matts
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Posts posted by matts
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what kind of paperwork has to be done? Those are some ridicilous figures. I mean an audit should be really simple right?
Monthly admin fees also look pretty ridicilous. Most of the time, all you have to do is look in your brokerage accounts and see what went in and out, and what the balance is now? That all seems little work, and a lot of money?
It's not all about the work. You are paying a premium for the trust implied by the audit and 3rd party administration. The bigger the name, the higher the premium even though the work is essentially the same.
Sure, I can pay my cousin Sal 30 bucks to do my audit, but what value is that for my investors?
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I agree with Jouni1. The buyer pays for an item to be delivered, so that becomes part of the seller's responsibility. Does it suck that the US only has 3 carriers? Sure, but what is your solution? If the seller was not responsible, how many sellers would claim that they shipped an item when they really didn't?
And I don't think that many big sellers will leave under the new rules, at least not the global ones. Ebay is very profitable for sellers that can get items wholesale. The Chinese and HK sellers make a fortune in aggregate. Will Jane from Wisconsin stop selling her homemade jewelry on ebay? Maybe, but the market will survive and even thrive. Ebay takes out a whole whack of middlemen, and that business model is working in many sectors of the economy.
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Irrespective of the management's rationale, diluted share outstanding reduction has to be good for the shareholders. It may not suggest that the shares are undervalued, but the portion of income for each share definitely goes up.
Has to be? Not so much when the shares are bought back above intrinsic value. You are then spending a dollar of company cash to buy something worth less than a dollar in value.
Thinking all buybacks are good is not much different from thinking all dividends are good.
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"It is impossible to know how much of the price change is due to activists' own trading or other factors."
Doesn't this say it all about the scientific integrity of these findings?
You would think a hedge fund would have to actually buy the stock before it files a 13D....
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One of the best rational takes I've read on the current situation:
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MGG is doing some roadshows in April if anyone is interested.
http://web.tmxmoney.com/article.php?newsid=66450010&qm_symbol=YAK
New York City
Monday March 31st at 5:30 PM at the TKP New York Conference Center in the East Village Room, 109 West 39th Street, New York City
For more information on TKP New York Conference Center, visit http://www.tkpny.com/
Los Angeles
Monday April 7th at 5:30 PM at the Sheraton Los Angeles Downtown in the California Room, 711 South Hope Street, Los Angeles
For more information on the Sheraton Los Angeles Downtown Hotel, visit
http://www.sheratonlosangelesdowntown.com/
Chicago
Thursday April 10th at 5:30 PM at the Crowne Plaza Magnificent Mile Hotel, 160 East Huron Street, Chicago
For more information on the Crowne Plaza Magnificent Mile Hotel, visit http://www.avenuehotelchicago.com
Toronto
Tuesday April 15th at 5:30 PM at the King Edward Hotel, 37 King Street East, Toronto
For more information on the King Edward Hotel, visit http://www.omnihotels.com/toronto
If you wish to attend one of the presentations, please email Christy LeCuyer at christy@mongoliagrowthgroup.com and note which presentation you will be attending.
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Where do you see wage inflation except is some niches where there are few folks? I see automation/internet removing costs lowering wages in sales jobs. So I see more jobs being eliminated or wage declining versus increasing. In my business we are seeing some price pressures and I think if you ask most folks that still is the case.
Packer
My theory is that wages are local markets and are facing competition from globalization. Why would anyone pay someone a high wage to someone when they can pay a lower wage to someone else to do the same job? Technological advances are only making working remotely and globally easier. The wage differential between developing and developed markets will continue to narrow over time.
I do not think I am saying anything insightful, but I feel developed markets will continue to face wage headwinds even after a recovery.
If it was that easy to replace jobs with cheaper personal offshore...most of us would un-employed by now!
Yes, but it is easier to work remotely now. And aside from the very top schools, you don't think the gap between american and global education is shrinking?
I'm sure people working Berkshire in the 40s thought they were irreplaceable too because they were just so skilled.
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How about a small amount of margin in your IB account? Lets say you have 200k$, and you borrow like 60k$ or something? Nothing sexy, but how bad does it have to be for you to be margin called?
Probably not the best idea in the current market though.
What would the rate be in a market correction? Is that 1.5 % fixed?
Margin interest rates are typically floating, but can be fixed. Interactive Brokers uses Fed Funds Effective (Overnight Rate) as the benchmark rate.
https://www.interactivebrokers.com/en/index.php?f=interest&p=schedule2
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P.S. This is probably the market top sign everyone is looking for :)
Definitely sounds like it.
And why pick AT&T?
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What the U.S. should do and Europe? I would highly recommend reading this commentary:
www.project-syndicate.org%2Fcommentary%2Fcharles-tannock-calls-for-iran-style-sanctions-against-russia-until-it-withdraws-its-forces-from-ukraine
Sorry if the link does not work but, you can Google it. Disappointed I upgraded my IOS.
