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What are you buying today?


LowIQinvestor

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TIP and TLT

Thanks

Lance

Looking at this now.

Could you please, in a few words, explain why you bought these two, in the context of buying them at the same time?

 

Hi Cigarbutt - I bought TLT thinking that the move in rates seems like it’s a bit overdone, lots of people are short long bonds and after hearing Trump’s comments about the Fed thinking that they might reverse course or at least lighten up on the raises.  Took a bit off today when it moved up.

 

Regarding TIP it was more of a diversification move/buying fire insurance before the fire, etc.

 

Added to ABBV, BNS, KHC and KIM.  Started a position in BPR.

 

Thanks

Lance

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WHR looks very cheap on cash flow - almost at 4x...

 

Is that 4x EBITDA, 4x FCF?  I'm backing into the numbers and I just don't see the 4x valuation.

 

Apologies for the delay I'm not always on here...It was from thumbing through Value Line which has "Cash Flow" per share for 2018 of $25.70, the current trading price is ~$106. Valueline's same "Cash Flow" calculation for 2017 was $23.65. The VL line seems to be calculated on cash from operations.

 

On the management guidance from Q2 (https://investors.whirlpoolcorp.com/static-files/44e22a7a-dc79-4f42-9075-3018178adabb) the projected $850M in FCF is closer to 8x which I do believe is cheap.

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Bought back calls on TSLA and NFLX with a little profit. I expect that Musk has massaged the Q3 numbers, will run a huge show tomorrow and i don`t want to be in front of a short squeeze. And my shorting window ends in 3 days, so i am slowly preparing to go to 100% long again for the next 6 months.

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