So it was reported that the company has retained Lazard to pursue a sale for $2 billion or more – which would be about $16 a share or more. With the stock more than doubling in a month, and up from its 52-week low of $1.63, Guru understands why there would be lots of profit-taking here but holds out hope for the “or more” part of that report. Based on his comments, I’d assign a 10% chance to some unpleasant surprise; 40% to a sale around $16; 50% to a sale at a better price. No harm selling half so that from then on you’re playing with “the house’s money.” But if these are the true odds (as no one can ever know), they would argue for hanging on to at least half.
I had lunch with Joel Greenblatt, whose four Formula Investing mutual funds I have recommended since their recent inception – FVVAX, FNSAX, FNVAX, and FNAAX. (Because they are not particularly tax efficient, they’re best suited for tax-deferred retirement accounts.) In addition to the case I make for them in the new edition of my investment guide, I learned something else: Joel has a talented team working full time to compile the underlying data his computer then crunches. He does this because, when examining the data he had been purchasing from a third party (and that other value-weighted index funds purchase), he found that his team could do it better, giving his funds yet another edge.
Everyone’s reading Jeremy Grantham’s latest quarterly letter, which he summarizes, “The world is using up its natural resources at an alarming rate, and this has caused a permanent shift in their value. We all need to adjust our behavior to this new environment. It would help if we did it quickly.” That is actually just the “summary of the summary.” Given Jeremy’s brilliance and track record, it’s well worth the click (and free registration).
Quote of the Day
The subjects of every state ought to contribute towards the support of the government, as nearly as possible, in proportion to their respective abilities; that is, in proportion to the revenue which they respectively enjoy under the protection of the state.~Adam Smith, The Wealth Of Nations
Request email delivery
- Feb 15:
NYC. UK. Canada.
- Feb 14:
If Republican Officials Go To Prison . . .
- Feb 13:
The National Butterfly Center Is Taking A Stand
- Feb 12:
Home-Schooled For Christ. And Pence.
- Feb 11:
Russian TV Thanks The GOP (And Don’t Miss Bill Maher)
- Feb 9:
The Perfect Virginia Solution
- Feb 8:
The Case For A Better Wealth Tax
- Feb 7:
200 Times More Interest On Your Money . . .
- Feb 6:
Listen To A Structural Forensicist
- Feb 5:
Tom Brady’s Secret For Your Parents
- Feb 15: