Give Thanks [2015/5/30]

Father, thank You for another awesome Saturday. I was tempted and I fell but I managed to pick myself up again. Jesus, let me become holier everyday.

1. Father, thank You for the wonderful church. It is always a blessing to have church that truly loves You and tries to glorify You.

2. Jesus, thank You for the good breakfast and Ok lunch. Thank You for the daily bread.

3. Thank You God for the nice walk. I walked for an hour in a nice neighborhood so nice.

4. Thank You Father for another sort of productive day. I didn't get much done but I got somethings done.

5. Thank You Jesus for the overflowing ideas. You are such a faithful and generous God. I have asked for wisdom and You have given me so much.

6. Thank You God for Kindle. Love reading ^^

7. Thank You Father for coffee and cake. What a heavenly combination.

Jesus, we just want to thank You for everything. Let us live by Your Word. Let us repent everyday so our hearts do not harden. Let us become more like You Jesus.

 

*From Floating Forests

Weekly 10-K: Supreme Industries 10-K [2015/5/29]

Supreme Industries came to my investment screen. Let's see if it is worth doing additional due diligence. This is not an investment recommendation. This post contains the notes that I took while reading a 10-K. The purpose is to show how I process 10-Ks and how I think about investments.

Please do your own due diligence.

Notes:

1. 40 year in business. Produces commercial truck bodies, trolleys,

2, Reinstated dividends. This is good.

3. Increasing backlog and cash.

4. Creates trucks within 4-8 weeks after the receipt of orders Fiber panel is light weight and durable, lowering operating costs.

5. There is intense competition with local firms. Business is cyclical and seasonal. I can see large body shops competing with Supreme.

6. Supply chain risk due to Chassis from GM and Ford.

7. Violation of noncompliance to environmental laws and potential product defect claim.

8. Idle facilities...

9. Firm has high insider ownership and low leverage.

10. No imminent red flags in the numbers.


Assessment:

It is an competitive industry and it does not seem to have a moat. Insiders own 25% of the firm and leverage is low so there is no imminent bust.

Given that there is no moat and that no catalyst could occur unless there is a major improvement in the business cycle, Supreme Industries is a pass.




*from Floating Forests

What I have learned today [2015/5/29]

1. Many traders have not seen a rate hike. Yup, this will be interesting. Hopefully, the older generation traders can help them so there is no panic.

2. Nostalgia increases creativity. I have not read the study but it seems to make sense. Thinking about the past makes you think more deeper and in detail and also you look at the past in another perspective, hopefully in a more mature sense. Also, you have the benefit of hindsight, which should help you think better and more analytically.

3. Swiss cheese hols disappeared as fully automated milking systems eliminated the growth of small hay particles that created holes in the cheese.

4. China is subsidizing inefficient farming, creating waste and pollution.

5. Paris city hall workers will cut the locks in Pont des Arts due to the concerns about stress on the bridge.

6.  Roughly 8,000 Chinese students were expelled from US colleges in 2014 mainly for cheating and low grades. This is not really a high number but still it concerning because China does not have its test centers due to cheating scandals. It is time that we stop academic dishonesty.

7.  Awesome pictures showing why archaeology is so cool and inspiring.




*From Snapshot Serengeti

What I have learned today [2015/5/24]

1. You can get great content from Amazon Prime.

2. There is an obsession with carved premium ice cubes for cocktails. I do find carved ice cubes interesting but I am not sure if it is really worth the cost and the effort. They do look nice and cool ^^

3. Eating fatty food will not make you fat. It is how much that you consume that matters.

4. High-fructose syrup and MSG are signs of processed food, not necessarily harmful.

5. Stretching does not prevent injuries. But warming up before exercise is good.

6. Ask wisdom from God and He will give You more than you have expected :D

7. There is so much dust in LA....somebody please help me clean...It scares me that all the dust particles are already inside my lungs :(




*From Penguin Watch

What I have learned today [2015/5/25-2015/5/27]

1. In asset bubbles, hold cash, gold, and real assets.

2. With the increase of chipped cards, other types of credit card frauds have increased.  Balloon effect at work :D

3. Productivity may be limited by cost of energy. This makes sense unless there are breakthroughs in making inputs more efficient, the output should be limited as the costs become uneconomic.

4. Finny Kuruvilla invests according to biblical principals. I have not done a due diligence on him but it is good to see that we can invest well following the bible.

5. India is ranked 142 out of 188 countries in the World Banks' "Ease of doing Business" list.

6. Japan's advance in robotics is likely to raise productivity in small-medium firms.

7. Fuld, ex CEO of Lehman, did not care much about risk before the end by not listening to the head of fixed income and risk manager. He cannot blame others. He did mess up by focusing too much on profit rather than risk management.



*From Snapshot Serengeti

Give Thanks [2015/5/28]

Father, we just want to thank You for everything. You are such a loving God. Let us spread Your Love to all nations.

1. Thank You God for the wonderful bed at home. I slept like a baby.

2. Thank You  Jesus for the awesome coffee. So nice to drink coffee while relaxing.

3.  Thank You Father for Carl's Jr. Ahhh a great deal for the calories.

4. Thank You Jesus for a wonderful church, where we can worship You.

5. Thank You God for another relatively productive day.

6. Thank You Lord for giving me more guidance about finance.

7. Thank You Father for the amenities around my house. Nice to have things in walking distance.

8. Thank You Jesus for teaching me about Your love through fasting. Yes, I am losing weight and also my concentration but definitely helps me concentrate on You, Lord. 

Jesus, thank You for bringing us closer to You. I know that we fail so much yet You love us so much. Father, let us live by Your Word and be the light of this world.






*From Penguin Watch

What I have learned today [2015/5/23]

1. Lips speak loud. Any forced or constrained movements in the lips is either something negative or does person is refraining from saying some thing.

2.  Barefoot running shoes do not improve health.

3. Research finds that extreme sport practitioners are actually more careful and manage risk more systematically. Makes sense if you know that one small mistake can cost your life, you will be extra careful. It is unfortunate that YouTube videos does not show this risk management aspect.

4. NYC citizens threw away so much nice stuff and artifacts. Luckily, the Department of Sanitation has created a collection of the nice stuff that should not have thrown away.

