Comments on: Portfolio Update November 2009

By: Jae Jun

Jae Jun — Sat, 05 Dec 2009 08:41:55 +0000

@ serinvest,

But what I don’t like about HLYS is that it is a fad company. And I’ve yet to see a fad company turn it around. The financial statements was also horrible the last time I checked.

@ Tyler,

214.22% is what I made this year only. 40.87% total return from the beginning.

By: Tyler

Tyler — Sat, 05 Dec 2009 05:42:35 +0000

is that total return? or just capital

By: serinvest

serinvest — Fri, 04 Dec 2009 01:46:28 +0000

I think even HLYS looks similar. Lot of cash, no debt, stock price is less than their total cash.

By: Jae Jun

Jae Jun — Fri, 04 Dec 2009 01:35:04 +0000

It depends on what your definition of value investing is. To me, it’s finding $1 buying it for 50c or less and then selling it for $1 or more.

That could come from any situation. Growing cash flow companies, big moat companies, no moat companies, bankruptcies, ugly stocks and including INSM.

INSM is sitting on a huge amount of cash and the current price is less than what it is worth if the company liquidated. They have 1 product which they could turn around or if they spend the money properly they could find a very good company to buy.

Either way, the current price is indicating that INSM will simply fall over and rot. It’s not even counting its cash at 100% value.

By: serinvest

serinvest — Fri, 04 Dec 2009 00:48:06 +0000

Jae, congrats on beating the market!

I’m not sure how buying INSM would be considered a value investing. No cashflow, no earnings growth, no moat. Can you elaborate on that?