Wednesday, March 24, 2010

The Federal Reserve Needs To Do NO Homework On Bubbles.

The Vice Chair of the Federal Reserve recently said that the Fed needs to do homework on how to combat bubbles.

Here is a somewhat modest proposal of a suggestion: Why don't we outlaw the very human nature that causes bubbles to form?

Bubbles will, in all likelihood, always form. Rather than people crying about how terrible they are, why don't we embrace them? I don't understand why it is that the Fed would be able to detect a bubble, even with doing a ton of homework. After all, they are presently CAUSING the bubble in US Treasuries; not to mention the fact that they were a major contributor to the real estate bubble.

Why not leave bubble detection to the private sector, where shrewd capital allocators like Michael Burry, can profit from the crash, then re-allocate close to the bottom and make a killing for himself/herself and their investors? While I certainly won't say that I will be able to figure out much about the next/present bubble, I salivate at the idea of the Dow loosing a couple thousand points- stuff just ain't as cheap as it used to be!

I can't believe that I just posted a link to something Michael Burry related; it seems as if the value investing blogosphere has been trumpeting his praises for the past few weeks... The fact I did doesn't seem very contrary of me, now does it? ;)

BTW, I just noticed that I have been doing few investing posts as of late. As this is the case, I won't mention that Dick Cheney just endorsed Trey Grayson, and how Trey Grayson is so desperate that he is spinning the endorsement as if it is actually a good thing. :)

Monday, March 22, 2010

Great News! My Health Insurance Will Be Illegal in 2018...

After doing a little bit of research, I have found that my health insurance coverage which I pay for individually, will be illegal in 2018; due to the fact that I must pay out of pocket for most all preventative care- something that the bill doesn't allow for.

This is pretty disheartening to me for a few reasons. I willingly chose the plan that I have. Since I am a pretty young guy, with little wrong with me, I figured that it would be smart for me to pay little monthly, put some extra money into various investments, and to have insurance for catastrophic stuff; say, if I am hiking at Red River Gorge, have a few too many Ale-8 Ones at Miguel's, fall off the Natural Bridge due to the sugar and caffeine hitting my system, and need to be in the hospital for a few months.

As a result of this, I pay around $50 bucks a month to get a 'provider discount' at my doctor (since Humana suggests to their clients go to said group of doctors), and pay $115 bucks whenever I decide to go to the doctor (a rare event). Humana doesn't pay a cent until I have $7,500 in expenses, then cover everything up to a pretty darned high limit. My insurance pays virtually nothing for my prescriptions when I need them, but this works for the best, since I have only had 2 filled in the past year (they were only $40 bucks at Wal-Mart).

So far, my insurance company has had super high margins on my account, and, I too, have saved money as I wouldn't have utilized the benefits of a better plan. Up until now, it has been a great economic exchange that we have both been happy with. Very occasionally, I like to get blood work done as part of what seems to be a bi-annual check up, just to make sure that my cholesterol, triglycerides, and various other blood counts don't get too out of whack; remember, every couple of years when this gets done, I pay for it with cash money.

Additionally, if you look up the term co-payment on Google, in the first link (Wikipedia), the 4th sentence talks of the reasons to use co-payments- to prevent moral hazards and keep over all costs down. I really wonder how getting rid of some forms of co-payments will help to cut costs.

Regardless, the government, is now implicitly telling me through this law that I have been getting screwed the whole time by my insurance company. Since the progressives are looking out for me, they won't let me pay for any preventative care 'out of pocket' anymore and I/the other people being underwritten must pay for it over time with our premiums!

This boggles my mind. President Obama once said that if we liked out health insurance, we could keep it... Well, guess what Barack? I didn't like my plan, I loved it; now, after you sign this ridiculous bill into law, the health insurance that I CHOSE TO HAVE will be illegal in 2018.

President Obama, you sir, are a liar, or, at best, are simply an abject failure when it comes to getting what is right, done.

Disclosure: Nil, other than being slightly more short our nation. ;)

EDIT: You wanna make a difference in this matter, and all others that are freedom related? Give some money to Rand Paul... I did, in honor of the money bomb that is taking place today. :)

Sunday, March 21, 2010

John Boehner

I resent all that helped passed this health care monstrosity.

To them, I say: "Congrats, you have helped in aiding the destruction of our nation as we know it."

Saturday, March 20, 2010

Intrade and the Health Care Vote.

The markets at Intrade are saying that there is an 87% chance of "Obamacare" health reform passing. One can assume that this is a reference to the vote that will most likely happen tomorrow.

