Sunday, March 27, 2011

Great Hoops, Buffett Gives Investment Advice, Watching Even More Video On Line, Longer Too, and the Battle for Online Poker in Nevada.

Well, it was a great weekend of college basketball as Butler vs Florida, Kentucky and Carolina, and Arizona vs Connecticut were all great games- hope everyone enjoyed them.

It should be an interesting week as the markets are recovering from the kitchen sink- nuclear issues in Japan, Mideast craziness (it seems like it never ends- the problem is the cure may be worse than the disease in Egypt, certainly), price of oil, commodity pressure, a tapped out consumer (wonder about that one). Anyway, here are some interesting stories which took place over the weekend.

Seems like Warren has some investment thoughts to consider:

http://www.bloomberg.com/news/2011-03-25/buffett-says-avoid-long-term-bonds-tied-to-eroding-dollar-value.html

People are watching even more video on line, just slightly, but a lot longer:

http://www.nytimes.com/2011/03/28/business/media/28drill.html?_r=1&ref=business

Finally, the battle in Nevada over regulating on line poker gets even fiercer- just wonder how it plays out:

http://www.lvrj.com/business/who-has-big-stack-in-online-poker-118731549.html

Finally, the last week of the quarter always brings some interesting surprises, hopefully all good. Have a great week everyone.



As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.

Yale Bock, CFA
President, Y H & C Investments

Wednesday, March 23, 2011

Companies Must Have A Digital Strategy, Bank of America Disappoints Investors (as always), Nuclear Heroes in Japan, and Las Vegas Home Prices:

I hope everyone is having a great week. Listened to a shareholder meeting today and my feeling about today's business environment, especially for consumer based companies, is without a comprehensive digital strategy which can be implemented in a variety of channels, an enterprise is destined to struggle for growth. Not to state the obvious, but anyone who believes smartphones, and tablets and companies like Twitter, Facebook, LinkedIn, Google, YouTube, etc are not going to influence consumer behavior in a more profound way as time goes on are kidding themselves. The number of people who are connected, and a business can have access to, or communicate with, through the internet and digital methods is just so overwhelming and the velocity of communication is so quick, billions if dollars and market share in so many markets depends on how well a company can integrate their digital strategies into day to day operations and execute their plans. Yes, Twitter may not be a 10 billion dollar revenue company, but the affect it has on people and perceptions make it incredibly powerfu. Facebook is value at 50-65 billion dollars, which from an operational standpoint is excessive, but considering there are 500 million people using the platform, well, there is a ton of value there, maybe not 50 billion worth, but you can be sure it is a whole lot- here is Bill Miller from Legg Mason talking about Facebook on CNBC:

Investing in the Next Big Thing

In what seems like the 100th time in a row, Bank of America lets investors down. Just my opinion, but they might have set a record for the worst decade for a company ever. Here you go: http://finance.yahoo.com/news/In-blow-for-BofA-Fed-rejects-apf-2538718906.html?x=0&sec=topStories&pos=7&asset=&ccode=

An uplifting story about real heroes, the boys in Japan trying to prevent a real nuclear disaster: http://www.bloomberg.com/news/2011-03-24/nuclear-warriors-recuperate-on-japanese-vessel-in-fight-to-avert-meltdown.html

The hits just keep on coming with Las Vegas housing prices- check back in a few years as things don't like they will change much (let me know if you think I am wrong!): http://www.lvrj.com/business/las-vegas-home-prices-down-5-2-percent-from-last-year-118443994.html

Please share your opinion on any companies you think have a great digitial strategy, and execution. Be well.



As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.

Yale Bock, CFA
President, Y H & C Investments

Sunday, March 20, 2011

ATT & T Mobile Wed, Blurring Lines of Web and TV, Tech Wants Lower Taxes, NY Times Pay Model Flexible, and Investing Lessons in Hoops-

Well, I hope everyone had a nice weekend. Great college basketball helped people endure the news about Libya, and the ongoing situation in Japan. I must say, I think the workers and engineers who are laboring to solve the issue at those nuclear facilities deserve all the salaries of the NBA, NFL, and MLB players combined. Those people are real heroes. ATT and T-Mobile combine in the US, and judging from customer responses, many are disappointed- http://online.wsj.com/article/SB10001424052748704433904576212810008230654.html?mod=WSJ_hp_LEFTTopStories

Entertainment on the net and tv continue to merge as the lines get even blurrier:http://online.wsj.com/article/SB10001424052748703292304576212372568499988.html?mod=WSJ_hp_LEFTWhatsNewsCollection

What a shock, execs want lower corporate taxes, this time the tech guys- understandable, and if they don't get them, well-http://www.bloomberg.com/news/2011-03-18/technology-companies-lobby-u-s-lawmakers-for-lower-corporate-taxe-rates.html

Let me know what you think- should corporations pay lower corporate taxes to help US competitiveness regarding tax rates with other countries?

The stodgy NY Times adopts a flexible pay model for the internet version:http://www.nytimes.com/2011/03/21/business/media/21times.html?pagewanted=2&_r=1&ref=business

Finallly, in watching the Butler-Pittsburgh NCAA game (well played), and the North Carolina-Washington game (also pretty well played), it struck me how similar hoops and investing are very similar. In baskeball, teams which are smart and don't make mistakes, yet are opportunistic when they can be, typically win and win big. When you make dumb mistakes, you lose. Butler played well and had one stupid mistake, and Pittsburgh made an even dumber mistake and cost them the game. With investing, avoiding dumb mistakes regarding capital allocation usually helps returns as you minimize major losses. Oh yes, with the time tested caveat that past performance is not indicative of future results- imagine that. Ok, hope everyone has a great week.

