August 15, 2019 was a rough day for General Electric's (GE) stock. Harry Markopolos, the guy who unraveled the Enron accounting fraud, released a 169-page report claiming that GE was a bigger fraud than Enron. The gist of the report was that GE was hiding a bunch of long-term care insurance liabilities and that if… Continue reading Will Legacy Liabilities Sink General Electric (GE)?
I know, I know: I apologize. That must be the most click-baity headline you've seen today. But stay with me because, with a little financial engineering, every blue-chip company out there that still has underfunded pension liabilities now has the opportunity of a generation. With a phone call to their favorite investment banker they can… Continue reading Now is the Time for Pension Liability Risk Transfer!
There's a not very funny joke among statisticians that with enough anecdotes you can create a data set. Alternatively, if you're a finance researcher you can take an anecdote, put together a data set, and see if the anecdote's conclusion matches. Dr. Herbert Wartheim Earlier this year there was a profile piece in Forbes called… Continue reading Patent Alpha: Anecdote & Data
Now is as good as time as any to explain the difference between unaudited and audited personal financial statements that get submitted to a bank, how a banker looks at personal financial statements, and what crosses the line between normal and criminal. Personal Financial Statements A personal financial statement that an individual submits to a… Continue reading Submitting Financial Statements to a Bank: an Explainer
Take a look at the rise and fall of Dean Foods and how an investor or trader can use various tools to stay on the right side of the trends.
I'm sure I'm not the only one that has watched CVS's stock price get chopped in half after peaking in 2014 at $112 a share. On an annualized basis that loss is 15.3 percent. All while the US market kept powering higher. Unfortunately for CVS, it has been at the nexus of two trends that… Continue reading CVS: Turnaround or Value Trap?
Quick: name a publicly traded stock that has gone up 8,500+ percent over the past 5 years. Do you immediately start thinking of Silicon Valley unicorns and IPOs that have occurred sometime since 2014? I know that's the first thing I did. It turns out that China Ding Yi Feng Holdings Ltd., which is an investment… Continue reading China Ding Yi Feng Holdings Ltd.
New Age Beverages Corp (NBEV) is a distributor of ready-to-drink teas, coffees, coconut waters, and energy drinks. Brand names under their current umbrella include: XingTea XingEnergy Coco-Libre Aspen Pure I'll forgive you if you haven't heard of any of them. NBEV assembled this motley collection by acquiring other struggling beverage companies. Why were they struggling?… Continue reading New Age Beverages Corp (NBEV)
I am a long-time fan of Tesla. I am a long-time fan of Elon Musk's vision and what he has already accomplished. I love their cars (not their SUV), I love their solar roofs, and I love their home energy storage solution. I am always rooting for Musk to succeed in his vision of a… Continue reading Tesla: hope is not a strategy
Why you shouldn't skim over the risk factors section in a 10K, what the changes can portend, and an example of how it can play out.