Author Topic: What are you buying today?  (Read 998474 times)

vince

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Re: What are you buying today?
« Reply #2880 on: April 25, 2018, 09:20:40 AM »
Since it went on sale today,  decided to purchase a first lot of CHTR and LRBDA. I agree its thr narrative here - communication toll road at 9x EBITDA that will likely benefit from secular tailwinds including 5G. I also added a bit more CMCSA as well - same idea really.

Spek,  I like that move. 


Luke 5:32

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Re: What are you buying today?
« Reply #2881 on: April 25, 2018, 10:28:36 AM »
I've been adding in the past week to FMCCL at roughly 18% of par.  Roughly $9 on $50 par.
Doesn't beat around the bush, gets right down to the business of Christ laying down His life and conquering death for you, me, and everybody else that accepts Him. "Oh death, where is your sting? Oh Hell, where is your victory?" Listen: https://www.youtube.com/watch?v=7bJzhkWVANc

Broeb22

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Re: What are you buying today?
« Reply #2882 on: April 26, 2018, 06:51:10 AM »
SPB

Company guided down and replaced its CEO with its Chairman David Maura who is well-respected as a capital allocator. He stated that much of the guide down in FCF is due to transitory factors, which have been ongoing for about a year at this point.

Announced $1BN share repurchase over 3 years would wipe out ~30% of market cap.

Company will be largely unleveraged after selling its battery and appliance businesses.

Transaction with HRG will allow index funds to own the stock once its no longer controlled.

~10% FCFF yield pro forma for divestitures of battery and appliance business.

globalfinancepartners

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Re: What are you buying today?
« Reply #2883 on: April 26, 2018, 08:18:36 AM »
thanks for the heads up, I hadn't noticed this.  got filled on a small amount of HRG at 9.555

Off to buy some more kwikset products..

SPB

Company guided down and replaced its CEO with its Chairman David Maura who is well-respected as a capital allocator. He stated that much of the guide down in FCF is due to transitory factors, which have been ongoing for about a year at this point.

Announced $1BN share repurchase over 3 years would wipe out ~30% of market cap.

Company will be largely unleveraged after selling its battery and appliance businesses.

Transaction with HRG will allow index funds to own the stock once its no longer controlled.

~10% FCFF yield pro forma for divestitures of battery and appliance business.

motown

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Re: What are you buying today?
« Reply #2884 on: April 27, 2018, 06:56:52 AM »
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.

Rukawa,

Thanks for your post!  Is Namura trading below NCAV?  If so, please help me with the math if you have time.

Many thanks!

Liberty

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Re: What are you buying today?
« Reply #2885 on: April 27, 2018, 08:09:01 AM »
CHTR
"Most haystacks don't even have a needle." |  I'm on Twitter  | Interesting podcast (new link)

gokou3

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Re: What are you buying today?
« Reply #2886 on: April 27, 2018, 08:56:32 AM »
CHTR

DooDiligence

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Re: What are you buying today?
« Reply #2887 on: April 27, 2018, 09:19:44 AM »
And Jeff makes 3 (people buying Charter, that is...)
« Last Edit: April 27, 2018, 09:21:48 AM by DooDiligence »
(Healthcare 44% - ABC BBH CVS DVA EW NVO) | (BRK.B - 14.8%) | (Media & Communication 13% - CHTR CMCSA DIS)

(Drinkers & Smokers 12.1% - ABEV MO) | (Auto's & Oil 10.8% - GPC VDE) | (Tech & Comms 5.2% - AAPL SFTBY)

(%'s held @ MV 8/18, excludes $)

[prepared 2 wait]

https://twitter.com/tunawish

John Hjorth

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Re: What are you buying today?
« Reply #2888 on: April 27, 2018, 09:35:10 AM »
I like your new signature, Jeff.
In the race of excellence there is no finish line.
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Voodooking

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Re: What are you buying today?
« Reply #2889 on: April 27, 2018, 10:44:50 AM »
CHTR & LBRDA  :)