What are you buying today?

[original mungerville]

Closed more IWM puts and bought JNJ and XIV.

 

Thanks,

Lance

 

I was also lucky to close out a decent chunk of my in-the-money puts yesterday morning and so am reasonably well positioned for a bounce this morning. Still have at-the-money hedges for my portfolio.

[Ross812]

I bought CHEF again this morning. There should be another 15c in expenses tapering off over the year from their Bronx facility so the FY 16 number could be off by 5-10c making this fPE around 17 and lower than where Mecham bought in Q3 of '14. 

[KinAlberta]

How much cash do people have at this point? Anyone selling to increase cash or is it not wise to do it after today's plunge? After today plunge, it brings up my cash level to around 10%.

 

If you weren't bearish before today, then I don't see why you would increase your cash position after today. Your portfolio positioning should probably be made independent of the daily market gyrations. The only information we should take from any day's market movements is the price available to enter/exit positions and how attractive that is on an absolute basis. I'm sure there are exceptions, but in general that's how I would look at it.

 

Totally agree, however, like the proverbial slap on the face, sometimes it takes some close calls to correct or clarify people's thinking.

[Lance]

Closed more IWM puts and bought JNJ and XIV.

 

Thanks,

Lance

Just wondering.. what's your reasoning for JNJ? I sold it a few years ago for about 15% less than it is now. I like their businesses but I feel they kinda lost their way.

 

Hi rb - I think of it as taking chips off the table.  I try and do that from time to time lest I get carried away.

 

Thanks,

Lance 

[Lance]

Anyone buy anything today?

 

I closed my IBB puts and bought IBM (following Warren and Prem) and PRU (in case the Fed raises).

 

Thanks

Lance

[ourkid8]

I doubled my small IBM position.  If it continues to drop, I will further add.  3.5% yield while i wait for the turnaround which is taking place.  I can't complain!  :)

 

Anyone buy anything today?

 

I closed my IBB puts and bought IBM (following Warren and Prem) and PRU (in case the Fed raises).

 

Thanks

Lance

[wachtwoord]

I've been fully invested through this. Have bee n drooling over some of the prices though.

[kirkomi]

I've been fully invested through this. Have bee n drooling over some of the prices though.

 

Can you please share these names ? I have been doing a lot of research lately but I do not find anything which is obviously cheap (except as I mentioned earler, NOV).

 

I am also looking at SSW but I only made a small position because the customer concentration ( + Chinese) is stopping me from making a bigger investment.

 

Rolls Royce -- Not cheap in an obvious way. Small position.

AIQ -- Too much debt. I am not able to put a baseline price here. Small position.

Altius -- Already 7% of my portfolio. Will go higher if it drops significantly, say to C$10.

 

 

[wachtwoord]

I've been fully invested through this. Have bee n drooling over some of the prices though.

 

Can you please share these names ? I have been doing a lot of research lately but I do not find anything which is obviously cheap (except as I mentioned earler, NOV).

 

I am also looking at SSW but I only made a small position because the customer concentration ( + Chinese) is stopping me from making a bigger investment.

 

Rolls Royce -- Not cheap in an obvious way. Small position.

AIQ -- Too much debt. I am not able to put a baseline price here. Small position.

Altius -- Already 7% of my portfolio. Will go higher if it drops significantly, say to C$10.

 

Mostly the stocks that are already my 3 biggest positions: NOV (20%), ATUSF/ALS.TO (19%) and SE (13%)

[TontineCapital]

Wow KS to 0184:HK HK$6.67, great entry point. Fundamentals haven't changed. Still way under value.

[rb]

More Rolls Royce

[no_free_lunch]

Tried to buy Rolls Royce yesterday but found out I am not able to hold it in a registered account. 

[rb]

yea brokers won't let you hold OTC stuff in registered accounts

[bizaro86]

Tried to buy Rolls Royce yesterday but found out I am not able to hold it in a registered account.

 

One option there is to open or move a registered account to IB, where you could buy RR in London. Because it is exchange traded there, it is a valid registered holding.

 

An alternative option would be to work with your broker, as you should be able to buy foreign stock (not ADRs) as long as it is also traded on a allowable stock exchange. You should check, but as long as it is the same foreign security, it would be allowed. So the RYCEF shares should be ok, but not the ADRs. You'd probably have to execute that by phone and explain it all.

[rb]

Tried to buy Rolls Royce yesterday but found out I am not able to hold it in a registered account.

