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What are you buying today?


LowIQinvestor

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boilermaker & Dynamic,

 

I like your picks. [isen't there a typo in your post, boilermaker?]

 

John, There could be but I am not seeing it? I did mean BK, Bank of NY Mellon. Mike

 

Mike,

 

Thank you for your elaboration. I got it wrong as basis for my post, and I've now got it, thank you.

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Maybe if I open an account that supports options, I could get to like writing out of the money puts myself at prices where I'd be a willing buyer anyway. Getting paid $0.75 for $49.50 strike either means buying at effectively $48.75 or getting $0.75 per share return - close to 2% of the potential position in 9 days. It seems more attractive than a limit order at $48.75 except it can't be cancelled in the event of truly adverse news. For a high confidence stock trading fairly near my buy price it seems like a good way to profit from my willingness to buy even if the desired price doesn't materialize.

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Wrote some BK $49.5-strike April 13 expiration puts for $0.75 per share.

 

I was trying to buy the stock today but it went up too fast!!

 

I tried to write some 50-strike April 6 expiration puts but missed on those because the price went up too fast and my limit order did not execute.

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Surprised at the lack of interest in CHTR at a price significantly lower than the price at which Rutledge and Malone just bought back 12% of the company... Or maybe people who are buying it just aren't mentioning it here.

I bought LBRDA one page ago. :)

 

Hope CHTR can buy back another 8-10% of the shares in 2018.

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Hope CHTR can buy back another 8-10% of the shares in 2018.

 

They won't be buying as much because they reached their target leverage. Unless they decided to go above to grab an opportunity, but I don't think we'll see anything close to a 12% this year.

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CHTR's 2017 EBITDA was $15.3B and let's say they will do $16B this year (4.6% yoy, vs 5.8% increase for 2017 vs 2016).  That's a $700M increase which, with 4.5x leverage, results in another $3B of new debt.

 

Then, EBITDA - capex - interest - tax ~ $16 - 9 - 3 - 0 = $4B cash generated from operations for buybacks or total $7B.  With CHTR at ~$85B market value, that's 8.2%.

 

My capex number is relatively high due to the MVNO investment which also may pull the EBITDA number down slightly.

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Looks like the NAV of LBRDA is about $91 vs a $83 share price- do folks here think that a 10% holding discount is a bargain? I typically look for larger discounts when looking at holding companies (even though this is pretty much a single asset holding company), due to the cost burden at the holding level.

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Looks like the NAVY of LBRDA is about $91 vs a $83 share price- do folks here think that a 10% holding discount is a bargain? I typically look for larger discounts when looking at holding companies (even though this is pretty much a single asset holding company), due to the cost burden at the holding level.

 

Depends how tax-efficiently you think they can eventually collapse back into CHTR or sell...

 

I'd also consider whether CHTR itself is undervalued currently, meaning that there's a discount on top of a discount..

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Bought davita yesterday at 64... It is the first buyback window after the announcement of the sale of HCP and it has pulled back a lot.  Low earnings multiple, lower tax rate, low net debt after the deal, cannibal, a big runaway for expansion (international), a growing client base and expectations of profit  after achieving scale in international markets.

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