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What are you buying today?


LowIQinvestor

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Have been buying more mortgage REITS - primarily Annaly and AGNC.

 

Selling deep ITM covered calls against the new shares to recoup some cash and insulate against price movements if we hit volatility surrounding the election or if defaults/refinanced are worse than normal.

 

Just collecting double digit dividends with limited price exposure waiting for a little more confidence in the market/economy.

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Finished building a bit of a position in GEOS. Liquidity is a bitch in this one but its an incredible setup. Trades at half of an understated book. No debt. cash + conservative estimate on RE currently equates to about $5 per share. Yea I know O&G suck. I agree. But this is basically a free call option on anything happening at these prices. Including the two new activists forcing a sale/liquidation.

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CloudMD (DOC.V) added to a starter position. Growth, acquisitor, building out a vertical healthcare space.

 

Last week: FWZ.V - Zinc. Commodity super-cycle theory. Entered on a technical pattern.

 

RBX.V - Gold miner, profitable (P/E ~ 9), paying a special dividend 0.04 on Sept 25, 0.06 paid this year, trading at 0.48.

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Picked up a lot of RVRA today from a pretty big seller.  Substantially all assets have been sold and the plan is to return capital to shareholders.  I expect something north of 2.00 to be distributed in Q4 vs. the 1.75 current price.  Normal volume is like 20k shares and today it was over 300k plus another 300k shares on the offer at close.  Hopefully they don't know something I don't.

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Yea Ive spoken with a good % of the shareholder base over the years and I am yet aware really of anyone who weighs the O&G/fracking as anything but a free option. I did see one writeup a while ago with a super bull case in which it could account for $1 per share of NAV. Its just kind of there, but not material IMO.

 

They are not a homebuilder. They prep the lots but have contracts currently with 3 national builders and profit arrangements with all. There's currently 7 national builders looking to get involved in phase 2, which a couple years out should include over 1M sq/ft of commercial. The main asset is the water rights/servicing. This is a very conservatively managed company that basically has a whole lot of optionality, great inflation protected assets, and a pristine balance sheet. My only guess on the underperformance is really just a few of the larger legacy holders still lightening up and perhaps a bit of an unwind from the October - March rally where the stock literally never had a down day. But IDK. I'm good all day with this one here at $9.

 

Looks like Trigran exited. Been selling down a large stake for a long time, and probably just wanted to flush it all. Thanks for the shares.

 

Separately, it looks like Harding, who had a 105b setup at the beginning of the year, and some shares sold @13, has discontinued that plan. The amount of his net worth in this is impressive.

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