As the House is getting ready to vote tomorrow, I starting to hear the horse's back starting to creak, and getting read to break from this additional straw of spending.

My brother has an interesting piece that puts this all in perspective, which I will post in the coming days... Look forward to it- it's freaking scary and much better than anything I could write.

Thursday, March 11, 2010

Ahhh, how times have changed for the Republicans...

Anyone out there remember the 'nuclear option' that they Republicans tried to use to get judges pushed through just a few years ago? Read about it here.

I remember seeing Bill Frist call to put a temporary end to the filibuster, on live TV. I was so angered that I informed my boss at the time that I was leaving work to re-register as an independent. While I generally supported the Bush nominees, I couldn't get past a check of power that is in our government; ironically, one that is in the very body of legislators to protect the small states from the big ones.

Don't worry, I kept my job and eventually re-registered as a Republican-which leaves my skin in a state of constant burning. ;)

Rand Paul money bomb commercial.

Yes, you too, can do your part to save America here. :)

Ahhh... The crazies on Seeking Alpha.

One of the things that I get a real kick out of is when I get awesome comments on stuff I write. Thus far, my favorite came not long after my brief summary of the JSDA/REED merger:
obviously the author neither understands beverage industry nor does he know anything about REED other then the recent private placement. REED has gone wall to wall in distribuition and within last year ramped up private label mfg. both REED an JSDA specialize in cane sugar as an ingredient. REED will be able to cut mfg cost of JSDA. combining the two reduces advertising cost, mfg, distribuition, placement, and gives brand recognition to both. Hey TURD have you ever drank VIRGIL, or REED or do you even know their distribuition. using that TURD word lets me know you are part of the just say NO group and business never succeded with the TEA PARTY STYLE. i expect 400,000 followers of JSDA on facebook will embrace REED. similar product lines and REED will expand the distribuition of all JSDA products not just cane sugar soda. debt and liquidity is what all small business face. in fact without it there is no growth, its cash flow and demand that both REED and JSDA have. PEPSI, COKE, AND DR PEPPER may have knocked JSDA off of shelf space in WALMART but this is a new day. REED has KROGER nations largest grocer among strong distribuition nationwide. reason BUD and MILLER have hid in fake micro=brewery beers is same reason REED will now take market share. its about a superior product, cult following, distribuition, and mfg REED gets it.
It is almost as if this guy didn't read what I wrote... Certainly, this knocks all of the hate I got when I called Jim Cramer today's Mr. Market right out of the top spot for people leaving me angry comments. Somewhat ironically, I was criticized for using the word 'turd', when I didn't actually say it; I was quoting Charlie Munger- the number 2 at Berkshire and one of the better capital allocators to have graced the earth.

But really, I am sure that I have said some things on here which one of my readers has found stupid and/or incredibly offensive. If this happens in the future, leave a comment with a bunch of expletives or something... Not only do they generally make my day, but I also find quite a bit of humor in them! :)

Wednesday, March 10, 2010

Girl Scout Cookies and Economic Moats.

When one thinks of economic moats, the Girl Scouts seldom come to mind. I think that their cookies should and here is why:

1) They utilize cute kids to sell their stuff: I have bought 6 boxes of cookies from my niece, not because I eat a ton of sweets (Girl Scout cookies probably make up 75% of my cookie purchases in a year), but because she is my niece and she knows that she can hit me up for stuff like that virtually anytime she wants; because, well, she is my niece...

Besides, other than maybe Gordon Gekko, who can say 'no' to a little girl that is trying to be a member of an organization that is pretty much universally respected?

2) They have created an artificial shortage: When can you buy Girl Scout cookies? That's right... once a year, and they sell about 200 million boxes a year doing so. That is a little under 1 box for every single adult in the country.

3) Everyone (even me) knows their favorite Girl Scout cookie. Generally, I have trouble naming my favorite, well, anything...

4) They are not much different that the stuff you could get elsewhere: I would be willing to bet that if you would do a blind taste test, putting Girl Scout cookies up against the equivalent Pepperidge Farm product, the Girl Scouts would loose.

5) Virtually no selling expenses: once produced and shipped to the local council, they are using what I would liken to free child labor to not only push, but also sell and personally deliver the product to consumers.

6) Advertising: Word of mouth, the best kind.

7) Names matter not: despite anger over calling some of the cookies 'Samoas' and the subsequent name change, sales are unblemished. Could other candies do that? Probably not.

