Interesting Reads: Government Barbershops Edition

by JT McGee

I haven’t done this in a while, so we’ll keep it simple:

  1. Don’t call yourself “landlord” – Interesting account of perception between “landlords” and “people in the real estate business.”
  2. Costs of Emergency Preparation – Andrea discusses the cost of preparing for emergencies, which is timely considering that we’re both practically waiting to see whether or not we die by tornado later today.
  3. House vs. Senate Barbershops – Long story short, the House of Representatives’ barbershop is profitable when the Senate’s isn’t. I would have never thought the Capitol would have its own barbers. Silly, really.
  4. Obama vs. Bush on Tax Cuts – PK wrote a great piece on tax cuts, and who gets the political benefit for lower taxes. Is Obama really a bigger tax cutter than Bush?
  5. HFT trading – The Economist concludes high frequency trading isn’t something to fear.
  6. My Storage Auction Experience – A post by MJTM about his experience at a storage locker auction a la Storage Wars.
  7. Rendering – Barron’s catches up with one of my stock market picks, Darling, advising that there is good upside remaining. I’m starting to like buying bigger names – lots more coverage, and apparently I haven’t lost an edge. You’re late, Barron’s!
  8. Yelp IPO – Internet review site, never profitable, IPOed and ran more than 66% in the first day of trading. The company has a valuation of $1.3 billion, and – I should say it again – has never turned a profit.

{ 3 comments… read them below or add one }

Darwin's Money March 2, 2012 at 20:34

I don’t know what to think about yelp; seems pretty overbought to me. I can’t get into too many IPOs any more, so hyped before they go public and so much money chasing them, it’s hard to envision all these IPOs selling for more than they open at a year later.

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JT McGee March 3, 2012 at 12:13

I can’t see Yelp ever managing to justify its valuation. Google and Facebook are both tearing into any advantage it has, and it’s still unprofitable, anyway.

I don’t know, I don’t even really try with tech any more, and IPOs aren’t usually established businesses, so they’re not really my thing. The most important thing I’ve learned is that I can tell myself no. I’m sure I could come up with some odd price for Yelp, but even if the numbers worked I’d still have to pass.

Besides, you could put 50 analysts on this thing and still have a horrible standard deviation between target prices. Any value to ascribe to it is unlikely to be found by a completely logical market, a best case scenario.

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PK March 3, 2012 at 12:23

Thanks for the include – definitely an interesting topic!

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