Author Topic: What are you buying today?  (Read 2195820 times)

boilermaker75

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Re: What are you buying today?
« Reply #1050 on: April 10, 2015, 12:16:18 PM »
2% position in FAST. I hope it keeps going down then I'll be adding more.

I wrote some April 40-strike puts on FAST today. In a week I'll either have a starter position in FAST at a basis of $39.15 or $0.85 per share profit.


muscleman

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Re: What are you buying today?
« Reply #1051 on: April 10, 2015, 12:24:26 PM »
BABA   (Yes I am a growth investor now with BABA,AMZN,FAST,VRX,BR, AAPL and CTSH making up 50% of my portfolio)

Curious how you rationalize currents prices of say, BABA or AMZN? Do you run some sort of DCF out many years, assuming the companies will grow into their valuations and still give you sufficient safety in your investment?

I'm not looking to attack, genuinely curious as to the thought process :)

See AMZN thread, I have elaborated my thinking many times there.

BABA is also similar, but more growth and lower margins (as % of GMV). I think once they get their market share, they are going to take advantage of the associated network effects to increase the margins to more "normal" levels. Btw, next year BABA's GMV in china is estimated to be 80% of WMT's GMV worldwide next year.

How would you compare BABA with Softbank? I own softbank because I wanted to own BABA.
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valueyoda

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Re: What are you buying today?
« Reply #1052 on: April 11, 2015, 06:10:40 AM »
Softbank is definitely more undervalued than Alibaba is. However, the discount to the sum-of-parts valuation at the moment persists because of Softbank's less than stellar investment in Sprint. At this point, Yahoo is a better indirect vehicle to play Alibaba through.

WeiChiLoh

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Re: What are you buying today?
« Reply #1053 on: April 13, 2015, 06:58:14 AM »
What is wrong with the long yahoo, short baba & yahoo japan trade? I cant seem to find a problem.

WeiChiLoh

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Re: What are you buying today?
« Reply #1054 on: April 13, 2015, 06:59:41 AM »
but either ways, I am long BCOR & TPUB.

orthopa

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Re: What are you buying today?
« Reply #1055 on: April 13, 2015, 07:16:07 AM »
2% position in FAST. I hope it keeps going down then I'll be adding more.

I wrote some April 40-strike puts on FAST today. In a week I'll either have a starter position in FAST at a basis of $39.15 or $0.85 per share profit.

Im watching fast too, do you think the multiple premium is still justified at these prices?

rpadebet

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Re: What are you buying today?
« Reply #1056 on: April 13, 2015, 07:25:36 AM »
BABA   (Yes I am a growth investor now with BABA,AMZN,FAST,VRX,BR, AAPL and CTSH making up 50% of my portfolio)

Curious how you rationalize currents prices of say, BABA or AMZN? Do you run some sort of DCF out many years, assuming the companies will grow into their valuations and still give you sufficient safety in your investment?

I'm not looking to attack, genuinely curious as to the thought process :)

See AMZN thread, I have elaborated my thinking many times there.

BABA is also similar, but more growth and lower margins (as % of GMV). I think once they get their market share, they are going to take advantage of the associated network effects to increase the margins to more "normal" levels. Btw, next year BABA's GMV in china is estimated to be 80% of WMT's GMV worldwide next year.

How would you compare BABA with Softbank? I own softbank because I wanted to own BABA.

I also owned Softbank  because of BABA. I like Softbank and it is definitely more undervalued, but as others have pointed out, the discount persists for different reasons and I made the call that at this point, I'd rather have direct exposure to BABA than indirect given where BABA price is. So replaced Softbank with BABA. Might swap again if the BABA: Softbank ratio improves and  I see Sprint turning around a bit.
You can't connect the dots looking forward you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something: your gut, destiny, life, karma, whatever.
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undervalued

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Re: What are you buying today?
« Reply #1057 on: April 13, 2015, 09:40:55 AM »
2% position in FAST. I hope it keeps going down then I'll be adding more.

I wrote some April 40-strike puts on FAST today. In a week I'll either have a starter position in FAST at a basis of $39.15 or $0.85 per share profit.

Im watching fast too, do you think the multiple premium is still justified at these prices?

I can't tell for sure if they're going to keep growing like in the past but I do like that insiders are buying and the shares buyback. I am prepared to buy more if it does go down a lot.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers

boilermaker75

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Re: What are you buying today?
« Reply #1058 on: April 13, 2015, 10:28:35 AM »
2% position in FAST. I hope it keeps going down then I'll be adding more.

I wrote some April 40-strike puts on FAST today. In a week I'll either have a starter position in FAST at a basis of $39.15 or $0.85 per share profit.

Im watching fast too, do you think the multiple premium is still justified at these prices?

I can't tell for sure if they're going to keep growing like in the past but I do like that insiders are buying and the shares buyback. I am prepared to buy more if it does go down a lot.

I do not know if the high multiple is justified. I'll get more serious about looking into FAST if I get put to on Friday! In the FAST thread Phaceliacapital points out that FAST has always been priced at a high multiple. Of course that is no justification unless the growth is still there. I also noticed the insiders were buying and that helped pushed me to go ahead and write some puts.

Edit: FAST is by far the highest multiple stock I have looked at in a long time.
« Last Edit: April 13, 2015, 10:30:29 AM by boilermaker75 »

rpadebet

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Re: What are you buying today?
« Reply #1059 on: April 13, 2015, 10:38:22 AM »
2% position in FAST. I hope it keeps going down then I'll be adding more.

I wrote some April 40-strike puts on FAST today. In a week I'll either have a starter position in FAST at a basis of $39.15 or $0.85 per share profit.

Im watching fast too, do you think the multiple premium is still justified at these prices?

I can't tell for sure if they're going to keep growing like in the past but I do like that insiders are buying and the shares buyback. I am prepared to buy more if it does go down a lot.

I do not know if the high multiple is justified. I'll get more serious about looking into FAST if I get put to on Friday! In the FAST thread Phaceliacapital points out that FAST has always been priced at a high multiple. Of course that is no justification unless the growth is still there. I also noticed the insiders were buying and that helped pushed me to go ahead and write some puts.

Edit: FAST is by far the highest multiple stock I have looked at in a long time.

Don't you think the predictability of the business deserves a higher multiple than average?
Regarding growth, their investor presentation points to a very long runway ....so I am not concerned abt the growth as such (it will happen, just a matter of when).

I recently swapped some of my long held AIG position to FAST - moving up the quality of business chain. I can sleep better with my entire net worth invested in FAST as opposed to AIG even though the multiple on AIG is paltry.
You can't connect the dots looking forward you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something: your gut, destiny, life, karma, whatever.
                       - Steve Jobs