Monthly Archives: January 2013

Redacted Version of the January 2013 Version of the FOMC Statement

December 2012 January 2013 Comments Information received since the Federal Open Market Committee met in October suggests that economic activity and employment have continued to expand at a moderate pace in recent months, apart from weather-related disruptions. Information received since the Federal Open Market Committee met in December suggests that growth in economic activity paused […]

On Insurance Investing, Part 3

Subtitle: The Value of Momentum and Mean-Reversion In the extreme short-run, mean-reversion dominates.  Over a year, momentum dominates.  Over a four year period mean-reversion returns. The same applies to insurance stocks.  This is perhaps more true of insurance stocks, because the accounting is so opaque.  When accounting is opaque, it takes a longer period of […]

Sorted Weekly Tweets

Rest of the World   Cyprus’s now-certain default http://t.co/H7TO0rQy Cyprus is not substantial to the EU, but it does raise issues as to precedence $$ Jan 26, 2013 Jobs At Al Jazeera http://t.co/HzukJDoL Hiring in the USA! Join the Wahabist Ministry of Propaganda; certainly more talented than most! $$ Jan 24, 2013 Mali Exposes Flaws […]

An Echo, but not Sound

Time for my penny stock scoreboard: Ticker Date of Article Price @ Article Price @ 1/24/13 Decline Annualized Splits GTXO 5/27/2008 2.45 0.040 -98.4% -58.6% BONZ 10/22/2009 0.35 0.019 -94.6% -59.2% BONU 10/22/2009 0.89 0.074 -91.7% -53.4% UTOG 3/30/2011 1.55 0.009 -99.4% -94.1% OBJE 4/29/2011 116.00 1.780 -98.5% -90.9% 1:40 LSTG 10/5/2011 1.12 0.061 -94.6% […]

On Insurance Investing, Part 2

If you grow book value, particularly if your liabilities are short, you will grow market value.  Many reinsurance and insurance companies aim at growing fully convertible book value per share. Fully convertible book value per share assumes that you invest your dividends in the common stock (without taxation), and thus compound your gains through reinvestment, […]