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wabuffo

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  1. I've owned this since the merger with CCNI (though I added a lot more last March during the start of the pandemic). Actually - I originally purchased my shares at $5 as a special situation arb thinking I would tender into the tender offer that came about as a result of the reverse takeover. (HQI was private but was actually the acquirer of Command Center - the public company). The tender was done at $6 to reduce the share count from the merger in order for HQI to retain control. But when I started to read the proxy and learn about HQI I realized that this mgmt team and their business model
  2. Do we know when he sold the Hyundai Preferred's and what he did with those proceeds? Saw that they mentioned a Korean security in the 2019 10-K but not in the 2020 10-K I'll spare you the gory details -- but the sale of $16.3m of two marketable securities happened during July-Sep Q, 2020. We don't the FMV of each sale - but we can figure out that Munger sold $10.2m of adjusted cost basis of the Hyundai preferred 3 security (basically all of it) and $1.9m of adjusted cost basis of BYD (or ~13% of DJCO's holdings of that security). wabuffo
  3. I love Munger but I don't understand how could he say BABA stock or for that matter any common stock holding can be considered cash equivalent? He doesn't want the SEC to rule DJCO is an Investment Company per the SEC's 1940 Act by virtue of its holding of over 40% of its assets in marketable securities. He is reinforcing the fact that the investment portfolio is a cash alternative/working capital for the operating businesses. If it were classified as an Investment Company, it would add a lot of regulatory and reporting complexity to its mgmt. Here is the SEC poking DJCO about th
  4. I think you have to be careful for two reasons. - the current run rate is unsustainable and is more a one-timer due to the pandemic and the unusual consumer demand. - its not a branded business like P&G, Dial, etc. It is a private label contract manufacturer and thus the retailers (and branded companies who outsource to it) will never allow it to earn large profits. I don't think this is a high-quality business. I'd be very careful. Though to be fair, I haven't looked at it in awhile. wabuffo
  5. Hey CB - finally had a bit of time to read the article you posted... suggests (to 'solve' the SLR technical features related to our new monetary era) to the Treasury to issue extra debt (overfund) to 'others' and use the cash in order to buy the treasury debt held by the Fed as a result of cumulative QEs. We may disagree about motivations, but I think this is basically what the US Treasury did in 2020. It issued ~$1.8T more in US Treasury securities than it needed vs its net spending. This grew its Treasury general account to as high as a $1.8T balance. I still believe this was
  6. Does Munger’s purchase of BABA mostly ease these fears of investing in Chinese companies for you? Nope.
  7. Basically his argument is QE is deflationary I don't really agree with this. As you said, this person's argument seems to miss the actions of the US Treasury. I think most people do when they talk monetary policy. Here's what is/would be deflationary. If the US Government (and therefore the US Treasury) ran a multi-year surplus at the Federal level - like we did in 1998-2001. With a surplus, tax receipts (and other Federal govt fees, levies and judgements paid) exceed spending. This removes bank deposits from the banking system and creates a dollar asset "shortage" which led to
  8. Now that I'm a bagholder (again) - I have started to follow this POS more closely (again). I would say from recent filings that Aeromexico is poised to assume all of the contracts governing the PLM Premier relationship. This has been a sword of Damocles hanging over the head of PLM (and Aimia) since the start of the Chapter 11 case. Of course, that's not certain - but the clues in the Ch. 11 filings seem to be pointing to it. Perhaps that's why AIMIA's share price has been going up (or not). First, Aeromexico has scheduled a hearing to assume certain executory contracts and leases (
  9. Quick Fed update. Total US Commercial Banking Industry Reserves (i.e., illiquid deposits stuck at the Federal Reserve) are about to top $4 trillion. (per yesterday's H.4.1 report) https://www.federalreserve.gov/releases/h41/current/ Bank's are getting a triple scoop of (unwanted) reserve growth at the moment: 1) continued US Treasury deficit spending due to stimulus creates new bank deposit liabilities + federal reserve assets. 2) continued Fed open market purchases of Treasury assets is swapping those purchased assets for a reserve asset. 3) a new factor is the U
  10. They are basically a billionaires collectible. But the billionaire gets to deduct almost the entire purchase price (since there's few tangible assets in a sports franchise) over 15 years in the form of annual tax deduction against his/her personal income from other sources. I bet Steve Ballmer pays close to zero income taxes on his Microsoft dividends thanks to his Clippers purchase. That's why billionaires line up to buy the best/most valuable franchises. I do agree with you though that they are generally poor investments as public companies and really should be privately he
  11. The VIC write-up on AdaptIT Holdings is now available with 45-day guest access: https://valueinvestorsclub.com/idea/AdaptIT_Holdings/6787379885#description For those who want to get a bit more background on this potential acquisition. wabuffo
  12. oh ok - I think these are two independent decisions. The other thing to think about is that most retail holders and non-backstop party-affiliated holders can't sell their shares lest they lose their subscription rights. If you look, you'll notice that the trading volume on this stock fell dramatically after the record date and has basically dried up. So there are no sellers right now. But buying demand is low too - since any significant demand for the stock would drive the price up. My guess is that when the subscription rights collars come off in mid-April-ish, there will be a
  13. Volaris bidding on a company in South Africa: AdaptIT Holdings was recently written up on ValueInvestorsclub.com as a long. I believe the write-up will become visible on 45-day guest access in a couple of days. I think it is the same company. wabuffo
  14. At current price, is anyone considering buying stock and then tender the share at $6.25? you can't - the record date passed.... wabuffo
  15. Its been a long time since I looked closely at the US club store competition, but one thing that always stood out for me was just how far ahead Costco was vs Sams Club and BJ's Wholesale in terms of their warehouse sales productivity. I just went back to the most recent 10-Ks and isolated their US sales and US total square footage (not counting their distribution operations that re-supply the warehouse stores). Costco warehouse clubs are almost twice as productive as Sam's or almost two-and-half times vs BJ's - its really not even close and never has been as far back as I can r
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