Investment Ideas

Here are some investment ideas from blogs I have been reading. 

Controlled Greed is buying American Eagle Outfitters (AEO) and Whirlpool (WHR), while an earlier investment in Foot Locker has had some insider buying.

An outline of Mohnish Pabrai’s investment in Pinnacle Airlines (PNCL).

While Seeking Alpha has a number of articles about investment ideas discussed at the Value Investing Conference 2007.

The EMC opportunity looks similar to the arbitrage opportunity between Palm and 3com in 2000. The following quote is from an HBS article about the mispricing.

When the maker of these personal digital assistants went public on March 2, 2000, parent company 3Com owned 532 million shares, or 95 percent of the venture, a stash of stock worth $50.6 billion at the day’s closing price of $95.06. At the same time, 3Com had 351 million of its own shares outstanding, making its multibillion-dollar stake in Palm worth $144.08 per 3Com share. Yet 3Com closed the day at only $81.81. The stock market’s verdict was loud and clear. The way investors saw things that day, the rest of 3Com was worth negative $62.27 per share.

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