LinkedIn is Not Worth $8.9 billion

Posted by Jason Apollo Voss on May 20, 2011 in Blog | 0 comments Normally I am loathe to write about a specific stock.  My usual focus is on equity investments for what they really are: partial ownership of a business. But LinkedIn (ticker: LNKD) shares soared in their first day of trading yesterday 104.4% (= $94.24 close ÷ $45 IPO price – 1) to close at a market cap of $8.9 billion!  This, for a company whose profits last year were a scant $15...
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New Ratings Agency Rules From the SEC

Posted by Jason Apollo Voss on May 19, 2011 in Blog | 0 comments As part of the implementation of the Dodd-Frank financial industry overhaul, the U.S. Securities and Exchange Commission (SEC) yesterday proposed new rules for credit ratings agencies.  These are not the agencies that rate consumer credit.  No, these are the folks who rate the various financial products sold by the big investment bankers.  Things like mortgage backed securities, for example....
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Manufacturers Approaching Capacity is Employment Good News

Posted by Jason Apollo Voss on May 18, 2011 in Blog | 0 comments News today from several major sources, The Wall Street Journal and Bloomberg Business Week, are both reporting that manufacturers in the United States and abroad are approaching capacity.  Importantly, the news is not simply reporting the content of a press release from a governmental statistical agency. Instead, the news is coming from reporters that are paying attention to corporations.  These...
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Intuitive Assessment of Investment Climate

Posted by Jason Apollo Voss on May 17, 2011 in Blog, Intuitive Assessment | 0 comments One of the primary lessons of The Intuitive Investor is how to use your intuition to assess the investment landscape.  On occasion I have provided intuitive assessments of major events, especially when facts have been obscure, or worse, very scarce.  For example, just this year I have provided an intuitive assessment of Egypt, an intuitive assessment of the Middle East, and an intuitive...
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Silver Market’s Rise Due to Chinese Speculation

Posted by Jason Apollo Voss on May 14, 2011 in Blog | 0 comments Yesterday morning the Financial Times ran a story about Chinese retail investors being the source of the rocketing prices for silver worldwide.  I have been saying nationally that commodities are in a bubble.  Want proof of the froth? On the Shanghai Gold Exchange, where precious metals futures are traded, turnover in silver contracts (i.e. the number of contracts bought and sold) has risen...
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Economic Recovery in the Eurozone Takes Hold

Posted by Jason Apollo Voss on May 13, 2011 in Blog | 0 comments Today gross domestic product (GDP) figures for the Eurozone’s first quarter were announced.  Data show that compared with the same period last year the Eurozone economy grew 2.5%, and compared to the fourth quarter 2010, grew 0.8%.  These results compare to consensus expectations by economists of 2.2% and 0.6%. Analysis: European economic growth has lagged the growth of the United States...
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Commodities Sell Off = Stock Market Sell Off?

Posted by Jason Apollo Voss on May 12, 2011 in Blog | 0 comments Yesterday the Dow Jones Industrial Average fell the most it has in two months.  Ostensibly the sell off was because of the dramatic fall in commodities prices, including oil, gold and silver.  To me this is evidence of strange trading forces at work, rather than fundamental problems with the U.S. economy. Let’s think about it.  If the cost of fuel falls isn’t that good for almost the...
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