5. Always wash new cloth before you wear them because they may have chemical residues in them.

6.  Jimmy Fallon creates great content. His performances are quite good and funny. He is talented and has an exceptional staff.

7. Kickstarter should publish statistics about project delivery and investor satisfaction.



*From Snapshot Serengeti

Unusual Investments: Trailer Park [2015/5/23]

In the series unusual investments, I cover atypical investments. I am not an expert and I
 am not familiar with most these investments. But it is a great learning opportunity for all  of us.

Trailer park investing is apparently booming in the US. The investment thesis is that there are a lot of poor people who cannot afford traditional houses and have to move to trailers. It does not require much upfront cost and the poor and those with criminal records are pretty much stuck.

Here is how you maximize your returns.

1.Locate a trailer park close to public transportation.

2. Renovate and raise up the rents.

3. Divide trailer into 3-4 bedrooms.

4. Low maintenance cost.


In essence, the investment takes advantage of the poor.  I do agree that without this trailer parks that the poor maybe homeless but extracting the maximum you can from the poor seems problematic. I do not suggest a new regulation but instead urge new entrepreneurs to create more affordable and rehabilitating trailer parks so the poor can increase their living standards.



*From Snapshot Serengeti

What I have learned today [2015/5/22]

1. Human think in logarithmic scales

2. Children become very concerned with fairness at 7 or 8, a good time to teach against the biases including racism, sexism, agism and other negative stereotypes.

3. World' most popular  beer is the Chinese beer, Snow.  Interesting that none of the ten beers are from India.

4. You can spot fake wines by shining blue light on the wine's labels and the cork. If is a fake, the label will have modern printing.

5. So much art forgery. Yet, art forgery will persist with the rising art forgery.

6.  Bronze age woman remains show that women traveled in that area, suggesting that the social system and culture may have been more modern than we expected.

7. Bionic eye enables blind people to see shapes! This is amazing! Wow, hope this technology develops faster :D



*From Floating Forest

Give Thanks [2015/5/22]

Thank You Jesus for another wonderful day. I feel so blessed with all that You have given me. Let me sin less and become more holy.

1. Jesus, thank You for washer and dryer. It saves time and it cleans my sheets. Ah, so fresh and clean.

2. Father, thank You for the great lunch and dinner. Feel so blessed for the daily meal.

3. Jesus, thank You for bringing my friend to worship. She is struggling and I pray that You heal her so she can too join your work.

4. Thank You Lord for loving us so much. You have blessed so much. Let us always be joyful and thankful.

5, Thank You Father for the Finviz. So nice to find potential investments for free :p

6. Thank You Jesus for Amazon. It really makes my life comfortable.

7. Thank You God for the nice breeze. I love relatively cool days.





*From Floating Forests

Give Thanks [2015/5/21]

Father, we just want to thank You for everything. Let us become more holy everyday. And be more loving.

1. Father, thank You for the pleasant drive to school. No cars, took me only 15 minutes to school wow!

2. Thank You Jesus for nice parking spots. It is a good day.

3. Thank You Father for great colleagues.

4. Thank You God for giving me the discipline to maintain blogs. It is really harder than you think and that is why so many people quit.

5. Thank You Father for Kindle. Yes, I love readin.

6. Jesus, thank You your wisdom. I pray for more wisdom and let me be more holy in You.

7. Thank You God for my mattress. Ahhh...so comfortable.

Thank You Jesus for everything. Let us be more humble and loving. Let us live by Your word.



*From Snapshot Serengeti

Quick IPO Analysis WingStop [2015/5/21]

So let's see what WingStop's IPO has to offer~

*I originally start reading the S-1, then got busy so now I am reading the S-1/A.


1.Offers divers flavors and has strong brand. Social media savvy? I guess this could be a strength. They use hashtags to prove their point haha.

2. Experienced management team.over 20% operating income margin, 10% net income margin. These are good numbers for restaurants.

3. Bone-in chicken wing price risk. I guess they may not be so good at hedging as Fogo de Chao.Chicken cost represents 65% of all purchases.

4. Use of proceeds to repay debt...well, not the best usage of capital but it is a PE controlled company.

5. Wow, strong net income, almost 23%!

6. Oh, internal control weakness

7. According to Technomic, fast casual segment generated approximately $34.5 billion in sales in 2013.

8. WingStop has growth potential in the US and international, it is not saturated yet.

9. 30% goodwill, 70% leverage. At a quick glance, there does not seem to be a red flag.

Assessment:

Pros:
-Strong growth, revenue is growing quite fast without much impact on the margins.
-High net income.
-Seems to have some moat with its menu


Cons:
-The firm does not seem to be good at hedging its supply. With the recent avian flu, I expect that the increased costs will affect the profits, especially when  chicken accounts 65% of all purchases.

-Not much moat. I can see gourmet chicken wing restaurants easily taking away market share. Or KFC stepping up the game.

I think the firm has some moat and growth but I need to do more due diligence. The avian flu will definitely impact the firm's bottom line. For research, I should go try some wings :D



*From WingStop S-1/A

Give Thanks [2015/5/20]

Father, I just want to thank You for everything. Let us be always be joyful in You. And truly show how much we love You.

1. Thank You Jesus for another productive day. Wow, I am getting things done. Thank You for your wisdom.

2. Thank You Father for electricity. I can't imagine a life without electricity. Oh wait, I know actually...and it's not good.

3. Jesus, thank You for the wonderful dinner at Church. Aww...good food.

4. Father, thank You for teaching us about Israel. Let us pray more for the restoration of Israel.

5.  Thank You Jesus for Kindle. I love reading before going to bed.

6. Thank You Lord for the bible. It really makes me wiser everyday. I know that I am still very naive and immature but Your Word makes me a better man everyday ^^

7.Thank You God for coffee. I love coffee, specially good coffee. It is such a blessing to enjoy coffee in the morning.

 

From Penguin Watch

What I have lerned today [2015/5/20]

1. Math about shapes are fascinating and provide important applications in our lives.

2. For profit schools grew fast by exploiting federal student loans.

3. If you can't fall asleep just get up and do something that does not involve a screen.

4. Nuclear fusion is making some progress.

5. Hedge fund activism will increase with low interest rates.

6.  Cooking steak over molten lava! Awesome.

7. Doomsday vault keeps the seeds in case of Apocalypse.



*From Snapshot Sergenti

What I have learned today [2015/5/21]

1. Chinese casanova with 17 girl friend is charged with fraud. Wow, he must really have a good memory and organization skills.

