[On Stock Blogs, or, When to Look A Gift Horse in the Mouth]

I should have included in my initial post that the free float of the stock in question at a $0.18 per share price was something like $450,000. I think that's important in the context of thinking about this situation.

 

To be clear though, I'm not at all averse to people writing on the internet about illiquid stocks. I do it too! Even more, I'll probably be posting a short writeup on an illiquid stock on this board in the near future. What I am averse to is people claiming to do one thing which, on closer inspection, appears quite different than their claims.

 

Seems like you haven't read much of Dan's blog as he specifically says that he does little of research into specific names and instead fills out his portfolio with a wide net of situations he thinks are attractive in totallity.  Sounds like you uncovered an interesting tidbit regarding addresses but chose to gripe about it here instead of informing his readers and him.

 

I think bloggers create more value when they introduce their readers to names they haven't heard of before than when they offer a new perspective on a known name.  Then I can at least start tracking them even if the valuation isn't compelling to me at the time.

[A strange thought - could subzero interest rates be deleveraging?]

There are many financial models out there that no longer make sense. What is the cost of future pension liabilities if one discounts by negative rates? Is it infinite? What is the value of the equity of companies legally bound to meet pension fund shortfalls.

 

Not infinite, just higher than the non-discounted value.

[A strange thought - could subzero interest rates be deleveraging?]

So from your model of how credit should vary with interest rates, you'd argue that a planned, gradual expansion of interest rates should result in credit expansion as "buyers" of credit seek to lock in temporarily low rates? Trying to think more about this model...

 

Seems that's what happens in US residential real estate whenever increases in US mortgage rates hit the popular press.  Refi volume seems to be triggered by the fall in rates but fear of rates going up drives potential buyers to pull the purchase trigger now vs risk being priced out later.