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
Positions Mentioned:
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
Positions Mentioned:
September 19, 2010

The Black Market


A few years back, on a trip to some Third World nation, I remember asking a successful businessman why more small businesses are not public. His response was sublime. “I keep two sets of books—one for the government and a real one for myself. I am not showing anyone the real books. If I have shareholders, what will I show them? I will never ... Read More
Categories: Comments On Events
Positions Mentioned:
September 14, 2010

Position Updates (September 14, 2010)


I spent the last week going over my positions and finding out what I’ve missed while on the road. Since I’ve gone over this exercise, I might as well share the results. You can see the full list at Positions Mentioned. The last position update was on June 23, 2010. AAG.v   Price At Mention   $0.56      Current Price $0.87     Change   +55.36% Since I first wrote about ... Read More
Categories: Investments
Positions Mentioned:
September 13, 2010

Mongolia Part IV (Ad Finem)


During nearly two weeks in Mongolia, I saw and learned a lot. Most of it was very much Mongolia focused. I did witness one thing that will forever change how I value a business. In the Western World, I have always thought that far too much was predicated on the notion of P/E multiples. Let’s face it, business is volatile. There are good and ... Read More
Categories: Travels
Positions Mentioned:
Scroll Up