| Paragon Shipping Income Statement Analysis for September 2009 Quarter Neil Carvin submits: Paragon Shipping, Inc., (NASDAQ: PRGN) earned $0.40 per share in the third quarter of 2009, down from $0.69 in the same quarter of last year. The steepness of the earnings-per-share decline was more due to the 64-percent increase in the weighted average number of diluted shares, after two equity offerings, than the 4.9-percent decrease in Net Income. This post reviews each row of the Income Statement for the quarter in the earnings announcement. We also consulted the separately issued Management's Discussion and Analysis of Financial Condition and Results. Complete Story » seekingalpha.com |
Rays of Hypocrisy Shine Through Buffett's Burlington Acquisition Vitaliy N. Katsenelson, CFA submits: I have tremendous respect for Mr. Buffett. But every word that comes out of his mouth should not be looked upon as prophecy, or the gospel truth. I get a feeling that Buffett has been canonized into a value investor saint – investors and the media worship the ground he walks on and the air he breathes. The media are unable to get any critical quotes from his investors, and nobody wants to be caught disagreeing with the Oracle of Omaha – after all he’s been right more often than wrong – and so we only get positive puff pieces. On the rare occasion when Berkshire Hathaway (BRK.A) stock declines more than the market, you see an article asserting that “Buffett has lost his magic touch,” but these articles are usually followed by stellar performance by Berkshire. Though Buffett deserves admiration – he is brilliant and likable and he has achieved incredible returns for his investors over the last half-century – he should not be canonized, and not everything he does or says is the ultimate truth.Most investors agree with Buffett’s criticism of Kraft’s (KFT) decision to buy a fairly valued (or overvalued) Cadbury at 22 times earnings (over the past 15 years, its average price-to-earnings ratio has been 21), using Kraft’s undervalued stock. Cadbury runs a global, noncyclical confectionary business that, if properly managed, should have a very high return on capital. Buffett, a shareholder of Kraft, was very public about his dismay – he said he felt poorer when Cadbury accepted Kraft’s increased offer.Complete Story » seekingalpha.com |
Trinity Industries Inc. Q1 2010 Earnings Call Transcript Trinity Industries Inc. (TRN)Q1 2010 Earnings CallApril 29, 2010; 11:30 am ETComplete Story » seekingalpha.com |
GM Peddling Cars to Investment Bankers Ockham Research submits: A good business man never lets an opportunity go to waste, at least that’s what GM’s CEO Ed Whitacre believes. As General Motors prepares to emerge from bankruptcy with what will likely be the second largest IPO in history, investment banks drooled over the potential for mega fees from placing shares. However, GM’s Whitacre is really making the banks earn his business, as the banks that are leading the offering were forced to reduce fees by a quarter in order to win the business. This is to be expected, as many of the banks competing for the business would surely drop their fees to court such a large IPO. However, according to Bloomberg, there is something else GM expects from the bankers that is a little less standard in such a situation, Banks were asked to discuss “ideas as to how we can use the IPO to reposition GM and its vehicles within the investment community including your firm’s willingness to reinvest any portion of any underwriting fees into the purchase of GM vehicles for your employees and/or company use.” – Bloomberg.com 7/14/2010Complete Story » seekingalpha.com |
PACCAR Q3 2010 Earnings Call Transcript PACCAR (PCAR)Q3 2010 Earnings CallOctober 26, 2010 12:00 pm ETComplete Story » seekingalpha.com |