Author Topic: What are you buying today?  (Read 1419978 times)

kab60

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Re: What are you buying today?
« Reply #4230 on: October 04, 2019, 12:39:27 AM »
Some Altria the other day, more Linamar yesterday (around 30 pct. position).


Lance

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Re: What are you buying today?
« Reply #4231 on: October 04, 2019, 08:07:27 AM »
DIS yesterday.

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Lance

no_free_lunch

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Re: What are you buying today?
« Reply #4232 on: October 04, 2019, 12:00:14 PM »
I ended up adding to FOX and GILD and bought back some RYCEY

Can you comment at all on RYCEY?  Even with the pullback it doesn't seem that terribly cheap to me but I admit I don't understand the financials.

Spekulatius

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Re: What are you buying today?
« Reply #4233 on: October 07, 2019, 09:37:45 AM »
I ended up adding to FOX and GILD and bought back some RYCEY

Can you comment at all on RYCEY?  Even with the pullback it doesn't seem that terribly cheap to me but I admit I don't understand the financials.

I look at RYCEYĎs valuation in terms of EV/ sales. It trades at around 1xEV/ sales, but once profitability is addressed, it should be able to get to 2x eventually. Now add done revenue growth to it, one can easily see more than a 2 bagger.

Bases on Current results, you are correct , Rolls Royce isnít cheap at all. I am optimistic though, because there is just such a strong moat around this business and there is really only one competitor ( and Pratt& Whittey to some extend).

Likewise logic can be applied to GE, except I have more concerns about their accounting.
To be a realist, one has to believe in miracles.

Lance

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Re: What are you buying today?
« Reply #4234 on: October 08, 2019, 07:37:58 AM »
FOXA

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Lance

Saluki

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Re: What are you buying today?
« Reply #4235 on: October 08, 2019, 08:22:43 AM »
Building  a position in STNG (scorpio tankers) and bought a tiny bit in SALT (scorpio bulkers) which owns a big slug of STNG.  Added to my large position in SSW (Seaspan) and bought some more JOE on the dip.
If it's important, do it every day. If it's not important, don't do it at all.  -Dan Gable

Castanza

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Re: What are you buying today?
« Reply #4236 on: October 08, 2019, 12:31:32 PM »
Building  a position in STNG (scorpio tankers) and bought a tiny bit in SALT (scorpio bulkers) which owns a big slug of STNG.  Added to my large position in SSW (Seaspan) and bought some more JOE on the dip.

Curious if you have looked at Ardmore Shipping ASC at all?

Saluki

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Re: What are you buying today?
« Reply #4237 on: October 08, 2019, 01:21:44 PM »
Building  a position in STNG (scorpio tankers) and bought a tiny bit in SALT (scorpio bulkers) which owns a big slug of STNG.  Added to my large position in SSW (Seaspan) and bought some more JOE on the dip.

Curious if you have looked at Ardmore Shipping ASC at all?

Only very briefly. I'm not done with my "deep dive" on shipping yet, so STNG and SALT are not big positions for me yet.  IIRC, ASC's product tanker fleet is about 6.5 years old on average and STNG's  is about 4.5 years old on average.  Since I think newer fuel efficient ships will have a big advantage over the older ships, it's the first thing I zoned in on.  I'll take a look at it and if it looks good, maybe do a basket approach.  What do you like about it?

SSW I started buying about 1.5 years ago. When Sokol became Chairman, I looked at it as a bet on the jockey, not the horse, but I think the way he's fixed the balance sheet and added flexibility in the financing could be a game changer.  Basel III made it  more unattractive (in required net capital)for banks to lend on ships, so I think a lot of financing is going to move towards private equity and patient money deals like what SSW did with Fairfax.   

I started looking at STNG when I saw a writeup about it on Adventures in Capitalism.  I came across his website when he did a bullish writeup on my 3rd largest position (JOE). It sounded like a smart idea so I started digging.  Besides investor presentations, I'm on my 3rd book on shipping (already read Shipping Man, Dynasties of the Sea and now on Viking Raid) and I'm learning a lot as I go. The CEO of STNG (Bugbee) was on a podcast recently.  He sums up the bull thesis (IMO 2020 causing a shortage of available ships and driving up pricing) pretty well. 

It's hard to find anything that floats that is trading above book value now because the sector has been suffering for so long.  I don't like the debt that they all have either, but it looks interesting and I hope will get better.  Terrible industries with debt that get worse make me sad if I have money in them.   
If it's important, do it every day. If it's not important, don't do it at all.  -Dan Gable

Castanza

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Re: What are you buying today?
« Reply #4238 on: October 08, 2019, 02:50:37 PM »
I did do some reading in Ardmore about a year ago and it seemed that their tankers were specifically equipped to ship low sulfur fuel which is going to become the standard fuel option for ships due to emission regulations. Again take this with a grain of salt as I quickly lost interest in the sector and didnít do any type of deep dive. But it seemed that although their fleet was a bit older they were better positioned and sort of cornered the market on distributing this fuel.

Spekulatius

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Re: What are you buying today?
« Reply #4239 on: October 08, 2019, 04:26:44 PM »
I did do some reading in Ardmore about a year ago and it seemed that their tankers were specifically equipped to ship low sulfur fuel which is going to become the standard fuel option for ships due to emission regulations. Again take this with a grain of salt as I quickly lost interest in the sector and didnít do any type of deep dive. But it seemed that although their fleet was a bit older they were better positioned and sort of cornered the market on distributing this fuel.

I get a sinking feeling when I read about value in the shipping sector.
To be a realist, one has to believe in miracles.