Ongoing Campaign to Invigorate Yahoo(YHOO) and an Options Strategy

Eric Jackson's Campaign to create shareholder value at Yahoo (YHOO) continues. It's still small relative to the total size of Yahoo but I hope he will continue to gather momentum. He's even created a Wiki for the campaign and has commentary from people. In expectation that this campaign might gather more momentum and seeing that it is getting more press coverage, I recently added to my Yahoo (YHOO) position through a buy/write. On Jan 17th I bought Yahoo shares at $28.97 and sold Jan 2008 35 strike calls for $1.95. I have a net cost ...

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Finance Industry vs. Hollywood

Some business associates from the film industry were talking about financing film credits and asked me what I thought about a conversation they'd had at The Sundance Film Festival going on right now in Utah. Here's what I said:"I worked in finance for fifeteen years and there is a huge competition for the BS factor with Hollywood going on. 'Yes, we can do that deal' before you see a term sheet is the finance industry's version of 'We'll do lunch.' " ...

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Selling a European Utility Scottish Power (SPI).

Selling a European Utility Scottish Power (SPI). With p/e ratios roughly equal to that of the general market I think utilities in the US are vastly overvalued. As a result of the of the recent merger mania among utilities in Europe, I now think same is true of European utilities. On Jan 16th (yesterday), I sold my long time holding in Scottish Power ADRs (SPI) at $58.43. Disclosures and Confessions: I first acquired Scottish Power through my participation in a Dividend Reinvestment Plan (DRIP) at PacifiCorp in ...

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Shameless Promotion: A Buddy Of Mine On Fox TV

Republican strategist, Doug Heye made the mistake of showing me the video of him on FoxTV last month. Yes, I have Republican friends too! ...

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Follow Up on Imperial Sugar (IPSU): Grandma Gloats About Her Sweet Tooth

Grandma called from California gloat and let me know that Imperial Sugar (IPSU) announced a special dividend of $3.00 per share. I thought the stock was getting too much attention because of ethanol prices had driven up sugar prices in the short term and that the stock would eventually suffer. When I wrote my entry on September 25th IPSU was trading around $29. It had fallen all the way to just under $21 in December. The stock is now trading at $26 and holders on December 26th get that extra 3 bucks. So I'd be ...

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PUndits Pushing Puts Punters: Dangerous Advice

I'm watching CNBC ...Two market pundits are recommending selling puts on the Dogs of the Dow. While I sell puts often against stocks I would like to own. I don't like the idea of CNBC explaining to people that selling put is a good idea. In 1987, I heard more stories about bankrupcies caused by small guys short puts. I traded options on bonds from 1991 - 1993 at Chemical Bank (now JPMorgan Chase). I traded options on equities from 1993-1996 at Morgan Stanley. I was responsible for derivatives (options, futures and other non-standard instruments) ...

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Not Enough Executives Have Gone To Jail Says Berkshire Hathaway's Charlie Munger

The Inelegant Investor Summarizes Munger's Comments to the LATimes.Munger derided compensation consultants, declaring that “I have always said that prostitution would be a step up for these people.” Munger pointed out that the problem was not that CEOs were evil, but that “… envy-driven compensation mania … brings out the abosulte worst in good people.” ...

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Closing Out Mastercard (MA): I'd Rather Be Early Than Worried

In early June, I bought Mastercard (MA) around $47.00. I thought I was buying a stock with a forward p/e of 15 which compared nicely to American Express (AXP) at the time. That seemed low and I thought that the stock deserved a p/e multiple of closer to 20. I sold half my position in November at $89.46. Today, I sold the rest at $101.40. Both August and November had positive earnings suprises that help goose to the stock to a forward p/e of 23 according to First Call estimates and today's ...

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Yahoo (YHOO): Individual Activist May Shake Up Yahoo

Sorry Warren Buffet , Eric Jackson is my new investor hero. This guy is leading a campaign of individual investors from his blog to push for a restructuring of Yahoo (YHOO ) for the benefit of shareholders. In his blog and embedded video posted on YouTube Mr. Jackson describes a ten point plan to increase returns for shareholders and remind Yahoo Management who they work for. He then asks shareholders to either buy shares or use their current holdings and commit to vote them with his proposals. This is shareholder activism ...

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Best Ever Disclaimer

David Andrew Taylor, currency trader and blogger at dismally.com has the best disclaimer I've ever seen. I try to be painfully honest and even funny in my "disclosures and confessions" but this guy wins. I wonder what law firm he used to write his disclaimer?His Disclaimer begins like this:I have never made money in the markets. If you follow my advice, that is akin to strapping on a a piece of fishing line to your ankles and trying to bungee jump off a 1,000 foot bridge..... (read the rest) ...

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