Hottest Links: Value Investing Galore, Farmland Bubble?

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Hottest links for Tuesday October 22nd, 2013 the very late edition, which will hopefully not become too permanent of a feature (see Monday’s edition of hottest links). Get our free daily newsletter (which is being updated to make it even better) and never miss a single linkfest.

Top stories for today can be found below; A lot of great stories on value investing, valuation analysis, behavioral finance and more.

Hottest Links: Stories

Value Investing

On The Dangers Of a Farmland Bubble

Farmland prices have been on a tear for over a decade, barely slowing as the rest of the country suffered a housing collapse, leading economists and investors to worry that a dangerous bubble is forming in the heartland. [William L. Watts, MarketWatch]


Six Things You Need To Know About Closed-End Funds

Closed-end funds are complicated investments, at least relative to most exchange-traded funds and especially relative to mutual funds. Investors need to know how to navigate leverage, parse the details of distribution rates, and discern whether a discount represents actual potential value. [Mike Taggart, Morningstar] Via AbnormalReturns

The Dividend Challenge

Due to flows, this is a good example of an asset class getting distorted and investors buying into something and getting something quite different than what they expected. [Mebane Faber]

Excerpt From How To Value Invest

Excerpt From How To Value Invest: My Investment Philosophy. The only time future possibilities play even a small role in my articles are in situations where there is a clear catalyst: Activist/value investing firm or individual involved, the company is undergoing a strategic review and is owned and controlled by a few people as in the case with Dole Food Company Inc (NYSE:DOLE) that you will see later in the book, or the company’s management is trying to figure out ways to unlock the companies undervaluation by asset sales or spin offs as in the situation with Vivendi SA (EPA:VIV) (OTCMKTS:VIVHY that you will see later in the book. [Jason Rivera, Value Investing Journey]

Lombard Risk Management – Enterprise Software

Lombard Risk Management plc (LON:LRM) develops risk management and regulatory compliance software and licenses this software to financial institutions. [The Red Corner]



Frexit Fever Reaches Heart of French Establishment

Calls for EMU break-up are spreading into the upper echelons of the French foreign policy establishment, and the pro-European core. [Ambrose Evans-Pritchard, The Telegraph] Related; Although Japanese investors’ overall support for foreign bonds has so far been limited, analysts at UBS AG (NYSE:UBS) and Citigroup Inc (NYSE:C) think that now financial market conditions are more clement (including an end to the U.S. budget stalemate), this could be about to change. [Neelabh Chaturvedi, MoneyBeat]

$99 Million Buys EY Ticket Out Of Private Lehman Litigation

Everyone else had folded their tent, paid the price to cross this dog off the list. Lehman Brothers Holdings Inc Plan Trust (OTCMKTS:LEHMQ) underwriters agreed in 2011 to a $426.2 million settlement. UBS, one of the underwriters, held out and settled last August for another $120 million. [Francine McKenna, re: The Auditors]

Valuations Sky-High as Equity Indexes Hit Record Highs

The forward p/e of the S&P 500 (INDEXSP:.INX) jumped to 14.6 at the end of last week, the highest since January 19, 2010. The SPDR S&P 400 Mid Cap Value ETF (NYSEARCA:MDYV) and SPDR S&P 600 Small Cap ETF (NYSEARCA:SLY) spiked to nose-bleed p/e ratios of 16.8 and 18.3. All three market-cap indexes are at record highs. [Ed Yardeni , Pension&Investment]

Hottest Links PE ratios

Outlook For STOXX 600

As shown below, earnings growth for the quarter is estimated at -10.8%, a decline from last quarter’s -9.5%. ISHARES STOXX 600 (EPA:SXP) companies have a difficult comparison this quarter, following last year’s 9.7% earnings growth. [Greg Harrison, AlphaNow]


World’s 1st Robotics ETF Goes Live Tues

Exchange Traded Concepts Trust (NYSEARCA:FLAG), the Okla.-based firm that helps other companies bring their ETF ideas to market, tomorrow is launching a fund targeting the growing global robotics industry that will have its primary listing on the NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) under the catchy symbol “ROBO.”  [Olly Ludwig, Index Universe]

Man Who Mocked the SEC in His Blog Has Been Indicted

Remember Toby Scammell? The young man who allegedly learned of The Walt Disney Company (NYSE:DIS)’s plans to acquire Marvel Entertainment by peeking at emails on the Blackberry of his girlfriend, a Disney insider.  [Jeremy L. Bartell, Financially Regulated]

Silicon Valley’s Secessionist Movement Is Growing

CNET reports that Balaji Srinivasan, the co-founder of San Francisco–based genetics company Counsyl, used his opportunity to address a roomful of aspiring start-up founders at Y Combinator to give a talk called “Silicon Valley’s Ultimate Exit.” [Kevin Roose, NYMag]


By getting more constructive on the economy and the markets this year, he’s learned the truth about many of his fans and followers – it was never about his analysis, it was always about him adding intellectual heft to their pessimism and quasi-political, partially religious desire for the collapse of the system. [Joshua M Brown, The Reformed Borker]

How to Buy Empire State Realty Trust at a Discount

The Empire State Building and several smaller properties totaling 7.68 million rentable square feet were combined to form Empire State Realty Trust Inc (NYSE:ESRT) [OTC Adventures]

Jain Feeds Buffett’s Hunger

These days, Jain has started eating things that he used to turn his nose up at. He isn’t quite willing to shovel anything down that comes his way, but if it is presented by his chef of choice (Aon) then he’s almost sure to open wide. [Adam McNestrie, Insider Quaterly]

Ameriserv, a Bank With a Not Quite Hidden Asset

AmeriServ Financial, Inc. (NASDAQ:ASRV) is fairly unique in the sense that their workforce is unionized.  Out of their 374 employees 188 belong to the Steelworkers Union. [Nate tobik, Oddball Stocks]

Where The September Jobs Were

As part of our monthly NFP-day tradition, we break down the monthly job gains (and losses) by industry. So here they are: in September the biggest job gaining sectors, accounting for 86K jobs or 58% of the total 148K jobs added, were the following  four industries: Transportation and Warehousing: + 23K, Government: +22K, Retail Trade: +21K, Temp Help: +20K. [Tyler Durden, Zero Hedge]


Hottest Links: Not The Onion

Virginia Paper Endorses ‘None of the Above’ for Governor

The Virginia gubernatorial race has been, well, a bit awful this year. So awful, in fact that the Richmond Times-Dispatch went ahead and endorsed nobody for governor, for “the first time in modern Virginia.” [Abby Ohlheiser, The Atlantic Wire]

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