 

One option there is to open or move a registered account to IB, where you could buy RR in London. Because it is exchange traded there, it is a valid registered holding.

 

An alternative option would be to work with your broker, as you should be able to buy foreign stock (not ADRs) as long as it is also traded on a allowable stock exchange. You should check, but as long as it is the same foreign security, it would be allowed. So the RYCEF shares should be ok, but not the ADRs. You'd probably have to execute that by phone and explain it all.

While IB offers registered accounts now you they only let you trade CAD and USD product in them so you can't buy RR in London. TD won't let you do it either. Questrade may do it over the phone but they'll probably fleece you.

 

Btw, if anyone manages to buy RR in a registered account please share.

[no_free_lunch]

Thanks bizarro.  My broker did let me enter the trade in RYCEF as you mentioned.  However, the trade wasn't executing despite my setting a limit slightly above the current ask!  I might try making the trade again and giving it more time.

[rb]

Thanks bizarro.  My broker did let me enter the trade in RYCEF as you mentioned.  However, the trade wasn't executing despite my setting a limit slightly above the current ask!  I might try making the trade again and giving it more time.

Which broker?

[no_free_lunch]

I use questrade.

[bizaro86]

Tried to buy Rolls Royce yesterday but found out I am not able to hold it in a registered account.

 

One option there is to open or move a registered account to IB, where you could buy RR in London. Because it is exchange traded there, it is a valid registered holding.

 

An alternative option would be to work with your broker, as you should be able to buy foreign stock (not ADRs) as long as it is also traded on a allowable stock exchange. You should check, but as long as it is the same foreign security, it would be allowed. So the RYCEF shares should be ok, but not the ADRs. You'd probably have to execute that by phone and explain it all.

While IB offers registered accounts now you they only let you trade CAD and USD product in them so you can't buy RR in London. TD won't let you do it either. Questrade may do it over the phone but they'll probably fleece you.

 

Btw, if anyone manages to buy RR in a registered account please share.

 

Thanks, I didn't know that about IB. I have never moved my registered plan to them, because they don't allow for some securities I want (convertible debs, CSE stocks, etc).

 

I'm pretty sure that you can hold OTC stocks in your RRSP only if they're also listed on a designated exchange. I recall reading about someone who had large gains on Fannie/Freddie in a TFSA that were allowed as they were cross-listed in Germany. Personally, I've held the OTC version of European stocks in my RRSP before, but it was a pain in the butt. I had to do the transaction by phone, it took forever to fill and the executions were horrible. So now I do anything I want OTC in my non-reg IB account, and prefer to buy foreign stock on its home exchange also through IB.

[no_free_lunch]

Bought RYCEY in a non-registered account.

[KCLarkin]

What price did you pay for RYCEY? When I looked, the bid ask was very wide.

[ERICOPOLY]

I added some BAC 2017 $15 calls and some shorter term $15 BAC puts.  Not touching my SPY short though -- might need it.

 

Added some GM common.

[rpadebet]

I added some BAC 2017 $15 calls and some shorter term $15 BAC puts.  Not touching my SPY short though -- might need it.

 

Added some GM common.

 

Aren't you concerned you are paying too much for Vol at these levels?

[ERICOPOLY]

I added some BAC 2017 $15 calls and some shorter term $15 BAC puts.  Not touching my SPY short though -- might need it.

 

Added some GM common.

 

Aren't you concerned you are paying too much for Vol at these levels?

 

Volatility is always expensive when there is tension and underlying has fallen considerably in price (which is usually correlated with a good price:value).

 

There is no way around it.

 

Just don't buy 6 years' worth of it is my motto.

 

My speculation is that when the stock goes to $20 (whenever that is) or so I'll probably be able to write the $22 strike call for at least $2.  So I think I'll get all this premium back in the end.  So mentally if I look at it like that it's not so bad.

 

 

[scorpioncapital]

I am looking for public stocks that meet these two criteria (Berkshire excluded)!

 

1. A genius - an extremely talented capital allocator with unusual skills. Not just talking the talk but literally being able to execute above the rest.

 

2. A great asset or collection of assets with great returns. A quality jewel that you can feel very comfortable owning without worrying about it going away or decreasing in value and in fact commanding or likely to command a premium for that quality.

 

To be honest, I can't really think of anything outside of Berkshire. Yes #2 alone could be nice but combine it with #1 and you have a dynamite investment at the right entry price. Maybe Bruce Flatt at Brookfield but I'm not so keen on the profit potential of the assets owned and their outstanding quality.