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What are you buying today?


LowIQinvestor

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ENB and TRP; average dividend is +7%

 

Sold my Suncor for small gain. Decided to shift my energy holdings exclusively into the 2 pipelines above (doubled my position in each). Oil stocks are cheap; however, my guess is economic growth is going to be weak moving forward as covid cases spike.

 

Bottom line, whoever wins the US election is going to inherit a brutal economy. Normally gridlock is perceived as being a good thing for the stock market. If we do not get a stimulus bill before the election and then we get a split congress the economy will suffer.

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Doubled my position in JBGS

 

i feel like i am really in the running for "most COBF dollars destroyed with ideas in 2020" award.

 

Dont worry, the more you do it the more used to it you get.

 

Seriously though, you can say theres always risk, but given where these have already fallen to and whats kind of being priced in, I think we've just(today) kind of gotten to a place where there is exhaustion(even many diehards have stopped buying) but on an absolute value basis, you're in a kill zone so to speak. Your initial JBGS write up for instance, in a roundabout way stated "its not the cheapest relative to NAV, but much better positioned". Well, how about 20% lower? That is todays prices. How about another 10-15% off? Same with ESRT and perhaps PGRE...there was talk of "$200 a square foot" or something...how about now? It's plain stupid territory and I can be quite stubborn but at the end of the day I dont care when you look at the profile of some of these. Its not like they're garbage. You're buying world class assets, cashflow, superb balance sheets(maybe not PGRE but I dont think they'll have liquidity issues) and well, in terms of in favor or out of favor....hmmm. I wonder where in the "cycle" we are on that? It often takes extraordinary circumstances to get extraordinary opportunities....well, thats this...The thesis has IMO been confirmed as companies like FB+AMZN still want to be in NYC, SF, DC, etc....this covid thing will pass, at worst over a short-mid duration time period and then from there everything will fall back into order, behaviors and pricing will normalize, and supply and demand will take effect. Long winded way of saying fuck it. Just obviously proceed with caution and realize this could go on a bit longer so make sure you have the capital to "rope a dope" the volatility.

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Small position in Netapp (NTAP).  Still thinking about INTC, but haven't pulled the trigger yet.

 

rb summed up the Intel situation without actually talking about Intel. Somewhere in the Apple thread he said something along these lines. "It's a massive company, with generally solid products and a sticky business that is trading below 10x FCF. So I backed up the truck."

 

Sure, situation isn't apples to apples, and I don't want to speak for rb. But Intel is a massive company that produces competitive products and has solid entrenchment in multiple markets. As Spek said, the latest earnings report was actually pretty good. People love doom and gloom stories. Especially in the tech space. Apple wasn't going out of business and I highly doubt Intel will be out of business anytime soon.

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Small position in Netapp (NTAP).  Still thinking about INTC, but haven't pulled the trigger yet.

 

rb summed up the Intel situation without actually talking about Intel. Somewhere in the Apple thread he said something along these lines. "It's a massive company, with generally solid products and a sticky business that is trading below 10x FCF. So I backed up the truck."

 

Sure, situation isn't apples to apples, and I don't want to speak for rb. But Intel is a massive company that produces competitive products and has solid entrenchment in multiple markets. As Spek said, the latest earnings report was actually pretty good. People love doom and gloom stories. Especially in the tech space. Apple wasn't going out of business and I highly doubt Intel will be out of business anytime soon.

 

Agreed.  I just think that we haven't reached the point of peak-pessimism yet, like AAPL in 2013.

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