February 5, 2012

The Cat Thinks She Is My Boss

The Cat Sitting Like the Sphinx

The cat decided to claim my bed this morning.  She planted herself at my feet, sat like the Sphinx, and refused to budge.  She has also grown very talkative lately.  Oh, and she has a habit ... if I am reading a 10K or annual report and she wants my attention, she approaches me, stares directly into my eyes, and then sits on the papers so I can't keep highlighting or writing.  She will remain here steadfastly until I put her in my lap and pet her for awhile.  I really think she believes she … [Read more...]

Sugar Prices Hit 30 Year Highs

Imperial Sugar

I spent the evening reading through the annual report and SEC filings of Imperial Sugar on the iPad listening to the river outside with the windows open. (That would be an article in and of itself - the company had a huge explosion in 2008 at one of its sugar refineries, killing several employees and injuring dozens more.  The insurance proceeds have been paid and they rebuilt a state-of-the-art facility that is just now gearing up for full production.  Yet, they are off hedge accounting, … [Read more...]

The Problem with Tootsie Roll Industries for the Value Investing Crowd

Tootsie Roll Stock Products

For more than 15 years, I have watched the Tootsie Roll company and waited for it to be "fairly" valued or undervalued relative to the stable profits that churn out year after year like the chewy candies for which the business is known.  It's the type of company that I would love to have a long-term investment in that sits on the balance sheet of my operating businesses and compounds over the decades.  In fact, I love the idea of being able to pass on to my grandchildren shares of the company … [Read more...]

Dinner at Ruth’s Chris Steakhouse with Jocelyn and Aaron

Fresh Salad with Walnut from Ruth's Chris Steakhouse

Jocelyn came to visit Aaron and me!  After picking her up from the airport in Kansas City, we headed to a nearby Ruth's Chris Steakhouse because we wanted something good and it was unquestionably worth it.  I had read their annual report a few years ago and wanted to experience the food for myself.  I have never bought any shares but at least I understand the company better. The thing that made me happiest is that 1.) it's not the type of place you're going to run into a lot of so-called … [Read more...]

Sun Trust Bank and the Coca-Cola Stock

Coca-Cola and the SunTrust Bank Underwriting Fee

I'm reading the Sun Trust annual report and I realized that many, if not most, of you are probably unaware of the Sun Trust connection to Coca-Cola and how it gave rise to one of the greatest investments in history.  (As many of you know, we used the Coca-Cola direct stock purchase plan and dividend reinvestment plan to teach my youngest sister about stocks when she was a child.) When Coca-Cola went public in 1919, the underwriting was handled by two institutions, one connected to J.P. … [Read more...]

Our Value Investing Research Process for Stocks

Analyzing Sonic Restaurant Investment Reports Regarding Share Buy Backs

A week or two ago, I wrote an article called Understanding Stock Repurchase Plans for About.com, a division of The New York Times, which discussed Sonic Restaurant and the massive stock buy back program that had taken place over the past few years. In it, I walked the readers through a lot of the math and explained that I had purchased a couple hundred shares to watch and monitor the stock through one of my companies, Mount Olympus Awards, LLC.  (I've since increased it to about 500 shares … [Read more...]

Rainbow Pancakes

I came across these rainbow pancakes when reading the blogs and thought it was a really cool idea.  Of course, the fact that it reminds me of either a Christian Bible Camp or a gay pride parade is funny.  I like a little dichotomy in my breakfast.

I happened to be sitting at the dining room table, a cup of coffee in one hand, writing out plans for potentially launching a mutual fund this year (this time around, it's a Parker Duofold rollerball in an amber check pattern from the recent shipment of fine writing instruments we received at Kennon Home Accessories and its retail store, Kennon & Company).  As I was mulling over some ideas in my head, I was reading the blogs, which is my customary morning routine that began back in the … [Read more...]