2. Mountains have many shapes. Did not know that.


3. Man strips naked to protest against delayed flight. Wow...he must have been really upset.

4. Machine learning backed by super computers are in sweeping Wall Street. More quant trading will hopefully make markets more efficient but I predict more crashes and booms as the algorithms are correlated and just due to errors. As a value investor, this will create some good opportunities but I will always make sure to be well hedged.

5. 80% of retail company cost is tied to real estate! Wow...no wonder Amazon is steamrolling all the retailers.

6. During the 18th century in England, bandits robbed wigs. I guess wigs were the Rolex of the 18th century.

7, There is tremendous food waste in the US. We can stop this loss by accepting less than perfect fruits and donating whatever is not accepted into markets to the poor.




*From Snapshot Sergenti

Give Thanks [2015/5/19]

Father, thank You for a wonderful church. It is such a blessing to be in a church that loves You and yearns for Your return. Father, please bless us and give us the power to proclaim Your Word to all nations.

1. Thank You Father for a wonderful church, where we can pray as one. Father, thank You for such loving brothers and sister in Christ.

2. Thank You Jesus for a good prayer. I have been tempted so much by lust that I was literally being thrown around but today's prayer session gave me the strength to win lust and be holy. Father, let me pray more and serve all nations :D

3. Thank You God for another productive day. It is such a blessing to be productive. It is all thanks to Your wisdom.

4. Thank You Lord for water. I drank tap water today and it was still good. Thank You Father for running water.

5. Thank You Jesus for smartphones. So much more fun and efficient. Thank You.

6. Thank You Father for good legs. It is good to walk around the neighborhood. Ahh so nice.

7. Jesus, thank You for Kindle. I am reading more :D Wow, I can't wait to go to the beach and just read and relax.

Jesus, we just want to thank You for everything. Thank You for Your blood that we are saved. Father, let us work tirelessly to build Your kingdom. Let us have a loving heart so we can serve all nations ^^



*From Snapshot Serengeti

What I have learned today [2015/5/19]

1. Raining spiders in Australia. Spiders "balloon" by going up high on trees and jumping. Well, then, one more thing to be wary when going to Australia.


2. Spy Dust used by the soviets is not lethal and can be used trace humans and car movements. Well, now we have GPS.


3.  Audi created a luxury bike that is extremely durable and costs $20,000. I like durable but for $20,000, I can buy bunch of cheap bikes and enjoy the rides.


4. Scientists have used 3D printing to reconstruct an injured turtle's beak and returned to sea. Wow...this is what I call cool! Awesome use of 3D technology :D

5. Pigs are raised in depressing conditions in the US. They are confined and are poisoned by their waste....I love bacon and we must stop this. I will pay more for ham and bacon as long the pigs are treated better.

6. Carl's Jr came out with an 1,080 burger. Well, then...it is important to eat good food but please do think about your health and how it will affect others if you are ill.

7. Hedge fund activism is quite interesting. Still a lot of things to research and learn.




*From Floating Forests

Give Thanks [2015/5/18]

Jesus, we thank You for everything. You are such an awesome God. Father, let us keep Your Word. We are very weak and naive but God strengthen our hearts and let us be the light and the salt of this world.

1. Father, thank You for another productive day. I learned a lot about STATA graphs...wow...talk about syntax issues :p

2. Jesus, thank You for giving me the heart to repent. Yes, I sin a lot but Father thank You for giving me a way to always come back to You.

3. Thank You Father for the wonderful Pho and ice cream. Yup, LA has good food.

4. Thank You Jesus for good friends. We often forget how lucky we are to have good friends. Thank You.

5. Jesus, thank You for Kakao and Wechat. It is so much easier to communicate with friends. Father, let us be wise and use these messengers wisely to spread Your love.

6. Thank You Lord for bananas and oranges. They are delicious and cheap. Love my breakfast and snacks!

7. Thank You Jesus for leftover BBQ. Still tastes delicious. Should have brought more back home.

8. Thank You Father for Quora. Lot of good questions and some decent answers :D

Father, we just want to thank You for everything. Let us be Your true disciples and spread Your love.



*From Snapshot Serengeti

What I have learned today [2015/5/18]

1. Dissertation provides excellent review of the literature given that its the master piece of the PhD program. So read dissertations for more details :D

2. There are over 116 million age of 80+ and 15 million over 90+ and 426,000 age of 100+.

3. Pilgrim, Sanderson Farms, Tyson and Perdue dominate the chicken industry.

4. Chicago has huge unfunded liability problem. Time to raise taxes and cut costs.

5. Solar panels installed at home at least cost twice as much as gas energy without the subsidies. We need to lower the subsidies and use that money instead on developing more efficient solar panels.

6.Avian flu is hurting egg producers.

7. Carl Icahn was a philosophy major and he started making money in options and arbitrage.





*From Floating Forests

Give Thanks [2015/5/17]

Father, thank You for a wonderful time of fellowship. It is just a blessing to have a great family in Christ :D

1. Father, I just want to thank You for the great worship. The message was short and powerful and the food was good. So nice to relax in a park.

2. Jesus, thank You for Your wisdom. I am learning so much, literally. Wow, You just make me wiser everyday. Let me live by Your word and become wiser day by day.

3. Thank You God for coffee. I am so happy in the morning just drinking coffee and eating chocolate and then some fruits. Ahhhh...too bad time flies so quickly when you are enjoying.

4. Thank You Father for parks. They are really nice. I wish our cities had more green space. I pray for cleaner and more pleasant environments.

5. Thank You Jesus for the refrigerator. I can't imagine a life without a fridge. Well, I can actually and it is not pleasant.

6. Thank You Lord for a nice neighborhood. I love walking around my neighborhood very pleasant.

7. Jesus, thank You for the "Elevate" App. It is quite nice and creative. Innovation is gooood.



*From Snapshot Serengeti

What I have learned today [2015/5/17]

1. Airplane flight system can be hacked through Inflight Flight System.

2. Sony Walkman upgraded its audio for serious audiophiles at a price of $1,200. Well, good sound is good but...still too expensive...and people want to carry less not more.

