Author Topic: What are you buying today?  (Read 2206412 times)

plato1976

  • Hero Member
  • *****
  • Posts: 689
Re: What are you buying today?
« Reply #200 on: November 11, 2013, 03:59:41 PM »
It's so easy to find ...
just search "GNCMA corner of berkshire" on google...
no tip needed, btw


GNCMA today (thanks Packer!)

There is no topic on that that I could find. Could you elaborate?

A very quick view showed a small-cap (<$400M) company in the telecom industry (not the most loved industry right now) with a high PE but low forward PE, negative free cash flow, high (>1$B) in debt, low (<2%) margins, low ROE (<10% but growing), insider buys and a recent earnings call. What got you excited? :)


fareastwarriors

  • Hero Member
  • *****
  • Posts: 4187
Re: What are you buying today?
« Reply #201 on: November 11, 2013, 04:01:13 PM »
GNCMA today (thanks Packer!)

There is no topic on that that I could find. Could you elaborate?

A very quick view showed a small-cap (<$400M) company in the telecom industry (not the most loved industry right now) with a high PE but low forward PE, negative free cash flow, high (>1$B) in debt, low (<2%) margins, low ROE (<10% but growing), insider buys and a recent earnings call. What got you excited? :)


the topic is there. http://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/gncma-general-communications/20/


also related

on ALSK

http://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/alsk-alaska-communications/msg140589/#msg140589

wachtwoord

  • Hero Member
  • *****
  • Posts: 1441
Re: What are you buying today?
« Reply #202 on: November 11, 2013, 04:02:28 PM »
It's so easy to find ...
just search "GNCMA corner of berkshire" on google...
no tip needed, btw


GNCMA today (thanks Packer!)

Sorry Plato, I used the forum search function thinking it worked (it doesn't find anything on "GNCMA"). I'll use Google from now on, thanks! (and no need to get grumpy ;))

There is no topic on that that I could find. Could you elaborate?

A very quick view showed a small-cap (<$400M) company in the telecom industry (not the most loved industry right now) with a high PE but low forward PE, negative free cash flow, high (>1$B) in debt, low (<2%) margins, low ROE (<10% but growing), insider buys and a recent earnings call. What got you excited? :)
"Beware of he who would deny you access to information, for in his heart he dreams himself your master"

T-bone1

  • Lifetime Member
  • Sr. Member
  • *****
  • Posts: 493
Re: What are you buying today?
« Reply #203 on: November 11, 2013, 04:10:22 PM »
TTWO - not a traditional value stock in any sense, but it looks to be cheap, have a moat, and undergoing positive fundamental changes
Also added some CHK after earnings fallout

plato1976

  • Hero Member
  • *****
  • Posts: 689
Re: What are you buying today?
« Reply #204 on: November 11, 2013, 04:22:02 PM »
Hi, T-bone1:

What do you think about the accounting issues raised in http://glennchan.wordpress.com/2013/10/21/chesapeake-chk-is-this-really-a-long/

/Plato1976

Quote from: T-bone1 link=topic=8728
.msg140926#msg140926 date=1384215022
TTWO - not a traditional value stock in any sense, but it looks to be cheap, have a moat, and undergoing positive fundamental changes
Also added some CHK after earnings fallout

petey2720

  • Jr. Member
  • **
  • Posts: 92
Re: What are you buying today?
« Reply #205 on: November 11, 2013, 07:16:57 PM »
Bought CRUS today

newyorkminute

  • Newbie
  • *
  • Posts: 18
Re: What are you buying today?
« Reply #206 on: November 12, 2013, 11:51:43 AM »
Bought 30 CSD shares today.

T-bone1

  • Lifetime Member
  • Sr. Member
  • *****
  • Posts: 493
Re: What are you buying today?
« Reply #207 on: November 12, 2013, 12:13:47 PM »
Hi, T-bone1:

What do you think about the accounting issues raised in http://glennchan.wordpress.com/2013/10/21/chesapeake-chk-is-this-really-a-long/

/Plato1976

Quote from: T-bone1 link=topic=8728
.msg140926#msg140926 date=1384215022
TTWO - not a traditional value stock in any sense, but it looks to be cheap, have a moat, and undergoing positive fundamental changes
Also added some CHK after earnings fallout

Those issues are real, but they have literally been known about for 10 years. 

I think full cost accounting actually makes more sense for shale assets than successful efforts accounting, but like most things, it can be gamed. 

CHK has always capitalized just about anything they could, and the FWPP was a misguided attempt to align executives with shareholders in the wildcatting days that turned into a huge leveraged compensation scheme that served no purpose.  The midstream and VPP liabilities are quantifiable and reasonably small (a few hundred million).

To step back and look at the bigger picture, this is a company being run from the top by a board hand-picked by Mason Hawkins and Carl Icahn, both of whom have been buyers at these prices.  The new CEO seems very capable and is saying the right things (specifically he is talking about ROIC and cleaning up complications rather than growth and meeting street expectations). 

I like the assets, have zero concerns about the accounting or current management team/board, and think there is a lot more improvement to come. 

Everyone agrees CHK need to do more work on costs and simplification.  The stock went down after earnings because they are concentrating on that (at the expense of short term production growth).  I think that is an opportunity.

argonaut

  • Full Member
  • ***
  • Posts: 192
Re: What are you buying today?
« Reply #208 on: November 12, 2013, 12:21:56 PM »
I will add my .02 regarding McClendon's profit participation.  While large was not that unusual in type...I was in the homebuilding industry in FL decades ago when banks and homebuilders were booming and there were all sorts of profit participation clauses with banks, investors, developers etc each sharing small kickers. This was before stock options really took off as a compensation form.

Lance

  • Sr. Member
  • ****
  • Posts: 420
Re: What are you buying today?
« Reply #209 on: November 13, 2013, 08:47:47 AM »
I wrote puts on Annaly Capital Management, Inc. (NLY) this morning and bought FFH this afternoon.

Thanks
Lance
« Last Edit: November 13, 2013, 06:03:19 PM by Lance »