prices now seem completely divorced from fundamentals. Even companies with substantial cash reserves and well-positioned to ride out the economic storm are now trading at below cash value. To quote [...]
Tags: Investment articles
Are bulls naive?
August 20th, 2008 · No Comments
Having just written up a couple of my most recent stock purchases, I am suddenly struck by how naive some of my bullish commentary sounds. In every investment thesis, there is some risk, and it is always possible to find reasons why a stock can tank. In the current pessimistic climate, writing a negative article [...]
Tags: Investment articles
Can small investors beat market professionals?
August 17th, 2008 · 2 Comments
Recently, I have re-examining my investment style, and reading many investment books as part of the process. The book that has most influenced my thinking is Invest Like a Shark by James DePorre. DePorre believes most small investors are making a mistake when they use a long-term buy-and-hold strategy and buy mainly large-cap blue chip [...]
Tags: Investment articles
Thoughts on Even Buffett Isn’t Perfect
August 6th, 2008 · No Comments
I managed to snag a copy of Even Buffett Isn’t Perfect from the local library the past weekend. I’m only halfway through it, but it has set me thinking about quite a few issues. Basically the book is about some of the inconsistencies and flip-flops Buffett has made over the many years he has pontificated [...]
Tags: Book reviews · Investment articles

