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Tax-Loss Selling Bargains


bathtime

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Anyone planning a tax-loss selling buy list? Ideas?

 

Given this strange year in the markets I’ve not given it much thought. But in past years year-end has often been a source of great trades.

 

With energy starting to get a bid, for example, I don’t know if it will see a further sell-off from tax selling. But if it did that’s one area I’d be looking for buys.

 

 

 

 

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I actually noticed VSAT in the Baupost 13F the other day. Another turd for Seth. I remember thinking he was clever for having such a big position in the name in like 2013...at like $65 a share. Dont think he's ever sold any of it either.

 

If SpaceX's Starlink succeeds (quite likely based on beta customer tests), VSAT consumer internet business is going to be in serious trouble. Low earth orbit (LEO) satellite constellation based internet is far superior to VSAT's system based on geo stationary satellite. Advantages of LEO include higher data rate, lower latency, lower jitter, lower rain fade losses, smaller dish, and easier installation of CPE. In addition, Blue Origin funded by Jeff Bezos is also working on putting up a LEO constellation. Musk & Bezos are the last guys on planet earth you want to compete with. I think Mr. Market is rightly discounting a significant impairment to Viasat's core business. VSAT is a value trap.

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Yes, VSAT is interesting as Baupost has that board observer role. And with their recent investment in high 30s a 24% stake. So they’re not short on inside knowledge. Just wonder what they see of value given LEO threat.

 

You could put high-powered lasers on the satellites and call them "Death Star"

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