Winter 2007/2008

I advocate a short position in the common stock of D.R. Horton, Inc. as I believe the stock has an intrinsic value today of $7.25, representing a margin of safety of approximately 40% against today’s price of $11.86. The…

D.R. Horton is facing significant challenges due to increased cancellations, a heavy debt load, and exposure to weak housing markets. The company's inventory is at risk of substantial impairments, and the housing market …

Macy's shares are undervalued due to slow sales growth at rebranded stores, but improvements in sales growth and margins are expected in the near future. The company's stock buyback program and ownership of most stores p…

Macy's shares are currently undervalued due to temporary sales lag from rebranded stores. As customers adapt to Macy's promotional style and product offerings, sales are expected to recover, leading to a significant incr…

Netflix's business model is outdated and unsustainable in the face of increasing competition from cable and telco video on demand services, which have already penetrated a significant portion of the market. The company's…

Netflix has already experienced its strongest growth phase, and its revenue is expected to peak in 2008. The company lacks a competitive advantage in online distribution and is facing deteriorating subscriber economics d…