How Many Companies Have Been “The Largest”?
Apple is the 11th company to become the largest by market capitalization: > click for larger graphic > Source: Confronting a Law Of Limits JAMES B. STEWART Published: February 24, 2012 http://www.nytimes.com/2012/02/25/business/apple-confronts-the-law-of-large-numbers-common-sense.html
Thinking About The Insurance Industry
David J. Merkel is a CFA, FSA. His forthcoming equity asset management shop is tentatively called Aleph Investments. From 2008-2010, he was the Chief Economist and Director of Research of Finacorp Securities.where he researched a wide variety of fixed income and equity securities, and trading strategies. Until 2007, he was a senior investment analyst at...
Yelp Going Public; Billions to Flow to Reviewers
No, not really. I am as much of a Yelp fan as I am a Facebook fan — which is to say, not much at all. As a writer, I find the write-for-free-we’re-going-public approach of Yelp/Huff Po/Seeking Alpha utterly reprehensible. As a gourmand — and a fat bastard — I prefer the Zagat model. There...
The Big Apple (AAPL)
> Apple is disproportionately impacting indices and earnings data, skewing the picture of what is actually occurring. WSJ: “While most U.S. companies have struggled to meet earnings expectations, the Cupertino, Calif.-based maker of iPads and iPhones has surpassed even the most bullish of expectations, reporting $13.1 billion in profits during the fiscal 2012 first quarter...
Want To Buy a Cheap Ferrari?
Japanese 4th Q GDP declined by -0.6% Q/Q or -2.3% on an annualised basis (-3.1% on a Q/Q basis in nominal terms), much more than the decline of just -1.3% expected – net exports reduced GDP by a massive -2.6%. Growth was impacted by floods in Thailand (supply chain issues) and by weaker Global demand....
What Is Facebook Really Worth?
> My Washington Post Sunday Business column is out. This morning, we look at how overvalued the $100 billion dollar Facebook IPO is. The print version had the full headline What’s Facebook worth? Much less than advertised — in the online edition, it was Less than meets the eye at Facebook. Its based on my...
Who’s a Daily Facebook User? Anyone who clicks “Like”
I have been arguing that $100B is rather rich for Facebook. Perusing the S1, and discussing this with Bloomberg’s Dave Wilson has further confirmed this. Why? It has to do with what they consider a daily or monthly “user.” Indeed, this is extremely significant, because the excitement about Facebook’s reach and user base is driving...
Breaking Down Google’s 2011 Revenue
Via Venturebeat, we see this massive Google revenue review: > click for ginormous version
222 Years Of Long-Term Interest Rates
I love these giant long term charts. This one covers more than two centuries. It looks at long term US interest rates — the 30 year bond where available: > Click to enlarge: Source: What Drives The Bond Market? Chicago CFA Handout by Bianco Research LLC January 18, 2011
Recapturing the losses of the crisis
Deferred tax assets are a favourite of FT Alphaville’s. Some banks made such awful losses during the crisis they opted to store the losses on balance sheets for a sunny day...
Microsoft, Value Traps and the Paradigm Shift
Over the past year, I watched as analyst after analyst upgraded old Mister Softee. First the value guys, the the dividend buyers, next the GARP crew. It got added to lots of “conviction lists.” The company is cheap, they are a cash cow, it has a great dividend, they are a turnaround story, blah blah...
Not Even Corp Mgmt Believe Their Own Equity Return Assumptions
> Last month, I presented to the National Association of State Treasurers. The room had all 50 State Treasurers, lots of Deputy and Asst Treasurers, and staff. I was realistic about how credit crises unwind over long periods of time. The prior panel had the major ratings agency reps, and they had discussed Pension Return...
