October 13, 2010

Back To Mongolia


Investing is about indentifying trends before others do and capitalizing upon them. You don’t need to catch the bottom or the turn. You want to find a trend already in motion and latch on with everything you have. You need a trend that can go on for years and most importantly, you need to be early. The thing about trends is that they always ... Read More
Categories: General
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October 12, 2010

All GROWn Up


Three months ago, I bought shares of US Global Investors (GROW: Nasdaq). At the time, the shares were trading for little more than adjusted book value and about twelve times run rate earnings. If you striped out the adjusted book, the shares traded for a low single digit multiple on earnings. Clearly this was a cheap valuation. Furthermore, the company pays a two cent ... Read More
Categories: Investments
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October 9, 2010

Insiders


There are lots of ways to look for interesting stock ideas. I have found that insider buying is one of the best indicators of future stock performance. It operates under a very simple principle. Insiders know more about their business than you do. When they think it’s a good time to buy, it usually is. In fact, it is so simple; I’m surprised that ... Read More
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October 1, 2010

Mining Exploration–Here Come The Big Boys


Most analysts are too stupid to actually analyze financials; therefore mining stocks are usually valued on a multiple of current cash flow. Two decades ago, mining companies had an epiphany. Exploration costs money. If you explore, it reduces cash flow and hence your valuation. Rather than spend your own money, it’s better to overpay for junior miners who have found something as share dilution ... Read More
Categories: General
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September 23, 2010

Hidden Value (Advertising Expense)


The equity markets are surprisingly efficient. This is because most people are quite capable of looking at price earnings multiples and finding the ‘cheap’ stocks. Of course, some businesses are better than others. The better businesses normally trade at higher multiples and the worse ones trade at lower multiples. Amazingly, the market is quite capable of sorting this process out. With the addition of ... Read More
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