Tuesday, March 9, 2010

Is barter counter cyclical?


For those of us that are fortunate enough to be long ITEX or (as much as I hate to say it) International Monetary Systems; this is an interesting article.

I have no idea how I came across this article, as I found it a while ago and have left it as an open tab for some while. To who ever posted the link, thank you... I have a feeling that it was either Farnam Street or Simoleon Sense, as they are generally the best sites to find good links at. :)

Disclosure: Long ITEX, even though I think that the government will try to shut them down someday... Always do your own research before doing anything. This is not investment advice.

Jones Soda and Reeds Inc to merge.

On of my favorite Charlie Munger quotes is 'When you mix raisins and turds, you still have turds.' This statement pretty much sums up my thoughts on the merger of Jones Soda (JSDA) and Reeds Inc. (REED). Since I have historically been interested in Jones Soda for a long time, this is a merger close to my heart; I generally don't like it when my heart is close to turds (as this merger seems to be).

Reeds, having successfully blown through well over $3 million in cash over the past 4 years (leaving them with literally no cash), even after having borrowed a fair amount, is now trading cash and stock for Jones. I surmise that the cash comes from a preferred share offering recently made (though it isn't enough to cover the ~$2.7 million); but the thing to remember is that JSDA, as of their last 10Q, had over $6 million in cash... Meaning that JSDA shareholders are essentially being paid with their own money and stock currency, which I see less value in than the original Jones shares held.

To juice up the deal for Reeds, they have written into the agreement that in the event that they can't pay out the cash, they can further dilute their common stock at a value of $1.70 per share, which is presently less than it is trading at!

One good thing for Jones is that they can get out of the deal via unsolicited bids; maybe Coke or Pepsi will get in on the action as a way to break into the premium beverage industry.

Certainly, there will be synergies that the 2 companies will have. For example, they will save a good deal just in SG&A; JSDA's head won't be part of the new company. There will most likely be further consolidation and the new company will have better bargaining power in acquiring materials, hiring, and shipping. Ironically, Jones failed miserably at selling their products in big chains such as Kroger and Wal-Mart, whereas Reeds is expanding it's relationship with Kroger.

I may be missing something here- in fact, I probably am. But let's face it, the directors of Jones have historically made piss poor capital allocation decisions as they presided over the company becoming virtually worthless- not raising a small country's GDP worth of cash when people couldn't get enough of their stock (at ~$30 bucks a share) probably wasn't the best idea...

Personally, I wouldn't buy Reeds stock pre-merger at virtually any price- it isn't that there isn't upside, it is just that I don't see a margin of safety in the company. I will no doubt, be impressed if Reeds is able to grow shareholder wealth in any meaningful amount in the near future.

Disclosure: None. Do your own research before doing anything.

Monday, March 8, 2010

My Trip To The The Value Investing Congress.

When considering making a trip to either California or New York to attend the Value Investing Congress, it is important to gauge the returns that you will get from this potential investment. As many of you know, I recently ventured to NYC for the previous Value Investing Congress. Simply put, I thought that the experience was great, full of useful information, and of course, was a great excuse to take a much undeserved vacation. As a side note, I would like to personally thank all the people at Seeking Alpha that were able to score me free admission to the event. Thanks a million!

Various memories of the congress still stick out to me: I met some new people, and also had good conversations with old acquaintances. David Einhorn's speech was great (as I am sure many of you have read) but the Q&A was even better. Bill Ackman espoused enough knowledge to make an intelligent lay man feel as simple as Glen Beck. Whitney Tilson highlighted how we are not out of the woods with housing, but that the markets may not tank as a result, while John Paulson was as informative as ever.

For this, I will merely do a brief write up on every presenter... While I will certainly downplay some of the good speakers, and give too much airtime to some of the lesser, I think that it will give an overall good synopsis of the event. In advance, I will say that the experience was great, and any writing that I do, will certainly not be able to pass on a shred of the info I actually heard at the congress. While a lot of it was typical value investing babble, you can get a ton out of it; provided that people are willing to think about things from different perspectives, there was a TON to take in!

Day 1:

David Bierenberg of the D3 Family Funds: Noted that the last year had been challenging, as 3 of his 9 positions traded below net cash, while others ended up trading at ~2 times cash flow. Fortunately, most of his investors have a lock up on their funds.

