Digital River Inc: Fool Me Twice… ($DRIV, $MSFT)

When a company wishes to sell its wares online, it has the option of developing the capabilities to do this in-house or outsourcing this work. In-house development presents significant challenges not just in terms of getting a functional site built but also in ongoing maintenance and with state-by-state regulations, customer service, and security (the loss of sensitive customer data could present significant risks), so many companies choose to outsource to a company with the requisite skills and a proven track record.

Enter Digital . . .

→ Read More: Digital River Inc: Fool Me Twice… ($DRIV, $MSFT)

Takeaways from the 2011 Berkshire Hathaway Shareholder Letter

You can read Warren Buffett’s latest letter to shareholders of Berkshire Hathaway here [PDF], but in the meantime, I’ve provided my key takeaways below. Leave your key takeaways in the comments below!

 

On Succession

This is the big one everyone is talking about. Buffett has announced that his ultimate replacement as CEO has been chosen and approved of by the Board. Though this is newsworthy, I think the more important point here for most investors is the following:

. . .

→ Read More: Takeaways from the 2011 Berkshire Hathaway Shareholder Letter

QLogic Corporation: A Qualified Value Opportunity? ($QLGC, $CSCO, $IBM, $DELL, $HPQ)

QLogic Corporation (NASDAQ: QLGC) designs and supplies enterprise network infrastructure products. As of the time of writing (8/2), the company is hovering around 52 week lows as a result of a sharp sell off following the company’s fiscal Q1 earnings release. The company beat consensus EPS by $0.04 and revenue by $1 MM, but issued underwhelming guidance.

I am wary of large price declines resulting from guidance alone, so when I see this happen I tend to take a . . .

→ Read More: QLogic Corporation: A Qualified Value Opportunity? ($QLGC, $CSCO, $IBM, $DELL, $HPQ)

What I’m Reading: 7.4.2011

In no particular order:

What Would Ben Graham Do Now? (Jeffrey Towson via Amazon) Stay tuned for my review sometime this month. Pied Piper of Kynikos proves persuasive: Investors Piling into Bet Against China (Fortune) James Monter: An Ode to the Joy of Cash (GMO White Paper) Private Equity may lay siege to Hewlett-Packard (NYSE: HPQ) (PEHub) (Disclosure: Long HPQ) Microsoft (NASDAQ: MSFT) and RIM (NASDAQ: RIMM) lead group in buying Nortel patents (Bloomberg) (Disclosure: . . .

→ Read More: What I’m Reading: 7.4.2011

Forbes: Michael Dell on reinventing his company ($DELL, $HPQ)

Dell Inc (NASDAQ: DELL)  is one of the many tech bellwethers that appear cheap relative to long term earnings power. I wrote about one of its key advantages, the negative cash conversion cycle stemming from a best-in-class supply chain, here. Forbes recently interviewed Michael Dell on the changes the company is undergoing as it transforms from a “shiny box seller” to a supplier of broad IT products and services, similar to Hewlett-Packard (NASDAQ: HPQ) or IBM . . .

→ Read More: Forbes: Michael Dell on reinventing his company ($DELL, $HPQ)