What are you buying today?

[LightWhale]

Thanks for sharing

[frommi]

Thanks for sharing

 

I found an even better method. When IV is between 25% and 50% i create a synthetic short with an embedded stop loss by selling ATM call options, buying the same amount of OTM call options and a smaller amount of ATM put options. That way you can have 0$ option premium ticking against you and still have limited downside and >100% upside. And when IV > 50% i sell a very small amount of ATM put options (10% of the calls) in addition to the calls, with IV so high you only lose if the stock goes up by 20% and everything below ends with a profit. And because of the OTM call option your losses are also capped.

[writser]

Small chunk of 6822:hkg.

[CorpRaider]

Bought some IVAL recently.

[writser]

Small chunk of 0635:hkg. Few shares of STLY a couple of days ago (is that allowed in this thread?)

[frommi]

Small chunk of 0635:hkg. Few shares of STLY a couple of days ago (is that allowed in this thread?)

 

I was also able to get a couple of shares of STLY, but that amount is immaterial to me. Do you understand the implications of the latest 8K filing? I am not sure that i am able to predict how the balance sheet/NCAV will look like next quarter.

 

I sold TYO:6907 (reached NCAV) and bought more SGX:B9S, SGX:BTG and HKG:0422.

[bigbluffzinc]

TPH - I think the default risk is overestimated in the price of the common and it's a 2-3x opportunity over the next few years.

[txvalue]

AMC, BCS, AGN

[Cardboard]

T-CPG

[cwericb]

Added to T-WCP, T-PPR, T-BTE. Initiated T-CJ. Sold some T-OBE

[rukawa]

This is great, so much information embedded in your post.  I have been looking for a good set of shorts so I will do some dd on your put names.  Curious what you mean with your japanese netnet, do you have a fixed period of time you will wait before selling?

 

I sell netnets at NCAV, but after 1 year i reassess the situation and when i find something a lot cheaper i make the switch.

 

I sell net-nets often below NAV (80% of NAV is typical for me). But I buy them even cheaper...typically at least <60% of NAV. And I rebalance often...almost continuously actually. I'm thinking of lowering to once a quarter. My backtests indicate quarterly rebalancing is significantly better than annual rebalancing. The following appear to really work well in a "net-net" like strategy:

 

1) Large cash balances....lots of cash is far far better than lots of inventory or receivables

2) Few financial but not necessarily operating liabilities

3) Lots of extra, not necessarily current assets

 

What you are basically looking for is a company in an excellent liquidity situation because they have a tonne of cash a few financial liabilities (operating liabilities are far less important). And simultaneously a low price to book ratio...lets say around 60%. Examples of such companies are:

 

1) KDM Shipping

2) Namura Shipbuilding

3) Kikukawa Enterprise Inc

4) STR Holdings

5) Walker Innovation

 

Interestingly 2) and 3) often don't show up on net net screens.

 

In other words net nets are really a combination of two things:

1) cheapness

2) great liquidity => immunity from bankruptcy

 

Traditional nets-nets which may include companies with a tonne of inventory and often lots of financial liabilities...can be terrible.

[frommi]

I sell net-nets often below NAV (80% of NAV is typical for me). But I buy them even cheaper...typically at least <60% of NAV. And I rebalance often...almost continuously actually. I'm thinking of lowering to once a quarter. My backtests indicate quarterly rebalancing is significantly better than annual rebalancing. The following appear to really work well in a "net-net" like strategy:

 

1) Large cash balances....lots of cash is far far better than lots of inventory or receivables

2) Few financial but not necessarily operating liabilities

3) Lots of extra, not necessarily current assets

 

What you are basically looking for is a company in an excellent liquidity situation because they have a tonne of cash a few financial liabilities (operating liabilities are far less important). And simultaneously a low price to book ratio...lets say around 60%. Examples of such companies are:

 

1) KDM Shipping

2) Namura Shipbuilding

3) Kikukawa Enterprise Inc

4) STR Holdings

5) Walker Innovation

 

Interestingly 2) and 3) often don't show up on net net screens.

 

In other words net nets are really a combination of two things:

1) cheapness

2) great liquidity => immunity from bankruptcy

 

Traditional nets-nets which may include companies with a tonne of inventory and often lots of financial liabilities...can be terrible.

 

Thanks!

[frommi]

Shorted TWLO by Selling calls with a strike of 27, buying puts@27 and calls@36 in equal proportions july 18 expiration.

Shorted DERM by Selling calls@30, buying calls @40 and selling! puts @30 september strike. But sold only 1 put for every 5 calls. That way everything from 4$ to 35$ is a profit with a max loss at or above 40$, with the stock currently at 31$. Crazy volatility in the options.

 

Net exposure down to the minimum level of 10%.

[frommi]

Small chunk of 0635:hkg. Few shares of STLY a couple of days ago (is that allowed in this thread?)

 

I was also able to get a couple of shares of STLY, but that amount is immaterial to me. Do you understand the implications of the latest 8K filing? I am not sure that i am able to predict how the balance sheet/NCAV will look like next quarter.

