Inelegant Investor is a collection of real-world investing observations, focused on the edge cases that don’t show up in textbooks — restructurings, CVRs, spinoffs, and the strange outcomes that accumulate in actual portfolios. And whatever else interests me about investing. Investing isn't always pretty, it's usually quite inelegant.
Recent Series: The Portfolio Graveyard
I always imagined that I’d be a subscriber to a print edition of my daily newspaper long after it passed from normal to weird to quaint. I don’t have milk or ice delivered, nor did I use cloth diapers, but the experience of retrieving the morning paper from my front steps and the feel of the paper in… Read More »
In Warren Buffett’s 2006 annual letter to Berkshire Hathaway shareholders, released today, he comments on two different struggling industries. One, he believes, will once again see great days. The other, is doomed to growing irrelevance and shrinking profitability. Though Buffett was rumored to be a buyer of newspapers, perhaps by desperate sellers who hoped he might be, he… Read More »
Matrixx Initiatives(MTXX) believes that its Zicam line of homeopathic cold remedies will relieve your cold symptoms. Jove Partners believes that it knows how to solve Matrixx’s own ailments: a sale of the company to a strategic investor. Jove filed a 13D today, disclosing a 5.1% ownership stake and declaring that The Reporting Persons appreciate the job that management… Read More »
Recently, Jove Partners disclosed a 5.2% stake in Lifetime Brands(LCUT). In its 13D filing, Jove reported that: The Reporting Persons believe that the Issuer would benefit from additional marketing and industry expertise on its board of directors, and have suggested individuals for consideration by the board. Lifetime CEO Jeffrey Siegel was quoted as saying “Jove Partners is a… Read More »
You may recall my December post regarding Nuvelo(NUVO). The company reported that a pivotal trial for its lead compound, alfimeprase, had failed to meet its endpoints. On the release of this news, the stock fell 80%, and has continued to float downwards since. Nuvelo began 2006 trading at $8.11 and quickly jumped above $17 when the company partnered… Read More »
Charlie Munger, vice-chairman of Berkshire Hathaway and CEO of Wesco Financial recently spoke with the Los Angeles Times on the issue of executive compensation. As always, the 83 year old Munger provided colorful commentary. Munger derided compensation consultants, declaring that “I have always said that prostitution would be a step up for these people.” Munger pointed out that… Read More »
On November 22, after BJ’s(BJ) CEO Mike Wedge abruptly resigned and the stock jumped, I wrote expressing my concerns: Mr. Wedge’s departure raises troubling questions about the company’s performance. Same store sales have been lackluster of late, but last week’s earnings announcement was ahead of expectations and management expressed optimism regarding Q4. I have a sinking feeling that… Read More »
The company with the world’s most expensive stock announced Friday that it was purchasing a company that sells nothing for more than 4 cents. While the price per item may be low, they make it up in volume, hitting $990 million in sales in 2005 and projecting $1.2 billion in 2006. Profit numbers were not available nor was… Read More »
Maybe I was too harsh on Brian Hunter last week. This morning, I was greeted with a jolt of my own. One of my positions was down 80% in a single day. Fortunately for me, this isn’t the prelude to a death spiral. There’s no margin call to be answered. Such is the power of diversifying risk, especially… Read More »
Bloomberg has posted a piece which explains in wonderful detail the events leading up to the spectacular implosion of Amaranth several months ago. In many ways, it reads like a shorter version of When Genius Failed, Roger Lowenstein’s excellent account of the collapse of Long Term Capital Management. I wrote earlier about my belief that the stellar performance… Read More »