The talk mainly was about corporate governance, as the fund generally buys 10-15% of a company's common stock, doesn't take a board seat, and may or may not attempt to influence management. One of the interesting concepts that he mentioned was "Founderitis"; a disease that often effects founders of companies, generally, manifesting in the boardroom, when public companies used to be private. There are certain behaviors that are acceptable as a private firm, that are not when taking place in a public firm.

In addition, he pointed out that corporate boards "should be able to raise your kids", which, seemed to be a different spin on what Warren Buffett has talked of forever. He also warned of the dangers (much like Bogel) about blindly voting alongside proxy advisory firms.

Stock idea: Heartland Payment Systems.

Sean Dobson of Amherst Securities: Dobson seemed to me, to be in the top realm of data analysis (right behind T2). With what seemed to be a near infinite amount of data and slides, there was a ton of good information to take in in his presentation titled 'Fishing in a Poisoned Pond'. He threw out a ton of terrifying statistics: 8 million are not paying their mortgage; 2/3 of sub-prime loans ultimately failed; 80-90% of Alt-A mortgages are expected to default; presently, 17.5 % of loans are delinquent.

He also noted that homes are quite affordable, relative to incomes and interest rates.

David Einhorn of Greenlight Capital: Einhorn's presentation, was without a doubt, one of my favorites. In spite of this, I think that the statements he made were the most overblown and misconstrued of the conference. Within a few hours of is speech, news sources and blogs were proclaiming that he had made a 'huge' bet on gold and that he was betting against a falling dollar. Honestly, I wonder how the new sources could get it so wrong; while one could come to such a conclusion from simply reading/hearing his presentation, in the Q&A, he certainly downplayed the investment... and he had many chances to; most all of the questions addressed the issue.

As I recall, he said that it was a way that he was investing his CASH... as in, the stuff that sits idle, waiting to be deployed into ridiculously cheap securities. Personally, I would be shocked if 8% of Greenlight was in gold; sizable, but not a huge betting the farm sort of gamble either.

Aside from gold, noted several things, such as the fact that since 2001, the CPI isn't up 200%, as gold is. He also stated that he thought that gold was neither an inflationary or deflationary bet, but rather a bet on monetary policy being stupid. He talked about the current government interventions were simply creating an oligopoly in the 'to big to fail' banking industry.

My favorite question of the conference, which I think to Einhorn of guard, was asking if his gold holdings were in bullion and if it was located in the US- since the US government seized almost all of the country's gold in the 30s (for the record, his gold is in a vault in NYC).

My favorite quote of the whole time was this:

"Like teenagers with their parents away, financial institutions threw a wild party that eventually tore-up the neighborhood. With their charge arrested and put in jail to detoxify, the supervisors were faced with a decision: Do we let the party goers learn a tough lesson or do we bail them out? Different parents with different philosophies might come to different decisions on this point. As you know our regulators went the bail-out route. But then the question becomes, once you bail them out, what do you do to discipline the misbehavior? Our authorities have taken the response that kids will be kids. “What? You drank beer and then vodka. Are you kidding? Didn’t I teach you? Beer before liquor, never sicker, liquor before beer, in the clear! Now, get back out there and have a good time!”

Joel Greenblat
of Gotham Capital: Talking about his 'Magic Formula', he gave more detailed results and spoke of the new trading product that is being offered, based on the formula. He quipped that if he knew a formula that worked better than the magic formula, he wouldn't tell anyone about it this time!

In his speech, he went through all of the Magic Formula stocks, and satirically gave reasons why you shouldn't buy them (Weight Watchers is negative growth, Decker's makes Uggs, which are a fad, Game stop just opened a store down the street from his house- where no business has ever survived, etc.)

Julian Roberston
of Tiger Management: Many of you will know about Robertson's reputation as a great investor. To me, he littered his presentation (that was really just a Q&A) with humor, and reminded me of a stereo typical grandfatheresque figure passing along his life learned lessons. My favorite lesson (a baseball metaphor): When investing, you are paid by your batting average. When in baseball, you are only paid in the major leagues. as such is the case, when investing, you need to stay in the minors.

He believes that over time, alternative energy will hurt oil prices. In regards to China, he said that it had the makings of a bubble and that they wouldn't pull us out of the recession.

When asked about his 2 years off, he quipped that he went to New Zealand to write a novel, but became a house husband.

When questioned about gold, he admitted that he was an 'anti-gold bug', stating that none of it has every been used for anything since it was discovered. He joked that when a person buys gold, they really buy Peter Palmedo. He also said (which is something that I have noticed) that many gold bugs are certifiably crazy... and that like him, they are scared of inflation.

