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What are you buying today?


LowIQinvestor

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ACHN. Domestic merger, small deal for buyer, two different CVR's that you get on the cheap and a $40m reverse termination fee on a $700m deal (on a net-cash basis). Might open a topic at some point about it - curious if anybody has thoughts about it. There could be some antitrust issues.

 

I've done some work on this since the announcement and own it. Agree that this situation is all about whether or not FTC signs off. I think the odds are pretty good this gets through. If you make a thread I'll be happy more than happy to share anything/everything I know.

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Cash.

 

Following the sale of 20% of my S&P 500 puts. Waiting for 30+ VIX to sell more.

 

Have been buying & selling over the last 2-3 weeks. Typically 20-30% of the position. When VIX dropped to 15-17 I was buying and selling those same contracts each time it went to 20+.

 

Entire position has basically been paid for in profits at this point and I purchased more today.

 

 

Sold ~15% of the core put position today when VIX hit 20. Will probably let a bit more go if me move closer to 25, but still waiting for that elusive 30+ print on the VIX to signal panic to let the bulk of the position go.

 

Repurchased these a few days back. Added more today.

 

Still expecting a 30+ VIX move this year, but will keep trading the position.

 

Once again, we've failed to break 3000 sustainably on the S&P and the China trade 'deal' turned out to not really be a deal.

 

Purchased more puts.

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GIL.TO. Re-established a small position on the 25% sell off today. Saputo). Stock is trading at close to a 4.5 year low band.Their largest and most profitable business (selling t-shirts and fleece to screen printers) continues to chug along. Every couple of years cotton prices swing and 6 months later it hits their short term results, the stock sells off aggressively.

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Also recently bought a small position in my old employer SAP.TO (Saputo). Stock is trading at close to a 3.5 year low band. Based on current ernings i would not call it crazy cheap. However, as they digest their recent aquisitions in Australia and the UK profitability should improve. This will likely take 12 to 24 months to play out (i am not expecting a quick turnaround). They are now the number one dairy in Canada and Australia, the number 3 cheese producer in the US and the number 1 branded cheese producer in UK. They are a consolidator; they have had to pay up for recent large aquisitions but they are playing the long term game and building out a pretty impressive international platform.

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Bought more National Stock Yards (NSYC)

 

Same here. I suspect the pot. SEC action may scare some investors away from dark stocks and cause some selling. I am happy to oblige and provide liquidity if the price is right.

 

Not much public information out for NSYC, though from the Seeking Alpha post in Feb, 2019 it sounds very interesting - especially at a market cap of $9m. I emailed the company to see if they'll send annual reports on request. I don't like my chances, but it's worth a try.

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Bought more National Stock Yards (NSYC)

 

Same here. I suspect the pot. SEC action may scare some investors away from dark stocks and cause some selling. I am happy to oblige and provide liquidity if the price is right.

 

Not much public information out for NSYC, though from the Seeking Alpha post in Feb, 2019 it sounds very interesting - especially at a market cap of $9m. I emailed the company to see if they'll send annual reports on request. I don't like my chances, but it's worth a try.

 

I don’t have NSYC’s  annual report either, but there is enough information in Eric’s podcast episode to let me conclude there is a lot of value at current prices:

https://podcasts.apple.com/us/podcast/the-intelligent-investing-podcast/id1205082419?i=1000429276814

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Hi Stuart - The article from Feb 2019 is one I wrote. The article was based off a podcast that I recorded which you can check out here: https://ericschleien.com/podcast/anthony-waldichuk-national-stock-yards/

 

 

Best,

Eric Schleien

 

 

Bought more National Stock Yards (NSYC)

 

Same here. I suspect the pot. SEC action may scare some investors away from dark stocks and cause some selling. I am happy to oblige and provide liquidity if the price is right.

 

Not much public information out for NSYC, though from the Seeking Alpha post in Feb, 2019 it sounds very interesting - especially at a market cap of $9m. I emailed the company to see if they'll send annual reports on request. I don't like my chances, but it's worth a try.

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Cash.

 

Following the sale of 20% of my S&P 500 puts. Waiting for 30+ VIX to sell more.

 

Have been buying & selling over the last 2-3 weeks. Typically 20-30% of the position. When VIX dropped to 15-17 I was buying and selling those same contracts each time it went to 20+.

 

Entire position has basically been paid for in profits at this point and I purchased more today.

 

 

Sold ~15% of the core put position today when VIX hit 20. Will probably let a bit more go if me move closer to 25, but still waiting for that elusive 30+ print on the VIX to signal panic to let the bulk of the position go.

 

Repurchased these a few days back. Added more today.

 

Still expecting a 30+ VIX move this year, but will keep trading the position.

 

Once again, we've failed to break 3000 sustainably on the S&P and the China trade 'deal' turned out to not really be a deal.

 

Purchased more puts.

 

Was a little concerned this was going to be proven wrong after Monday, but today shows that 3000 appears to be unstoppable resistance. We bounced off it midday just to fall back through it.

 

Increased puts by another 10% today. Rolled covered calls forward on most of my positions.

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Bought some NOW AH.

 

In what world can an enterprise tech CEO with no consumer goods experience transition to become the CEO of the one of the largest athletic shoe and apparel companies in the world?

 

This can't be a positive sign for Nike. John Donahoe is a Meg Whitman type of CEO; full of consulting-based platitudes and not a lot of execution.

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Bought some NOW AH.

 

In what world can an enterprise tech CEO with no consumer goods experience transition to become the CEO of the one of the largest athletic shoe and apparel companies in the world?

 

This can't be a positive sign for Nike. John Donahoe is a Meg Whitman type of CEO; full of consulting-based platitudes and not a lot of execution.

 

Besides the bravado around macro, Druckenmiller basically pitched cloud plays and specifically mentioned NOW. I put it on my watch list around. $165 and it now trades at ~$220. Not bad at all. It would have been better if I had bought it myself. ::)

 

 

I don’t care to much about NKE, maybe they want a techie CEO. NOW stock was down a lot because of general weakness in the SAAS group and the CEO transition heightened the concern that the CEO change portents bad results. I thought that the more likely explanation for NOW’s CEO is that he wants to do something completely different.

 

I had NOW on my watchlist since Druckenmiller mentioned it in late 2018 at around $165 as a disruptor. It’s now even roughly at the same price in terms of price/sales relatively speaking, so I thought I dip my toe a bit into this. It’s one of the more moaty business in this space and might be a good value, if they keep growing and improve profitability. They are no slouch in terms of stock related comp, but are a bit better than WDAY.

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