 

STLY just filed a proxy with a pro forma balance sheet, that doesn`t look very promising. I sold the few shares i got. Its only a good investment if they are able to collect 100% of the notes and they are able to use the NOL`s. But since the tax reform NOL`s are much less valuable than before.

[writser]

Well, the pro forma balance sheet was not that suprising imho, how did you expect it would look? Last Tuesday you could buy the entire company for what I thought was basically net cash, give or take a million. On top of that you got $11m in notes, NOL's, future CDSOA payments, a small equity interest in the buyer and the upside of the go-shop period for free. Also the company signaled it wanted to do a buyback / dividend. Surely that whole package is worth something? I bought the package for what I thought was a bargain price and flipped my position when shares were up ~10% (implying a ~$1.5m increase in package valuation). Probably a bit too aggressive but I'm not in love with this idea either (and in case of a dividend I have to pay withholding taxes). I just thought the market overreacted a bit last Tuesday.

 

Still, I think the pro forma company is such a random (disgusting?) collection of assets that appeals to nobody that it is, if you have strong stomach, probably on the cheap side.

[frommi]

Well, the pro forma balance sheet was not that suprising imho, how did you expect it would look? Last Tuesday you could buy the entire company for what I thought was basically net cash, give or take a million. On top of that you got $11m in notes, NOL's, future CDSOA payments, a small equity interest in the buyer and the upside of the go-shop period for free. Also the company signaled it wanted to do a buyback / dividend. Surely that whole package is worth something? I bought the package for what I thought was a bargain price and flipped my position when shares were up ~10% (implying a ~$1.5m increase in package valuation). Probably a bit too aggressive but I'm not in love with this idea either (and in case of a dividend I have to pay withholding taxes). I just thought the market overreacted a bit last Tuesday.

 

Still, I think the pro forma company is such a random (disgusting?) collection of assets that appeals to nobody that it is, if you have strong stomach, probably on the cheap side.

 

I also bought it on tuesday before the press release as a NCAV stock at 55-60% of NCAV. The press release came after or at the close and after reading the press release i was not sure how the liability side of the balance sheet will look like. I made 15% on this, but who cares it was on just 700 shares. I planned to buy more the next days if i had a better view of the situation, but the news and the price moves killed my plans. Since it doesn`t trade below ncav it doesn`t fit into my strategy anymore.

[york]

GoGold Resources

[NewbieD]

MIPS Protection - overly negative sentiment due to litigation /w Bauer hockey, happy even if they lose.

Storytel - seems this is picking up in Poland and Russia

[netnet]

I sell net-nets often below NAV (80% of NAV is typical for me). But I buy them even cheaper...typically at least <60% of NAV. And I rebalance often...almost continuously actually. I'm thinking of lowering to once a quarter. My backtests indicate quarterly rebalancing is significantly better than annual rebalancing. The following appear to really work well in a "net-net" like strategy:

 

1) Large cash balances....lots of cash is far far better than lots of inventory or receivables

2) Few financial but not necessarily operating liabilities

3) Lots of extra, not necessarily current assets

 

What you are basically looking for is a company in an excellent liquidity situation because they have a tonne of cash a few financial liabilities (operating liabilities are far less important). And simultaneously a low price to book ratio...lets say around 60%. Examples of such companies are:

 

1) KDM Shipping

2) Namura Shipbuilding

3) Kikukawa Enterprise Inc

4) STR Holdings

5) Walker Innovation

 

Interestingly 2) and 3) often don't show up on net net screens.

 

In other words net nets are really a combination of two things:

1) cheapness

2) great liquidity => immunity from bankruptcy

 

Traditional nets-nets which may include companies with a tonne of inventory and often lots of financial liabilities...can be terrible.

 

What screens do you use? And\or sources?

I've been thinking about using netnet hunter.

[Junto]

I bought some F today

[Spekulatius]

Added to my pipeline stocks ENB and KMI today. I suppose higher interest rates and the trouble in BC has added to the weakness. The  big picture is that owning franchise and hard to replace cash flowing assets is probably a good thing.

[gokou3]

Added to my pipeline stocks ENB and KMI today. I suppose higher interest rates and the trouble in BC has added to the weakness. The  big picture is that owning franchise and hard to replace cash flowing assets is probably a good thing.

 

I bought a bit of ENF.to recently for the higher ACFFO to equity yield and lower 2018 EV/EBITDA vs. ENF.  Have you considered ENB vs ENF?

[Spekulatius]

 

I bought a bit of ENF.to recently for the higher ACFFO to equity yield and lower 2018 EV/EBITDA vs. ENF.  Have you considered ENB vs ENF?

 

No, I have not considered ENF. I oen already ENB , EEQ and SEP from the ENB empire and they is enough for me. I consider all of the above buys right now.

[Lance]

KIM and VER

 

Thanks

Lance

[doughishere]

mbi. 2/2

 

loaded up on leaps. 2/15

 

added more leaps. 2/16

 

5% position. 4% common, 1% Leaps.

 

added more common/leaps. 2/26

 

6% position. 5% common, 1.5% Leaps.