He seemed to really like Visa, Mastercard, and Intel.

Lloyd Khaner of Khaner Capital: Khaner gave a really interesting presentation on turnarounds. In this, he gave a list of points that you should look for, including: reduction of headcounts, SG&A, and operating expenses; restructuring of debt covenants, high and achievable goals; etc. even with some of the more restrictive guidelines that he gave, I am happy to say that Steak 'n Shake met every single one!

Stock idea: Starbucks; a great turnaround in progress.

Candace King Weir and Amelia F. Weir
of Paradigm Capital Management: With their fund up 60% for the year, they mentioned Steinmart, and how they go about talking to managements. I was surprised about the amount of conversations that they allude to having with management; sometimes, multiple times a quarter!

The also mentioned that their approach was completely bottom up, that they invest in 1 stock at a time, but are agnostic to the sector (they could end up owning several retailers).

Stock idea: Wet Seal

Paul Isaac of Cadogan Management: Did a presentation strictly on Waste Management.

One idea that he pointed out, was that they have a decent moat, as individual can not start a landfill in their garage. With this said, it seemed that he presented the idea with the attitude of 'well, I know that no one will agree with this, so, I am going to present it'. Quite frankly, I didn't see much of a margin of safety.

Day 2:

Jason Stock and William Waller of the M3 Funds: A young duo that analyze and scrutinize smaller banks. In describing their method of researching banks, I was happily surprised that they do preform scuttlebutt by actually going to the towns in which the banks operate. For example: if they see a ton of vacancies at a strip mall complex, they will do research and find out what bank loaned money to the developers; they will then ask management of competing banks what they think about the bank that loaned the developer money... sometimes, with interesting results.

Kian Ghazi of Hawkshaw Capital Management: A fund manager who believes you should know virtually everything about the companies that you own, he always asks himself "what could cause this stock to go down by 30% and make us NOT want to buy more?" Still true to Ben Graham, he likes to see tons of cash and monetizable assets.

Stock Idea: Core-Mark (CORE), a distributor to convenience stores and gas stations (think 7 Eleven types), which competes with a subsidiary of Berkshire Hathaway (McLane). The products are generally habit forming, such as beer, cigarettes, caffeine, and salty foods. Presently, while the company has low returns on capital, they are making strides to sell more fresh items, such as sandwiches and fruits, which come with significantly higher margins. Ghazi feels that the stock has 50%-70% upside.

Eric Sprott of Sprott Asset Management: Very bearish on the financial sector. He did a lot of talking about metals. For example, he doesn't invest in rare earth metals, because there is lack of a market. He noted that there are rumors of some gold bars containing tungsten- which to me, is a symptom that screams 'bubble'.

He was very bullish on natural gas, since there is little in the way of drilling and exploration and we are getting ready to exhaust a decent bit of production.

Alexander Roepers
of Atlantic Investment Management: Specializes in firms with a market cap of $1-$20 billion. He layed out his quantitative approach better than any other speaker... Things such as low inside ownership (for take over bids), avoiding interest that is more than 25% of c/f, avoiding commodity dependency. He won't go activist, but will certainly 'rattle the cage'. He did a presentation of J.M. Smucker. , in which he noted his thesis for why he bough in.

Whitney Tilson & Glenn Tongue of the T2 Partners: Tilson was able to scare the piss out of me; especially when they pointed out that when a person misses just 1 mortgage payment, that they have a 72% chance of eventually loosing the house and that ~10% of mortgages are delinquent... Furtermore, by their calculations, there will be a glut of inventory coming onto the housing market over the next 5 years, which are not reflected by many stats.

The glimmer of hope? The mortgages that are going to be defaulted on were not securitized like the now infamous sub-prime loans which had to be marked to market; with loans that are on the books, there is a very gradual write down of the impaired asset.. Therefore, the banks should be able to earn their way out of the problem, since money is basically free.

Stock Idea: Short home builders and go long Iridium. Of all the stock ideas, this one certainly was the most convincing to me; if I would have to buy part ownership in any firms mentioned in this article, going only on the info recieved at the conference- it would be Iridium.

Zeke Ashton of Centaur Capital Partners: Zeke did an interesting presentation that only focused on his stock ideas- mainly, MVC Capital stood out to me as the most intriguing presentation, especially since it is hard to come up with a value for. After all, it would be pretty hard to figure out the cash flows of ALL of their businesses; to correlate it to a giant, how would one get an accurate number for the cash flow of Justin Boots- owned by Berkshire Hathaway?

