Technical Analysis for the Value Investor

Technical Analysis for the Value Investor

I like to think of myself as open-minded, I try to not to let my pre-existing biases get in the way of learning new things and new ideas. But I also like to think of myself as a skeptic – unless someone can show evidence or proof that an idea is correct, I’ll have a hard time accepting it.

So when it comes to Technical Analysis you can see why I am of two conflicting minds. Like most value investors, I have a tendency to dismiss TA and just focus on valuation, but after attending some friendly get togethers with other investors in London I discovered there are people out there that have been using TA to make money for decades – maybe there is something to this TA after all?read more

When cash isn’t really cash – $BDL

When cash isn’t really cash – $BDL

I recently ran one of my stock screens in the US to try and find some overlooked companies and I came across one company, Flanigan’s Enterprises ($BDL) which runs a chain of restaurants. It appeared cheap on an EV/EBITDA basis, but on further investigation wasn’t appealing. I wanted to go over it because it’s a great example on how investors can get caught out relying on such multiples without doing further research. The problem is: when is a company’s cash really free cash and not an essential business asset?read more

Where to invest?

Where to invest?

If you regularly search for undervalued companies then it probably hasn’t escaped your notice that the US and UK markets are trading at much higher valuations than they were a few years ago. That makes it harder to find bargains – but not impossible. But rather than try harder, why not start looking at cheaper markets? Here are 30 international markets and their valuations.read more

Half year portfolio report

Half year portfolio report

It’s that time of year again, I review my portfolio performance every 6 months as a compromise between short term volatility and waiting too long between reviews. The first half of 2014 has been a bit of a roller coaster for my portfolio, driven mainly by swings in the price of my biggest holding Craven House Capital. The rest of the portfolio has been much smoother, seeing nice steady gains.read more

The Blog Experiment (part 2)

The Blog Experiment (part 2)

In the Blog Experiment article I went through the 2012 results of a portfolio that follows the buys and sells of my favorite bloggers. Here are the final results up to 30th June 2014.read more

Portfolio buys & sells

Portfolio buys & sells

There have been a lot of changes to my portfolio in the last week. Here they are along with my reasoning behind them.read more

The Blog Experiment

The Blog Experiment

I’ve always wondered whether I’m wasting my time when researching companies and if instead I should just blindly follow the recommendations of other bloggers I like. I decided to put the theory to the test in what I call the Blog Experiment, where I track the buys/sells of select blogs since 2012. Here are the preliminary results.read more

Blog experiment and links

Blog experiment and links

I follow quite a few blogs, it’s a great way to get ideas for investments without doing much work. I don’t usually follow bloggers into investments, it’s rare for me to be convinced of a thesis and all too often I find myself unable to get over some fundamental issue I have with the investment. But in the last couple of weeks I’ve seen an unusual number of ideas that I really liked. Firstly I thought I’d share my favorites with you.

I then started thinking, I follow a lot of blogs where the authors have impressive track records and I trust their judgement even if I don’t invest in everything they do. I wondered how I would perform if I skipped due diligence and just made investments in their recommended stocks, spread out over a few blogs to minimize the risk. So I thought I’d do a blog experiment.read more

Higher One Holdings ($ONE)

Higher One Holdings ($ONE)

One of Warren Buffett’s most successful investments was in American Express, just after the ‘Salad oil scandal’ hit. A company had been faking inventory to receive loans secured against it, and American Express was one of the casualties when the scam was uncovered. The stock plunged 50% and allowed Buffett to secure a strong growing business at a cheap price. Higher One (NASDAQ:ONE) is a financial services company offering debit card accounts and electronic payment facilities targeted at HE institutions and students. It is being hit with its own set of scandals which leaves the stock trading at a forward P/E ratio of just 7 despite returns on equity of 15% (which have historically been much higher at ~30%).read more

The dangers of retail

The dangers of retail

Asset prices throughout the western world, from property to shares, are at all time highs and show no signs of slowing. Quantitative easing and low interest rates, rather than encouraging new investment and entrepreneurship are simply fuelling price increases in existing assets. Now is the time to be fearful in my opinion, however that doesn’t stop me trying to find great investments even if it is that much harder at the moment.

I recently ran a stock screen of US companies to try and find some interesting prospects. The results were very interesting so I wanted to share them with you, and highlight some possible value traps I noticed going through the list, particularly retailers, along with some stories of my experiences investing in them.read more

Disclaimer: This website contains information for general information purposes only and should not be taken as financial advice. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.

© Copyright 2013-2014 InvestingSidekick.com the Value Investing Blog. All Rights Reserved.

Disclaimer | Copyright Notice | Terms and Conditions | Privacy Policy | Contact Us