From the perspective of mean reversion, fat tails help to create some of the best opportunities. That is to say, fat tails often create fat pitches.

The CFA Level 1 results were emailed out today. I was stoked to pass.
Congratulations. I am very pleased to inform you that you passed the December 2010 Level I CFA exam. You are one step closer to achieving your goal of earning the globally respected CFA charter.
36% of candidates passed the December 2010 Level I CFA exam.
Thanks to Dean Fergie for recommending the CFA Program to me.

Universal Biosensors (ASX:UBI) is hoping to crack the tough $10B glucose testing market via a partnership with J&J’s LifeScan. UBI’s main product the One Touch Verio is the most accurate glucose self testing meter currently available. The One Touch Verio is currently only available in the Netherlands (launched Jan 2010) and Australia (Sept 2010), though J&J are planning on launching in the US in 2011.

UBI is yet to obtain profitability and is dependent on J&J sales and marketing in a very crowded and competitive landscape. While the One Touch Verio is currently the most …

In the next seven months Telstra will cough up 28cents dividend, that’s 40cents pre-tax. Over such a short time frame a valuation makes little sense as the voting machine will determine the price. However what this chart shows is that at the current price of $2.80 Telstra presents an excellent short term opportunity with an attractive risk/return profile.

2011 will be transformational for Telstra. I’m writing up my analysis now, but prior to publishing want to get a rough view of what people see happening with the share price this year. Is the 10% yield (14.4% grossed up) a value trap?

The lowest likely (-2SD) price for Telstra in 2011?
$2.60 (66%, 19 Votes)
$2.00 (17%, 5 Votes)
$2.40 (10%, 3 Votes)
$2.20 (7%, 2 Votes)
Total Voters: 29

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Value guys have been all over Biota for a few years now, in that time the shorter time-framed technicians and mo-mo players have been in and out. Now with the 50 DMA crossing over the 100DMA  Biota appears to be breaking out of a six month consolidation channel. RSI approaching 80. All backed by a good fundamental story with multiple possible near catalysts within the year. More soon. Long Biota.

It appears Biota also caught the eye of the Australian Securities Exchange. Here is Biota’s response to an ASX speeding ticket. Nothing to …

The Reject Shop stumbled today, tripped by a drop in traffic and spending. The Reject Shop Fell 21% on the profit downgrade, with 1.9M shares changing hands, around 20 time its normal trade.

ROE is an excellent ratio, it’s one of the first financial ratios you should put in your tool-belt. The next step is to understand the three business levers that underpin ROE; profitability, asset turnover and leverage.

The turning customers into clerks wave continues to swell. I wonder how much that adds to productivity.
Moving on…
Arnaud Mares hit the nail on the head “Governments will impose a loss on some of their stakeholders, … The question is not whether they will renege on their promises, but rather upon which of their promises they will renege, and what form this default will take.” The sovereign-debt crisis is global “and it is not over”. Bloomberg
My vote is the baby boomers should suck it up. They made and need to own …

Look at companies as businesses with opportunities and risks and try to understand why their solvency, liquidity, profitability, valuation and activity ratios are as they are. To do that you need the story.