Category Archive: Alternative Investments

Apr 01

The Confusing case of the Overseas Shipholding $OSGIQ bankruptcy

I follow LongShortGreek on Twitter and have found his information and thoughts about bankrupt stocks to be good and actionable. When he tweeted that the bankruptcy plan would give current OSGIQ shareholders $2/share worth of new equity I was intrigued by the seemingly obvious short. See the most recent OSGIQ 10-K for the total share …

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Jul 02

Are VIX Futures ETPs Effective Hedges? No.

This purpose of this post is not to bash certain supposed trading gurus who were so incredibly stupid as to lose money owning TVIX when it was trading at a nearly 100% premium to its NAV (for the pedants, yes I know that ETNs don’t technically have NAVs — they have indicative values, but those …

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Jun 13

Is the Firsthand Technology Value Fund (SVVC) Undervalued? No.

I just read in the WSJ about the plunge in value of a couple business development companies (BDCs) following the IPO disaster that is Facebook (FB). BDCs are interesting creatures — essentially, they are publicly-traded private-equity funds that typically invest in small to medium-sized companies’ debt and equity. Two BDCs were discussed, SVVC and GSVC. The …

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Feb 23

The Default investment

This post was originally published on my GoodeValue.com blog on 7/27/2007. Due to blog moves it was not correctly moved to this blog so I have reposted it.  In what should you invest if you know nothing about investing? While there are plenty of people (most readers of my blog) who enjoys spending time seeking …

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Jun 27

Are your deposits insured? How to avoid losing money in the coming bank Armageddon

I am not one to use the term Armageddon lightly. But when major banks like National City (NCC) and Washington Mutual (WM) are trading under 30% of book and Wachovia (WB) is trading at under 50% of book value, what othe term is appropriate? The market is pricing in a fair probability of a number …

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May 13

SEC Ensures that Penny Stock Market Manipulation Remains Profitable

An SEC enforcement division press release today shows why penny stock manipulation remains popular and why I hate the SEC. According to the SEC: “The Commission’s complaint alleged that, in August and September 2002, Hayden, Marc Duchesne, and others carried out a scheme to manipulate the price of Nationwide’s stock. The scheme was orchestrated by …

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May 05

The dumb way to steal from your investors

If a manager who runs a $30 million hedge fund decides to embezzle money, it usually makes sense to actually embezzle it and then run away, rather than just transferring it to a shell-company brokerage account and then losing half of it selling short Treasuries. Evidently someone forgot to give that sage advice to Matthew …

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Apr 04

Sex may sell, but it sure ain’t profitable

The old adage that sex sells may be true, but if an investor wanted to invest in publicly traded peddlers of sex (in all its legal incarnations), that investor would have only a few poor choices. While those choices may soon expand (when Penthouse goes public, as it is expected to do soon), the anti-prude …

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Mar 10

Interim Performance Review

Your humble blogger is not averse to eating crow. So it is time to admit that I have been wrong so far about Frederick’s of Hollywood [[foh]] (Movie Star Inc prior to a recent reverse merger). It is difficult to invest without knowing all the information, and I appear to have been over-optimistic about the …

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Feb 20

The Subprime Primer

A slidshow on Google Docs. Enjoy. Disclosure: I did not create the comic and I do not know who did.

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