Leucadia: Berkshire Light?
December 20, 2012
After acquiring the remaining shares outstanding of Jefferies (JEF) a few months ago, Leucadia (LUK) has come into the spotlight. This under-the-radar holding company has been compared to Berkshire Hathaway (BRK.A) in the sense that it owns several unrelated companies and uses the cash flows to invest in different businesses. However, calling the two firms similar is a bit of a misstatement given Berkshire’s enormous insurance operations, and a slightly different investing style. Unlike Berkshire, which has an enormous “elephant gun” able to acquire relatively large companies with ease (Berkshire also tends to concentrate on reliable, large cap companies with strong balance sheets), Leucadia concentrates on deep value in struggling or unloved companies and industries. Interestingly enough, the companies are
Oracle’s Second Quarter Is a Bright Spot in Tech
December 19, 2012
Enterprise technology giant Oracle (click ticker for report: ) reported solid fiscal year 2013 second-quarter results Tuesday afternoon. Revenue jumped 3% year-over-year to $9.1 billion, easily exceeding consensus expectations. Earnings per share, on a non-GAAP basis, jumped 18% year-over-year to $0.64 per share, also better than the consensus forecast. Not surprisingly, the increase was largely driven by a jump in new software licenses and cloud subscriptions of 17%, to $2.4 billion, as the company continues to win new enterprise contracts. President and former HP (click ticker for report: ) CEO Mark Hurd cited share gains versus SAP (click ticker for report: ) in Europe as a strong growth driver, acknowledging that the company only started investing in its European business
Ford Is Our Favorite Automotive Stock
December 19, 2012
Please select the image below to download our 16-page stock research report (pdf) on Ford (F). Ratings as of the time of the writing of this article, December 19, 2012.
GM Repurchasing Two Hundred Million Shares from the US
December 19, 2012
Wednesday morning, US auto giant General Motors (click ticker for report: ) announced that it will repurchase 200 million shares from the US government for $5.5 billion. The US government also announced that it will sell its remaining 300 million shares opportunistically over the next 12-15 months. The sale will leave the US with a loss, but for the purpose of investing, the loss means little to us. Though the price GM will pay—approximately $27.50 per share—exceeds the current market value, it is still lower than our median fair value estimate. More importantly, however, it removes the worry (overhang) that the government-owned shares would be dumped on the market, putting downward pressure on the share price. We like the move for both reasons,
Johnson & Johnson Is One of Our Favorite Dividend Growth Ideas
December 19, 2012
Please select the image below to download our 16-page stock research report (pdf) on Johnson & Johnson (JNJ). Ratings as of the time of the writing of this article, December 19, 2012.
We Think Google’s Shares Are Worth Over $900 Each
December 19, 2012
Please select the image below to download our 16-page stock research report (pdf) on Google (GOOG). Ratings as of the time of the writing of this article, December 19, 2012.
Intel Is A Steal With Its 4.4% Annual Dividend Yield
December 18, 2012
Please select the image below to download our 16-page stock research report (pdf) on Intel (INTC). Ratings as of the time of the writing of this article, December 18, 2012.
Microsoft Is One of the Biggest Bargains on the Market Today
December 18, 2012
Please select the image below to download our 16-page stock research report (pdf) on Microsoft (MSFT). Ratings as of the time of the writing of this article, December 18, 2012.
Apple Remains Significantly Underpriced
December 18, 2012
Please select the image below to download our 16-page stock research report (pdf) on Apple (AAPL). Ratings as of the time of the writing of this article, December 18, 2012.
Best Idea Rio Tinto…on the Move
December 18, 2012
Rio Tinto (RIO) has rallied significantly since we added it to our best ideas portfolio. We expect further upside potential. Please select the image below to download its 16-page report (pdf).