Cardboard
If the West takes such drastic action what is stopping Russia from retaliating? Iran had nothing the world needed. What's stopping putin from turning off the gas in response? How does Europe replace 30% of their gas needs in the short term? over the next 2 years? how about over the next 6 months? How much do heating costs spike in Germany and France and what kind of pressure would that put on the politicians?
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Some people here talk probably like many did in the U.S. when Germany took over Austria, then invaded the Czech Republic. They continued the same talk when Germany invaded Poland, Belgium, France, etc. until they got attacked themselves on a small island very far from the mainland. Some probably still argued at that point that they should only take care of Japan and to let the European deal with their own issues.
The world simply does not work that way. The only reason why the Soviet Union did not invade Western Europe is because the U.S., Britain and France said put one foot in Western Germany and we are sending you to hell. Putin is from that era and mentality whether you like it or not. So you may have to deal with him in a fashion that you do not like. It is not much different than when your boy comes home crying because he is being bullied in school. Putin is now pushing to see how far he can go. Only force will stop him.
The U.S. is also rich and powerful and with that comes a certain amount of responsibility as to what goes on beyond its borders. There is also a strong economic incentive to spread its values around the world which is good for Coca-Cola, GE, McDonald's and many others. To think that the U.S. would be as well off by staying put at home and letting whomever doing as they please until they touch U.S. ground is beyond naive.
Cardboard
So what do you think the West should do with Putin right now, and how does that scenario play out over the next 5 years?
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We can step up the pace of preparation for exporting LNG to europe so they can really cut the Russians off at the knees if need be.
I'm sure energy independence will become the biggest priority in Europe, but significant LNG bandwidth is still years away. Until then, Putin has a strong hand which he is now playing.
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China wants no piece of this. Ya they are concerned because they border Russia. But isn't it LESS likely that the Russians cause any trouble with the Chinese while they are engaged in crimea/NATO?
Another 5 years and the Chinese military will not have much to fear from a Russian invasion (sans nuclear weapons of course). China will issue the usual boilerplate language that they have concerns over any violation of sovereignty to appease the global community, but it will have no teeth.
China knows the two biggest things they need in order to become a global power is time and their own internal stability. I don't think they want to be drawn into tension with Russia.
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if Russia declared a war . I wonder , doesn't this declaration of war against US , as we had garanteed Ukrainian sovereignty.I don't know
But I think they need to think outside the box a little. Can they get China involved. China has in the past been very vocal about sovereignty.
I think this event sends a loud and clear signal to iran and North Korea : no matter what get nukes, or nobody will treat you seriously
what specifically should USA do?
stuff "happens". I am pretty sure Russia was not crazy about USA unilaterally invading Iraq and installing a puppet regime. The history of our empire reveals these kind of activities are par for the course. this is why we don't have a lot of credibility on this issue. a paper tiger. miltary action is off the table. after all the Russian Bear is no Iraq.
I hope putin just bluffing, I think he wants to create tension in the region, sort of frozen conflict. So Russia can be a "peacemaker" in Ukraine
Russia has not declared war, and Ukraine is not a part of NATO.
What CAN the west do? That is the key question. I think the vast majority agrees that this is an aggressive move by the Russians. But it's the so what that matters. The west won't go to war over this. Unfortunately for the pro-EU Ukrainians, the west has made Poland the "Red Line", not Ukraine. My guess is that one of two things will happen:
1) Putin is using his control of Crimea to have leverage during the talks that will establish the new political reality in Ukraine but will then leave Crimea.
2) Crimea will end up just like South Ossetia. Part of Ukraine in legal terms only, but in all ways controlled by Russia. There is precedent for this with both Ossetia and Abkhazia.
I don't think the west would take military action to stop 2). Any potential economic sanctions will play a big factor in determining what happens next.
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The article has been updated.
Update: The SEC says it has an explanation. "Each of the transactions was individually reviewed and approved in advance by the Ethics office," said John Nester, spokesperson for the SEC. "Most of the sales were required by SEC policy. Staff had no choice. They were required to sell."
Nester explained that before staff can work on an issue that involves a company, they have to sell any holdings of stock in that firm. As a result, he said, there shouldn't be any surprise that a sale would precede the announcement of an enforcement action.
This makes sense to me, at least to a certain extent.
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I'm looking forward to his attempt at plagiarizing Buffett to justify this acquisition...
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Hi Randomep, This topic has been discussed extensively in and amongst other threads, BAC primarily.
I have bought a range of puts ( date and strike) against my BAC leaps to protect my capital gains without taking the actual gain. They are mostly catastrophe insurance, ie. low strike relative to the date bought. I also use fairly short time frames on the puts. The intent is for them to go to zero when I buy them.
I bought some AIg puts over the christmas season rather than taking gains at the end of the year to push it off for a year. I actually sold these at a small gain but that's okay. I converted some AIG leaps to common in the new year before they expired pushing off the tax man.
I trade within my RRSP. The problem there is that we cant hold options on US stocks so it only makes a little difference.
