6-month checkup

Here’s what I was talking about in Jan 2013:

Bruce Greenwald’s completely misguided snub of Apple
https://mcturra2000.wordpress.com/2013/01/27/greenwald-2005-on-apple-i-dont-think-a-smart-value-investor-will-invest/

Financial Chicanery
https://mcturra2000.wordpress.com/2013/01/27/whats-behind-the-numbers-a-guide-to-exposing-financial-chicanery/

David Einhorn on ROE
https://mcturra2000.wordpress.com/2013/01/25/einhorn-2006/
Einhorn argues that for non-capital-intensive business (e.g. services, pharma, software), ROE is irrelevant. For capital intensive businesses, it is better to prefer at the right price businesses with low ROE, where you think the ROE will improve, as opposed to high or medium ROE businesses. High ROE capital intensive businesses have hard-to-sustain ROE, due to competition.

GNG: Geong International
https://mcturra2000.wordpress.com/2013/01/25/gng-the-fiasco-continues/ I compared GNG to visiting a lunatic asylum. I called it “utter tripe”. At the time it was at 4p – now it is at 3p. It reported audited results on 30 July in which turnover, margins, profits, EPS, cash and order book were all down. The only thing that was up were their trade receivables. Again! The auditors reported an emphasis of matter relating to the collectability of accrued income. Oh dear.

Pabrai on Buffett lunch
https://mcturra2000.wordpress.com/2013/01/20/pabrai-on-buffett-lunch/ Even if you’re a slightly above average investor who spends less than they earn, over a lifetime you cannot help but become rich if you are patient.

NTG – Northgate
https://mcturra2000.wordpress.com/2013/01/13/ntg-northgate-good-rewardrisk/ I said this one offered good reward/risk. Up 19% over 6m, handily beating the market. The pick was based on the idea of seeking an upside to downside ratio of at least 5 for small-cap stocks. The bet paid off. Kudos to redcorner, where I first spotted it as an idea.

It’s good to see that I didn’t say anything stupid in January. Happy investing to you all.

About mcturra2000

Computer programmer living in Scotland.
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