Author Topic: What are you buying today?  (Read 929929 times)

John Hjorth

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Re: What are you buying today?
« Reply #2960 on: May 15, 2018, 11:42:16 AM »
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".]
”In the race of excellence … there is no finish line.”
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Sunrider

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Re: What are you buying today?
« Reply #2961 on: May 15, 2018, 12:46:15 PM »
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

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Re: What are you buying today?
« Reply #2962 on: May 15, 2018, 12:47:42 PM »
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

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Re: What are you buying today?
« Reply #2963 on: May 15, 2018, 02:46:19 PM »
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

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Re: What are you buying today?
« Reply #2964 on: May 15, 2018, 09:05:52 PM »
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

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Re: What are you buying today?
« Reply #2965 on: May 16, 2018, 12:05:48 PM »
ADS/NLSN

John Hjorth

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Re: What are you buying today?
« Reply #2966 on: May 16, 2018, 01:02:29 PM »
Added [seriously] to BAC, C & JPM within the last two days.
”In the race of excellence … there is no finish line.”
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai

petec

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Re: What are you buying today?
« Reply #2967 on: May 17, 2018, 12:39:05 AM »

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

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Re: What are you buying today?
« Reply #2968 on: May 17, 2018, 01:19:57 AM »
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_

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Re: What are you buying today?
« Reply #2969 on: May 17, 2018, 06:49:56 AM »
CK Hutchison Holdings