Author Topic: What are you buying today?  (Read 1779986 times)

york

  • Jr. Member
  • **
  • Posts: 60
Re: What are you buying today?
« Reply #5380 on: May 30, 2020, 11:05:53 AM »
BB

Would love to know your insights about it? Are you buying it because it's cheap on as asset basis where essentially 10% of market cap is cash or do you have any insights that their earnings will grow at a healthy clip which will rerate the stock?

You're correct in saying their balance sheet is very attractive.
I couple things I'm thinking about regarding BB:
1. I think they have done a great low key job in becoming the "Shopify" of online security and protection (WFH, combined with current political and economic stress are doing a great job in filling these sails.)

2. I would say Prem has done a great job in helping them find and define their circle of competence - and more importantly execute on it.

3. In the transcript of Q4 John Chen said:
Quote
BlackBerry has taken a number of steps to help the global community, including enabling remote working
for our customers and employees, and we are taking the lead by offering a limited licence of our
enterprise software products free to organizations around the world for 60 days.
I think this impromptu "freemium" service is going to prove to be one of the best business decisions that BB has made in the past decade. There will be some customers sticking around on Day 61 - that is a Mark Messier guarantee.

4. Shopify is creating a vacuum which should be backfilled by smaller Canadian tech companies. April ETF data showed an increase of 25% MoM in Tech Equity AUM.


Spekulatius

  • Hero Member
  • *****
  • Posts: 4931
Re: What are you buying today?
« Reply #5381 on: May 31, 2020, 02:31:34 PM »
I'm buying puts on BURL.  Retailer with 100% of stores closed indefinitely, with no sales on website, because they closed it last year (!), and trading for over 20x trailing profits.

If they are closed for months, they will have stale inventory,

This is an interesting problem for clothing retailers, or anyone else that sells seasonal goods.  How far in advance does the typical clothing retailer acquire inventory, e.g., by mid-march I assume most winter clothing is already gone.  Is the mid-march inventory primarily spring or summer clothes? 

Either way, it seems like there is going to be alot of out-of-season clothing around.  Would off-price discounters benefit from that?  Also, someone's going to have to eat most of that.  Will brands take some of it back?

Maybe off-price can buy tons of stuff cheap, but who wants Easter stuff after the holiday?  How many people just don't need new swimsuits at any price if they are cancelling their trip to Hawaii?

Plus, we were at all time high consumer sentiment in February....how's consumer sentiment now?  All of my friends are delaying or cancelling vehicle/house purchases, and sticking to the necessities, even if they have money.  Who is going "shopping" even if stores re-open?  And to what extent was BURL's target market (women with incomes $25k-100k) affected financially?

Well, they showed a huge loss as predicted, but BURL stock is up ~20% since this post. Itís strange, the balance sheet is in much worse shape, but yet the stock and in particular the EV is higher now than pre-COVID, despite far worse fundamentals. I know they mentioned higher sales in the stores they are open, but still, thatís a lot to pay for some green shoots in a scorched yard, imo.
Life is too short for cheap beer and wine.

york

  • Jr. Member
  • **
  • Posts: 60
Re: What are you buying today?
« Reply #5382 on: June 01, 2020, 08:43:39 AM »
MDI Shares (adding to June 19 $4 Calls)
« Last Edit: June 01, 2020, 08:45:21 AM by york »

LC

  • Hero Member
  • *****
  • Posts: 4716
Re: What are you buying today?
« Reply #5383 on: June 01, 2020, 09:55:17 AM »
Bought a tiny bit of Berkshire.
"Lethargy bordering on sloth remains the cornerstone of our investment style."
----------------------------------------------------------------------------------------
brk.b | goog | irm | lyv | net | nlsn | pm | ssd | t | tfsl | v | wfc | xom

LC

  • Hero Member
  • *****
  • Posts: 4716
Re: What are you buying today?
« Reply #5384 on: June 03, 2020, 07:20:14 AM »
Again a little bit of Berkshire, some Livenation as well.
"Lethargy bordering on sloth remains the cornerstone of our investment style."
----------------------------------------------------------------------------------------
brk.b | goog | irm | lyv | net | nlsn | pm | ssd | t | tfsl | v | wfc | xom

sleepydragon

  • Hero Member
  • *****
  • Posts: 847
Re: What are you buying today?
« Reply #5385 on: June 03, 2020, 08:05:03 AM »
Added a bit to BRKb
And bought a bit of BIIB

kab60

  • Hero Member
  • *****
  • Posts: 1253
Re: What are you buying today?
« Reply #5386 on: June 03, 2020, 12:00:09 PM »
A bit of Lion Rock Group - trading below NCAV, good business in a tough industry, fantastic owner-operator - normally pays out about 75m in dividends (growing) versus 580m marketcap atm, but took dividend down a bit and did a spinoff of a listed sub recently. Well positioned to handle trade war after establishing a large presence outside of China.

york

  • Jr. Member
  • **
  • Posts: 60
Re: What are you buying today?
« Reply #5387 on: June 03, 2020, 12:35:53 PM »
CPG yesterday (adding to a position that I started @ $1.90) and added $2.50 calls over a few dates to the mix today.

Broeb22

  • Sr. Member
  • ****
  • Posts: 309
Re: What are you buying today?
« Reply #5388 on: June 04, 2020, 05:33:42 PM »
I took a flyer on SLQT.

Ice77

  • Newbie
  • *
  • Posts: 20
Re: What are you buying today?
« Reply #5389 on: June 05, 2020, 08:31:16 AM »
CRBP, TV