Comments for Goode Value Investing Blog

Comment on Perf Go Green Holdings: Another Pumped Up Penny Stocks Falls to Earth by michael

michael — Mon, 30 Jun 2008 15:01:47 +0000

Haha! Perf Go Green holdings put out the world’s puffiest press release this morning, stating that they sold out of their lawn and leaf bags after one hour on Amazon.com. They did not state how many of the items were available. Was it 1,000 or 100 or 10 or 1? The company stated that the bags should become available again later this week. This ’sellout’ was almost certainly engineered so that they could put out a press release. Otherwise, why not wait a few days until they had enough bags in stock? The lack of disclosure about how many items were sold leads me to believe that very few were actually sold and consequently there is little demand for this product.

Comment on Are your deposits insured? How to avoid losing money in the coming bank Armageddon by michael

michael — Sat, 28 Jun 2008 02:35:55 +0000

Even if an uninsured depositor receives all their money, it is likely that they will have to wait to get access to it. While some failed banks have all deposits (even non-FDIC insured deposits) transferred to an acquiring institution (like the bank you mention), it is not uncommon to have to go through the FDIC claims process (as with banks #2 (ANB Financial) and #4 (Hume Bank) on the FDIC failed bank list. In that case, uninsured depositors had to file claims with the FDIC. Oh, and this Marketwatch article lists two recent bank failures where some uninsured deposits were lost. These were Netbank, where 30% of uninsured deposits have not been paid, and Miami Valley Bank of Ohio, where only 94% of uninsured deposits have been paid (these data are from February). This recent balance sheet for Netbank indicates that there will be real losses for uninsured depositors. Same thing for Miami Valley Bank. Are you still so sure that I am uninformed? It is simple for depositors to spread money out across accounts to minimize their risk and ensure that all their deposits are FDIC-insured. Arguing as you do that losing uninsured deposits is "unrealistic", is wrong and it discourages people from acting in a prudent manner.

Comment on Are your deposits insured? How to avoid losing money in the coming bank Armageddon by Andy

Andy — Sat, 28 Jun 2008 01:54:02 +0000

wow…you really don’t know what you are talking about. Sorry for the sarcasm but I think you need to be a little more realistic. Banks are not going to be dropping like flies, and I would like you to articulate the last time an uninsured depositor lost their money before indicating you should not have over $100,000 in any institution. First Integrity Bank in Staples, MN was recently closed by the FDIC.

Did uninsured depositors lose money? No.
Was there difficulty in accessing funds? No.
Was it a seamless transition to the new owners? Yes.
Did the FDIC know what they were doing and have it planned weeks in advance? Yes.

Please provide more facts to support your assertions.

*As a disclosure, I work for a community bank. A real estate bank, and we are doing quite all right. Are margins tight? Yes. Are there more asset quality issues? Yes. But that brings more blocking and tackling and less business development. I think you are over reacting. Usually there are unusual circumstances that create the bank failure.

If you are getting in the market now, it is not a good time to short banks, the risk return is not there right now. You missed the boat…

Comment on Goodbye SeekingAlpha by ravinsu

ravinsu — Tue, 24 Jun 2008 21:39:55 +0000

Michael,

I have posted a reply to your bear case comments on Photo channel in seeking alpha. Do reply if and when you get some time.

Thanks

Comment on It is time to end Americans’ acceptance of debt by Alisa

Alisa — Tue, 17 Jun 2008 10:09:46 +0000

Here! Here!

Yes it is time that we stop digging ourselves into the bottomless debt pit! But the challenge is that many people really, honestly, do not know how. So many people are using spending as a way to deal with the problems that they are exeriencing in life. They don’t realize that the vicious cycle that they are in will never be broken, and is often passed down through generations, unless they are the one that break the cycle. And although it is not impossible, often it is not easy.

Be well.

Comment on Goodbye SeekingAlpha by michael

michael — Wed, 04 Jun 2008 13:28:05 +0000

Just to be clear on a couple things:

1. I will continue blogging here, no matter what.
2. I have also received many positive or constructively critical comments on SA, particularly in response to my housing bust articles.

Comment on Goodbye SeekingAlpha by Adam L.

Adam L. — Wed, 04 Jun 2008 13:23:51 +0000

What a shame. I found your blog via SeekingAlpha and love your analysis. Keep the posts coming.

Comment on Goodbye SeekingAlpha by Yon Michael

Yon Michael — Wed, 04 Jun 2008 09:37:10 +0000

Why not just ask them to turn off comments on your posts?

Comment on Goodbye SeekingAlpha by shortening

shortening — Wed, 04 Jun 2008 08:25:24 +0000

I quite enjoy your blog Don’t take the whiners personally. You are far more often right than they are, that is a given. It is hard going against the grain but worth it. The world is not all puppies and sunshine and somebody has to say it.
-a penny scam message board critic

Comment on Goodbye SeekingAlpha by michael

michael — Tue, 03 Jun 2008 19:17:10 +0000

That is easy for you to say. While others may benefit from what I write, I fail to see the benefit to me. Getting so many negative comments is quite stressful and stress (from this and other sources over the last year) has severely harmed my health. I will continue to write on this blog, and when I desire comments on a post I will copy a post onto my Motley Fool CAPS blog:
http://caps.fool.com/Blogs/ViewBlog.aspx?t=01001529370998141183