3. Hershey is 3D printing chocolate. Customized chocolate sounds like a good idea.

4. Antipsychotic drugs have unintended long term consequences and should be taken as a last resort.

5. Bill Gates has lot of real estate but this small compared to his equity positions. The lesson? Buy good real estate property and it will rise with time :D

6. Women like to be complemented about their shoes. Hmmm...got it.

7. Defined benefit pension plans existed since the 1850s.




*From Penguin Watch

Give Thanks [2015/5/16]

Jesus, we just want to thank You for everything. You have given us so much. Let us always be thankful and joyful and share Your love with all nations.

1. Father, thank You for an extremely blessed day. I really felt so blessed. Father, you just have given us so much. Thank You.

2. Jesus, thank You for the daily bread. Always thankful that I have something to eat. Father, I pray that You bless those who are less fortunate that they can be blessed with Your love and daily bread.

3. Thank You Lord for lots of wisdom. I confess that I am very naive and idiotic but Father You give me so much wisdom. Thank You for Your insights about life and research.

4. Thank You God for my computer. Yes, it works very hard. Without it, my life would be harder and boring.

5. Thank You Jesus for running water. I just think of all the things that we take for granted and running water, is just a great gift. Thank You.


6. Thank You Jesus for good investment in Lending Club. Wow, yesterday, I found some good loans :D


7. Thank You Father for giving me the power and the will to struggle with sin. Yes, I have succumbed but at least I tried. I will try harder. Father, please make us more holy.

Father, we want to praise You. Thank You for letting us know about Your great plans and giving us the will to worship You. Jesus, let us be more faithful.



*From Snapshot Serengeti

What I haved learned today [2015/5/16]

1. Sriracha is made in CA by Huy Fong. Siracha sales has increased every year for 30 years. And there is a supply risk because Siracha only buys from one supplier.

2. Sriracha was originally created in Thailand and it's called Siraja. For a short documentary of Sriracha, please see  Sirracha on Amazon Prime.



3. Chinese hackers have been hacking US universities that do research for the US government. Wow...really?! We have to draw a line somewhere. You can't just attack anywhere you want just because you can. This really shows that we really have to increase the cybersecurity and also have more ethics. If they are willing to hack schools what else are they doing?!

4. There are not many pension papers than I expected...hmmm

5.  The war on drugs has perverted the cop's incentives as they could fill their arrest quotas more easily by booking people on drug charges rather than investigating crimes. As a result, other crimes such as burglary, theft, and fraud are less likely to be investigated, leading to increase in these types of crimes. 

6. Some hedge funds keep changing names...hmmm...I wonder why? Should investigate this phenomenon

7. Times goes by fast when you enjoy your coffee in the morning :(



*From Snapshot Serengeti

Limitations of Sovereign Wealth Funds

Although sovereign wealth funds have been lauded as investment vehicles to ensure the

prosperity of the nations given their size and horizon, there are three major limitations.


First, incentives may not be so aligned between the sovereign wealth fund professionals

and the nation. The investment horizons are quite long at least ten years, and the

investment professionals who engaged in the investment may be gone by then or off the

hook by simply saying no one can predict the future. Also, sovereign funds are large and

do not face immediate redemption, which may lead professionals to take either

excessive risks or be less careful in the due diligence, since the consequences are not

as severe compared to a fund that might face immediate withdrawals in case of

underperformance. Plus, sovereign wealth fund professionals also face a revolving door

problem, where they could get paid more by funds, leading to conflicts of interest.


Second,sovereign wealth funds are extremely huge. Such size gives a lot of leveraging

power during investment negotiations but it is also a huge obstacle. Given the size,

sovereign wealth funds cannot invest in assets that are too small. For instance,

sovereign wealth funds cannot invest much in small stocks because it may literally buy

up a huge portion of the small stock market, becoming a market itself. In addition, the

sovereign wealth fund cannot be nimble, it takes a long time to unwind positions. If they

sell or buy too quickly the market might move too much and quickly, resulting in losses.

Hence, it lacks investment flexibility.


Third,  sovereign wealth fund may be affected by politics. Sovereign wealth funds are

generally independent and immune from politics but when things go bad politicians will

demand certain changes in strategies, which may be either suboptimal or catastrophic.


Overall, sovereign wealth funds are a good attempt to utilize the nations' capital more

efficiently; however, it is important to be aware of their limitations. In essence, sovereign

wealth funds may help with the nation's prosperity (a bit) but it is no gold-egg laying

goose.




*From Snapshot Serengeti

Give Thanks [2015/5/15]

 Jesus, we want to thank You for everything. You are such an awesome and loving God. Let us always reside in You and spread Your love to all nations.


1. Father, thank You for Corner Bakery. Yumm..they have great coffee and sandwiches.

2. Jesus, thank You for the great R workshop. Yes, it could be better but I learned what I needed to learn.

3. Thank You God for the pleasant drive to UCLA. Wow, such nice houses. And it's just a very pleasant place. I pray that Your presence grows in UCLA.

4.Thank You Lord for the health. I have a fever and I realized how much you have blessed me. Thank You for making me humble again because I was too confident about my health.

5. Thank You Father for great wisdom. You have given me so much wisdom these days especially in research and life in general. Thank You for opening my  mind. Let me be more humble and rely more on You.

6. Thank You Lord for Amazon Prime. Ahh so many nice movies to see. Just wish I had more time. We are living in great times ~

7. Thank You Jesus for the rain. I pray that You rain more blessings on LA. Let this land be restored :D

Father, we just want to praise You for everything. We are so unworthy yet You have blessed us so much. You are so faithful. Let us be more faithful and spread the blessings and the love that You have given us.




*From Snapshot Serengeti

What I have learned today [2015/5/15]

1. There is a warm blooded fish!

2.Cocktails taste better in the airplane potentially due to high decibel impairing one's sense of taste. Hmmm...maybe that is why booze taste better in bars and clubs?

3. Flight delay data shows that there are more delays in the early evening and on Fridays. We will need to do more detailed analysis but better beware :p


4. Private planes have higher chance of crashing due to customers' whim? I am sure customer does affect the pilot but I think it may be also due to the fact that private planes are usually smaller...


