Patmo

What better resource than the handbook itself: https://www.cpacanada.ca/en/business-and-accounting-resources/cpa-canada-handbook-the-standards-and-guidance-collection/cpa-canada-handbook-accounting I highly recommend the digital version but if you MUST have it in print: https://www.cpastore.ca/product/cpa-canada-handbook-accounting-non-member-print/815

Thanks for sharing this data. To use this data in a business context. This company( team) has a lot of assets that aren't earning a return. A activist would salivate to take control of this company and increase the earning power of the business. So this company (team) is a cigar butt. Time is its enemy. Except the assets that aren't earning have a hard catalyst (the draft) when they will convert into valuable players. I think a better analogy is a company that had done a bunch of capital spending on something (new plant, real estate development whatever) that hasn't started earning yet. Yeah, complete opposite of a cigar butt...

Wake me up in 6-8 months, then we'll make the big bucks baby

You guys are on drugs

That's easier to follow. You are talking about revenue matching, and you are correct, the cost of advertizing needs to happen in the same period as the revenue was generated. But to repeat myself the legal period is a year, not quarter or month. I'm sure there's a level of materiality that's going to affect this since 10Q's are required to be published and people would flip their shit if Amazon reported all 0's on their quarterly FS, to take an extreme example. But for practical purposes, your buddy is in the clear legally speaking so long as he recognizes the expense in the same year. His employers might have a different viewpoint, though. I'm not one to blame a guy for trying to maximize his outcome given the ruleset given to him, but play with fire and you'll get burned sooner or later. Again, not an expert. https://accountingexplained.com/financial/principles/matching

Not an expert on the topic but the overarching accounting principles don't change. It's probably just going to be booked to another asset account than cash at some kind of reasonably estimated value. As far as timing goes, the expense needs to be recorded in the same period as the revenue it was used to generate. From a financial reporting standpoint the period is the year, not quarter. Otherwise it's up to the company to have the internal controls in place to prevent your friend from gaming his bonuses. Somebody else can correct me if I'm wrong, as I'm making statements as if they were facts but I'm not necessarily 100% certain. I must say your question is really hard to decipher. I think in part because it feels like you are mixing up terminology. For example, I think (correct me if I'm wrong) that when you refer to accruing an expense, you mean delaying the booking of the transaction altogether, rather than recognizing the expense as a liability. You also mention expensing the receipt of cash, and I think in some parts you say goods/services are received when you may mean they are delivered. Altogether it's really confusing.

People levering up to the gills for consumption, a classic...

That's what all the fish recreational players say and do ;). Constantly trying big bluffs and big calls chasing that epic moment of being right, quickly forgetting all the times it didn't work. Or the people who have the social grace to dick around when the occasion warrants it. Are you that guy who tryhards against kids and taunts them and crap?

Bridge hype. I come from a blue collar small town type of family and my grandfather's brother brought the game along when he moved back after retiring from a senior job at a large Canadian bank. I remember my dad, uncle, granddad and granddad's brother playing til 5 am every other weekend. Good times. Their wives and kids got in on it too, and the uncle's wife was probably the best player of them all, by my estimation. The grandpa brother taught everyone the basics of how to bid based off some popular system, and the others quickly became beasts. My dad, mom, brother and I still get together from time to time to play some games, have a drink and enjoy some time together. Our bidding is pretty much nonsense, but we make some alright plays and have tons of fun.

Are you concerned about a repricing of the takeover? No

GNW

I have a friend who took on everyone at 1 for 1, he was betting on Mac... So you could bet a grand on Mayweather with him, turn around and bet 400 or something on McGregor and win either way. Pretty good "arb opportunity" but I didnt see the guy in a while and it would have been scummy to actively seek him out just to take advantage of his faith in the irish dude. And yes, 25% return on investment in Mayweather is +EV for sure. Nowhere near as much as Holly Holmes vs Rondha Rousey, but a good spot nonetheless. Im keeping it small ball