Stock Ideas: MVC Capital, Lab Corp America, Alleghany

Bill Ackman of Pershing Square: While I was quite familiar with Ackman's fight with Target (TGT), I had little other knowledge of him. I thought that they certainly saved the best for last, as his presentation was riddled with jokes and insight. The presentation was without a doubt the most casual of all the speakers and was as interesting as informative. Honestly, I felt kind of dumb after hearing him speak. :)

Stock idea: Corrections Corp, which he quipped 'With he SEC cracking down, is good hedge for your money management business... I shouldn't joke about that'.

Without a doubt, the VIC was a great experience that I would suggest to anyone that has the means to go; quite frankly, if you are managing a significant amount of money which can justify the purchase of a ticket (from a ROIC perspective), I suggest that you do so. Don't expect to get any ideas that are Paul Sonkin small, though (which are generally my favorites). :) I walked away with an entire legal pad full of notes that I will keep and reflect on for quite sometime. The VIC also does a good job of getting all of the presenters' presentations online (with user name a password) so that you can access them. Certainly, if investing is the sort of thing that gets you up in the morning, the VIC is a good way to spend your money.

Disclosure: I received free admission to the Congress via Seeking Alpha to do a write up on it. I own (and have owned) none of the securities mentioned in this article, other than Steak 'n Shake (SNS). This is not investment advice. Do your own research before doing anything related to this article.

Sunday, March 7, 2010

A Picture of Sardar Biglari Welcoming you to Steak 'n Shake.

Recently, it has come up in the news media that "Biglari, a supremely confident Warren Buffett disciple, hasn’t been shy about attaching his own name to the Steak n Shake chain. A photo and greeting from Biglari now welcome guests at each of Steak n Shake’s 486 locations in 21 states."

Frankly, this statement, when taken in the context of the article that does nothing but lambast all things Sardar Biglari, is very misleading... The below picture is worth a thousand words of retort; the article should have said "a photo of Sardar Biglari with numerous smiling Steak 'n Shake employees welcomes you to the restaurant chain." In addition, the text at the bottom of the photo talks about the long tradition of quality at Steak n' Shake and also lets you know that the people there care about you, the customer.

Personally, I like the fact that he is attaching himself to the chain in the way that he did in this picture. I think that it is important for people to know who they are doing business with, not only that, but I think that people like knowing who they are doing business with. I view this as a smart capital allocation decision and am happy to see my company's cash being spent in such a manner. Surely this $200 dollar per store capital expenditure will contribute to an additional $40 bucks in cash flow per year.

As was pointed out by the Manual of Ideas, the article written is on a subject that I know a great deal about; honestly, I wonder how a person with half of a brain could have gotten so many of 'the facts' dead wrong.

Disclosure: Long SNS. This is not investment advice. Do your own research before doing anything.

New Poll Date Show Rand Paul Up... BIG TIME.

In the most recent Survey USA poll, Rand Paul is leading Kentucky's Secretary of State Trey Grayson by an astounding 15 points. In fact, if 75% of all undecided voters went to the Grayson camp, Paul would still win the primary. As this Senate seat is probably the most safe of all Republican seats, the winner of the primary will most likely win the general election.

It is time for Grayson to pull out of the race and get ready to run for governor in 2011; I would actually vote for the guy if Gatewood Galbraith wasn't already running. As a side note, check out Gatewood's book- while not about investing it's great; it's about his dealings with loose women, drugs, guns, practicing law, running for office, and more drugs... there ain't a thing to not like. :)

Interestingly enough, the only demographic where Grayson leads Paul is among non-gun owning Republicans... But really, what kind of a republican doesn't own a gun, let alone 5? ;)

Friday, March 5, 2010

Boss Holdings Update.

In their latest proxy statement, Boss Holdings Inc. will have it's annual meeting (where the reverse and forward stock splits should be approved) on April 20th at 10AM. My expected time for the arbitrage play has gone down considerably.

My write up on said arbitrage is here.

Thursday, March 4, 2010

Citi's CEO admits that he can't handle his own company.

No joke, Vikram Pandit, the CEO of Citigroup, just said in testimony in the capital that he thinks there needs regulation to reduce risk... If this isn't him admitting that he can't run his own business, I don't know what is. Sure the argument can be made that he would say this 'because of all the other idiots out there', but I wouldn't buy it; Andy Beal didn't need a bailout simply because he wasn't a dumbass.