Disclosure: Intel is currently the largest single individual equity holding in both my personal and most of my clients' portfolios. No shares will be recommended for sale based upon this original research. Intel CEO Brian Krzanich The purpose of this post, which will be accompanied with an email directly to top management, is to … Continue reading Intel Q4 2013 Earnings – Time to Fix Pension Plan
Michael Dell Hopes SEC and IRS Are Sleeping What continually makes the United States the place to be with respect to investment is the expectation that, when all is said and done, the rule of law generally prevails. One need only visit China, Japan and Russia to see that markets are generally manipulated by … Continue reading Inside Dell’s Private Equity Buyout Proposal
Note: Analysis of Bain Capital Profit Sharing Plan in Separate Post A leading reporter recently asked me to take a look at Mitt Romney's 502 page tax return. What resulted was a fascinating journey that will hopefully initiate a common sense dialogue on needed tax reforms. Newt Gingrich's return was also analyzed, yet revealed no substantive tax policy issues. To be clear, I am a strong critic of large private equity and hedge fund "buyout" firms. To me they are clearly no more than sophisticated tax deduction pyramid schemes. Others might argue they are the very definition of crony capitalism and via "club deals" are creating abusive monopolies that are destroying open markets. That said, it is also true that these large private equity firms pay very close attention to my work and jokingly refer to me as Sherlock's Sherlock when it comes to financial analysis. So here we go.
The following letter was sent to SEC Chair Mary Schapiro and IRS Commissioner Doug Shulman on "tax day" with the hope they will jointly work at restoring the integrity of cash flow statements, without question the most important analytical tool for investment advisors like myself. It is simply astonishing, given their material nature, that listed … Continue reading Letter to SEC Chair and IRS Commissioner – Tax Deduction Pyramid Scheme
Prior to the fractions rule, investors were investing $1 in order to get $5 to $7 in tax deductions. President Reagan was so incensed that he signed into law new legislation, the "fractions rule," specifically designed to end this scheme. During this period no firm was more abusive with respect to tax avoidance than General … Continue reading Blackstone’s Tax Engineers, Inspired by General Electric, Attempt to Repeal The Fractions Rule
Note (Not Copyrighted) : This basic post was updated December 10, 2010 given the current debate in Congress over extending the Bush tax cuts and numerous inquires regarding my position in this debate. The purpose of this post is to highlight that although rates are important, perhaps more important are overall fairness issues associated with … Continue reading Blackstone Group LP – Private Equity or Public Theft? Undermining the Volcker Rule’s Intent. SEC 10K Fails to Disclose All Important “Fractions Rule” Involving Tax Exempt Public Pension Investors