A special situation that I like right now (altough mr. Greenblatt may not approve since it's merger arbitrage) is GNW. At the time of announcement of the sale of its business, the market valued its operations at $5.50 per share (and on an upward trend). But the company announced a sale at $5.25 - below the market value at the time. The share price cratered pretty hard to create a synthetic spread. The company's operations improved drastically in the past couple quarters, since the original announcement, which has also not been reflected in the share price. So you flip a coin where you earn a 60% spread if the merger ends up closing, or about as much if it doesn't and the market value rerates back to what it was (possibly more, given the improvement in results). Nobody wants to touch it because it's a big huge insurance black box with tons of moving parts, and they are selling to a Chinese company to boot. Thing is, the market already told you what it is willing pay for the business without a merger in place, and that is your downside... You can be a stock market genius was by far my favorite book on investing, and I wish he'd put out more books of his battle stories.

I've only ever invested in what everybody here considers crappy businesses and whatnot, netnets, unprofitable, liquidations, distressed m&a and similar types of things. In my experience you will do way better by not getting married to an idea. Sell it as soon as some catalyst plays out, or share price pops a bit unexpectedly. You'll get many, many winners that would've otherwise been stagnant (or losers), and do way better than hanging onto everything for that one idea that might become a monster bagger. With those investments, you have to play small ball for best results. At least it's my experience. So those backtest results don't surprise me so much...

I'm going to guess that it's probably kind of like poker or chess, where there is just a lower volume of participants that are female but the ability level distribution is about the same as men. There is probably a woman who is a world top 20 level total shark we've never heard of. There is probably not many more, just because there are a ton less females in the game and that's how probabilities go... Think Jennifer Harman or Judit Polgar, to keep with the microcosm comparisons

Don't apologize man, that stuff is great, thanks for posting.

Hi thelads, great thread, thanks for that. I don't have much in the way of questions, but I am curious about what was ultimately the outcome of the GFC for you. It appears you suffered for a while for having a measured view (for lack of better wording) and being a black sheep of sorts. What happened once it turned out you were right, and do you feel it was worth it? Also, what are you up to nowadays?

I think he means the thesis itself is obscure rather than company. Baupost stuff can be pretty out there, and its hard to justify cloning if you only dive in because someone else did, without even understanding why they did, let alone figuring out whether you agree...

Reading your posts is so weird. It's like you are bipolar and it manifests itself in the form of a troll...

In my humble opinion, value investing is peobably best done as a hobby - you get to keep it a fun part of your life, AND you enjoy the numerous benefits that come from limitless flexibility, including added alpha. Value investing is in its purest form when you answer to no one but yourself. It might not be for everybody, but for me its good that my career is in something that I like BUT not love. I feel if I did something I truly loved for a living, I would burn myself out within 3 years tops from putting too much energy into what I am doing, and other areas of life would suffer too much, ultimately leaving me less happy than I should be.

Do you have a short (1 para) investment case for EBN.V? No I'm actually long. I'm aware of the historical short thesis but I don't agree. I actually like the stock very much. I haven't been shorting much lately but I would only short a large cap - regardless of your views shorting a microcap is really risky. I think he meant short in the literal sense - aka 1 paragraph instead of say a 10 page pitch of your long position.

Florida Man strikes again, this time taking on Wall Street. Who will stop him? I think this guy watched too much James Bond for his own good...

There are a few all in on margin stories that are actually real that popped out of there. I remember a kid (like, a teenager. 18-20) going for broke on twitter weeklies, I think he went from a 90k balance to owing 200k overnight, something super stupid like that. Maybe someone has this saved?

Same thing for me, with the notable exception of my parents. I know how bad they are with their money, so I made a deal with them that I would add on $100 for every $1000 they shove in their investment savings account with the caveats that they don't have the right to touch any of it until retirement (working on honor system) and I manage it for them. Doesnt stop them from running up credit/debt to buy junk in true blue collar fashion, but that would happen either way, so hopefully the egg I am growing for them will soften their landing a bit.

I dont want to talk about specific % because if I had a bad year, I would be hiding under a rock, so its not exactly fair. But I did have a very good year, thanks in large part to coal investments and matetially affected by a donut in $ESI. Luckily I was heavily weighted in coal companies, which juiced up my year pretty hard.