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Irrational Arbitrage Spread: Dow Chemical's Acquisition of Rohm & Haas
Brand Names: Important, But Not Key to Investment Decisions
Isn't a company's brand or any other 'qualitative' measure only as significant as the quantitative evidence of its existence. In other words, a company with a strong brand should have higher margins than a company with a weak brand. If not, that company must not have a strong brand if it doesn't translate into pricing power.
True or no?
SunPower Beaten up to Buying Opportunity Levels
Countrywide: Potential Short Squeeze in the Offing
Could eBay Be a Microsoft Takeover Target?
Could eBay Be a Microsoft Takeover Target?
Nobody's going to buy Word or Powerpoint anymore.
What MSFT needs is enough search Ad Rev. to make their Device Mesh model (same as cloud computing) profitable. Hense the deal with HPQ but it won't be enough. MSFT needs YHOO for the AD Rev. And they won't be buying something just to buy something.
They need search to keep their apps from becoming obsolete. MSFT offered to buy YHOO's search because they need the daily eyeballs it attracts.
Dividend Analysis: Bank of America Corp.
Can Yahoo's Yang Survive as CEO?
Jerry Yang is officially unemployed.
Dividend Analysis: Bank of America Corp.
Do high earnings yields scare you too?
quicktake.morningstar....
Bank of America: Better Than Treasuries
I totally agree. I would rather see BAC cut dividends than issue preferred stock. It's kind of like a "heads, existing shareholders lose a little... tails, existing shareholders lose a lot" deal. If BAC makes a spectacular turn around, shares get diluted. If the housing/credit markets keep sh*tting the bed we're stuck with an extremely high fixed cost.
What is Countrywide's Lending Operation Worth?
CFC is trading at only a 10% spread on the deal value but I believe BAC in trading at about 50% of it's intrinsic value.
Dividend Analysis: Bank of America Corp.
I am disturbed by your analysis. If you think BAC is worth $25/share why do you own it? You also say that you think the dividend is safe. So basically, if you’re right, you will have a safe and secure dividend at just under a 10% yield. Do you think the market would allow such a deal? And if so, would you still be confident in the yield?
Also, your analysis uses historic numbers to estimate a valuation with no consideration for the complex reorganizations taking place as we speak and those to come in the near future. A purely quantitative analysis of a company obviously operating in an abnormal micro and maco-economic environment is irrelevant at best and at worst arguably irresponsible.
Morningstar's DCF model values BAC at more than twice the value your model suggests. So if you really do own BAC, for your sake, I hope Morningstar knows something you don’t.