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Posted

AXP and IAUGY.

 

Thanks,

Lance

AXP, BBL, KMI, RDSb and T.

 

Thanks,

Lance

 

 

Why AXP?

 

about BBL- I would stay away from anything related to iron ore and industrial metals, I've been shorting BBL, VALE and RIO. There is oversupply resulting from extreme optimism of the large miners, and at the same time the biggest customer- China, has a serious construction bubble, which has only started to burst . iron ore prices are already down 60-70% from peak. 

 

Caveat emptor

Posted

Insurance- NWLI

Tech- ZNGA

Retail- KORS

 

I am getting massacred on my coal and energy/mining conglomerates. Still eagerly waiting to add more

Posted

Scott,

 

Why MAR?  What is your thesis?  Curious, as you like long-term compounding machines...

 

BLSH

 

Bought Marriott the past Tuesday.

 

I like the business model a lot. They only own a few hotels; most are franchised or operated under management contracts. It's a fee based business mostly, collect royalties off the hotels they franchise or manage.

 

So you can imagine, this is a pretty capital light business. The cash is then sent back to shareholders in the forms of dividends and, mostly, share buybacks.

 

The company targets a 3-3.25x leverage ratio to EBITDAR, so for every $1 increase it essentially can (and does) return $3 to shareholders.

 

Planning to return $2 billion this year alone, vs. ~$20 billion market cap. Even though the P/E is high you're getting a large amount of cash returned each year.

 

The debt they use to finance this is very cheap; recently in the 3% range. So they're issuing debt at 3% to buy back stock with an earnings yield of ~4%, that's growing earnings currently at about 20%.

 

It's a smaller position but I was interested enough to buy a starter stake.

Posted

Scott,

 

Why MAR?  What is your thesis?  Curious, as you like long-term compounding machines...

 

BLSH

 

Bought Marriott the past Tuesday.

 

I like the business model a lot. They only own a few hotels; most are franchised or operated under management contracts. It's a fee based business mostly, collect royalties off the hotels they franchise or manage.

 

So you can imagine, this is a pretty capital light business. The cash is then sent back to shareholders in the forms of dividends and, mostly, share buybacks.

 

The company targets a 3-3.25x leverage ratio to EBITDAR, so for every $1 increase it essentially can (and does) return $3 to shareholders.

 

Planning to return $2 billion this year alone, vs. ~$20 billion market cap. Even though the P/E is high you're getting a large amount of cash returned each year.

 

The debt they use to finance this is very cheap; recently in the 3% range. So they're issuing debt at 3% to buy back stock with an earnings yield of ~4%, that's growing earnings currently at about 20%.

 

It's a smaller position but I was interested enough to buy a starter stake.

 

Very nice ROIC. I remember an earlier incarnation of this being used as an example on Greenblatt's book (when they did the spin-off).

Guest Schwab711
Posted

Disney - DIS

 

Star Wars is coming!

 

Good luck! I've been looking at DIS all morning (and it's been on a small watchlist prior to this morning). I also barely passed on INT at $36 the other day. There's definitely some interesting stocks getting close to attractive levels.

Posted

Disney - DIS

 

Star Wars is coming!

 

Good luck! I've been looking at DIS all morning (and it's been on a small watchlist prior to this morning). I also barely passed on INT at $36 the other day. There's definitely some interesting stocks getting close to attractive levels.

 

I bought more DIS today. This is a no-brainer investment. Powerful movie franchises, a moat on theme parks, ABC, ESPN, etc.

 

Posted

I sold HOG to buy more DISCK and FOX. This sell off in media names is getting ridiculous.

 

I feel like this is similar to the old tech sell for MSFT, CSCO, INTC, etc.  Those companies are still growing revenue, earnings, and buying back shares.  But the market kept compressing their multiple.  So hopefully there will be some sanity restore.

 

Those ala carte options aren't cheap.  Paying $10-20 each for NFLX, HBO, HULU, etc. ends up being the same or more expensive than the bundle option available nowadays. 

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