Are bulls naive?

August 20, 2008

Having just written up a couple of my most recent stock purchases, I am suddenly struck by how naive some of my bullish commentary sounds. In every investment thesis, there is some risk, and it is always possible to find reasons why a stock can tank. In the current pessimistic climate, writing a negative article […]

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HIMX rationale

August 20, 2008

Himax is a Taiwanese company which make semiconductor components that go into an LCD display, including display drivers, timing controllers, and power management ICs. It has a 20% market share in display drivers, and is the industry leader in this niche. Its stock has been dropping in recent months due to worries about the drop-off […]

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ZINC Rationale

August 19, 2008

Horsehead Corporation is a major producer of zinc in the US, using as raw material EAF dust from steel mini-mills. EAF dust is a hazardous byproduct of steel refining, and environmental regulations in the US mandate that EAF dust be either recycled or carefully dumped in a sealed landfill. Horsehead gets paid to take EAF […]

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Can small investors beat market professionals?

August 17, 2008

Recently, I have re-examining my investment style, and reading many investment books as part of the process. The book that has most influenced my thinking is Invest Like a Shark by James DePorre. DePorre believes most small investors are making a mistake when they use a long-term buy-and-hold strategy and buy mainly large-cap blue chip […]

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Technology stocks and the China factor

August 10, 2008

Recently, the technology component of my portfolio has reached 15-20%, invested in companies with dominant market shares and minimal debt (DELL, INTC, NVDA and CYMI). The entire tech sector has been in slump in recent months due to a combination of the saturation of the desktop market in the US, and the flop of Windows […]

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Thoughts on Even Buffett Isn’t Perfect

August 6, 2008

I managed to snag a copy of Even Buffett Isn’t Perfect from the local library the past weekend. I’m only halfway through it, but it has set me thinking about quite a few issues. Basically the book is about some of the inconsistencies and flip-flops Buffett has made over the many years he has pontificated […]

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CYMI : A bright future

August 5, 2008

Cymer is the leading company in the semiconductor photolithography laser industry, with the technological lead and a market share of close to 50%. Its light sources are installed in more than 3250 fab factories worldwide. Cymer sells light sources to ASML, Canon and Nikon, who incorporate the light sources into their wafer steppers and scanners, […]

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VPHM : Lev acquisition appraisal

July 29, 2008

Viropharma recently acquired Lev Pharmaceuticals for $443 million ($2.75 per Lev share), primarily for its orphan drug Cinryze, which is used to treat HAE (hereditary angioedema). There are additional payouts of $0.50 per share if Cinryze gets approved by the FDA, and another $0.50 per share if total sales of Cinryze reaches $600 million within […]

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YUM : Opportunity in an over-reaction

July 20, 2008

Recently, I took advantage of an over-reaction in one of my favorite stocks to buy into a great company. Yum! Brands is the second largest fast food restaurant operator in the US, after MCD, with brands such as KFC, Taco Bell, Pizza Hut, Long John Silver’s, and A&W. In recent months, its stock price has […]

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NVDA : Long-term prospects and valuation

July 19, 2008

Despite having execution problems and ferocious competition (detailed in my last article), NVDA, I still think that NVDA will still be at least moderately profitable in the long-term, and the 30% drop in its stock price following one bad quarter is an over-reaction. NVDA has several factors in its favor. NVDA is unlikely to lose […]

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