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What are you buying today?


LowIQinvestor

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Yeah, what's been up with Discovery?  Think its just generalized angst about the perceived impending doom of the cable bundle as evidenced by recent announcements from HBO and AAPL?

 

Yeah, I think the impending doom of cable has spread a flue to all the content companies. I really do not see the problem though. Cable will die a slow death. Cable cos will supplement triple play with expensive internet. Content companies still produce content people want. They will have decaying legacy cable bundle revenue along with new revenue from selling ala carte packages. I envision these ala carte packages coming in two forms. I think advertising revenue will actually increase because adds can be directed more toward their audience and will be more effective.

 

I wish Disney was having the same issues right now too.

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new longs - SQM BABA CBT

kept adding to WTW short

 

What's the thesis on that short?

 

there is a thread on WTW - over levered, failing/being disrupted business model/similar to yellow page, not enough time for turnaround

 

Yep, saw the thread and posted there, thx.

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Reduced FCAU by 30%

Reduced WFM by 100%

 

I wanted to hold both - but both were purchased on margin and I'm reducing leverage in my portfolio as I am getting more and more skittish about the U.S. equity markets. Both of these had been strong performers and warranted taking profits.

 

Watching AXP, SB, SBLK, and BBRY for potential increases; however, would probably need to be at more attractive prices to convince me to sell something else in favor of buying them. 

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BABA  (Yes I am a growth investor now with BABA,AMZN,FAST,VRX,BR, AAPL and CTSH making up 50% of my portfolio)

 

Curious how you rationalize currents prices of say, BABA or AMZN? Do you run some sort of DCF out many years, assuming the companies will grow into their valuations and still give you sufficient safety in your investment?

 

I'm not looking to attack, genuinely curious as to the thought process :)

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BABA  (Yes I am a growth investor now with BABA,AMZN,FAST,VRX,BR, AAPL and CTSH making up 50% of my portfolio)

 

Curious how you rationalize currents prices of say, BABA or AMZN? Do you run some sort of DCF out many years, assuming the companies will grow into their valuations and still give you sufficient safety in your investment?

 

I'm not looking to attack, genuinely curious as to the thought process :)

 

See AMZN thread, I have elaborated my thinking many times there.

 

BABA is also similar, but more growth and lower margins (as % of GMV). I think once they get their market share, they are going to take advantage of the associated network effects to increase the margins to more "normal" levels. Btw, next year BABA's GMV in china is estimated to be 80% of WMT's GMV worldwide next year.

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