Patisserie Valerie

We were upset to hear of the demise of Patisserie Valerie and our sympathies to all those affected. I presented at Mello London in December, 2018 about the stock and I was shocked that so many smart retail investors had lost money. This video may help you avoid such traps in future.

Continue ReadingPatisserie Valerie

Aramco IPO Mirage

An IPO of Saudi Aramco in late 2018 at a valuation of $2 trillion (tn) has been widely trailed in the Press. We believe the Aramco IPO is unlikely to happen in 2018, if at all, for three main reasons: timing, the oil price, and valuation.

Continue ReadingAramco IPO Mirage

Closer Look at CAPE

Value investment blogs have been complaining that the CAPE on the S&P 500 is outrageously high. Last I checked the median EV:sales was now above 3x. But I am not convinced by some of the commentary on the extreme valuation of the CAPE, here’s why.

Continue ReadingCloser Look at CAPE