Is there a good reason to have stop losses on such volatile stocks to begin with? (Not a rhetorical question)
Now everyone who had their shares stolen will have to buy in higher. Stop losses are killer sometimes.
Wow reminded me of the DNDN bounce from 22 to 13 back to 22.
So you don't think the lawsuit is valid at all? In my opinion, they stand to gain a bit from it.
They do have a deal with Verisign that was recently publicized.
Just because they don't have something out for consumption doesn't mean that they are not valuable. If you take that stance, might as well rule out all pharmas w/o any current commercial offerings.
investment is a funny thing. some people will only stick with companies with strong balance sheets, some will only buy penny stocks, you have all kinds in between. Like one of my coworkers, he'd only invest in risky borderline scammy .OB or pink sheets. I tried to talk him into GNVC when it was back down to ~$1.70, of course he didn't listen. I love undervalued stocks, turnaround stories, bottom fisher type of stocks, that's why I love under $5 stocks. I could probably do ok if I just put my money in BRK.A and forget about it for years, but that's just not my style.
One can bottomfish if their business makes sense. Nothing wrong with that.
ACF, HTZ, WFC, AXP, SHLD are an example of turnaround.
I look at the 52week low stocks on WSJ all the time. That's my favorite section in the entire newspaper!
ACF was on there for weeks if not months.
Probably? Understatement of the year.
I'm not quite sure why people continue to dump money into S&P 500 Index funds when they can just buy BRK.A, BRK.B, or FAIRX and outperform the market while sleeping. Makes zero sense.
Or DNDN is pulling up the biotechs. It may also be a runup in anticipation of the 184th data (which could be presented soon). I'm debating if I sell some now to rebuy later. The thing seems to move up and down like crazy... we'll see.
Nice, I never even heard of the FAIRX fund until now. Solid at a quick glance.
FAIRX is the best fund there is run by Bruce Berkowitz.
Search the forums for FAIRX and you'll see I've been posting about him and his fund for more than 2 years.
Here you go...
Search "FAIRX": http://forums.anandtech.com/search.php?searchid=151741
Search "Berkowitz": http://forums.anandtech.com/search.php?searchid=151744
nice, I am also doing some DD on FAIRX, looks like Berkowitz bought a lot of GGP unsecured debt awhile ago, are those debt belong to FAIRX or another fund owned by Berkowitz? This could be another way to play GGP.
I haven't done any DD lately, so much to research, so little time, and I will be on vacation next week...
Whatever it is, I am liking it a lot. Just hope it won't be like the last time when it went all 52week high and back to 1.50.
When I said"...is the best fund there is run by Bruce Berkowitz", I meant he runs the best fund out there. I didn't mean to say he runs multiple funds(he does, but FOCIX which was just started only 3 months ago is a pittance compared to FAIRX)
Those debts belong to FAIRX.
Berkowitz is very special in doing those kind of things.
Earlier this decade, he bought bonds in a company which led to him getting TONS of LUK stock at and below bookvalue(If you know the history of LUK, you'd know they rarely trade below 1.5-2x book) because LUK acquired them.
He bought ACF bonds and converted most to common. Both he and LUK own more than 50% of ACF and are members of the board.
He bought HTZ bonds and converted most to common when everyone was running away from the company's bonds and stock because they couldn't recieve funding.
He bought GGP bonds and is looking to convert them to $8/share in common.
Berkowitz so far has purchased over $500 million worth of General Growth Properties (GGWPQ) unsecured debt, ~$394 million worth of General Growth convertible bonds, a $110 million tranche loan, and $94 million worth of Rouse bonds. In all, General Growth position makes up over 5% of Fairholme's portfolio.
Fact: Berkowitz is the largest unsecured debt holder of GGP.
http://www.fairholmefunds.com
Their website looks boring(typical of Berkshire Hathaway and Leucadia) and the design/intro hasn't been updated in 4-5 years, but still has important information.
Yep this is what I gleaned doing some research on FAIRX.
What is the bear case against it? The fund is rather large now, any chance Berkowitz closes the fund to new investors in the near future?
I'm not sure what you mean by your 1st question. Are you talking about the fund(FAIRX) or GGP?
That's certainly a possibility.
Before, the minimum contribution was only $2,500. They raised it to $10,000 in December last year for new investors.
I completely support the move because it helps keep the fund's total expense ratio lower for all investors. Smaller accounts are more costly for fund firms than bigger ones.
In fact, I wouldn't mind if they increased it to $25,000.
Only 1% expense ratio for top tier performance? Sweet deal.
Most actively managed funds charge 2% expense and they perform much worse on average(85% of fund managers can't beat the S&P 500 Index or something like that).
Most hedge funds charge 2% expense and an extra 20% on profits and perform much worse even before their extra 20% profit tax is taken into account.
Whatever it is, I am liking it a lot. Just hope it won't be like the last time when it went all 52week high and back to 1.50.
What happens if a company gets delisted off of the stock market because it's been under $1.00 for 30days, is there a chance it will be relisted later? And what happens to the stocks held by shareholders, are they now worthless?
What a rollercoaster ride for VHC owners today lol , sucks if you set a stop loss limit.
hey big players, I need a little help here.
How the hell should I play CTIC? FDA approval of CTI's NDA is still a little while away, but the FDA just completed a drug manufacturer facility approval, something they had scheduled a while back.
The stock jumped quite a bit today, and I've been itching to get back into this stock after I dumped it following the previous major crash. I figure this stock is going to continue being an epic rollercoaster until the FDA decision, but determining the best entry and exit points with such a volatile stock is impossible with my little experience.
This has been one of my favorite stocks to follow because there is a ton of potential, and I want to jump in early but not if it's at a temporary peak.
I mean, it's good news this morning, but to me doesn't hint at all about the FDAs intentions, not when they previously voiced some serious concerns just a few weeks back.
How are you guys valuing RMBS? I'm wondering.
The company total asset is $555 mil. The market value is trading at $2 bil - according to Yahoo Finance.
The most Free Cash Flow it squeezes is $40 mil a year.
So I'm guessing the patent and royalties they are going to make from it is going to worth north of $2 billions? Or else, the company is worth $400-500 mils at best.
(numbers are rounded for argument sake.)
Interesting. I believe the investment thesis for RMBS, like you mentioned is the ramifications of winning lawsuits/settling/licensing their technology/patents. Right now their revenues are at 113Mil Annually. With them winning a few lawsuits, that allows them to increase their revs a lot more with royalties and such. Maybe even 3-5X (maybe more).
Azurik would definitely (understatement of the year) know more about RMBS's potential and forward valuation.
For what it is worth, consider QXM. It is a net net tradaing at about 1/3 of NCAV. It's Free cash flow history isn't bad for an NCAV play.
http://www.google.com/finance?client=ig&q=QXM
Cool I'll check it out. China plays scare me a bit due to not totally trusting their numbers all the time. I'll do some DD on it.