Spekulatius

Conversion to a C Corp means a huge tax bill for LP’s especially those that held the units long term and have a low tax basis (distributions adjust the cost basis downwards). Same thing happened when Kinder merged then LP into KMI. I agree this would be more technical than fundamental, it we might get a huge puke, when these initiative comes to pass and LP owners freak out.

I don’t feel like a thread on just one of these stocks will get much traction, perhaps a thread on SAAS stocks? This is not typical value investor terroir, but nevertheless interesting.

A breakup of MPC ( Sponsor and majority owner of MPLX ) is not a positive for MPLX most likely. Could you kindly explain? As a majority holder of units, MPC would be on both sides of the transaction. If a transaction is favorable for MPC and marginally favorable or neutral for MPLX, it would pass a fairness opinion and would go through. I believe the main Elliot pitch is that MPLX units should be distributed to shareholders. If that happens, I would expect a hell lot of selling because most shareholders can’t or don’t want hold MLP units. This is not directly a negative for the MLP itself, but certainly for the current minority unit holders.

A breakup of MPC ( Sponsor and majority owner of MPLX ) is not a positive for MPLX most likely.

Thanks for the feedback. I cannot comment on the purchasing part. As a user, I have used the GUI For IT Service and it is head and shoulders above what we had before. I cannot really comment on NOW software overall but I do know that workflow management is one of those things that is really core to a companies business processes, unlike applications like slack, which cover communication amongst employees and can get replaced relatively easily without disruption. I think the same thing about some analytics (which tend to affect only a few employers and something managment just says, screw them and put up) or security (which may become more commoditized). So in other words, if NOW’s products is in a company, it’s almost impossible to get it out gain.

Despite the fact that the financials are a mess and the execution was lacking, I actually think that the Wework model is here to stay.I believe startups will be paying for networking in these offices and flexibility is enticing for both startups, but also for mature companies that want to have offices in different locations or want ties to the startup culture. The business model requires a lot of cash and probably needs a whole lot of equity to survive a downturn, but I think it makes sense and probably will be imitated with some variations.

Bought some PYPL, and a first lot of CTVA. Bought some SPY puts at the close.

Ouch! Another guide down. I don’t own this crappola spin-off any more. Pre market trades around $9.5: https://finance.yahoo.com/news/resideo-announces-selected-preliminary-third-212500494.html I am not as familiar with REZI, but my conclusion on GTX was that it is a solid, if somewhat cyclical, business weighed down by excessive debt and asbestos liabilities. GTX is interesting due to high margins, a flexible cost structure as well as high leverage (and capped asbestos liability that can be deferred in crisis ), but diesel is a major headwind and not sure they can make up for that with gas. Anyway, whenever I get tempted, I look at Linamar and figure it's cheaper, better in the long run and with a lot more optionality. I agree on GTX. My main concern is that GTX turbocharger business will go away entirely with electrification. A supplier like Linamar can replace lost business, but GTX cannot, and even if they could the margins of any new business would most likely be lower than what they currently earn. REZI issue is margin pressure - I think they are getting commoditized. I will keep it on my watch list, but I don’t think I am likely to touch it.

Ouch! Another guide down. I don’t own this crappola spin-off any more. Pre market trades around $9.5: https://finance.yahoo.com/news/resideo-announces-selected-preliminary-third-212500494.html

If I were employee, I would ask for tequila shots with every lay-off and restructuring. This was one thing that Neumann got right. Reminds me of this scene:

In what world can an enterprise tech CEO with no consumer goods experience transition to become the CEO of the one of the largest athletic shoe and apparel companies in the world? This can't be a positive sign for Nike. John Donahoe is a Meg Whitman type of CEO; full of consulting-based platitudes and not a lot of execution. I don’t care to much about NKE, maybe they want a techie CEO. NOW stock was down a lot because of general weakness in the SAAS group and the CEO transition heightened the concern that the CEO change portents bad results. I thought that the more likely explanation for NOW’s CEO is that he wants to do something completely different. I had NOW on my watchlist since Druckenmiller mentioned it in late 2018 at around $165 as a disruptor. It’s now even roughly at the same price in terms of price/sales relatively speaking, so I thought I dip my toe a bit into this. It’s one of the more moaty business in this space and might be a good value, if they keep growing and improve profitability. They are no slouch in terms of stock related comp, but are a bit better than WDAY.

If I'm an employee, I'm pissed that he leaves a billionaire while the company is on the brink of bankruptcy and my options are worthless. I'm also pissed I didn't get an opportunity to cash out as well I'm surprised that's even legal. I worked for a company a good while ago that got bought out. The chief executives could cash out their stock and options right away because they had a provision for accelerated vesting, the common serfs didn’t . The wheels came off quite quickly after the merger. Some animals are more equal than others.

Bought some NOW AH.

Bought back some HHC AH. I also added to WED.V

The “ in between” situation seems to me much worse for the Brits than either to stay it go.

Same here. I suspect the pot. SEC action may scare some investors away from dark stocks and cause some selling. I am happy to oblige and provide liquidity if the price is right. Not much public information out for NSYC, though from the Seeking Alpha post in Feb, 2019 it sounds very interesting - especially at a market cap of $9m. I emailed the company to see if they'll send annual reports on request. I don't like my chances, but it's worth a try. I don’t have NSYC’s annual report either, but there is enough information in Eric’s podcast episode to let me conclude there is a lot of value at current prices: https://podcasts.apple.com/us/podcast/the-intelligent-investing-podcast/id1205082419?i=1000429276814

I very much enjoyed this podcast from Jolly Swagman hosting Marc Cohodes: https://podcasts.apple.com/us/podcast/the-jolly-swagman-podcast/id1236553683?i=1000443953331 I had to tone it down at home due the use of colorful aphorisms by Marc Cohodes. :o This podcast is best enjoyed with the one with John Hampton as these guys know each other well.

While a great return, it seems like they sell a great business, but can’t get rid of the dogs with fleas. RFP, Stelco, BB etc. is what they need to sell. Rebuilding an insurance business in India will take a lot of time.

Zerohedge and Mike Sherlock - you need better sources.

So is he now going to fall in a ditch and play dead? https://twitter.com/time/status/1169694244111601666?s=21

Bought a bit of JNJ today. I also added some FRFHF.

Congrats to this trade!

So your trades, which executed at 11.04 were not logged. This sounds like your order went on a different exchange that isn’t shown in the yahoo or your Brokers data feed. I would look at your trade ticket to see in what exchange your trade executed and see if there is something unusual. FWIW, I had GTC order execute outside the bid ask spread in some cases (it was below, so no complaint). I think this can occur due to the fragmented nature of the current stock exchanges.

Same here. I suspect the pot. SEC action may scare some investors away from dark stocks and cause some selling. I am happy to oblige and provide liquidity if the price is right.

Yes, but this also makes him a defacto market timer. Nothing wrong with this, but many here are a bit inconsistent in terms of stating that market timing does not work, yet giving Buffet a free pass on it (sort of). Another way to look at is that Buffet doesn’t buy relative value. I guess he has internalized value metrics and does not bend the, when Mr Market does not collaborate. I personally see this a bit different and in a way, I buy relative value within reason and most here do so as well, in my opinion.