Dead Companies Walking
Page 23
intellectual torpor, 208
International Gaming Technology (IGT), 188–94
Iraq War, 122–23
irrational exuberance, 88
iVillage (IVIL), 87
Ivy League, 203, 215
J.Crew, 95–96
J. P. Morgan, 58, 165, 233
Jaedicke, Robert, 29, 32
JCPenney (JCP), 66–68, 122, 147–49, 182
Jet Capital, 134, 138
JMP Securities, 23
Jobs, Steve, 66, 98, 179–80
Johnson, Ron, 66–68, 112, 147–51
joinerism, 111, 206, 208
Kennedy, John F., 141
Kennedy, Joseph, 21
Kennedy, Robert F., 227
Kmart, 39
Krispy Kreme Doughnuts, 46–47
Lay, Ken, 15, 29
layoffs, 28, 55, 80, 132, 143, 186
Lewis, Michael, 25
Lipper Analytical Services, 55
Lorenzo, Frank, 20, 132–38, 140, 171
Lynch, Peter, 194–95, 207
M-1 (aggregated money supply), 152–53, 157, 176
MacKay, Charles, 85
Madoff, Bernard, 30–32, 222, 224
Mandel, Stephen, 170–71, 187
manias
biotech and, 97
dangers of, 12, 41, 88, 104, 174, 206
dotcom, 78, 84, 173, 205
failure and, 5, 85, 93–95, 111
GARP and, 41
health care and, 107
historical myopia and, 92
housing and, 182
identifying, 91–92
irrational exuberance and, 88
oil and, 201
renewable energy and, 94
start-ups and, 94
storytelling and, 91, 97, 120
Marx, Karl, 169
McDonald’s, 46, 76
Merrill Lynch, 58, 107–9, 111, 113
Microsoft, 153, 160, 212
Mill Valley, California, 38, 63, 65
MiniScribe, 150–52
MLM (multi-level marketing), 105
Montgomery Securities, 73, 165, 199, 201–2
moral hazards, 234
Mormons, 96, 105
NASDAQ, 31, 33
“negative rebate fee,” 181
Netflix, 116, 119–23
Neuman, Alfred E., 141
New York Stock Exchange, 146
Newsweek, 121
Nordic Track, 72
oil
boom, 8, 26, 85, 92, 199
bust, 18, 22, 26, 53, 104, 114, 153, 155
First National and, 199
Global Marine and, 8–9, 11–13
investment and, 103
offshore drilling, 8
prices, 2, 8–9, 12
Texas and, 11–15, 53, 85, 104, 114, 153, 155, 201
On the Brink (Paulson), 233
Oppenheimer & Co., 58–59
Oracle, 93, 153
Orange County, California, 19–22, 143
Oyster Point, 78–79
PageNet (PAGE), 124, 126
Paine Webber, 88
Palm, 164
Paulson, Henry, 233
Paulson, John, 210
PayPal, 84
PlanetRx (PLRX), 78–82, 86, 91
power suppliers, 16
power worship, 206, 208
Prechter, Robert, 204–5
Price Club, 37, 39
Provenge, 157–58
quick service restaurants (QSR), 46
Quokka Sports (QKKA), 89–93, 119
Raymond, Geoff, 7–11, 14, 21, 35, 40, 44, 133, 137, 171, 197
RBS, 58
recession, 173, 177, 182, 184, 229
renewable energy, 94
Robertson, Julian, 210
Robertson Stephens, 165
Rocker, David, 5, 58
Rollerblades, 69–72, 130
Safeway, 83
Sahaf, Mohammed Said al, 123
Salomon Smith Barney, 205
Sam’s Club, 47
Sarbanes-Oxley, 181
scaling, 78, 86
Sears, 39
Securities and Exchange Commission (SEC), 31, 59, 224
self-delusion, 32
self-improvement, 72
September 11, 2001, 63, 155, 173
Shaman Pharmaceuticals (SHMN), 101–5, 119
Shearson Lehman Brothers, 204
Sherden, William A., 204–5
SHL Systemshouse (SBN), 201
shock therapy, 138–40
Signet (SIG), 187
Silk Greenhouse, 161–63, 167
Sinclair, Upton, 197
“sluggish economy,” 155–56, 176
Smith, Adam, 1
Smith, Gary, 54, 112, 114, 236
snake oil, 105–6
Snapchat, 94
Southwest Airlines, 136, 140
Starbucks, 33, 36–42, 47, 127, 173, 179
start-ups, 23, 81, 77, 94
Strachman, Daniel, 210
Super Bowl, 93
supercycles, 13–14, 25, 145, 182
Supermedia (SPMD), 57–59
synergies, 121, 166
Texas Air, 132–33, 137–39
Texas Commerce Bank, 7–8, 10, 14, 25–27, 137
TGI Fridays, 17–18, 24
Tiger Management Hedge Fund, 210
Transco, 15, 29
TXU Electric Delivery, 14, 16–17
Tyco, 51
Ultimate Electronics (ULTE), 126–28
“unbanked” customers, 68
value investing, 8, 16–18, 40
Value Merchants (VLMR), 43–47, 162–63
Vanguard, 58, 207, 212
Vera Wang, 184–85, 193
Walgreens, 76
Walmart, 83, 175–77, 193
Washington Mutual (WaMu), 233
Watson, Thomas J., 1
Webvan, 81–83, 86–88
Welch, Jack, 115
Westwood One Radio (WON), 201
Wiles, Q. T., 150–52
Williams Gaming (WMS), 192–93
Wilsons Leather (WLSN), 155
wine market, 175, 178
Women.com (WOMN), 85–89, 91, 97, 119, 228
WorldCom, 5, 51, 205
Yellow Pages, 56–57, 59, 128–29, 131, 193
Zale Corporation (ZLC), 182–87, 193–94
About the Author
Scott Fearon worked as a stock analyst and mutual fund manager before launching his hedge fund in 1991. Since its inception, Fearon’s fund has only had one down year and has averaged an 11.4 percent annual return after all fees—significantly higher than the benchmark S&P 500 index’s total return over the same time period. He has written for Seeking Alpha and blogs at scottfearon.com. He lives in Marin County, California and Dallas, Texas.
DEAD COMPANIES WALKING. Copyright © Scott Fearon, 2015. All rights reserved. For information, address Palgrave Macmillan Trade, 175 Fifth Avenue, New York, N.Y. 10010.
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Jacket design by David Baldeosingh Rotstein
Jacket photographs: bear © Christian Musat / Shutterstock.com; bull © Skalapendra / Shutterstock.com
The Library of Congress has cataloged the print edition as follows:
Fearon, Scott.
Dead companies walking : how a hedge fund manager finds opportunity in unexpected places / Scott Fearon.
pages cm
Incl
udes bibliographical references.
ISBN 978-1-137-27964-4 (alk. paper)
1. Short selling. 2. Speculation. 3. Success in business. I. Title.
HG6041.F38 2015
332.63’228—dc23
2014020146
e-ISBN 978-1-4668-7920-1
First edition: January 2015
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