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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Graham Osborn who wrote (57702)	8/6/2016 9:52:45 PM
From: E_K_S	1 Recommendation Recommended By MCsweet Read Replies (1) \| Respond to of 78666

Re: Twitter, Inc. (TWTR) Were you aware of the extremely high employee stock based compensation as a % of Revenues. The company has one of the largest share based compensation expenses. Share Based Compensation makes FCF negative. Therefore, two companies, Workday and Twitter, especially Twitter, may find it increasingly difficult to attract/retain talent using equity-based compensation incentives if there is no major upswing at the operating level. -------------------------------------------------------------- Twitter is unprofitable after taking into account employee stock compensation- which is a real expense and which would be difficult to reduce. For that reason I passed on TWTR. Common shares are/will be diluted when all of these employees shares are transacted. EKS

To: Graham Osborn who wrote (57702)	8/7/2016 9:22:36 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78666

I bought some FNBC $15.4 - New Orleans regional bank. The bank is not current in their SEC reporting, but they did file a report with the FDIC. Aparently, they made loans to nonprofits that were supposed to be tax free, but that wasn't the case. As a result, they had to restate their equity by $100M down to $470M. Excluding they expense, they made $28M during the first 6month this year, according to the FDIC filing. Current market cap is $300M, so if you believe the numbers, the stock is fairly cheap. Of course there is a decent amount of class action law suits out here now. I don't quite understand he circumstances of the loss and maybe this debacle will turn out worse than expected, but I found that the FDIC filings generally can be trusted. In many cases, the FDIC filings showed problems with banks before the SEC filings did. The equity base of $470M is enough T to support the banking business and they should be able to recover the loss within 2 years from regular earnings, everything else being equal.

To: Graham Osborn who wrote (57702)	8/8/2016 9:52:24 AM
From: Micah Lance	Read Replies (1) \| Respond to of 78666

I'm going to keep an eye on this. I've been tempted quite a few times for the reasons you have discussed, however I just couldn't pull the trigger. Management is awful at twitter and I don't see how the company improving much with current management. I am sure they are a prime takeover target as they have a good product, which could be great with better management. There was rumor floating around, on twitter coincidentally, that they were going to get bought out at ~$22/share, so it'll be interesting to see what happens. I have to imagine that if a deal were to get done, then it would be sooner rather than later based on the low interest rate environment.