Author Topic: What are you buying today?  (Read 1560267 times)

Viking

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Re: What are you buying today?
« Reply #4600 on: February 13, 2020, 12:20:23 PM »
Fairfax India.

Book value at Sept 30 was $13.53/share. The Anchorage/BIAL transaction will result in BV gain of $3.30/share. This takes book value to about $16.80.

Fairfax India owns large stakes in IIFL Finance, IIFL Securities and IIFL Wealth. These are publicly traded companies. So far in 2019 (6 weeks) the stock prices of these 3 companies have increased about 45%. At Dec 31 their combined value to Fairfax India was about $400 million. Today they are worth about $590 million = $190 million gain. With 153 million shares outstanding for Fairfax India the increase in the IICL companies is about $1.20/share.

Bottom line, book value of Fairfax India as of today is likely approaching $18.00/share. Shares are trading today at $12.45. Looks like a decent margin of safety to me :-)

From Fairfax India Dec 16 press release:
“As a result of the transaction, Fairfax India will record investment gains of approximately $506 million (approximately INR 35.6 billion at current exchange rates) implying an increase in book value per share of approximately $3.30 per share. The investment gains are supported by positive operational developments at BIAL. For the 12-month period ending October 2019, total traffic at BIAL was approximately 33.7 million passengers. The second runway commenced operations in December 2019, making BIAL the first airport in India to operate independent parallel runways that enable aircraft to land or take-off simultaneously on both runways. In addition, the expansion project for a second terminal at BIAL is expected to be completed in 2021.”



Spekulatius

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Re: What are you buying today?
« Reply #4602 on: February 13, 2020, 02:34:53 PM »
ALPIB
Dave Waters posted about it yesterday and I immediately knew I wanted to own this one:
https://otcadventures.com/?p=2135
Question for the thread: if you are not liquidity constrain, is there any reason why one wanted to own WFC vs ALPIB, beside perhaps dividend yield?
« Last Edit: February 13, 2020, 07:24:41 PM by Spekulatius »
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CorpRaider

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Re: What are you buying today?
« Reply #4603 on: February 13, 2020, 07:03:03 PM »
I have no opinion on that security but I think people could make quite a few arguments in favor of the money center banks versus smaller banks over the medium term and longer: Scale and ability to even make table stakes for the necessary tech investments (only like top 8 banks have a piece of Zelle for example), and lower costs per economic unit (account, customer, loan, whatever) for those investments favors; other scale advantages leading to sub 50 bps cost of deposits before massive costs coming out of the business (they can pretty much take any loan from these small banks if they want it), regulatory capture and potential eventual Canadian-style bank oligopoly.  The MTB CEO recent annual letter does a pretty good job of setting up the arguments in favor of the mega banks and then attempting to counter them arguing that (super) regional banks will remain viable.
« Last Edit: February 13, 2020, 07:09:06 PM by CorpRaider »

Gregmal

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Re: What are you buying today?
« Reply #4604 on: February 13, 2020, 07:30:10 PM »
Bought a tracking position in SDGR. Super interesting company with some big name backers. Quite the valuation, but whatever. If it comes down some more I'll probably play with it a bit.

LC

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Re: What are you buying today?
« Reply #4605 on: February 13, 2020, 07:33:08 PM »
Looks interesting thx for the research idea.
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lnofeisone

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Re: What are you buying today?
« Reply #4606 on: February 14, 2020, 05:21:01 AM »
Bought a tracking position in SDGR. Super interesting company with some big name backers. Quite the valuation, but whatever. If it comes down some more I'll probably play with it a bit.

This one is on my watch list too. Few thoughts:

1) It's very expensive as a stock and as a product (by my standards anyway)
2) TAM is pharma and schools (really specialized and expensive) but they are well known and often to of the list for considerations (based on my anecdotal discussions with friends)
3) Barriers of entry for others are astronomical, they are entrenched for those who know how to use it (working with Universities really helps with that), and there are no real free alternatives.
4) They can add a revenue line by adding consulting services to(e.g., help drugs go through FDA process ) or partner with Charles River
5) SUPER intrigued by Faxian and want to see what they do here. Would be an interesting model if they can identify potential compounds, get them to Phase I, sell to larger pharma to carry across the finish line.

Gregmal

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Re: What are you buying today?
« Reply #4607 on: February 14, 2020, 07:21:37 AM »
Bought a smidge more BRK 225.7

boilermaker75

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Re: What are you buying today?
« Reply #4608 on: February 14, 2020, 08:22:44 AM »
Wrote some BRKB 225-strike, Feb 28 expiration puts, $2.21 per share.

Artha158

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Re: What are you buying today?
« Reply #4609 on: February 14, 2020, 12:12:34 PM »
KHC