Browsing All Posts published on »November, 2010«

How to Solve the Eurozone Government Debt Crisis

November 30, 2010


The bulk of the financial troubles in the Eurozone – at least those which have become apparent thus far – have occurred in the so-called “peripheral” states, ie. small countries that are in huge financial difficulties when viewed individually (ie. Greece, Ireland, Portugal), but are small enough to be rescued by their larger brethren in […]

Fisking Polly Toynbee on the Irish “Bail-out”

November 24, 2010


Today The Guardian newspaper, published a Polly Toynbee column entitled “Ireland shouldn’t get a penny until it gives up its tax piracy“.  The article is riddled to such an extent with conjecture, half-truths and fantasy economics that I thought it deserved a full-on Fisking, so here goes: The bailout of Ireland and its banks is so odd that […]

Why Only Full-blown Political Union Can Save the Euro

November 18, 2010


The recent financial problems plaguing peripheral members of the Eurozone such as Greece, Ireland and Portugal, are seen by some as the unfortunate consequences of the banking crisis and consequent recession, by some as just desserts for profligate government tax-and-spend policies over the previous decade, and by others as unfair punishment being meted-out by the […]

The Case for Archer Daniels Midland

November 17, 2010


A recent post applied the quantitative principals used by Benjamin Graham to the US in order to seek-out large-capitalisation companies that may present attractive investment opportunities.  One of the companies that came-up was Archer Daniels Midland (“ADM”), a food-processing business that earned revenue and net income of $61.6bn and $1.9bn in FY10 and a market-capitalisation […]

Which Corporate Governance Factors Impact Shareholder Returns?

November 15, 2010


Lucian Bebchuk, Alma Cohen and Allen Ferrell of the John M. Olin Center for Law, Economics and Business at Harvard University published a study in 2004 entitled What Matters in Corporate Governance? They studied twenty-four different governance provisions and tested for correlations with firm value and stockholder returns.  They found that only six corporate governance […]

Applying Michael Porter’s Five Forces to Equity Investing

November 4, 2010


While some people see equity investing as a technical exercise that involves interpreting price charts and others see it as a purely quantitative process that involves estimating the value of the company based upon its share price near-term earnings potential compared to competitors, I take the view that making successful long-term investments necessitates an understanding […]

Ben Graham’s North American Large-Cap Value Stock Picks

November 1, 2010


Based on the Benjamin Graham large-cap value quantitative stock screen that we introduced in a previous post, here is a list of companies trading on U.S. and Canadian stock exchanges that meet our investment criteria: Allegheny Energy Inc (AYE) is a diversified utility holding company. The Company is an integrated energy business that owns and […]