Articles

Skarbeck: Firms with high ratios could take a tumble

On occasion, it is interesting to study the stocks of businesses that are outliers on the bell curve of business valuation. For a value investor, that means looking at stocks selling at huge multiples above traditional valuation yardsticks.

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Skarbeck: SEC turns up spotlight on pay for top brass

The Securities and Exchange Commission has proposed a rule that would require large public companies to disclose the total annual compensation of their CEO, the median annual compensation of all their employees (excluding the CEO), and the ratio between these two figures.

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Kim: Twitter using JOBS Act to alter IPO playbook

The Sept. 12 tweet read, “We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale.” Twitter thus made a very public announcement that it had made a private filing with the Securities and Exchange Commission. In 140 characters or fewer, Twitter instantly […]

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SKARBECK: Rising interest rates not always bad

Some market constituents benefit from higher rates. For example, payers of fixed cash flows—the consumer who locked in a loan at a lower fixed-rate, companies that issued bonds at lower rates and insurers that pay annuitants fixed rates.

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KIM: Fraudsters want to steal from your self-directed IRA

Custodians of self-directed IRAs will permit a broader universe of investments, such as real estate and unregistered securities. Because it is unlikely the custodian will investigate whether the unregistered security or promoter are legitimate, you can see why fraud promoters love self-directed IRAs.

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Skarbeck: Views abound on how to structure portfolios

There are many approaches and differing opinions on the best way to manage your portfolio. The conclusion comes down to which style or philosophy leaves you feeling the most comfortable while you fully understand the cost, risks and potential performance of that strategy.

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Kim: Steer clear of leveraged exchange-traded funds

If you are confident the S&P 500 will be 20 percent higher a year from now, you might think an exchange-traded fund (ETF) whose objective is to provide two times or even three times the return of the S&P 500 would be just the ticket to earn 40 percent (two times) or 60 percent (three times). You couldn’t be more wrong.

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Skarbeck: Sale of Washington Post reflects new world order

The sale price of The Washington Post Co. exposes just how far the industry has sunk. In the first half of this year, the iconic newspaper’s operations generated $138.4 million in revenue and lost nearly $50 million ($40 million of which was a non-cash pension expense).

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