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The following chart shows the returns on average equity for two companies over a decade. Returns on Average Equity Each company begins in the same spot, yet one begins an inexorable decline while the other maintains enviable performance. High and sustainable returns on equity are desirable and are one indicator of a business with a competitive advantage, so . . . Orbotech Ltd (NASDAQ: ORBK) is an Israeli company that services the electronics industry’s supply chain, providing equipment that is used for enhancing the yield of various manufacturing processes. Additionally, the company develops and markets a range of character recognition products used primarily by financial institutions. In the last week, three different people suggested I take a look at the company, which is highly unusual. The rough overview of the company that was provided certainly sounded interesting, . . . PMC Commercial Trust (AMEX: PCC) is a real estate investment trust (REIT) that specializes in loans to small businesses operating in the hospitality industry. Though the commercial real estate market and hospitality industries have been hurting (perhaps more than most other industries) due to the recession, PCC appears to have the makings of a compelling value opportunity due to the following: Safe asset base unlikely to be overvalued on the books Cyclically low earnings expected to . . . What if I told you that you could buy America’s biggest companies at a 30% discount? Apple (NASDAQ: AAPL) at $273 rather than $390; Amazon (NASDAQ: AMZN) at $145 rather than $206; Google (NASDAQ: GOOG) at $377 rather than $539? It can be done via an investment in Foxby Corp. (PINK: FXBY), a small closed-end fund with holdings in these companies as well as many other well-known large caps. Closed-end funds can often be the source . . . Asymco recently published an interesting visualization of the smartphone industry’s competitive landscape. This “vector space” model shows how competitors are performing over different time periods along market share and profit share dimensions. The graphs show that Apple (NASDAQ: AAPL) and Research in Motion (NASDAQ: RIMM) are becoming the dominant players, at the expense of some of the older smartphone manufacturers, such as Nokia (NYSE: NOK), which indicates to me that the incredible decline . . . |
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