What are you buying today?

[porcupine]

Gold & Silver

[John Hjorth]

Wrote some BRKB July 21 expiration, 170-strike puts for $0.85 per share.

 

Wrote some BRKB Aug 11 expiration, 170-strike puts for $1.45 per share.

 

I wish I could do something like this, but not possible because of a tax regime that could be considered from the Dark Ages.

[boilermaker75]

Wrote some BRKB July 21 expiration, 170-strike puts for $0.85 per share.

 

Wrote some BRKB Aug 11 expiration, 170-strike puts for $1.45 per share.

 

 

 

I wish I could do something like this, but not possible because of a tax regime that could be considered from the Dark Ages.

 

It is a way I generate some returns on excess cash, and sometimes to get a little leverage when I write more puts than I have cash to cover. If I get put to on a stock like BRK, I often put it in the long-term hold bin.

[Spekulatius]

Bought a starter position in GE. It's an example of an above average quality business with above average balance sheet  trading for much less than the market multiple (~15.6x earnings).

[sleepydragon]

Added DVA

[rb]

Bought a starter position in GE. It's an example of an above average quality business with above average balance sheet  trading for much less than the market multiple (~15.6x earnings).

Can you please elaborate on how you get GE at 15.6 P/E.

[John Hjorth]

Started a small position in SHB B.STO [svenska Handelsbanken AB, ser. B] today, after having studied the bank on/off for more than a year.

 

Ultra brief thesis on SA here. [it's to me not totally head on, in the meaning there is something to add.]

 

In the Book Forum here on CoBF there is this topic about a book about the bank.

[york]

Bellamy's Australia Ltd

ASX:BAL

[boilermaker75]

Wrote some AMGN Aug 18 expiration, 170-strike puts for $1.30 per share.

 

[LC]

Sold the balance of my position in MMM. Nice gain over the last 1.5 years but the reason I bought (attractive 4+% dividend, below SP500 earnings yield) no longer holds (2.3% dividend, earnings yield about equal to SP500).

 

The two most attractive investments to me are Citi and Compass Minerals, but I am wary of being too overweight. Would like to redeploy into Berkshire, Philip Morris, RELX, but not sure I can justify buying at these prices.

[John Hjorth]

Added to JPM today.

[Lance]

MO

 

Thanks

Lance

[LC]

Also bought MO (and sold out of PM to offset) - thanks for the tip, Lance.

 

The reason MO fell today was this byline from the FDA's announcement:

 

Agency to pursue lowering nicotine in cigarettes to non-addictive levels and create more predictability in tobacco regulation

 

Only by reading the entire FDA press release would one would have seen the following:

 

Importantly, the anticipated new enforcement policy will not affect any current requirements for cigarettes and smokeless tobacco, only the newly-regulated tobacco products such as cigars and e-cigarettes.

[Spekulatius]

Bought a starter position in GE. It's an example of an above average quality business with above average balance sheet  trading for much less than the market multiple (~15.6x earnings).

Can you please elaborate on how you get GE at 15.6 P/E.

 

Roughly $1.6 (and a few cents) earnings on $25.5 stock price.

[Guest 50centdollars]

Also bought MO (and sold out of PM to offset) - thanks for the tip, Lance.

 

The reason MO fell today was this byline from the FDA's announcement:

 

Agency to pursue lowering nicotine in cigarettes to non-addictive levels and create more predictability in tobacco regulation

 

Only by reading the entire FDA press release would one would have seen the following:

 

Importantly, the anticipated new enforcement policy will not affect any current requirements for cigarettes and smokeless tobacco, only the newly-regulated tobacco products such as cigars and e-cigarettes.

 

I bought some MO on friday as well. The part I found interesting in the FDA announcement was the following:

 

The FDA plans to begin a public dialogue about lowering nicotine levels in combustible cigarettes to non-addictive levels through achievable product standards. The agency intends to issue an Advance Notice of Proposed Rulemaking (ANPRM) to seek input on the potential public health benefits and any possible adverse effects of lowering nicotine in cigarettes. Because almost 90 percent of adult smokers started smoking before the age of 18 and nearly 2,500 youth smoke their first cigarette every day in the U.S., lowering nicotine levels could decrease the likelihood that future generations become addicted to cigarettes and allow more currently addicted smokers to quit.

 

In other words, the FDA is thinking about a regulation, not enacting one. From what I understand and please correct me if I'm wrong, is that rule making procedure is not just a matter of someone in the FDA deciding it is so.  Federal Regulations have to be signed off by one guy, Trump. And he has already halted enactment of any new Federal Regulations and also has said that 70% of existing regulations should be repealed.

 

So what does this say to me?  First, that these regulations won't be enacted.  Second, even if they were, they would not significantly affect the tobacco industry for many years.  Third, Altria, even if it lost all its cigarette business, is already diversified into other businesses and would survive. IMO, the market reacted emotionally to this announcement and not rationally. Especially PM.

 

 

[Artha158]

VIX

[SmallCap]

VIX

how?

[Cardboard]

Fortress Paper: T-FTP

 

Cardboard

[Artha158]

VIX Jan 18 call @15

[RichardGibbons]

VIX Jan 18 call @15

 

One subtlety to these that is worthwhile noting for those who might be considering a similar trade is that VIX options are European exercise--they can only be exercised on their expiration date.  What this means in practical terms is that, if the VIX hits 50 in October as a result of a crash, these options will be worth much less than $35 then.  With deep-in-the-money European exercise options, the time value works against you.

[Artha158]

You are right about the discount but I don't find any good alternative. If anyone has an idea they are welcome.

[John Hjorth]

Full respect for your last post, Artha158,

 

It is quite symptomatic for this board, that the daily ongoing discussion right now has switched to the discussion of the most crappy capital allocation of all: Cars. [Fellow board members active in that particular car topic: Please take no offense here].

[Jurgis]

It is quite symptomatic for this board, that the daily ongoing discussion right now has switched to the discussion of the most crappy capital allocation of all: Cars.

 

Not the most crappy.

 

You forgot boats.

 

8)

[DooDiligence]

It is quite symptomatic for this board, that the daily ongoing discussion right now has switched to the discussion of the most crappy capital allocation of all: Cars.

 

Not the most crappy.

 

You forgot boats.

 

8)

 

and offshore drilling rigs...

[oddballstocks]

It is quite symptomatic for this board, that the daily ongoing discussion right now has switched to the discussion of the most crappy capital allocation of all: Cars.

 

Not the most crappy.

 

You forgot boats.

 

8)

 

And this board is like boat owners too.  Read any site on buying a boat and they'll dismiss the claim that boats are money pits, just like investors on here will dismiss claims that terrible industries heading towards their cyclical bottoms are bad buys...