SEB : An intriguing conglomerate

September 8, 2008

Seaboard Corporation (SEB) is a conglomerate with diverse businesses, including pork production and processing in the US, commodity trading in Bermuda, flour milling operations in 14 countries, a shipping division based in Miami, a newly started biodiesel plant based in Oklahoma, a sugar refining factory in Argentina, a jalapeno pepper plant in Honduras, and two […]

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ZINC updated rationale

September 7, 2008

I re-established my position in ZINC on Friday, at a cost of $7.62 per share. I had previously written about this company, and had in fact been stopped out of a position in this stock. However, I still feel that the valuation of this stock is very compelling, and decided to take the plunge during […]

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INTC and DELL updated rationales

September 6, 2008

The tech sector took a big tumble this past week, touched off by poor quarterly earnings from Dell. This was an irrational price movement, since Dell’s poor profits was caused by its aggressive price cutting in order to gain market share, and does not reflect on the tech sector in general. Yet, I looked on […]

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TX liquidation

September 4, 2008

I liquidated Ternium yesterday, at $29.92, for a gain of 5%. This was a steel maker I bought more than a year ago; it first caught my eye when Monish Pabrai bought it, and then I dug deeper and liked what I saw. I once had gains of up to 70% on this position, but […]

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SMG liquidation

September 2, 2008

Took advantage of the early morning rally to liquidate another of my technical plays. Scotts Miracle-Gro took a hit recently when it was revealed that one of its employees failed to file required documents with the EPA, and as a result the company had to mount an expensive recall of one of its fertilizers. At […]

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Book review : George Soros – The New Paradigm for Financial Markets (Part 1)

September 2, 2008

I finally finished reading George Soros : The New Paradigm for Financial Markets over the weekend, and I enjoyed it tremendously. The book is divided into two parts. The first part is about Soros’ philosophy and how it applies to the finance sector, and the second is about Soros’ views about the future of the […]

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ZINC liquidation

August 27, 2008

I liquidated ZINC today at $6.99, less than a week after I bought it for $7.90, for an excruciating 12% loss. I bought this position because of its compelling valuation, despite deteriorating technical indicators. This is what I deserve for disregarding the old adage about not catching a falling knife. Still, I had to follow […]

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WMT liquidation

August 27, 2008

I liquidated WMT today at $59.08, for a gain of 25%. When I bought this position about a year ago, I felt that its overseas operations, which make up more than 20% of revenue now, was being under-valued, and that a potential recession could boost its domestic market share. Also, Joel Greenblatt’s huge position in […]

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MEOH liquidation

August 27, 2008

I took advantage of the market upswing today to liquidate a few positions that I feel are near their fair value. First up on the chopping block is Methanex, which supplies 20% of the world’s methanol, used mainly in the chemical industry. I first bought MEOH on August 2007, and my investment thesis was that […]

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DOW rationale

August 20, 2008

Dow Chemical requires no introduction. Buffett financed Dow’s acquisition of Rohm and Haas with a convertible bond yielding 8.5% and convertible at a share price of $41. There is some debate about whether Dow overpaid for its new acquisition, but the consensus is that the company has a better product mix and market share after […]

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