What are you buying today?

[no_free_lunch]

PEP.  High quality company trading at 17x earnings and with a 4% yield. 

[tombgrt]

Better to be lucky than good sometimes. Bought back quite a bit of CRC common stock at average of $30.35 today on the Iran deal fears. Back to $32.75 again. Enough for a 0.6% portfolio return in a few hours. Then sold some of my CRC calls again around $32.5 to lower leverage.

 

Also bought some extra GXE at $1.00.

 

(I feel like a fool buying and selling so much. Especially considering I can go months without trading anything. But atm I don't have much of a choice as I want to slowly move from calls to common stock and from one opportunity to another.)

[Lakesider]

Also bought some extra GXE at $1.00.

 

Ditto.

[treasurehunt]

Here is a trading suggestion for you, treasurehunt,

 

Svenska Handelsbanken AB:

 

SHB A.STO market price SEK 98.22 [1 vote per share, highly liquid] [the A series share, ~98 percent of share capital]

SHB B.STO market price SEK 105.80 [0.1 vote per share, lower liquidity][the B series share, ~2 percent of share capital]

 

One has to get out of sloth mode, and sell the B and buy the A for the same amount of money, adjusted for 2 times commision per account involved, and then just go back to sloth mode again. You number of shares will increase by approx. [[105.80/98.22]-1]*100%] = 7.7%, without tying up further capital.

 

Damn good trade, if you're long SHB long term. "Keine hexerei, nur dumme Börse." Naturally, it requires, that you have some SHB B.STO shares to do it with.

 

- - - o 0 o - - -

 

If you don't own any of them, just buy some, and immediately forget about your buy, and then do the trade. It releases a good dose of endorfines in your body! [ ; - ) ]

 

Thanks for the suggestion, John, but I do not own any SHB B.STO shares, don't know enough about Handelsbanken to buy any, and still have a good amount of endorphins in my system from my recent BH trade. :-)

 

I could do the same thing with Biglari Holdings A and B shares though. The As are trading at a discount of almost 4% to the Bs, so swapping the Bs for the As makes sense. And as it happens, I have some Biglari B shares lying around...

[frommi]

Bought EPA:ALVEL, Netnet with 65% upside to NCAV and active share buybacks

Bought more SRC calls, spinoff is at the end of the month.

 

Bought a large position in MXP futures in my currency system. (Moves 50% of my foreign currency exposure from USD to MXN)

[winjitsu]

small position in LQ pre-spin calls in (h/t to clarkstreetvalue)

 

 

[John Hjorth]

I'm feeling frustrated, desperately trying to buy some BA* today, - to no avail. Searched for the ticker ROSDD, also to no avail ... [ : - / ] [ROSDD <- "Row of serious down days".]

[Sunrider]

small position in LQ pre-spin calls in (h/t to clarkstreetvalue)

 

I wonder about the use of options in this context. The calls will be adjusted to deliver the spin and $8.xx in cash. Is your thought that remainco will start trading up quite quickly? Do you intend to roll the options if nothing happens for a while?

 

Thank you!

[Sunrider]

Bought EPA:ALVEL, Netnet with 65% upside to NCAV and active share buybacks

Bought more SRC calls, spinoff is at the end of the month.

 

Bought a large position in MXP futures in my currency system. (Moves 50% of my foreign currency exposure from USD to MXN)

 

What gives you comfort that they got a handle on operations so that they can continue repurchasing shares? I only had a cursory glance through the annual report but it seems like lots of issues with assets. It's cheap, but is management competent and honest?

[winjitsu]

Option will get adjusted down w/ the cash, so effectively this will be a call on the new CPLG. I think its (1) undervalued (2) volatility (and iv) will increase drastically post spin.

 

Mostly trying out the trade mechanics, so this is a learning opportunity for me, hence a tiny position size.

 

 

I wonder about the use of options in this context. The calls will be adjusted to deliver the spin and $8.xx in cash. Is your thought that remainco will start trading up quite quickly? Do you intend to roll the options if nothing happens for a while?

 

Thank you!

[frommi]

Bought EPA:ALVEL, Netnet with 65% upside to NCAV and active share buybacks

Bought more SRC calls, spinoff is at the end of the month.

