Ross Stores: A Cheap Seller of Cheap Goods

December 23, 2009
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A great deal of value investing is the process of elimination. Warren Buffett, when asked how he finds undervalued stocks, simply replied “Start with the A’s.” But in most markets only a small fraction of securities count as underpriced on an absolute basis, so value investing requires wading through an endless sea of crap in […]


Not Yet (Rentech Inc.)

December 10, 2009

The trouble with getting in on the ground floor of a new technology is that you never know how tall the building is going to be. Too many investors confuse technological brilliance with competitiveness, and a typical example of that is Rentech Inc. On the whole I’ve never been too excited about technology for its […]


Quiksilver has Heavy Debt-al Poisoning

December 3, 2009

Since I last proposed Callon Petroleum bonds, and following my success with the Bon-Ton junk bonds, I’ve been considering focusing more attention on this part of the market. Junk bonds, of course, offer massive yields, higher than nearly all dividend-paying stocks and certainly higher than normal bonds; however, defaults are a constant worry and the […]