Author Topic: What are you buying today?  (Read 1177859 times)

gfp

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Re: What are you buying today?
« Reply #3560 on: January 15, 2019, 08:44:32 AM »
Bought Arconic shares today.  Seems they are about to be sold.  Likely to Apollo

I am watching this stock too, but isnít the relatively small premium to the current market cap ( rumored purchase price is $11B, current market cap is $9.8B) a concern. Thatís just a 12% premium to the current price. This seems to be a difficult business to run and really not worth  as much than thought.


Sold out of Arconic today at 20.20, break-even for me.  Deal set to be announced between 21-22 per WSJ.  Would expect a decent spread to remain until closing.  No loss but still a disappointing premium.  Good call Spek.


Spekulatius

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Re: What are you buying today?
« Reply #3561 on: January 15, 2019, 04:46:57 PM »
Bought a starter in FRA.DE  Fraport is the owner of Frankfurt Airport. Trading at around  9x EV/EBITDA which is cheaper than for most of its history. I am not sure but a strike of the security personell and the trouble with Brexit (which will affect air traffic from Britain) seem to put pressure on this stock. Recent operational performance had been decent.

FWIW, I have started to reduce my overweight position in pipeline stocks (WMB and ENB) . I am still holding good chunks and ENB is still my largest position (or close to it). I guess I just have a weakness for infrastructure stocks.
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petec

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Re: What are you buying today?
« Reply #3562 on: January 16, 2019, 12:13:16 AM »
FWIW, I have started to reduce my overweight position in pipeline stocks (WMB and ENB) .

May I ask why?

Spekulatius

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Re: What are you buying today?
« Reply #3563 on: January 16, 2019, 04:21:45 AM »
FWIW, I have started to reduce my overweight position in pipeline stocks (WMB and ENB) .

May I ask why?

Valuation is looking less attractive. Pipeline stocks had several failed attempts to move higher in the past. I still own a good bunch but I am reducing positions as they get more overweighted. I would scale back on when they fall again. FWIW, ENB is an ~10% position currently. ThatĎs pretty high for me.
To be a realist, one has to believe in miracles.

LC

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Re: What are you buying today?
« Reply #3564 on: January 16, 2019, 12:44:02 PM »
Bought some MO. Also bought some VZ
« Last Edit: January 16, 2019, 01:07:56 PM by LC »
"Lethargy bordering on sloth remains the cornerstone of our investment style."
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brk.b | irm | mo | nlsn | pm | tap | tfsl | vz

LC

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Re: What are you buying today?
« Reply #3565 on: January 17, 2019, 11:26:58 AM »
VZ order went through today so saved a few % there.

Bought IRM, PM, and NLSN.
"Lethargy bordering on sloth remains the cornerstone of our investment style."
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brk.b | irm | mo | nlsn | pm | tap | tfsl | vz

Lance

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Re: What are you buying today?
« Reply #3566 on: January 17, 2019, 09:02:48 PM »
MO

Thanks
Lance

frommi

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Re: What are you buying today?
« Reply #3567 on: January 22, 2019, 09:30:37 PM »
MO

Thanks
Lance

Did the same today and also sold some puts on MO.

Spekulatius

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Re: What are you buying today?
« Reply #3568 on: January 23, 2019, 03:53:27 AM »
Added to Metro Bank (MTRO.L) - UK exchange
Hi. I've been looking a bit into that. Seems very interesting. Have you seen a decent writeup anywhere or mind to share a couple of points?

What's obvious is the deposit growth, which is incredible. The culture is based on the Commerce Bank model, that Vernon Hill "invented" in America.
The culture is real - I can tell you that. Both customers and employees love this company. You have 56 "stores" going to 100-130, roughly in 5-6 years.
The "store model" is totally repeatable - and UK will eventually support, perhaps, 200 stores.

There are structural reasons for the growth - by that I mean - the UK banking sector is being forced to shrink (I mean the legacy banks) as the
UK regulators and the public's interests have not been served. (RBS is still 65% owned by gov).  So some assets are being dispersed, the market is opening up, and
legacy branches have closed at a fast rate due to cost cutting and poor locations. So there are significant industry tailwinds for the
growth of "challenger" banks. Metro is the best of them all. It's the fastest growing bank I have ever seen in my life.

Looks like Metro Bank is blowing up. Risk weighting for mortgages off - they had  RWA for commercial mortgages at 50% rather than 100%. Did they forgot to read the manual for bank accounting in the UK? Looks doomed to me, or at least has to raise capital. On then surface, it still looks adequately capitalized, but I stay away from financials that canít get their accounting right - a lot of them become doughnuts.
https://finance.yahoo.com/news/british-lender-metro-banks-2018-072746266.html
To be a realist, one has to believe in miracles.

kab60

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Re: What are you buying today?
« Reply #3569 on: January 23, 2019, 04:40:42 AM »
Added to Metro Bank (MTRO.L) - UK exchange
Hi. I've been looking a bit into that. Seems very interesting. Have you seen a decent writeup anywhere or mind to share a couple of points?

What's obvious is the deposit growth, which is incredible. The culture is based on the Commerce Bank model, that Vernon Hill "invented" in America.
The culture is real - I can tell you that. Both customers and employees love this company. You have 56 "stores" going to 100-130, roughly in 5-6 years.
The "store model" is totally repeatable - and UK will eventually support, perhaps, 200 stores.

There are structural reasons for the growth - by that I mean - the UK banking sector is being forced to shrink (I mean the legacy banks) as the
UK regulators and the public's interests have not been served. (RBS is still 65% owned by gov).  So some assets are being dispersed, the market is opening up, and
legacy branches have closed at a fast rate due to cost cutting and poor locations. So there are significant industry tailwinds for the
growth of "challenger" banks. Metro is the best of them all. It's the fastest growing bank I have ever seen in my life.

Looks like Metro Bank is blowing up. Risk weighting for mortgages off - they had  RWA for commercial mortgages at 50% rather than 100%. Did they forgot to read the manual for bank accounting in the UK? Looks doomed to me, or at least has to raise capital. On then surface, it still looks adequately capitalized, but I stay away from financials that canít get their accounting right - a lot of them become doughnuts.
https://finance.yahoo.com/news/british-lender-metro-banks-2018-072746266.html
I'm not savy enough to figure out this Company (and luckily stayed away even though the story looked compelling), but their trading update really rubs me the wrong way. For someone as simple as me I'd think everything was fine and dandy even though they had a lil' slip up with some loan designations... Check it out for yourself.

https://www.metrobankonline.co.uk/globalassets/documents/investor_documents/metro_bank_trading_update.pdf