STP finally bankrupt, and which PV solar maker can survive?

Suntech, once the PV solar industry leader, bankrupted finally. Very bad news to investors, especially small investors have less or no hedge. Good news to the industry? Not necessarily. LDK, JASO, YGE, and TSL are facing the same issues as well. If the industry could not stop burning cash effectively, bankruptcy would be the only destination.

Government policy can create the boom of industry when economy is healthy, and kill it when difficult. As no light can be seen at the end of the EU crisis tunnel, we can expect further and deeper subsidy-cut. Then, the biggest PV solar market will diminish. Accordingly, once prosperous PV solar makers will collapse one after the other. STP is just the beginning.

Six Flags Entertainment Corp (SIX) target price raised to $81.00 by B.Riley

Six Flags Entertainment Corp (SIX) target price raised to $81.00 by B.Riley

http://zolmax.com/stock-analysts-price-target-changes-for-march-22nd-cso-cxo-dre-etp-iag-mu-oge-qre-six-suss/51233/

This is ridiculous. Look at my comments>>>

Philipsays: March 22, 2013 at 8:16 pm
SIX FLAGS has a target price of $81.00? It sounds like that in May 2008 Goldman Sachs analysts’ forecast that oil would reach $200 within the next two years. God bless small investors.

Philipsays: March 23, 2013 at 2:01 am
Institutions are funny to publish so called target prices. Some calculation methodologies are highly subjective and even make no common sense. Sadly, many small investors trust such target prices just because they are published by institutes. Small investors should waste no time on such numbers if thy do not how calculated. Thinking independently would be more helpful.

SIX FLAGS Entertainment - stay away from its stock!

Stay away from SIX Flags Entertainment

A company survived from a bankruptcy 3 years ago witnessed the booming of its share price in the last 12 months. But, how far can it go?

Fundamentally, the operation cash flow is attractive and the EPS returned to reasonable range after releasing the latest full year report. Why a company that has strong cash flow turns out to be risky?

Here are the reasons. SIX Flag issued $800M senior notes in Dec. 2012 and the majority of this issuance was and will be used for share repurchase. Excluding this, the company spent tons of money on share repurchase already. Why risky? (1) A company continuously spent significant amount of capital on share repurchase is susceptible when the share price is at historic high. (2) The model of repurchasing with borrowed money to boost share price would not be sustainable as the leverage increases. (3)  The interest rate would stay low for the next couple of years? Correct, but intelligent investors would sell prior to the raise of interest rate. Can you foresee the time they start to sell? In 2012 Q4, Hass sold out all its SIX Flag shares already. Unfortunately, common investors can only learn this after it happened. And it is too late to response.

Interestingly, the facts behind are more interesting than what it looks like. A handful of senior executives of SIX Flags are receiving generous option, and vast majority of them sell the shares exercised immediately for cash. They are earning good money from the company but this would never be reflected to its cash flow statement. So, you know why they repurchase at high price and the intention to maintain a high share price. How far can it go? Do not know yet, but definitely would not be long. Do not forget, S&P just reached the 5-yr high.

Do not ignore the management team at anytime. The top management team have interesting track of records in driving companies bankrupt. If you look at the bios of them, the guys taking all the critical positions, you will find that they have great relationships, if not more than great. The team worked together to kill other companies and wipe off all investor equity. The only question to investors is that – will history repeat itself?

Disclosure: I short SIX but no position in the next 72 hours.

 

 

When DowJones reached all-time high again, what should common investors do?

As the market reached all-time high last week and media reiterates that the economy is speeding up, what should investor keep in mind?

First thing first, investors should focus on investment, not speculation. As the market is random walk, speculation would never get you rich.

Second of all, When everyone is saying market is great, that means successful investors are selling and walking away. Do not believe this, read through the story of Warren Buffet. 

Now, your personality counts. People are greedy, but we need keep in mind that only if you control yourself well you can reach your goal. And the goal should be consistent as well.

OK, with my blog, let us take a look at the interesting equity market. Please feel free to share your thoughts. Good Luck with your investment.