As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.

Yale Bock, CFA
President, Y H & C Investments

Monday, March 14, 2011

Serious Stuff in Japan, 48$ And You Can Meet Buffett, Nasdaq Bids for NYSE, and Facebook Takes on Groupon

Well I hope everyone had a good weekend because the start of the week looks like this ones going to be a doozy, and not in a good way. A look at Asia on Monday sees the Nikkei down 11%, and the futures for the US Markets are uuuuuugly, with serious red dotting the landscape-like Dow down 250, NDAQ down 50- you get the drift. The situation in Japan is not good, with the loss of life probably over 50K, no power, food, or gas for 1.5 million people, and to put the cherry on top, the nuclear reactors looking like they are going to blow- lovely. Here is a little more from Bloomberg:

http://www.bloomberg.com/news/2011-03-15/debt-tsunami-fights-radiation-for-bigger-risk-commentary-by-william-pesek.html

Here is Buffett being Buffett, how else could you meet the world's greatest investor, probably ever? Pay 48 bucks for a auto policy- not kidding:

http://www.bloomberg.com/news/2011-03-14/berkshire-dangles-48-auto-policies-to-meet-buffett-in-india.html

The Nasdaq is going to give it a whirl- making a bid for the NYSE:

http://online.wsj.com/article/SB10001424052748704893604576200832791522972.html?mod=WSJ_hp_LEFTWhatsNewsCollection

Finally, the big boys are starting to heat up- FB vs Groupon- interesting tussle in the coupon wars-

http://online.wsj.com/article/SB10001424052748704893604576200780657056862.html?mod=WSJ_hp_LEFTWhatsNewsCollection

Let's hope and prey things get better in Japan, especially for families who are missing loved ones.

As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.

Yale Bock, CFA
President, Y H & C Investments

Friday, March 11, 2011

John Malone and Land, Zynga Insight, Vegas Gaming Revenues, and Schizo’s on Wall Street-

Thursday was an interesting day as the Republicans in Wisconsin finally did the deed, which the Governor will sign soon. The failure of the turnip truck politicians in Congress that still have not come up with an energy plan, so the public and the financial markets have to endure the current situation, an 11 Trillion dollar economy importing 40-50% of our energy sources from people who hate democracy and free market principles. What will it take for our “elected representatives (I use the world very loosely)” to wake up- start with passing the Pickens plan on natural gas, even though Boone is talking his book.

Anyway, John Malone becomes the nations largest private land owner- the smart stay smart, and get smarter, and in this case, and others, get wealthier. Very dignified man.

http://blogs.forbes.com/monteburke/2011/03/10/john-malone-overtakes-ted-turner-as-largest-individual-landowner-in-the-u-s/

Next, some insight into the world of Zynga, the Facebook game with millions of users:

http://professional.wsj.com/article/TPST00000020110220e72k000ia.html?mod=wsjpro_searchfree_manualcollection

Gaming revenues in Nevada are down a bit in January- is Vegas recovering? Really? I would say yes, but I am biased.

http://www.lvrj.com/business/nevada-gaming-revenue-down-in-january-117733658.html

And another about a Nevada assembly official moving to pass I-gaming in Nevada:

http://www.lvrj.com/business/las-vegas-assemblyman-introduces-bill-to-legalize-internet-poker-117761138.html

Finally, how about the schizophrenics on Wall Street, one day the economy is recovering, next day, China exports too little, imports too much, jobs number not as good, sell baby sell. Maybe the issue is the emotional stability of the big money, not the general public. Reminds me of my daughter- call her Superstar- smiling one second, screaming the next. One would expect more from well educated adults, but, presents good buying opportunities from time to time. Hope everyone has a great weekend.

As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.

Yale Bock, CFA
President, Y H & C Investments

Thursday, March 3, 2011

Internet Gaming in States, USAT Has a Big Month, Kessler’s New Book, ‘Eat People’, and A Cool Startup

Well, today is an interesting day as business information just rolls in. First, NJ Governor Christie vetoes the internet gaming bill the legislature passed. I predict it gets revised and passes again. Also, another few states like Iowa, Florida, and California looking at internet gaming passage as well. I think these states have such large deficits the moral reservations and federal ban are going to get overturned by financial necessity. Here are the links:

http://www.lvrj.com/business/new-jersey-governor-vetoes-online-gaming-bill-117339943.html

http://www.lvrj.com/business/iowa-politicians-start-debating-measure-to-legalize-net-poker-117304103.html

Next, here is a small company which I kept an eye on, no I did not invest in it. but it has a bright future, and naturally the stock popped today, pretty big too.

http://finance.yahoo.com/news/USA-Technologies-Achieves-bw-1812770867.html?x=0&.v=1

Read Andy Kessler's new book, Eat People, and it is good, like all of Kessler's stuff. If you are an entreprenuer, recommend it highly.

Finally, if you want to look at what I think is a very cool startup, take a look at this company-http://www.smartpayinfo.com


If you have any opinions about these articles, or would like to list a cool startup, please post. Hope all is great and have a good day.

As always, on any company mentioned here, past performance is not a guarantee of future returns. One should research any investment and make sure it is suitable with your objectives, risk tolerance, risk profile liquidity considerations, tax situation, and anything else pertinent to your financial situation. Also, the CFA credential in no way implies investment returns will be superior for any charterholder.

Yale Bock, CFA
President, Y H & C Investments

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