Press

Albert Meyer Interviews

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The Stock-Option Nightmare

Barrons

In a co-authored editorial commentary, Albert Meyer wrote, “Employee stock options are gradually being recognized as an investor’s nightmare.  After years of controversy, more people in the market now see that the granting of copious amounts of options to employees in lieu of cash compensation dilutes shareholder ownership…. Investors can avoid the nightmare.  They should consider investing only in companies that generate unfettered free cash flow over a sustained period….”
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Tyco Sleuth Has Long History of Uncovering Bad Numbers

Wall Street Journal

Albert Meyer, an accounting sleuth, took a huge bite out of Tyco International Ltd.’s shares over the past two days after he penned a report that questioned the the accounting practices…
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eBay Inc.: Internet Success or Fairy Tale?

Harvard Business School Case Study

This examination of online-trading company eBay is based on Albert Meyer’s report where he wrote, “The eBay story is the stuff fairy tales are made of … kind of … the disconnect between eBay’s stock market valuation and the company’s property analyzed financial statements is so stark that it makes little or no sense to continue the analysis….  Everything else pales into insignificance.”
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Enriching a Few at the Expense of Many

The New York Times

Some people say it doesn’t really matter how much companies pay their executives, at least as far as the shareholders are concerned. Whether investors prosper depends on the executives’ management skill, not on penny-ante items like pay, this argument goes. To this, Albert Meyer responds with a resounding “phooey.”
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Putting Extra Fizz Into Profits; Critics Say Coca-Cola Dumps Debt on Spinoff

The New York Times

Dating back to 1998, Albert Meyer comments on the real value of Coca-Cola. ”The numbers look wonderful,” said Albert Meyer, about Coca-Cola’s financial reporting system. ”It is almost too good to be true.”
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Party’s Over: Tyco’s Kozlowski

TV Show: American Greed

Kozlowski goes on a buying spree. $4 million for a Monet painting. $2 million for a birthday party, and the infamous $6000 shower curtain. Authorities are suspicious. Kozlowski is accused of plundering the company that made him rich…
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When a Skeptic Says, ‘Buy!’

If this natural-born accounting sleuth finds a stock he likes, it must be a good bet
Fortune

Herb Greenberg outlines the qualities that attract Albert Meyer (Bastiat Capital president and founder) to an investment.  “I want to see that management owns a lot of stock and has modest salaries by industry comparisons,” Meyers says.  Greenberg writes that “rather than looking only at free cash flow … [Meyer] takes it one step further to arrive at his ‘unfettered free cash flow,’ which takes into account the cost of making investors whole after employee stock options are exercised.”
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When Green and Giving Collide

TV Show: American Greed

Albert Meyer. An accountant in a small town makes a big discovery. His one-man investigation reveals a massive fraud that will leave charities and non-profits out millions of dollars…
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Why Independent Research is Drying Up

Wall Street Journal

In an article announcing Albert Meyer’s transition into money management, the Journal writes, “He wrote up more than 100 companies in three years, putting monthly updates out on each one.”  The article observes that he “watched stocks move the way he had predicted, without being able to take advantage.  To avoid any appearance of conflicts, he didn’t have a brokerage account and kept all of his money in bonds.”
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What investors must know about new accounting rules

MarketWatch

“Most companies use the indirect method, which takes net income and adjusts for noncash items and changes in working capital to get to cash flow from operations,” according to Albert Meyer, cofounder of Bastiat Capital, which seeks to identify long-term investments through a “rigorous due-diligence process.”
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S&P 500 Companies Would Save $87.1 billion if Trump Passes His Tax Plan

MarketWatch

“As an example, Meyer cites Charles Schwab Corp. SCHW, +1.43% because it pays no foreign taxes. Schwab paid $734 million in federal taxes in 2015, for an effective tax rate of 32.2%. If that fell to 20%, the company might have paid $456 million in taxes, saving $278 million. Multiply Schwab’s P/E of 25.5 by that $278 million in extra earnings and you get a $7.1 billion increase in market cap. That boosts Schwab’s capitalization to $59.1 billion from $52 billion, for a 13.6% increase in the value of the company, and presumably its stock.”
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18 companies that will score big if Trump chops taxes

MarketWatch

“If the tax rate drops to 20%, AT&T’s deferred tax liability would decline to $34 billion from $59.6 billion, a reduction of $25.5 billion. Hence, there would be a $25.5 billion credit adjustment in the income statement, effectively boosting earnings by $25.5 billion in the year of the restatement, says Meyer.”
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Donald Trump’s big gift to the media companies he hates

MarketWatch

“If the tax rate drops to 20%, Comcast’s deferred tax liability would decline to $19.7 billion (20% divided by 35% times $34.5 billion = $19.7 billion). That’s a savings of $14.8 billion. So there would be a $14.8 billion credit adjustment in the income statement, effectively boosting earnings by $14.8 billion in the year of the restatement, says Meyer.”
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