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Strategies & Market Trends : Value Investing
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To: Spekulatius who wrote (51290)4/13/2013 5:42:07 PM
From: Spekulatius  Read Replies (2) of 78744
 
Interesting article from Cove street Investments

covestreetcapital.com

On a related note, Mindy Grossman, the CEO of The Home Shopping Network, came into my office in the summer of 2009 with HSNI at $16. I was intimately familiar with the home shopping industry via a large (and continuing) investment in liberty interactive’s QvC entity and i continue to think it represents a superior economic retail beast vis-à-vis brick and mortar stores. While the distribution breadth of QvC creates superior margins to those of HSNi, there was a perfectly rational path to narrow the difference. Mindy said all the right things, seemed perfect for the job and a valuation in the low 20’s seemed very reasonable given a reasonable upward margin path. it was one of those meetings where you felt like running to the trading desk and buying after its conclusion—good business, good value, good people—and it fit right in the middle of the competence roadhouse. it all made sense until someone raised his hand and said, “but the stock was $1 five months ago...shouldn’t we wait until it pulls back?


HSNI went up from 1$ to 16$ share and was still cheap....would you have bought? I certainly would not have. even worse, I sold way below 16$ , it's now at 53$
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