Sajid Karsan

All Posts

  • hhgregg Management Rips Off Shareholders

    By Sajid Karsan - May 3, 2013 | Tickers: HGG

    hhgregg (NYSE: HGG) has always struck me as a rather shareholder-friendly company. So it caught me off-guard when hhgregg's management decided to re-price its underwater options. Such actions are a huge red flag for investors.

    The handout of options to managers is always justified on the premise that it aligns manager and shareholder interests. What is often glossed over, however, is the fact that options contain an inherent asymmetry more »

  • iGo Buy This Stock: Where Do YOU Go?

    By Sajid Karsan - April 5, 2013 | Tickers: RSH

    Shares of iGo (NASDAQ: IGOI) fell a whopping 35% yesterday, as the market soured on the company's latest financials and an announcement that a partnership with Texas Instruments (TXN) will not go forward. Value investors who are sitting on bloated cash positions thanks to the market's runup should probably take a close look at this one.

    iGo generates most of its revenue selling power supplies for mobile devices more »

  • GameStop: Still In Business?

    By Sajid Karsan - April 3, 2013 | Tickers: BBY, GME, WMT

    GameStop (NYSE: GME) has been one of the more controversial stock ideas I've written up on this site. Today, however, the stock is up almost 70% since it was first written up on this site. As such, GameStop becomes the latest company to join this site's Value In Action page.

    GameStop is easily one of the most controversial companies I've ever written up. Right from my first more »

  • iGo Buy This Stock; Where Do YOU Go?

    By Sajid Karsan - April 2, 2013 | Tickers: RSH

    Shares of iGo (NASDAQ: IGOI) fell a whopping 35% yesterday, as the market soured on the company's latest financials and an announcement that a partnership with Texas Instruments (TXN) will not go forward. Value investors who are sitting on bloated cash positions thanks to the market's runup should probably take a close look at this one.

    iGo generates most of its revenue selling power supplies for mobile devices more »

  • Heidrick Really Struggles

    By Sajid Karsan - March 7, 2013 | Tickers: HSII, NSP, KFY

    I like buying into businesses with variable cost structures. These kinds of companies have somewhat of a protected downside; when things go south, costs can be removed such that the firm may remain profitable, subject to a period of adjustment. Executive search firm Heidrick & Struggles (NASDAQ: HSII), which saw its shares fall 20% on Tuesday, appears to have such a model.

    Heidrick trades for under $250 million despite a net more »

  • Getting Schooled By Career Education Corp

    By Sajid Karsan - March 6, 2013 | Tickers: APOL, CECO, COCO, DV, ESI, STRA

    The for-profit education sector has been hit hard by the market, and for good reason. This industry utilized dishonest marketing practices and drove its enormous growth using massive amounts of federal funding that was rubber stamped by public servants asleep at the wheel. But the party's now over; new rules and additional oversight have pushed many companies in this sector into the red, causing massive losses. But has the more »

  • USA Mobility: Cheap, But For How Long?

    By Sajid Karsan - February 22, 2013

    Though the market has risen considerably over the last few months, not every stock has been lifted by the tide. Shares of cash-cow USA Mobility (NASDAQ: USMO) have flat-lined. As cash has continued to accrue, the valuation has become more compelling. USA Mobility now appears on the Magic Formula screener, both because it is cheap (P/E of 6), and because it generates strong returns on capital (2011 ROE of more »

  • Is Apple the New Research In Motion?

    By Sajid Karsan - January 24, 2013 | Tickers: AAPL, BBRY, MSFT | Editor's Choice

    As former market darling Apple (NASDAQ: AAPL) has seen its stock price continue to fall, it has increasingly piqued the interest of value investors. At a market cap of $450 billion and twelve-month earnings of over $40 billion, Apple's P/E is barely over 10. Considering the company has no debt and cash equivalents of almost $140 billion, the valuation appears very compelling indeed.

    But Apple is now officially more »

  • Unisys: All the Makings of Value

    By Sajid Karsan - January 7, 2013

    Global IT company Unisys Corporation (NYSE: UIS) has all the makings of a value stock. Its net cash position of $330 million provides safety in the event of a downturn and offers strong downside protection on the company's $760 million market cap. In recent years, the company has managed annual income of $200 million; it will not earn as much this year thanks to cutbacks in government spending, but more »

  • Meade: Market Manipulation, or Perfectly Innocent?

    By Sajid Karsan - January 2, 2013 | Tickers: MEAD

    A couple of weeks ago, we saw what appears to be a mistaken filing on the part of a shareholder of Meade Instruments (NASDAQ: MEAD). Today, we take a look at another strange filing from a large shareholder of the company.

    Lance Laifer's Wapiti Capital is listed as the owner of 7.65% of Meade's shares on the company's latest proxy statement. Recently, Wapiti filed a document more »