valueyoda

RRGB after hours. This restaurant chain trades at extremely low EV/EBITDA ratio and normalized owner's earnings. The company needs a good operator to dial back its aggressive restaurant opening schedule and to focus on improving its menu and restaurant image. The chain is not broken beyond repair, but has disappointed now so many quarters that I would be amazed if the company doesn't get bought by PE.

I have been buying here, in addition to GLIBA and LBRDA

Why would they want to maximize the value of the warrants? They want to maximize the total value of all cash flows (guarantee fees, dividends on preferreds) and the value of the warrants, so the package value. Treasury's interests are definitely not aligned with that of other shareholders or preferred holders.

Just interesting to note that there is no value investor that has a bearish view. There seems to be an one-sided positioning here. Some of the variables used in the models on this forum assume really bullish outcomes for shareholders. What if the Treasury under Trump wants to extract the best deal for the Treasury by exercising the warrants, yet extracting the highest possible guarantee fee and not cancelling the senior preferreds.

I think he is no longer suffering from premature accumulation, but rather from delayed distribution.

Either he and Eddie have a very tight game plan mapped out, or in case he bought it as a general investment because he thinks it is cheap, he is going to lose badly on this investment in the end.

BRK/B, FCX bonds, HTZ and CAR (getting really cheap here), HHC, and a short position in DWTI

The cure of low oil prices is a low oil price - Stanley Druckenmiller. Since we are so close to the $40 price for WTI, it has been my experience that historically prices breach those round numbers. Today was bad, but we are not seeing final capitulation in both WTI futures as well as oil related shares, but we are getting close. I have a long list of securities that I am interested in at my disposal and I am ready to strike out very soon. However, I did buy some Chesapeake Energy bonds, given the fact that the implied default rates are far too high since the company can sell a lot of non-core assets. I also dabbled into Consol Energy and Consol Energy bonds. Hess, Whiting and Continental start to become very appealing as well as potential M&A candidates for the majors.

I see SunEdison got smashed today. http://www.bloomberg.com/news/articles/2015-08-06/sunedison-posts-11th-straight-loss-amid-global-expansion-effort Is this a classic case of short termism by fickle investors? I bought Sunedison as well, but given how fast declines are taking place, it could easily drop a few more dollar before it bottoms. I think the last two months are a great lesson for investors. No matter whether we are talking about oil stocks, Micron, Sunedison or media companies today, the declines are getting really violent on misses. So no matter how secure I am about my purchase, I have sharpened my risk management limits, because a temporary evaporation of liquidity surrounding a potential rate hike could make cheap and vulnerable stocks even more vulnerable. So many stocks are already in a deep bear market, and could be great bargains this year. It is weird to see such a divide between momentum growth stocks, such as Facebook and Netflix, and cyclical cheap stocks, such as Micron and Hertz.

FOXA, VIAB and CBS and even a small position in Disney. And an Einhorn basket: CNX, SUNE and TWX and short Netflix.

$125 price target post Seritage is ridiculous, especially given the ongoing cash burn and the diminished value of home services, Kenmore, Craftsman, Auto centers.

GDX and CNX bonds

MU, HTZ, GM/WT/B, PAH and Porsche Automobil Holdings

Can you explain your thinking behind your view that BRK is as oversold now as in 2009/2011? Thanks. BRK is now as oversold as it was in 2009 and 2011 on the multi-day money flow index, a good long term contrarian indicator how much capital flows in and out of a stock. Often times, this happens in a later stage of the bull market when a stock after a strong up movement becomes highly oversold after a 6 month consolidation or correction period, only to use this as a springboard for a rapid move upwards. BRK/B is definitely not as undervalued as it was in 2009 or 2011, but is still reasonably priced, with an intrinsic value around $167 per share. It should be noted that the p/b ratio becomes increasingly less relevant, since the percentage of BRK/B's free cash flow derived from non-insurance operations grows rapidly and will continue to do so in the future, so that using a 1.2x p/b multiple yardstick will cause many lost opportunities to buy the stock cheaply, as that particular ratio will only be reached during severe market distress.

CSTM, MU, CHK and BRK/B (Berkshire is now as oversold as it was at the 2009 and 2011 lows, despite only a minor correction).