This is a company I have not looked at for a very long time. My interest was raised by a post on Expecting Value. The price to book value of 0.5 and reasonable PE (5× pre-exceptional earnings) it looks like a bargain, and sales of assets paying off its debt, but with some worries about low returns and constant downward revaluations of fixed assets. Continue reading
Shares
Shares (mostly UK), stock-picking and strategies.
The death of equity growth
Future returns on investments in shares will come less from growth in the underlying businesses and more from income. This means that ratings should be lower, and, in particular, we should expect higher yields. Continue reading
The Huffington Post and AOL
The Huffington Post may not be a bad buy at the price AOL is paying, but that does not mean that AOL is right to buy it. Continue reading
Demand Media IPO
I usually comment only on British companies (as investments, that is), but I also like to keep an eye on tech and internet companies, and on anything that illustrates a point. Demand Media falls in to both categories. Continue reading
Blog split
I have effectively split this blog into two. I will stop posting on investment and finance related topics here, and instead post on my new blog on my Moneyterms site. Continue reading
Wogen not irrationally priced
Richard Beddard appears to be willing to agree with me that most active investors will under-perform. We still disagree about how investors’ chances of out-performing are. Richard has focused on a particular company , Wogen, as an example of irrational underpricing. Naturally, it is now essential that I poke a few holes in his bullish analysis. Continue reading
The end of academic publishing
It has been clear to many analysts (including myself) for years that publishers of academic journals were facing the slow death of their business. Despite the view of publishers and the more optimistic analysts that peer reviews journals were irreplaceable, the evidence continues to emerge for a slow, but certain, decline. Continue reading
Will equity returns stay high?
The fascinating information on the drivers of returns on equities between the fifties and the nineties dug up by Richard Beddard, has a worrying aspect. Much of the gain came from one-off changes, so returns may not be as good in the future. Continue reading
Emerging markets, inflation and currency risk
A post at Interactive Investor Blog on the nominal good performance of Zimbabwe’s stock exchange, is a useful reminder of the importance of real returns. This works both ways, and is why equity investors should not worry too much about currency risk. Continue reading
Can Woolworths recover?
I have never liked Woolworths, with its weak brand, unfocused retail format, and uncertain wholesale business. Now, at a time when things could not look worse, I am changing my mind. Continue reading