5. Floating metals already used in building ships. I guess they can substitute other metals used currently to reduce weight and save energy.

6. R graphics is just amazing :D

7.  Hmmm...what is the analyst forecasting when he forecasts earnings?



*From Snapshot Serengeti

Give Thanks [2015/5/14]

Father, thank You for another lovely day. We just want to thank You for giving us so much.

1. Father, thank You for the rain. LA needs more rain. Jesus just pour down Your blessings on us.

2. Jesus, thank You for lunch. I just want to thank You for the food that You always give us.

3. Thank You God for PERL. I am not good but I am able to get things done. Thank You :D

4. Thank You Lord for Google Maps. I would be lost without it. I can't even imagine how people drove before.

5. Thank You Jesus for giving me the discipline to write my diary and blog everyday. Well, the quality is hmmm...but it will get better.

6. Thank You Father for giving me the strength to beat temptation. It is truly Your power.

7. Thank You Jesus for making me a bit wiser everyday. I am so naive and near sighted. Father, let me see in Your perspective.

Jesus, we just want to thank You for everything. We pray that You pour down Your blessings in LA. Let it rain! Let the grace overflow through all nations. Father, we need You. We pray that You heal this land as You have intended from the beginning.



*From Snapshot Serengeti

What I have learned today [2015/5/14]

1. Sugar price has crashed due to overproduction but expect a price rebound with lower production and increased consumption.

2. Annual cost of card fraud in the US alone is about $8.6 bn. Chip and Pin do not prevent other ID thefts.

3. There is an increase in food art, and a piece by Lernert and Sander looks awesome. I love the display by 2.5cm cubes of all types of unprocessed foods.


*From Lerner & Sander


4. Research finds that children that grow up in a multilingual environment are better communicators.

5. Facebook is going to provide $15 dollars with $15 vacation days and $4000 bonus for having a child for contractors and vendors. I agree with Facebook's policy of treating contractors and vendors better but I am not sure whether $15 is the magic number. Maybe some contractors deserve more and others deserve less. Also, Facebook has to maintain its costs as well. All departments have budgets to meet so I would not be surprised if we see other type of outsourcing instead of using contractors and vendors.



*From Floating Forest

Give Thanks [2015/5/13]

Father, thank You for another blessed day. It is such a blessing to be closer to You. Jesus, please make us more holy and loving everyday.

1. Father, thank You for the great lunch. I love Korean cold noodles. So delicious.

2. Jesus, thank You for great coffee. Yes, it is expensive but once in a while... :P

3.Thank You God for teaching us more about Israel. Let us pray for the restoration of Israel so that we can hasten Your return.

4. Thank You Jesus for helping me catch up on my other projects, which I have been forgetting about. Father, please give me more wisdom and discipline and let me glorify You through my research.

5. Thank You God for a lovely weather. It is slightly cold but marvelous. Thank You for the breezes.

6. Thank You Jesus for my bed. Yes, I love lying down when I get stuck with my work. Ahhh...so comforting

7. Thank You Lord for blogger. Maintaining this blog would be more cumbersome and annoying without blogger. Thanks You Google :D

Jesus, we just want to thank You for everything. Let us be more thankful for everything that You have given us. Father, give us a loving heart so that we can be more loving.



*From Floating Forests

What I have learned today [2015/5/12]

1.  Picasso sells for $179.4 M, an all time record for a work at an auction. I guess it would be an ok investment given that art prices usually go up with time.

2. Buyside can lead the reforms in the market

3. Mediterranean diet rich in nuts and olive oil may lower cardiovascular diseases.


4. Drinking coffee is associated with lower hear disease, lower risk of Type 2 diabetes, and perhaps reduced cancer.

5. LA downtown is much nicer than I thought.

6. Error handling can be annoying but need to learn to better diagnose errors.

7.The short books on Kindle are not that bad. They are ok....I should start writing one too :D



*From Snapshot Serengeti

What I have learned today [2015/5/13]

1. Roughly you can earn $2 for 1000 views in YouTube.

2. A Taco Bell store in Chicago applied for a liquor license. Hmmm..I remember Starbucks planned on selling booze before but don't think it happened. I guess Taco and beer could work. Do I hear money?! We'll see whether other fast food chains follow Taco Bell.

3. Wegmans shows that super markets can provide great food at a cheap price and have a happy work force. The store is also known for good food waste management and theatrical display. Price is the only thing you can offer when you cannot offer anything else.

4. America is quickly losing soil! The fear may be overestimated but the problem is not small. Time to farm more sustainably.

5. Fishers, loggers, pilots, miners, roofers, and garbage collectors are more likely to die compared to other professions.

6. North Dakota produce North Dakota caviar. Time to taste this beauty :p

7. Rat extermination is becoming more high tech including transgenic rats. However, one of the most effective ways to exterminate rats is to litter less and less food waste. Yup, so please don't litter.




*From Snapshot Serengeti

Give Thanks [2015/5/12]

Father, we just want to thank You for everything. Every moment is a blessing because we know that we are with You. Let us always be joyful and spread the bliss with all nations.


1. Father, thank You for a nice haircut. It is relatively cheap and walking distance ^^

2. Jesus, thank You for the laundry machine, it really saves us time and energy.

3. Thank You God for Your kind and overwhelming wisdom. I sin a lot and today, You gave me another way to battle sin.

4. Father, thank You for a great parking spot :D

5. Thank You Father for the lovely dinner. Yummm great food.

6. Thank You Jesus for a nice walk around downtown LA.

7. Thank You Jesus for giving us the heart to pray. Let us pray more in unison.

Jesus, we thank You for all your blessings. Let us be more loving and courageous. Let us walk with You everyday and bless all nations.



*From Snapshot Serengeti

Move from Active to Passive Investment

Wealth managers and automated investors are increasingly moving away from active investing.

This is a good sign given that many active managers do not justify the fees and that there has been too much competition for alpha in the past few years.

However, a shift to passive investment may have unintended consequences. First, we are likely to see more correlated moves, as passive investing strategies move in coordination. This will likely result in temporary shocks and shifts in the market. For instance, imagine if all the investment strategies based on certain valuation measure suddenly sold off, this will create a crash in certain stocks and even the market.

