Author Topic: What are you buying today?  (Read 794987 times)

boilermaker75

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Re: What are you buying today?
« Reply #2340 on: July 14, 2017, 06:35:25 AM »
Wrote some WFC 52.5 strike, Aug 18 expiration date puts for $0.70.


TwoCitiesCapital

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Re: What are you buying today?
« Reply #2341 on: July 14, 2017, 06:55:51 AM »
Generally over the past few weeks:

1) EM: Significantly increased my stake in PEFIX as re-balancing has led the portfolio of companies to be even cheaper on P/B, P/E, and P/S basis than it had before it's 50+% rally in 2016. Reduced European equity exposure to do so.

2) U.S. retail: Sold puts on LB and SHLD and re-investing dividends into RL and UA. Looking at other names as they get cheaper and may add SRG to the mix. Closed my position in the 25+ year zero coupon bond fund with gains of ~10% to fund put sales. I am not confident that we'll hit new lows outside of a recession, but think there will be other opportunities to re-enter of the next 1-3 years.

3) Resources: Adding to ALS and PDER. Looking to add to Lukoil if prices remain weak.



« Last Edit: July 14, 2017, 08:28:30 AM by TwoCitiesCapital »

CorpRaider

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Re: What are you buying today?
« Reply #2342 on: July 14, 2017, 12:30:58 PM »
Interesting.  Gundlach scared me about derivatives used in Pimco funds in one of his talks and I switched from PEFIX to FNDE.  But it hasn't quite been hanging with the performance (neither has PXH over 5 years).  But I guess that was to be expected with losing the "plus"/leverage.
« Last Edit: July 14, 2017, 12:34:03 PM by CorpRaider »
Finally...another finance blog! 

http://thecorpraider.com

TwoCitiesCapital

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Re: What are you buying today?
« Reply #2343 on: July 16, 2017, 05:49:11 PM »
Interesting.  Gundlach scared me about derivatives used in Pimco funds in one of his talks and I switched from PEFIX to FNDE.  But it hasn't quite been hanging with the performance (neither has PXH over 5 years).  But I guess that was to be expected with losing the "plus"/leverage.

Yea, the PIMCO StocksPlus and StocksPlus Long Duration funds are two of the best performing "active" equity funds in the mutual fund universe since their inceptions. The standard StocksPlus fund goes back to the 80s so it's a LONG track record of implementing the strategy successfully without blowing up in the U.S. markets.

There's definitely increased risk with the use of economic leverage and EM is far more volatile, but I'm relatively confident in their ability to manage it responsibly given their long-term success in the U.S. Plus, they're not swinging for the fences with the collateral - current duration is less than a year it's diversified across U.S. treasuries, mortgages, and corporate exposures. They simply have to beat the funding cost of the swaps used (LIBOR plus a spread) with the fixed income portfolio so it doesn't have to be anything TOO crazy to get the additional 2-3% a year.

boilermaker75

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Re: What are you buying today?
« Reply #2344 on: July 18, 2017, 06:36:03 AM »
Wrote some BRKB July 21 expiration, 170-strike puts for $0.85 per share.
« Last Edit: July 18, 2017, 03:16:56 PM by boilermaker75 »

CorpRaider

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Re: What are you buying today?
« Reply #2345 on: July 18, 2017, 08:48:09 AM »
Interesting.  Gundlach scared me about derivatives used in Pimco funds in one of his talks and I switched from PEFIX to FNDE.  But it hasn't quite been hanging with the performance (neither has PXH over 5 years).  But I guess that was to be expected with losing the "plus"/leverage.

Yea, the PIMCO StocksPlus and StocksPlus Long Duration funds are two of the best performing "active" equity funds in the mutual fund universe since their inceptions. The standard StocksPlus fund goes back to the 80s so it's a LONG track record of implementing the strategy successfully without blowing up in the U.S. markets.

There's definitely increased risk with the use of economic leverage and EM is far more volatile, but I'm relatively confident in their ability to manage it responsibly given their long-term success in the U.S. Plus, they're not swinging for the fences with the collateral - current duration is less than a year it's diversified across U.S. treasuries, mortgages, and corporate exposures. They simply have to beat the funding cost of the swaps used (LIBOR plus a spread) with the fixed income portfolio so it doesn't have to be anything TOO crazy to get the additional 2-3% a year.

Interesting.  Thanks for the response.  Clarification, I had the retail fund not PEFIX.    ;D
« Last Edit: July 18, 2017, 08:51:06 AM by CorpRaider »
Finally...another finance blog! 

http://thecorpraider.com

sarganaga

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Re: What are you buying today?
« Reply #2346 on: July 18, 2017, 11:51:27 AM »
Added to Pardee Resources (PDER). New small position in Cosan (CZZ)

John Hjorth

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Re: What are you buying today?
« Reply #2347 on: July 18, 2017, 01:28:22 PM »
Added to BRK.B - quite some, based on the discussion in the topic: "Berkshire - cheap?"
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DocSnowball

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Re: What are you buying today?
« Reply #2348 on: July 18, 2017, 06:42:45 PM »
More Paratek pharmaceuticals (PRTK), after successful trial results of their once daily iv and oral antibiotic for both pneumonia and cellulitis. Mr Market was in an obliging mood today!

A reference (not by me)
Dissecting And Analyzing The Special Situation In Paratek Pharmaceuticals, Inc. $PRTK
http://www.seekingalpha.com/article/4037356


boilermaker75

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Re: What are you buying today?
« Reply #2349 on: July 20, 2017, 07:56:13 AM »
Wrote some BRKB July 21 expiration, 170-strike puts for $0.85 per share.

Wrote some BRKB Aug 11 expiration, 170-strike puts for $1.45 per share.