Originally, I thought that Chesapeake may have been using its midstream deals to inflate its profits. I was mistaken. Chesapeake’s midstream vehicle (now named Access Midstream Partners) was structured in a very one-sided deal that heavily favored Chesapeake.
I don’t think that many people give credit to Aubrey McClendon for this deal.
I closed my position at $1.74-$1.9. I think that Selwyn’s current valuation is reasonable given that:
The stock closed at $2.12 yesterday.I would say that this trade worked out fine. If you had bought at $8 and sold at $1.74, you would have made a low-risk 9.25% return after the $7 dividend (all figures split-adjusted).
Today, Avid issued a press release titled: Avid Announces Appointment of Deloitte & Touche as New Audit Firm. Some key points in the press release and the 8-K are:
From the perspective of Avid’s high-end professional customers, all of this is highly unfortunate. The well-being of these customers will be affected if Avid is no longer updating the software and issuing new versions of it. They want to know that Avid is financially sound because their livelihood depends on Avid. Avid should come out and put any speculation about its financial well-being to rest. It should be louder when it says that the “Company’s cash balance on December 31, 2013 was approximately $48 million and it had no debt or draw on the available line of credit with Wells Fargo”. It should explain to its customers why a delisting would not in any way affect its commitment to updating its software. It should file its financial statements as soon as possible. I don’t understand management’s lack of urgency and why it still hasn’t filed financials (it’s been almost a year).
A reader of this blog asked me why I think that Hebei is the dumb money. Let me answer that by explaining Alderon’s paid stock promotion.
Nowadays when I look at a company I ask myself:
This post attempts to answer question #2.
(This is not an actionable idea.)
Libertor Medical (LBMH) is a direct-to-consumer medical products supplier with a $224M market cap.
The investor relations page of Liberator’s website shows that Wall Street Resources (WSR) is Liberator’s IR firm for non-institutional investors. WSR is very unusual for an “investor relations” firm. The WSR website boasts:
Since inception on March 13, 2009 our Trading Alerts have resulted in a 109% average annualized return. This means $100,000 invested on 3/13/2009 would have grown to $1,477,162 on 9/30/2013.
Golly, I am sure that WSR is doing a wonderful job as an “investor relations” firm and that those associated with WSR are compounding money at 109% and are on their way to becoming millionaires.
My portfolio was largely:
I lagged the S&P 500 index but still had a profitable year.
Chinese Internet users face restrictions as to the websites that they can and cannot visit as China censors the Internet. It makes sense for Chinese companies to get an ICP number/license to ensure that its customers can easily visit its website without having to circumvent the ‘Great Firewall of China’.
When performing due diligence on Chinese stocks, I want to see that its website has an ICP number/license. Chinese websites will typically display the number at the very bottom of its webpages. Remember to check the Chinese version of a site as the English version may not show the ICP number.
CNIT is a very curious company. On September 4, 2013 it issued a press release titled “China Information Technology, Inc. Entered Into Exclusive Cooperation Arrangements with Biznest Internet &Software Co.” (see the 6-K filing). One might be led to believe that Biznest Internet & Software is an independent company.
However, the domain registrations involved with Biznest show chinacnit.com email addresses.
Glenn Chan's Random Notes on Investing 