Value Articles Worth Reading

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Is Value Dead

http://www.theglobeandmail.com/partners/free/globeinvestor/investment/may08/chou.html


Market Wisdom from Bernard Baruch

http://www.thekirkreport.com/2008/06/market-wisdom-f.html

The First Analyst Coverage of Neglected Stocks: 4/10

http://empiricalfinanceresearch.blogspot.com/2008/06/first-analyst-coverage-of-neglected.html


Westen Sizzlin Annual Report (WEST)

http://www.western-sizzlin.com/pdfs/Chairmans%20Letter%202007.pdf

Piotroski Index Scans

http://members.cox.net/econisvoodoo/piotroski/

A look at Return on Invested Capital

http://www.fool.com/news/foth/2000/foth000927.htm


Market Underreaction to Open Market Share Repurchases: 9/10

http://empiricalfinanceresearch.blogspot.com/2008/06/market-underreaction-to-open-market.html


Interview with Prof. Sanjay Bakshi

http://www.go2cio.com/articles/index.php?id=2262


Noisefreeinvesting.com

http://www.noisefreeinvesting.com/blog/wp-content/uploads/2008/06/men-with-hammers_web_v2.pdf

Clarus Corp CLRS.PK

CLRS.PK is a shell company with no current operating business but instead has about 85 million in cash and 223 million in NOLs. CLRS.pk is seeking to acquire a business in any industry and is being managed by the highly successful investor Warren Kanders. Kanders has a successful track record most notably with AH (NYSE) Armor Holdings. Armor Holdings (AH) had about a 30% compounded growth rate after he took it over.

Taken from the May 5, 2008 first quarter results

Warren B. Kanders, Executive Chairman of Clarus, stated, "While the state of the economy and credit markets continue to be challenging, this has not translated into a slow-down in potentially actionable transaction opportunities under review or materially impacted our ability to seek debt financing. We continue to be actively reviewing potential acquisition opportunities that meet our publicly stated goals of acquiring an industry market leader with solid management teams, strong free cash flow generation and a minimum EBITDA of $25 million."

CLRS currently sells at $5.50 with $5.07 in cash, 223 million in NOLs coupled with Warren Kanders represents a stock with a significant margin of safety. I own shares of CLRS.PK and was buying this Friday 06/28/08. I consider CLRS a compelling opportunity with an excellent risk reward ratio .


RLOG (Rand Logistics): Positives; Strong economic moat, Long term growth opportunities set in place , Upbeat conference call on 7/26/08; Talented management, large NOL's; Negative: excessive dilution from warrants and restricted stock grants.

For me it is a long term hold that could pay off significantly in several years.

IPAS; At 2.00 the stock looks like a buy at or below these prices

I own shares in CLRS.pk and RLOG. no postion in IPAS at this time

Successful Investing

How to Become a Billionaire
By Tim Hanson January 22, 2008

http://www.fool.com/investing/small-cap/2008/01/22/how-to-become-a-billionaire.aspx

We found the following most informative from Tim Hanson's excellent article.

"The secret to successful investing, then, is not found in any single strategy, but rather in picking the strategy that's right for you and executing it faithfully. As lauded NYU finance professor Aswath Damodaran writes in his book Investment Fables, "Each strategy has the potential for success if it matches your risk preferences and time horizon and if you are careful about how you use it."
That's it. That's the secret. Because if you get too cute -- chasing hot sectors, buying high and selling low, and giving yourself only six months or less to master a given investment strategy -- you're simply setting yourself up for failure. "

Opportuntiy in a Bear Market

Wisdom from Benjamin Graham for a tough market

"It is our argument that a sufficiently low price can turn a security of mediocre quality into a sound investment opportunity - provided that the buyer is informed and experienced and that he practices adequate diversification. For, if the price is low enough to create a substantial margin of safety, the security thereby meets our criterion of investment."

Investors "must demand convincing evidence that he is not risking a substantial part of his principal"

“Obvious prospects for physical growth in a business do not translate into obvious profits for investors"

"I am no longer an advocate of elaborate techniques of security analysis in order to find superior value opportunities" Benjamin Graham

"Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed"

Illiquid Stocks

This should make sense to serious deep value investors. The potential to find extraordinary bargains with illiquid stocks can be profound. Why … well it is simple, millions of investors are speculating/investing in a relatively small group of heavily traded liquid stocks. This greatly lowers our chances of finding long term wealth building value. The ignored and neglected illiquid stocks have a higher chance of presenting us with dramatically undervalued securities. So if your goal is to maximize wealth, logic would dictate that your research investment efforts are best spent with illiquid stocks that have been avoided by the public and Wall Street.

Ideas for Entertainment Purposes
http://www.shadowstock.com/ss_portfolio.html

Research@ShadowStock.com

ShadowStock

This blog , ShadowStock was developed to share ideas on the fundamental market inefficiencies that have been uncovered by academia. Our approach starts with what has been called the small firm effect. We believe that the real reason the small company anomaly exists is simply the lack of attention and number of analysts that follow these stocks. What we have is really an ignorance effect. And it's because of the scarcity of information on these tiny companies that our research efforts should pay off. If we were researching stocks already covered by Wall Street or the financial media we would be wasting our time since these companies are more efficiently priced. The cornerstone of our investment style is to search for inefficiencies that exist in companies ignored by institutions and the media.

http://www.shadowstock.com/index.html

Research@ShadowStock.com