Archive for the ‘tutorial’ Category

Why We Think It’s OK to Cheat and Steal

Wednesday, March 18th, 2009

An interesting video featuring behavioral economist Dan Ariely.  At the end he explains what his research says about the causes of the economic crisis. This reminds me of the most fascinating Freakonomics article I ever read: What the Bagel Man Saw.

Stop using P/E ratios! Use EV / Unlevered FCF.

Thursday, March 5th, 2009

Apologies to readers for not completing OA's tutorial on P/E ratios sooner.  I promised Part 3 last summer, and here it is March...But this is a good thing folks, because the subject is now far more topical. Part 1 Part 2 I hope readers don't mind the length of this post.  Can't ...

02/09 Op-Ed: The Bad Bank Boondoggle

Wednesday, February 4th, 2009

Commenting on a WaPo article that has details about Obama's emerging bank rescue plan, Naked Capitalism's always brilliant Yves Smith says "let's just kiss the U.S. economy goodbye." For readers that missed it, this is a good opportunity to re-print the Op-Ed I published in the NY Daily News on Monday.  ...

Why a “bad bank” is a bad idea

Monday, January 19th, 2009

Paul Krugman chiming in with a good op-ed today (via CR) criticizing plans to create a "bad bank" to absorb troubled bank assets.  I've been very critical of Krugman's desire to spend a trillion $ or more at the federal level to pull us out of the recession, but on ...

Tribune hires bankruptcy lawyers

Sunday, December 7th, 2008

[Update Monday 2PM:  Tribune has filed for bankruptcy protection according to the WSJ] According to NYT's DealBook, Tribune is investigating a bankruptcy filing. Tribune has hired bankruptcy advisers as the ailing newspaper company faces a potential bankruptcy filing, people briefed on the matter said. The newspaper, which was taken private last year by ...

The Greatest Ever Short Squeeze?

Friday, September 19th, 2008

Hi folks.  Back after a long couple days drafting an op-ed for this Sunday's Baltimore Sun.   Thought I'd contribute my two cents about today's rally. The reason the market spiked had nothing to do with fundamentals.  The shorts got squeezed. Here's a basic tutorial for you.  To sell a stock short---that ...

Understanding Fannie and Freddie, a tutorial

Sunday, September 7th, 2008

Fan and Fred borrow money to make home loans.  As long as homeowners pay them back, Fan and Fred can pay back their own debt.  Essentially, the companies make money by lending at a high interest rate while borrowing at a lower one. Trouble occurs when Fan and Fred lend to ...

Understanding Bernanke

Wednesday, July 2nd, 2008

If skyrocketing food and oil prices point to inflation on the rise, then why has the Fed risked even more inflation by lowering interest rates so much since last Fall? That's a popular question these days. And one that's hard to answer without knowing how the Fed works. The ...

P/E Ratio Defined

Saturday, June 14th, 2008

This is the second part of a three-part tutorial on measuring a company's valuation. You can find Part 1 here. Part 3 is coming soon. What is P/E? Short for "Price to Earnings ratio," P/E measures the "value" of a stock by comparing the cost of that stock with the ...

What is a share of stock?

Wednesday, June 4th, 2008

[One of O.A.'s goals is to help readers with the vocabulary of investing and economics. This is the first in a regular series of posts I'll call "tutorials." We'll collect these and post them under a tab at the top of the page....With that, I present Part 1 ...

Thriftville vs. Squanderville

Sunday, March 30th, 2008

An oldie but a goodie (via Andrew Abraham). Warren Buffett explains in allegory why the trade deficit is bad news for the dollar over the long-run. [He wrote this piece in 2003, by the way. Since then, America's current account balance has worsened significantly.] And it's not ...

Is MSFT overpaying for YHOO?

Saturday, February 2nd, 2008

Mish has a piece that claims as much. I have some background covering internet stocks from my time as a hedge fund analyst. Thought I'd add my commentary on the deal. [Incidentally, I owned YHOO shares...precisely because a MSFT deal seemed imminent.] Two questions: Was this the right move ...