Archive for August, 2014

A Confluence of Events

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A confluence of events means ideas from Buyside Notes are going to be few and far between over the next six weeks:

  1. I’m off to visit Company X (note here) which continues to provide a compelling risk-adjusted opportunity. If you are interested in learning more, email me and I’ll happily share my thoughts when I get back.
  2. I’m getting married here.
  3. We’re honeymooning here:


Lucky I am.

Lightstream (LTS) – When The Market Freaks Out, Rejoice

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Lightstream (which I’ve covered in-depth here and here) reported results last week (here). Included in those results was a downward revision to 2014 production volume, from 44k boe / d to 42k boe / d. The market did not take too kindly to the Company’s lower forecast, sending the stock down 10%.

But the market isn’t paying attention to the right things. And investors that know better should rejoice because acquiring ownership in LTS just became a lot cheaper. It’s a mantra that needs to be hung on every investor’s wall:

When the market freaks out and you know better, rejoice.

To the informed investors of Lightstream, this is what matters:

What’s interesting – and a point the market has clearly ignored – is that funds flow (operating cash flow after interest expense) is still expected to meet guidance. I repeat: there was no change to projected cash flow.

Rightside Group (NAME) – A Quote And A Chart

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A quote and a chart, presented without comment.

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– Paul Stahura, Donuts co-founder and CEO (source)

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