As you can imagine, I am doing very little this week—hence the lack of posts. I hope everyone had a wonderful holiday! (I did) We ended the year on a strong note with the Tribune play. Some visitors have asked for more clarification as to how I analyzed the deal and I'll post that in the new year. A quick thanks to kfh227 for one of my new favorite quotes (I've used it a dozen times when talking about our Tribune play:

Don't try to pick up coins in front of the bulldozer.

Finally, a big, huge, monstrous thanks to all of you whom have visited, contributed, and keep coming back. Since the site's launch on June 25, 2007, F Wall Street has had more than 1,000,000 visits! In my six months of blogging, I have realized:

1. It is very difficult to post something every day because, well, investing is pretty boring.
2. There are some phenomenal blogs out there. (I never really looked before I started F Wall Street)
3. Spammers will do just about anything to get links on a site. (If you need airline tickets, coupons, cheap Viagra, or Russian babysitters, let me know)
4. If I wanted to make any money with the site, I's really have to bog you down with ads. (I've made just under $110 in six months, though I do not run F Wall Street for the money nor do I expect you to suffer through a bloated advertising website)
5. It takes a long time to sell and publish a book. (But more on that in January)
6. There are some wonderful people out there that are willing to go the extra mile for complete internet strangers. (Your willingness to comment and respond to comments is awesome)

And so, as we head into 2008, let me be one of the first to wish you a happy and healthy new year filled with peace, joy, and prosperity. See you next year!

Joe Ponzio

At $33.67, there is almost no upside and big potential downside if the deal falls apart last second. Just wanted to let you know that I sold TRB. Remember Buffett's rule: Don't lose money. There is very little risk left, but the few pennies on the upside do not justify the many dollars on the downside.

Just thought you'd like to know my thoughts.

The retail sector has been getting crushed lately. Though that breeds panic in most, it presents wonderful buying opportunities for long-term investors. Let me preface with this: I have heard it grouped in the same conversation with sub-prime loans. Are we really to believe that people will stop shopping? Can we compare that to banks lending money to people who can't pay?

But I digress. Let's take a look at a business that seems underpriced, but may not be a buy just the same — even if it is down 75% for the year.

Continue Reading When Your Business Competes In Price, Advertising ››

The markets have done some crazy things the past few days weeks months years. In fact, it is enough to make one's stomach turn. That is, of course, until you remember the key to owning stocks: There is a business under there — and that is what drives the long term price.

As Buffett said:

You go to bed feeling very comfortable just thinking about two and a half billion males with hair growing while you sleep. No one at Gillette has trouble sleeping.

Continue Reading The Business vs. The Stock ››

Last month I discussed selling options against positions when the markets are high and everyone is happy. The markets can do anything on a minute by minute basis; still, they tend to stay within certain ranges from month to month — even if those ranges are hard to predict. As with all investing, you need to estimate the odds of a certain event happening and invest your portfolio accordingly.

As a general rule of thumb, I expect the markets to drop swiftly and climb slowly. That's precisely why I don't like selling puts against my positions.

Continue Reading Don't PUT Yourself In A Position To Lose ››

Late last week, the FCC approved Tribune Company to own print and broadcast media in the same market. Why was this important? Tribune Company (TRB) is going private and the FCC approval was critical to this transaction. Without FCC approval, the deal might not have gone through. With that hurdle out of the way, what's to stop it now?

And how can we make money from it?

Continue Reading Use Arbitrage! The Tribune Company Example ››

Valuing companies and looking for deep discounts is pretty boring. For the most part, companies are generally priced right around their intrinsic business value which makes finding steals a difficult and often disappointing venture. In fact, it would make for a fairly boring TV show—even if you had bells, whistles, and mooing toys.

Such is the case with Abbott Laboratories.

Continue Reading Abbott Laboratories: Typical ››