Second, passive investment does not utilize all the information. There is much more richer information beyond simple accounting, return, and economic measures. Financial reports, consumer reviews, and all types of news and blogs provide rich information about the firms and the market. Utilizing less information, is likely to decrease the overall efficiency of the markets.

Similarly, passive investments may not capture the shift in the markets. Sometimes there are disruptions in the market such as the tech boom or influx of cash from abroad, such trends may not be processed by passive investments leading to underperformance. For instance, the world may invest in the US due to limited opportunities elsewhere, however, such sudden influx of cash may be thought as overvaluation leading the passive investing to sell, which may lead to missing out an uptrend.

Hence, although we welcome the shift to the passive investment, it is important to acknowledge that there is a trade-off between fees saved and increased performance vs. increased correlation between stocks and less efficient markets due to lower usage of information.

PS
However, I am confident that the market in the long term will correct itself and achieve the optimal mix of active vs. passive investing.



*From Snapshot Seregneti

Give Thanks [2015/5/11]

Father, we just want to thank You for everything. We confess that we are sinners yet You love us so much. Jesus, let us be more holier and more caring. Let us not be lazy but be more loving.

1. Thank You God for the short commute and nice parking. Ahhh...only took me 35 minutes.

2. Thank You Father for the free lunches. Panera Bread so good. Thank You for the daily bread ^^

3. Thank You Jesus for some rest. I have been working a lot and resting yesterday was good. Although it was more like fainting :p

4. Thank You God for Amazon prime. The content is getting is better and I can't wait to see more movies.

5. Thank You Lord for a loving family. I pray that my family becomes a family of believers so that we can all worship You together.

6. Thank You God for the nice breeze. I like the sort of cold breeze, it makes me feel more alive.

7. Thank You Father for Kindle. Love reading on my bed.

8. Thank You Jesus for helping us pray for the restoration of Israel. Father, let us pray more for Israel so that we can hasten Your return.

Jesus, we thank You for everything. We pray that You give us more wisdom so we can do Your work more effectively. Father, give us wisdom, so we can rely more on You and live by Your laws.




*From Snapshot Serengeti

What I have learned today [2015/5/11]

1. Diabetes drug prices are increasing. There are only three companies and price matching seems to be going on.

2. Choose the fixed annuity features carefully.

3. To save on car insurance take defensive driving class and always shop around once a year.

4. Non-financial American firms hold 1.73 trillion in cash. More acquisitions and buybacks are likely. Hopefully, the cash will be used efficiently.

5. There is a robot that delivers stuff in hotels. Wow...less people needed in hotels.

6. Tabacco tax revenues are down. Less people smoking, healthier lives :D

7. Companies  subsidize trips to expand employee's perspective. This is a great policy. I strongly believe traveling opens your eyes and expands one's thoughts.




*From Snapshot Serengeti

Quick IPO Analysis Fogo De Chao [2015/5/11]

I love Fogo de Chao. Love its meat and food~ Let's see if I will love its stock equally :D


1. Adjusted EBITDA is here!

2. Fogo de Chao is 35 years old and features up to 20 cuts of meat.

3. Each restaurant generates 8 million with a gross margin of 32.5%, this is really high.

4. I am not sure if interactive and approachable fine dining experience is the case. Basically, I just tell what meat I want not sure if that is really interactive or approachable.

5. An average person spent $59, yup, this is definitely high end category. On average, a new restaurant recovered 40% of the initial investment within the third year. So within seven years, everything will flow to profits directly, wow.

6. Make more by using bars, alcohol only accounted for 17% of the revenues.

7. Have an expert real estate team so this should be favorable. I am not sure if I can evaluate this though.

8. They decreased food and average cost even when beef price jumped 20%. This is really operation skill :D

9. Anti-takeover...not so lovely governance structure.

10. OK more than half of the assets is goodwill!! hmmm...Has some debt.

11. Restatement of SAR plan...ooohhh not big but still not good.

Assessment.

Pros: High gross margin, strong operating history, and experienced management. Good at managing costs.

Cons: There is restatement, which is never good.

Overall, I think Fogo de Chao may be a good buy given its operational strength. Further, due diligence coming up~






*From Fogo de Chao S-1

Give Thanks [2015/5/10]

Thank You Father for a wonderful worship. Let us pray more instead of deciding ourselves. Let us hear Your voice and seek out what pleases You. Jesus, unite our church so all of us can pray together in unison.

1. Thank You God for the wonderful worship. Just as the disciples prayed in unison, let us all be united in Jesus and pray in His name.

2. Thank You Lord for the wonderful lunch. Ahhh...filling.

3. Thank You Father for the efficient small group and all those who helped clean up. You guys are the real MVPs ^^

4. Thank You God for my water pik. Ahhh...love to clean my teeth and massage my gums. I have not had serious toothaches after cleaning my teeth with water pik :D

5. Thank You Jesus for a walking distance grocery stores. I should be less lazy and more thankful. The line was not long either so more thanks :D

6. Thank You Lord for a productive day. It has been a while that I met deadlines given unseen circumstances (mainly data being bad) but today I am pretty much done ^^

7. Thank You Father for all the wisdom. Let us be more loving and forgiving. Let us not judge. Father, let us expect great things from You and rely less on others.

Father, we just want to thank You for everything. We know that we have lot of work ahead of us. Jesus, let us be thankful for all the tasks that You have given us. Let us be joyful when we do Your work. Let us sing and praise when we work for Your kingdom :D





*From Snapshot Serengeti

What I have learned today [2015/5/10]

1. There are 15,700 garment workers in NYC. In 1960, 95% of US clothing was made in NYC.

2. Pandanus candelabrum plant grows in columns of kimberlite, which may carry diamonds. So find Pandanus candelabrum plant and you increase the chance of finding diamonds :D

3. Alabama started taxing digital goods.

4. Dubai has been proposed  an underwater Tennis court. This sounds very cool but also an alarming waste of resources? Dubai could use that money to invest in education and treat its migrant workers better/

5. Rural farmers are becoming more productive by providing locally; thus, growing the local economy. I think this is a good start, I expect more efficiency gains through the development of the local economy, which attract further talent and resources.




