Hottest links for Wednesday, February 19th, the late edition. Get our free daily newsletter and never miss a single linkfest. Also, now if you sign up you will get our new e-book on value investing.
Top stories for today are included below. Taking the edge off your mid-week blues, we’ve got some great stories, including super-duper brilliant beta, Ralph Nader learning to love Fannie and Freddie, and man who tried to feed himself to tigers only to be rebuffed by the tigers themselves.
Hottest Links: Stories
A Better Way to Buy the Russell 2000
ValueWalk's Raul Panganiban interviews JP Lee, Product Managers at VanEck, and discusses the video gaming industry. Q4 2020 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview With VanEck's JP Lee ValueWalk's ValueTalks ·
The study reported here examined the long-term impact of Russell 2000 (INDEXRUSSELL:RUT) rebalancing on portfolio evaluation. A buy-and-hold index portfolio outperformed the annually rebalanced index in the 1979-2004 period by an average of 2.22 percent over one year and 17.29 percent over five years. [Wesley R. Gray, Turnkey Analyst]
Comcast bids for Time Warner Cable: Synergy, Reverse Synergy or Ego Trip?
In perhaps a test of my cynicism about the M&A process, Comcast Corporation (NASDAQ:CMCSA) last week announced that it was making an offer to buy the equity in Time Warner Cable Inc (NYSE:TWC) for $45.2 billion. [Aswath Damodaran, Musings on Markets]
Canadian Stocks: Investing without resources II
As of Feb 2014, Glentel Inc. (TSE:GLN) (OTCMKTS:GLNIF) declined 20%, Exchange Income Corporation (TSE:EIF) was flat and AutoCanada Inc. (TSE:ACQ) (OTCMKTS:AOCIF) increased 580%. Therefore, an equally weighted portfolio would have returned 187% versus the broader TSX which returned 23%. [Marr3060, Reddit]
Terra Energy as a bet on gas
I remember back in 2009 when I had a broker recommend Terra Energy Corp (TSE:TT) (OTCMKTS:TTRHF) to me. He thought it was a great play on an improving economy and what was known to be infinite demand for natural gas. [Lsigurd, Reminiscences of a Stockblogger]
How Ralph Nader learned to love Fannie and Freddie
“Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) should be relisted on the NYSE and their conservatorships should, over time, be terminated. –Ralph Nader, letter to Treasury Secretary Jacob Lew, May 23, 2013 [Bethany McLean, Reuters]
Bill Gross Will Give You Three Reasons Why Pimco Is Better Off Without Ole Whatshisface
Reason Number One the abrupt departure of Pimco Chief Executive Mohamed El-Erian will not only not hurt the firm but will in fact help it: the old structure of having one chief investment officer sucked. The new structure of having six deputy chief investment officers rocks. [Bess Levin, DealBreaker]
eBay CEO talks Icahn with other tech CEOs
Carl Icahn wants eBay Inc (NASDAQ:EBAY) to spin off its PayPal subsidiary, arguing last month that separate management would improve the growth for both businesses. [Dan Primack, Term Sheet] Related: On how eBay Inc (NASDAQ: EBAY) and PayPal can be most successful, Donahoe said: “I continue to believe the best way is together, that eBay makes PayPal stronger. [ValueWalk]
A Golden Bet: Gold Mining Equities versus Gold
If there is a “long-run equilibrium” price relationship between gold and gold mining equities, then the price of gold “suggests” that in the short-run the price of gold mining equities could rise 100%. [Claude B. Erb, SSRN]
It’s Time for Super-Duper Brilliant Beta!
What is Super-Duper Brilliant Beta? I have no idea. It doesn’t exist. But that doesn’t mean we don’t want it to exist – and Wall Street knows it. Our quest for a perfect investment strategy gets the creative marketing minds in the industry flowing. [Rick Ferri]
Sell-Side Penguin Of The Day Award Goes To…
Morgan Stanley’s “research analyst” David Risinger, who today, February 18, 2014, a day after the WSJ broke the news yesterday around 10:30 pm that Forest Laboratories, Inc. (NYSE:FRX) would be acquired by Actavis plc (NYSE:ACT) for $25 billion. [Tyler Durden, Zero Hedge]
Hottest Links: Not The Onion
Depressed Man Tries to Feed Himself to Tigers, Gets Rejected
Entering the tiger enclosure at the Chengdu Zoo in China’s southwest Sichuan province, a man made vigorous, but unsuccessful, attempts to entice the animals to eat him, a Chinese newspaper reported on Tuesday. [Time NewsFeed]