Browsing All Posts published on »January, 2011«

How Investors Chronicle Fails Its Readers with a Vodafone Sell Recommendation

January 30, 2011

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On 18th January Investors Chronicle – a 150 year-old investment journal owned by the Financial Times – made the following trade recommendation on Vodafone, the multinational mobile telecommunications operator: Vodafone is aiming to push through its yearly highs but may struggle along the way, says Marcus Bullus at www.mbcapital.co.uk. With the shares already stretched on […]

Prudent Portfolio Diversification

January 28, 2011

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Economists and businessmen are often known to say “there is no such thing as a free lunch”; however, there is one exception to this rule: portfolio diversification.  By spreading his wealth across a number of assets an investor is able to reduce portfolio risk at no cost and with no loss of expected portfolio return. […]

Shaftesbury plc: Great assets, but over-valued?

January 25, 2011

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Shaftesbury plc (SHB) is a real estate investment trust which owns freeholds on more than 500 buildings of prime London property, including much of Chinatown, the Carnaby Street and Seven Dials shopping “villages”, property in the Covent Garden Opera Quarter, St Martin’s Courtyard and on Berwick Street in Soho. These areas form key sections of […]

Common Errors In Company Valuation

January 20, 2011

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The following is a list of common corporate valuation and investment errors identified by Pablo Fernandez (University of Navarra – IESE Business School) in a paper entitled “80 Common Errors in Company Valuation“. 1. Errors in the discount rate calculation and concerning the riskiness of the company A. Wrong risk -free rate used for the […]

My Equity Investing Philosophy: Application to the Nielsen N.V. IPO

January 15, 2011

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Nielsen NV is currently planning to float on the New York Stock Exchange in an initial public offering.  They describe themselves as: “A leading global information and measurement company that provides clients with a comprehensiveunderstanding of consumers and consumer behaviour. We deliver critical media and marketing information, analytics and industry expertise about what consumers watch […]

My Equity Investing Philosophy

January 14, 2011

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The following five factors (in no particular order), are the key criteria on which I consider potential investments for my equity portfolio: 1. High and stable cash flow generation. I want to invest in companies that are free cash flow positive (calculated as cash from operations less normalised capital expenditures), usually where the free cash […]

How Domino’s Pizza Inc Will Deliver Big Profits to Investors

January 11, 2011

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International pizza take-away & delivery franchise Domino’s Pizza Inc is my latest equity investment, and this post explains my investment case and the key risks I have identified.  Comments on this article would be very much appreciated. Domino’s Pizza Inc (“DPZ”) has four income streams: (1) 455 company-owned and operated stores in the United States […]