*From Snapshot Serengeti

Give Thanks [2015/5/9]

Thank You Father for giving the privilege to help the street people. Let us pray more for them and serve them with love so they too can Know You Father.

1. Thank You Jesus for giving the privilege to serve the street people. Father, give us more loving hearts so we can love them more and help them get closer to You.

2. Thank You God for the lovely brothers and sisters in Christ. Let us take more care of each other.

3. Thank You Lord for another productive day. I am getting closer to finishing my project.

4. Thank You Father for the lovely neighborhood. It is always a pleasure to walk and see the lovely houses.

5. Thank You Jesus for internet. I love learning new stuff and just surfing. Ok...less time on YouTube.

6. Thank You Father for being able to pray to You. I know that I sin a lot but Father thank You for giving us the heart to repent and love You.

7. Thank You God for Kindle. Yes, I finished two books and now reading a new one. Ahh so nice.

8. Thank You Father for my computer. Yup, it works hard and it is reliable :D

Father, we just want to thank You for everything. For blessing us so much. Let us be more thankful and serve those who are in distress and in need. Jesus, let us love our neighbors with all our hearts :D




*From Snapshot Serengeti

What I have learned today [2015/5/9]

1. Your kitchen faucet and drawers are quite contaminated as we don't clean them often. Ok, better start cleaning :p

2. MasterCard uses big data to increase its marketing efficiency. Hope they use it to decrease overspending...

3. Denmark is trying to phase out cash. This will save money, make money laundering harder, and increase tax revenues. But what would happen if the electricity is out? In case of a disaster, people will not be able to buy goods. In such sense, physical cash will not disappear completely.

4. Seafood is not yet sustainable even with certification. We can help this by consuming less seafood substituting with fresh water fish or other types of food.

5. Math researchers use proof assistants to ensure that their work does not have serious flaws.

6. Purring may be done to strengthen the bones. I should start purring too~

7.Never assume anything when you clean data :p



*From Snapshot Serengeti

Give Thanks [2015/5/8]

Jesus, thank You for another wonderful day. It was busy but I managed to sort of focus on You. I know that I lack a lot but Father please heal me and use me to further Your kingdom.

1. Father, thank You for coffee and pastry. What a lovely morning :D I should learn how to bake ^^

2. Jesus, thank You for Costco. Ahhh..so nice to buy cheaply.

3. Father, thank You for Souplantation. Love a cheap and healthy salad buffet. Need to eat more vegetables.

4. Thank You Lord for the rain. Please pour down more rain and grace so LA can be healed.

5. Thank You Jesus for another productive day. Lot of work but making progress.

6. Thank You Father for the nice dinner at church. Church food always tastes good.

7. Thank You Lord for my car. It drives well with no problems. Thank You car for taking me to places.

Father, we just want to thank You for everything. We are so weak and blindsided. But please strengthen us and open our eyes. Let us not live in the darkness but be a light of this world. Father, let us live by Your commandments and bless all nations.




*From Penguin Watch

What I have learned today [2015/5/8]

1. IMF's Special Drawing Rights is an international reserve asset to supplement its member countries official reserves.

2. Manicurists are being underpaid  and abused. Time to get manicures where they treat the workers fairly.

3. Liver produces 75% of the blood cholesterol. Well, not all about the diet..

4. 73% of break-ins are by kicking the door.

5. A medium apple has 95 calories and a medium banana has 105 calories. Two of my favorite fruits :D

 

*From Snapshot Sergengeti

Give Thanks [2015/5/7]

Father, thank You for another blessed day. I have been blinded by lust but through repentance, You have healed me. I am so sorry that I am so often so bodily and worldly. But Jesus through Your grace and Your grace alone, I will be whole. Father, please use us to do Your work and make us holier and more loving everyday.

1. Thank You God for internet and review services. Our church were looking for a park with a big grill and Foursquare provided nice photos.

2. Thank You Father for a brother who is willing to go together to see the park.

3. Thank You Jesus for the decent burger although a bit expensive but surely nourishing.

4. Thank You Father for the rain. Yes, thank You so much. I have been praying for once a month rain :D Jesus, please pour down your overflowing grace on us ^^

5. Thank You Jesus for blog content. Oooohh, lot of things to write about. Now I just need time.

6. Jesus, thank You for another productive day. I feel like a pro sometimes :p. I still have to learn a lot. Jesus please give us wisdom and humble hearts.

7. Thank You Lord for helping a sister to come and pray. She has lot of pain and suffering but Jesus, I know that You are the ultimate healer and You will heal her and use her to extend Your Kingdom. I pray that You bless us and use her to bless all nations.

8. Thank You God for hot packs. Ahh so nice when your back or shoulder is in pain. Ahh..also thank You microwave and electricity.

9. Thank You Jesus for the lovely cool air. Ahhh...I feel alive. I like sort of chilly weather. Wakes me up.

10. Thank You Lord for the beautiful LA. Yes, it is dirty and there is traffic but we have beautiful beaches and mountains. Father, I pray that You heal this land and this city becomes a holy city ^^

Thank You Father for everything that You have given us. Jesus, we just want to thank You. Let us be always thankful and loving.



*From Floating Forests

What I have learned today [2015/5/7]

1. IRS has a new cybercrime team. This is good news but they may be a little late to the part? Should probably bring some programmers from the NSA.

2. Competition b/w YouTube channels is quite fierce. Something new comes out and bunch of people cover it :p

3. There is still lot of sexual harassment at the work place. Please be a decent human being....if someone feels uncomfortable than that behavior should be stopped...

4. A convenience store owner  had his assets seized by IRS for allegations of structuring making small deposits to avoid the $10,000 reporting requirement. The burden of proof is on the owner...I think IRS was overzealous and probably made a mistake rather than admitting it, well, we have an article...Note to self. Don't deposit too often...

5.  Bankruptcy trustees are suing students and college to recoup the debt. It is sad that it has come to this but I believe such trend will make students question the value of college and colleges will also question whether they are providing a quality education.

