Infinera, the Jean Maker in Web Gold Rush

We all know the famous story of Levis Jeans. (http://inventors.about.com/od/sstartinventors/a/Levi_Strauss.htm) When the California gold rush was in full swing in 1853, Levi Strauss invented Jeans, which satisfied the demand of miners who wanted strong lasting pants.

Dolby: 8 Reasons This Stock Could Be Music To Your Ears

by: Bret Jensen November 27, 2011

The leader in sound technology, Dolby Laboratories (DLB), has been under pressure all year and has dropped over 50% so far in 2011. However, given its valuation, cash rich balance sheet and takeover potential, it has gotten much too cheap.

More Jobs Predicted for Machines, Not People

While there is not much improvement on the unemployment rate in the US, the corporate profit, however, is rising. This is again the evidence of investing in good companies is the best choice in the long run. Why? Because good companies really create good value constantly for the world.

More Jobs Predicted for Machines, Not People
The New York Times
By STEVE LOHR
Published: October 23, 2011

High Speed Crash

The recent Crash of 2 high speed trains in China is not only a reminder of the danger of building a high-speed railway network in high speed without proper management, but also a reflection of vulnerable situation of Chinese economy and the corresponding political system.

Building Boom in China Stirs Fears of Debt Overload

When the effect of Virgra is over, China economy will be like an over worked man.(I mentioned the Virgra effect one year ago in the article Not Be Fooled by Viagra or try http://www.valuebay.net/node/47) Let's look at the effect at the moment as following:

Building Boom in China Stirs Fears of Debt Overload

source: New York Times

By DAVID BARBOZA
Published: July 6, 2011

What to Invest under Current Economic Uncertainty

One friend (L) asked me what to invest under current economic uncertainty over lunch table yesterday. My prompt answer was US REIT because the downside is very limited due to the crash of market since 2008 and you don't need do much research like investing in publicly listed companies in general besides looking into certain indicators. Among all the uncertainties, the future of America is more certain than China or Europe I believe. In fact, I have invested mostly in US stocks which are still cheap.

Steve Jobs Stanford Commencement Speech 2005‏

I am honored to be with you today at your commencement from one of the finest universities in the world. I never graduated from college. Truth be told, this is the closest I’ve ever gotten to a college graduation. Today I want to tell you three stories from my life. That’s it. No big deal. Just three stories.

The first story is about connecting the dots.

I dropped out of Reed College after the first 6 months, but then stayed around as a drop-in for another 18 months or so before I really quit. So why did I drop out?

How Inflation Swindles the Equity Investor

The central problem in the stock market is that the return on capital hasn´t risen with inflation. It seems to be stuck at 12 percent.

by Warren E. Buffett, FORTUNE May 1977

It is no longer a secret that stocks, like bonds, do poorly in an inflationary environment. We have been in such an environment for most of the past decade, and it has indeed been a time of troubles for stocks. But the reasons for the stock market's problems in this period are still imperfectly understood.

Dolby Lab Is on Sale

The share price of Dolby is now at $49.84 with a PE of 19. There were $1022 million in current assets and $186 million total liabilities in its first quarter’s balance sheet, among which $148 million were current liabilities. What a balance sheet! Among it, cash and short-term investments were at $787 million, long-term investments were 347 million. Adding these together, it’s $1134 million in cash and investments. With 113 million shares, it’s almost $10 per share. That means the actual price for Dolby is at $39.79, low than $40. With this, the actual PE is now at 16.

Containing Stagflation Risk

謝國忠

Summary

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The central government has embarked on monetary tightening. The main tool is credit rationing. The efficiency of capital allocation is declining. This is compounding the trend of declining capital efficiency in the past few years. China's growth potential is declining as a result. The surging inflation reflects the tightening speed limit on growth rate.

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