Month: October 2009

Categories
Investing

Check into Strategic Hotels and Resorts

Reading Time: 3 minutes

Last Updated on October 23, 2009 by stlplace

(Update 21Oct09) Baird analyst downgraded BEE. The stock dropped quite a bit. Also, I found the web site of Vector Group Ltd here. Vector Group bought a 7.1% stake in BEE on July 8 (SEC filing here). Note the owners of BEE includes Bill Gates (via. his Cascade Investment). A Hotel REIT list.

(Original) Ticker symbol (NYSE:BEE), other hotel REITs for comparison: DRH, LHO.

Company web site. Note Bill Gates private investment fund bought a 5.6% stake on Oct. 2008 (Reuters; Seekingalpha).

National Real Estate Investor/Matt Valley: No Respite for Hoteliers
The epic downturn in hotel fundamentals is forecast to slow, but not before inflicting widespread pain.

CEO Lawrence Geller blog ( a bit old)

Other recent developments

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Categories
401k and Personal Finance

Bounce back in my old 401k

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Last Updated on October 9, 2009 by stlplace

I did not do anything with my 401k when I left my old employer about one year ago. The past year was also a year of hugh up and downs. I managed not to do anything with it in the past year: no re-balance, no jump in and jump out, no rollover to IRA, and no withdrawl either. Here is the record in past year.

One Year
10-09-2008 to 10-08-2009: +16.90%

half year
03-09-2009 to 10-08-2009: +65.80%

YTD
01-01-2009 to 10-08-2009: +26.10%

Current asset allocation (100% equity)
39% US large cap, 23% US small cap, 30% Non-US developed market, 5% Non-US emerging market, 3% company stock.

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Categories
IPO

IPO: It’s Probably Overpriced

Reading Time: 4 minutes

Last Updated on October 21, 2009 by stlplace

That’s not my observation, that’s what Graham, the value investing guru, said in his book “Intelligent Investor”. I think this is especially true in the current IPO market. Two large recent IPOs, Shanda Games (Nasdaq:GAME) and Banco Santander Brasil S.A. (BSBR, SANB11.BR), showed exactly that. Both traded lower the first day it went public. I don’t have comprehensive statistics, but from my limited experience trading IPO stocks, most stocks traded lower the first day turned out to be a dog (lagger).

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Categories
Fun

It’s baseball time

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Last Updated on October 7, 2009 by stlplace

Forget about the stupid IPOs, stocks, economy,…it’s baseball time in this baseball town.

St. Louis Cardinals is playing NLDS (National League Division Series) against LA Dodgers. Here is the local (St. Louis area) TV schedule.

Gm 1 STL @ LAD Wed 10/7 9:37 TBS Chris Carpenter v Randy Wolf
Gm 2 STL @ LAD Thu 10/8 6:07 TBS Adam Wainwright v Clayton Kershaw
Gm 3 LAD @ STL Sat 10/10 6:07 TBS Vicente Padilla v Joel Piniero
Gm 4 LAD @ STL Sun 10/11 TBD TBS TBD
Gm 5 STL @ LAD Tue 10/13 TBD TBS TBD

(Source: http://www.midwestsportsfans.com/2009/10/cardinals-dodgers-nlds-preview-pitching-matchups-tv-schedule/ )

Categories
IPO

Vitacost: another recent IPO

Reading Time: < 1 minute

Last Updated on November 11, 2009 by stlplace

(11Nov09) The company announced Q3 09 results. Note the company had higher than expected expense on stock based executive compensation (related to IPO). Basically the company let the executive stock options vested upon IPO.

(Update Oct 08, 2009) I sold it this afternoon (ET) at $10, and got the new IPO Mistras (NYSE:MG). Like I did many times in the past, VITC went up after I sold it, and MG went down after I bought it 🙁 Did I sell it too fast? Maybe. But I felt Mistras has more potential.

(Original) Vitamin, anyone?

Prospectus (424B4 here)

My comment
One interesting point is as the US population aging, consumption of vitamin, other dietary supplements, sports supplements and fitness club memberships are all rising. This buckled the trend in recession. Convenstional wisdom is as we entering recession, people watch their discretionay spending more carefully, which is not good for those business I just mentioned. But we need to notice on the other side of equation, as people felt the economic and psychological effects of recession, they pay more attention to their health: both physical and psychological, hence comes the spending on those things. In this Vitamin and diatary supplements business, obviously Vitacost is a low cost provider which match the cost concious consumers’ need.

Other people’s homework (analysis)

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Categories
IPO

Echo Global Logistics

Reading Time: 2 minutes

Last Updated on October 5, 2009 by stlplace

(Update 2) Some employee reviews at jobvent.

(Update) Market cap calculation: the company issued 5.7 m * $14 = $79.8 m. According to 424B4: (principle and selling shareholders), 1,714,710 shares is about 8.0 % (last row). 5.7 /1.715 * 8% = 3.3241 * 8% = 26.59%. So the market cap is about:
$79.8 m / 26.59% = $300 m

Company has revenue of $203 m in 2008.

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Categories
IPO

Education Management Corporation EDMC IPO today

Reading Time: 2 minutes

Last Updated on October 2, 2009 by stlplace

(Update 2) It appears EDMC IPO had warm reception. After all, it’s backed by Goldman (both as investor and IPO underwriter). Also from Reuters.

(Update) BTW, I found Echo Global Logistics IPO to be much more interesting, will write it up soon.

(Original) Priced at $18 a piece (Reuters), quote:

EDMC (web site), a provider of post-secondary education, said on Thursday that shares in its initial public offering priced for $18 each, at the bottom of the range.

The private equity backed company sold 20 million shares and said it expects net proceeds of $334.8 million. (My comment: 20 m shares is about 17% of the company, this priced EDMC roughly at $2 b).

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Categories
Fun Video

Parade

Reading Time: < 1 minute

Last Updated on October 1, 2009 by stlplace

From YouTube.

Pretty nice, huh?