6. Scientists take  acoustic image of thunder. I guess this will help us be more prepared for thunder? Pretty cool :D

7. For some courses in Coursera, just reading the slides is more helpful :p


 


*From Snapshot Serengeti

Give Thanks [2015/5/6]

Thank You God for another wonderful day. We want to just praise You and glorify You.
Father, thank You for helping me curb my earthly desires. Jesus, I pray that You control heart so I can be more loving :D

1. Father, thank You Father for another productive day. Yes, lot of things got done. Woohooo. God please bless us with more wisdom ^^

2. Jesus, thank You for the wonderful coffee. Every morning, I enjoy the lovely coffeee...Yummm.

3. Thank You Father for the great dinner. I was craving some good house Korean food and I got what I want at church. Yes, it was a superb dinner considering that I ate a lot of carrots to stave off hunger.

4. Father, thank You for teaching us about Israel. We thank our pastor for teaching us why we have to pray for Israel. Jesus let us pray more for the restoration of Israel so we hasten Your return.

5. Thank You Father for Lending Club, I found some good investments today. Thank You for blessing me with solid yields. Let me be more thankful and more loving.

6. Thank You Lord for Stata. Yes, thank You Stata and other statistic programs for making me more useful and productive.

7. Thank You Father for Quora. I like read the Q&A. So many nice answers.

Jesus, we just want to thank You for everything. Let us be more humble and loving. Father, let us not be deceived by this world but rather drive out the darkness with light. Jesus, let us be the light and the salt of this world. Thank You Jesus and we love You.



*From Snapshot Serengeti

What I have learned today [2015/5/6]

1. Iran is one of the largest pistachio producers.

2. You can avoid high credit card utilization rate by paying off the balance before the statement is due and always increasing credit.

3. When in doubt about administrative issues or situations, ask the senior people. They will tell you what needs to be done.

4. Commercial wines are usually clear. And usually with time, the wine will become darker.

5. Russia is large but almost considered landlocked given that most rivers do not lead to the sea.

6. In investing, be ruthless in self-assessment. See whether your original thesis worked and be brutally honest.

7. Griffith Park has an abandoned zoo.




*From Floating Forests

Give Thanks [2015/5/5]

Father,  thank You for a wonderful day. I did a lot of work and enjoyed a burger :D Lord, I confess that I am sinner. Jesus please help me become more holy and loving. Please guide me so I am always with You. Be always with us so we can do great things in Your name ^^


1. Thank You God for Fast Food burger. Ahhh...so cheap and full of calories...Yes, it is bad for you if you eat too much. But when you are hungry and tired wow....Best buck for the calories :D

2. Thank You Jesus for the cloudy weather. I like occasional cloudy weather just to change things around. Also, I feel more mature when it's cloudy :p

3. Thank You Father for the Your word. Yes, I often do not follow Your teachings but Father please give me the discipline and the heart to live by Your word. Because I know that living by Your word not only pleases You but blesses everyone.

4. Thank You Lord for Kindle. I love reading while lying down :p

5. Thank You Jesus for giving me so many ideas yesterday. I wrote a blog post, organized some ideas for businesses. Very nice. Father, please give us more wisdom so we can further Your kingdom.

6. Thank You God for the lovely Zooniverse pictures. I saved a lot yesterday too. Wooohooo.

7. Thank You Jesus for water. I drink a lot of water these days and I can't even imagine a day without water :( Father, I pray You pour down rain in CA. Please have mercy on us.

Thank You Jesus for everything. We know that we are still learning Your laws. Father, I pray that You give us strength and the courage to spread Your word and gospel. Let us be more caring everyday so we can love our neighbors with all hearts ^^




*From Penguin Watch

Quick IPO Analysis: PGA Holdings Inc [2015/5/5]

Let's see what we can learn from PGA Holdings, Inc.'s prospectus~


1. Press Ganey provides measurement and performance analysis for healthcare organizations. This is a good field: health care+ big data.

2. It has 30 years of experience. This is good. Oohhh it serves 62% of acutre care hospitals and most large hospitals.  Annual retention rate is 94%!

3.  National Health Expenditures data reported by the Centers for Medicare & Medicaid Services, or CMS, the United States spent $2.9 trillion on healthcare in 2013, accounting for nearly 18% of GDP

4. Most comprehensive patient data base! Yup, the reason why Google is so great. 

5. Emerging growth company..PE backed. Net income margin is low.

6.Ugh Adjusted EBITDA says capital structure is irrelevant to operations. Really? If you are highly in debt, you will surely cut costs and raise prices...

7. Weak internal controls~Yes, heavily indebted.

8. Nice revenue recognition policy, billed 50% upon execution. Combined with 94% retention rate, which 100% billed upon renewal. Love the fact cash comes in first.

9. 50% of asset is goodwill and they have 6 million in cash, if they don't get paid, the interest cannot be paid. Whoa! This is really tight.

10. Lot of acquisitions. This would be a big risk given funky things happen during acquisitions  and synergies are overrated but in case of buying data, it is actually quite a synergy. Once you build a large proprietary data base, the return to scale, increases, just look at Google.

Assessment:

Pros: With such consumer capture and valuable data. it can easily be an acquisition target. The firm can pay make the interest payments and regulatory risk seems low given how slow the US reforms healthcare.

 Cons: Huge goodwill and debt, and low cash....if there is a liquidity shock, this firm will clearly be in distress.

I think it would be a relatively safe play to invest in the firm given its strong revenue generation. There is a high likelihood that a larger analytic firm may buy the firm given its data and technologies.




*From Floating Forests

What I have learned today [2015/5/5]

1. Microsoft may acquire Salesforce.com. Hmm...First Salesforce is known for not really making money and paying employees by options and Microsoft is known for bad acquisitions including Skype. Thus, the deal is not likely to be great...

2. TOMS shoes combines charity and business. I admire their mission but I wonder if they are distributing the shoes efficiently. If they give the shoes to the same region every time then people would appreciate less. Also, do they modify the shoes so they last longer in developing nations?

3. McDonald stores in Australia are selling gourmet burgers. Wow...McDonald never ceases to amaze me. I still remember how McDonald turned itself around with healthier menus and coffee!! Wow, if this is the future, I am all for it :D


4.  Only 17% of California homeowners have earthquake insurance. Hmmm...given the recent tremors, may be we should get the earthquake insurance.

5. Cigarettes are the most commonly found trash in oceans. We can solve this by further raising cigarette prices by including the clean up cost. We should also have a challenge in making degradable cigarettes.  Yes, heavily fining litterers work as well.




*From Penguin Watch