Enterprising Investor Forum

Here is a chance to have a look inside Wall Street and participate to a young hedge fund manager lunch to get a feeling for where they stand on investing, life and money:

Enjoy!

We were taking a look at the latest insider activity on the MSN lists: here. And it looks like automotive executives keep on putting their money on the table - once again, Autozone (AZO) and Autonation (AN) are on the top 10 list…

…well, not really all automotive executives. A closer look reveals that it’s Lampert that keeps on increasing his stake in these two companies: he now ownes 38,7% of Autonation and 31% of Autozone.

He stepped down from AutoNation’s board in May to devote more time to his hedge fund, ESL Investments Inc., and Sears (which we all know needs it!) and it is exactly through ESL that he is making purchases… he must be pretty sure of his bet!

Let’s see how this plays out.

Come back next Monday for more investing humor!

We thought that we would leave you on a lighter note going on into the weekend… actually, this is quite scary:

No matter how you look at it, we have to deal with waste. This is a growing concern not only in the States but all over the world: i.e. China, recent problems in Italy, etc..

Waste Management (WMI) is a provider of integrated waste services in North America. Through its subsidiaries the Company provides collection, transfer, recycling, disposal and waste-to-energy services. WMI’s customers include commercial, industrial, municipal and residential customers, other waste management companies, electric utilities and governmental entities.

Waste Management (WMI) has a solid track record and is also innovating in green technologies. The business models is recession proof (essential service) and will continue to provide strong and predictable cash flow.

The stock did get ahead of itself in recent times, also due to the hype around this sector. However, it has recently pulled back and we would recommend to keep an eye on it, especially if it retreats to under 30USD (which would also result in a 3,6% dividend yield).

Interesting Link - Cramer interview with Waste Management CEO: here.

Please read our disclaimer.

Ever wonder what companies in the S&P500 were hording the most cash? Well, based on the most recent quarterly reports, these are top 10 in billion USD:

1. ExxonMobil - 34.5b
2. Toyota - 23.1b
3. Microsoft - 21.1b
4. Apple - 18.4b
5. IBM - 16.1b
6. HP - 9.9b
7. J&J - 9.3b
8. Boeing - 9.3b
9. Oracle - 8.4b
10. EMC - 6.1b

This is definitely a good position to be in in these turbulent times. How will these companies use these resources and will they focus on shareholder value? Naturally, stock buybacks would be the easiest thing to do, especially if they can take advantage of depressed stock prices but rest assured that some of these companies will be look to make profitable acquisitions … there will be interesting times ahead!

Here is an interesting interview from Morningstar, just after the meeting took place this weekend.

Basically:

• No real worries on the derivatives side.. they will hold to maturity, therefore should not be a concern.
• Very interesting to note that Berkshire has put a lot of money to work and that they are looking for more opportunities - as always.
• Start of first ‘new’ business for Berkshire with Muni Bond portfolio.
• Buffett’s return expectation for Berkshire’s public equities is around 10% - as for Berkshire - simply due to the size of the Berkshire conglomerate.
• Upcoming trip to Europe to try and look for interesting family run businesses (mainly in Germany) - Berkshire is the ideal partner.

Enjoy!

Come back next Monday for more investing humor!

To get in the mood before the Berkshire Hathaway Annual Shareholders meeting this weekend:

Ford (F) is getting things right and whilst it is still far away from a complete recovery, they are quickly moving in the right direction.

Most people tend to focus on their difficulties at home in the US and overlook how well they are doing abroad and how profitable the are. With this momentum and new strong products, we feel that Ford offers interesting prospects for the patient investor.

Allan Mullaly has a great track record of turning around multinationals and has considerably strengthened the management team. Furthermore, they are free to focus even more on the operational turnaround and future strategy now that the new UAW contract has been finalized.

Most investors thought that this was simply a stock to trade or a contrarian pick but the street is realizing that this could easily be a 10 dollar stock in the near future.

Currently, the stock has been pushed up also due to the Kirk Kerkorian bid but we feel that it is worth seriously considering opening a position under 8 USD.

Please read our disclaimer.