About that LTRPA NAV-discount

Liberty TripAdvisor (NASDAQ:LTRPA) is a publicly trading holding company that is effectively the controlling shareholder of TripAdvisor, Inc. (NASDAQ: TRIP). Since the TripAdvisor stake is the company’s main asset, its fairly easy to track whether LTRPA stock is trading at a discount or premium to the current market value of TripAdvisor. Since 2018, Liberty TripAdvisor … Continue reading About that LTRPA NAV-discount

How did the Exchanges do in the Financial Crisis of 2008?

The companies that operate exchanges for securities, commodities and other financial instruments robust institutions. These companies are extremely profitable, with operating margins usually in the high teens. Extreme market turbulence has been caused by the coronavirus. As a result, stock markets globally have taken big hits since the beginning of the year. That the damage … Continue reading How did the Exchanges do in the Financial Crisis of 2008?

Hudson (HSON) is Officially a Net-Net Stock

Hudson Global, Inc. (HSON) is a company that specializes in recruitment services. The company is listed on the Nasdaq, after being spun out of Monster.com in 2003.  In 2013, Jeff Eberwein started building a position in Hudson through his fund Lone Star Value. In 2014, Eberwein was elected CEO. Entities affiliated with Eberwein own about … Continue reading Hudson (HSON) is Officially a Net-Net Stock

Embedded Optionality | FRMO Case Study

When people talk about the Quality of Earnings, what they usually mean is how well do current earnings predict future earnings. This is, literally, the textbook definition of earnings quality. The problem with this definition, however, is that it favours the stability of earnings above anything else.  What if, as an example, a future stream … Continue reading Embedded Optionality | FRMO Case Study

Return on (re)Invested Capital | TripAdvisor Case Study

TripAdvisor will announce its 2019 fourth quarter and full-year results in a couple of days.  The company began its life as a publicly-traded company on December 21, 2011, when it was spun-off from its parent Expedia (which itself had been spun-off Barry Diller’s IAC in 2005). Under the ticker symbol TRIP, TripAdvisor shares opened trading … Continue reading Return on (re)Invested Capital | TripAdvisor Case Study

Overstock | Retail Value and Risk Factors

On May 15, Overstock (OSTK) filed a Form 4 with the SEC. The filing disclosed that Patrick Byrne, Overstock's CEO and Chairman, had sold 500,000 shares of common stock in the open market. That revelation sent Overstock down about 15% on the day. For me, going long Overstock has been a humbling experience. The thesis … Continue reading Overstock | Retail Value and Risk Factors

Stock Exchanges | Beautiful Business Models

Stock exchanges are beautiful business models with very strong two-sided economics. In fact, you could say that they are multi-sided economics. Exchanges serve companies in need of efficiently racing capital through Initial Public Offerings, as well as serving sellers and buyers of risk capital by making the secondary market for those assets more efficient. Demutualization … Continue reading Stock Exchanges | Beautiful Business Models

Renn Fund | Enter Horizon Kinetics

On June 13, 2016, Steven Stein, the President of Etude Capital, LLC sent an open letter to the Board of Directors of the Renn Fund. At the time, Etude Capital and its affiliates held 12.4% of the outstanding shares of the Renn Fund (NYSE MKT:RCG). Two months earlier, a shareholder meeting had voted in favour of a … Continue reading Renn Fund | Enter Horizon Kinetics