To avoid the tax man long term I have stopped contributing to my RRSP. As it is, with a 15% return over the next 20 years I will have nearly 3 million, which will become fully taxable income at that time. This is the result of the experiences of retirees who are paying alot of taxes. Granitepost on this board first pointed this out to me. RRSPs are a marketing ploy of the investment industry.
The TFSA is another matter. I have maxed contributions in this account. I just wish I could buy Leaps in it. But its purpose is as a savings vehicle, not a gambling tool.
I use leverage judiciously in my margin accounts. Normally less than 10% debt to debt + equity. The interest costs, such as they are, are tax deductible. I have a few stocks ready to dump to clear the leverage, if need be.
I am basically self taught at most of this stuff. I do my own taxes each year from the ground up, looking at sets of transactions. Its tedious but very valuable to see what worked and what didn't work.
al
I believe almost all investments in RRSP are also eligible for TFSA if it is set up at a broker. Not saying you should buy US leaps in a tfsa, but you can.
What do people think about the attractiveness of a RRSP if you are planning to retire in another country? my marginal tax rate right now is 40%+ and if I ever become non-resident I can withdraw my whole rrsp with a one time 25% tax. I know the 25% will also apply to any growth but it still seems like a good idea to me.
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Large Canadian Bank on the dealer side. Global prime brokerage/securities lending risk management.
I'm young so I don't have much relevant experience before that.
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Congrats Jeff. Let us know if you and Sitestar need capital to purchase some undevalued assets, I think there would be some folks here interested in participating.
Packer
I second that. I'm already a shareholder so maybe a rights offering? Although I'm not sure about the costs for such a small company.
Also, I've noticed the properties up for sale/rent (at http://sitestar.com/properties/) have not changed very much in several months so I hope you help with some more activity or explain to investors why it has been slow. I thought the plan was to flip them fairly quick.
matts
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Thanks for sharing. Very insightful.
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Why is Chapman making personal attacks at Leob? could someone please summarize the background, if any?
Chapman is pretty harsh in his dealings with management as well.
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I can't provide too much info as my firm has a business relationship with Orbis, but I can confirm they are smart operators and make great use of leverage.
The performance is public at www.orbis.com
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I also think everyone should do a bit of filtering on their own. Don't like it, don't click it. As was said, some may be also annoyed with the giant BAC thread ect. An ignore thread option sounds like a good idea.
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"It is unfortunate for Blackberry shareholders that bought at higher levels and I feel for them...but they got bailed out at $9...how pissed should shareholders be at the management of Blackberry...that is where people's anger should be placed."
They should be pissed at the board too and who was on the board since January 2012? Prem Watsa. He was hailed as a hero coming in and he voluntarily offered great praise for the new CEO. If he didn't like what he saw or the direction, then he should have resigned as protest much earlier and tried to salvage the value as he is now. What happened? Was that good for Fairfax shareholders for him to stay on the Blackberry's board for so long and say nothing?
So people may say whatever they want. IMO, he does bear some responsibility for where BBRY is at the moment. It is obvious to me that a ton of effort has been put towards the new phones and it has been a major flop. He had to be a supporter until he found out too late that this would not work.
Now, I am very happy that he is now putting the reputation of Fairfax at stake in this take-over bid: never dropped the price of a bid and always moved forward. I am still confused as to why the due diligence comment was placed with such emphasis in the take-over release. It is pretty unusual.
Cardboard
Cardboard,
let me ask you a question: have you ever managed a business of your own?
If you have, you know at least as well as me that most technical aspects are beyond the man at the helm (furthermore, Mr. Watsa hasn’t ever been at the helm of BBRY!). I manage my businesses finding good and reliable technicians, whose work I can barely evaluate and judge... It has always been this way, it has worked pretty well, and it will always be so.
Believe me: Mr. Watsa doesn’t know anything about new phones… And has never pretended otherwise…
He might have made a mistake judging BBRY’s management, but I am not sure... Imo, the error here is much easier and plainer to see: he was tempted to invest in technology, when technology is so hard to predict. Period.
Why did he stay on the board for so long and said nothing? Simply because he didn’t know what to say! I wouldn’t have known what to say, you wouldn’t have known either…
giofranchi
You don't have a reputation of being the Oracle of Canada, I think that is Cardboard's point. If Prem doesn't have better understanding into BBRY than you, then I don't want him doing this deal (no offense to you of course). We should at least try to consider the deal on it's own terms and merit, and not be so colored that it is Prem. If you change the name Prem to Matts in the media, this deal looks A LOT less prudent from a business/operational perspective, we all know Prem has the skills from a financial perspective. That's my point at least.
Question for those who manage a fund --(costs)
in General Discussion
Posted
What do you mean by account? The OP is about a fund which would have an account in its own name. Investors would have units of ownership in the Fund.
What you are talking about is a managed account. Yes IB can give someone visibility, but you will have real problems convincing anyone outside your family and friends to invest like that. No audit, no administration, just look through into their account. Again, that's not a fund.