 

Bought a large position in MXP futures in my currency system. (Moves 50% of my foreign currency exposure from USD to MXN)

 

What gives you comfort that they got a handle on operations so that they can continue repurchasing shares? I only had a cursory glance through the annual report but it seems like lots of issues with assets. It's cheap, but is management competent and honest?

 

I don`t know. But i know that investing in netnets works and that netnets with buybacks work even better.

[AzCactus]

ADS/NLSN

[John Hjorth]

Added [seriously] to BAC, C & JPM within the last two days.

[petec]

 

Bought a large position in MXP futures in my currency system. (Moves 50% of my foreign currency exposure from USD to MXN)

 

Would you mind elaborating on your thesis? I know Mexico quite well so I would be interested.

 

Also, what currency system do you use and how have you structured the bet?

 

[frommi]

It is based on relative purchasing power, term spread and cash interest rates. The mexican peso right now is very undervalued on rppp (~35%) against the USD and ranks very high on term spread and interest rates. Ruerd Heeg on Seeking Alpha has some good articles on currencies.

[_JJ_]

CK Hutchison Holdings

[villainx]

CK Hutchison Holdings

 

what are your thoughts on CK Hutchison?  Cause of industry, geography, leadership, diversification, value, growth, etc.?

[SafetyinNumbers]

Bought some PPR.TO. Probably the worst performing oil stock in the world. Has operational and financial leverage with two potential catalysts with its QC assets. Q1 was awful but Q2 cash flow should really step up and be an inflection point.

[Lakesider]

Bought Naspers,

 

I think the discount is enough margin of safety, Tencent could be overvalued. I'm not smart enough to value Tencent but i'm happy to get everything else for free. I think there is value in the other holdings will be realised later.

 

Hoping management get increasingly desperate to demonstrate the value and follow through spinning off other units.

[DanielGMask]

It is based on relative purchasing power, term spread and cash interest rates. The mexican peso right now is very undervalued on rppp (~35%) against the USD and ranks very high on term spread and interest rates. Ruerd Heeg on Seeking Alpha has some good articles on currencies.

 

Seems dangerous! I live in Mexico and we are about to elect a new president and part of congress. The candidate that’s leading (by a lot!) is clearly socialist and against market systems. This doesn’t mean that if he wins he is going to nationalize private companies or move against industry, nor that congress will approve such decisions, but he may control an important part of congress and indeed make some moves against free markets.

 

The peso is reflecting some of these fears and if I were to bet (I’m not), I would bet against the peso!

[Rainforesthiker]

I added to my Markel position.  Every time I hear their investor presentation in Omaha I have to buy more.

[frommi]

It is based on relative purchasing power, term spread and cash interest rates. The mexican peso right now is very undervalued on rppp (~35%) against the USD and ranks very high on term spread and interest rates. Ruerd Heeg on Seeking Alpha has some good articles on currencies.

 

Seems dangerous! I live in Mexico and we are about to elect a new president and part of congress. The candidate that’s leading (by a lot!) is clearly socialist and against market systems. This doesn’t mean that if he wins he is going to nationalize private companies or move against industry, nor that congress will approve such decisions, but he may control an important part of congress and indeed make some moves against free markets.

 

The peso is reflecting some of these fears and if I were to bet (I’m not), I would bet against the peso!

 

I base my investment decisions on facts, not on news or emotions. But hey, that makes a market. Maybe i am wrong.

[StevieV]

I added to my Markel position.  Every time I hear their investor presentation in Omaha I have to buy more.

 

Anything in-particular from this year's presentation?  The stock seems a bit expensive to me here.

 

[bennycx]

ADS/NLSN

 

Can you give a short thesis on ADS?

[Cardboard]

T-CVE calls Oct $12 CAD strike. Stock itself is a great buy but, I am low on cash  :o

 

Great CEO who gets it. Fundamentals in their favour. Very undervalued on absolute basis and to its peers such as CNRL: price per flowing, vs cash flow, vs reserves. Prime destination for U.S. investors wanting to invest in Canadian energy rebound (listed on NYSE + liquid).

 

Former management paid too high of a price, at the time, for Conoco assets but, at these prices it is really worth it. Christina Lake is a pearl with best in class steam to oil ratio of 1.8 times. Hedges entered at the time are also rolling off so cash flow will really take off in H2. Combined with a few small asset sales, debt concerns will go away.

 

Cardboard