What are you buying today?

[Dynamic]

I hadn't noticed the ticker change from BNY, but 13 April puts at $49.50 last sold for $0.75 according to NASDAQ

[boilermaker75]

I hadn't noticed the ticker change from BNY, but 13 April puts at $49.50 last sold for $0.75 according to NASDAQ

 

And I was the one selling!

[John Hjorth]

boilermaker & Dynamic,

 

I like your picks. [isen't there a typo in your post, boilermaker?]

 

John, There could be but I am not seeing it? I did mean BK, Bank of NY Mellon. Mike

 

Mike,

 

Thank you for your elaboration. I got it wrong as basis for my post, and I've now got it, thank you.

[Dynamic]

Maybe if I open an account that supports options, I could get to like writing out of the money puts myself at prices where I'd be a willing buyer anyway. Getting paid $0.75 for $49.50 strike either means buying at effectively $48.75 or getting $0.75 per share return - close to 2% of the potential position in 9 days. It seems more attractive than a limit order at $48.75 except it can't be cancelled in the event of truly adverse news. For a high confidence stock trading fairly near my buy price it seems like a good way to profit from my willingness to buy even if the desired price doesn't materialize.

[sleepydragon]

Wrote some BK $49.5-strike April 13 expiration puts for $0.75 per share.

 

I was trying to buy the stock today but it went up too fast!!

[boilermaker75]

Wrote some BK $49.5-strike April 13 expiration puts for $0.75 per share.

 

I was trying to buy the stock today but it went up too fast!!

 

I tried to write some 50-strike April 6 expiration puts but missed on those because the price went up too fast and my limit order did not execute.

[winjitsu]

MO, GOOGL, FB

[John Hjorth]

Added to BRK.B, BAC, C, JPM.

[Liberty]

Surprised at the lack of interest in CHTR at a price significantly lower than the price at which Rutledge and Malone just bought back 12% of the company... Or maybe people who are buying it just aren't mentioning it here.

[valueyoda]

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

[writser]

Small chunk of TSE:KDX.

[gokou3]

Surprised at the lack of interest in CHTR at a price significantly lower than the price at which Rutledge and Malone just bought back 12% of the company... Or maybe people who are buying it just aren't mentioning it here.

I bought LBRDA one page ago. :)

 

Hope CHTR can buy back another 8-10% of the shares in 2018.

[dutchman]

I think charter has said they won't be buying back much this year.

[Liberty]

Hope CHTR can buy back another 8-10% of the shares in 2018.

 

They won't be buying as much because they reached their target leverage. Unless they decided to go above to grab an opportunity, but I don't think we'll see anything close to a 12% this year.

[gokou3]

CHTR's 2017 EBITDA was $15.3B and let's say they will do $16B this year (4.6% yoy, vs 5.8% increase for 2017 vs 2016).  That's a $700M increase which, with 4.5x leverage, results in another $3B of new debt.

 

Then, EBITDA - capex - interest - tax ~ $16 - 9 - 3 - 0 = $4B cash generated from operations for buybacks or total $7B.  With CHTR at ~$85B market value, that's 8.2%.

 

My capex number is relatively high due to the MVNO investment which also may pull the EBITDA number down slightly.

[Spekulatius]

Looks like the NAV of LBRDA is about $91 vs a $83 share price- do folks here think that a 10% holding discount is a bargain? I typically look for larger discounts when looking at holding companies (even though this is pretty much a single asset holding company), due to the cost burden at the holding level.

[Liberty]

Looks like the NAVY of LBRDA is about $91 vs a $83 share price- do folks here think that a 10% holding discount is a bargain? I typically look for larger discounts when looking at holding companies (even though this is pretty much a single asset holding company), due to the cost burden at the holding level.

 

Depends how tax-efficiently you think they can eventually collapse back into CHTR or sell...

 

I'd also consider whether CHTR itself is undervalued currently, meaning that there's a discount on top of a discount..

[vince]

Sure is a bargain. Spek, why dont you short it ?

[Spekulatius]

What makes you think I would short it? I look at LBRDA vs directly buying CHTR.

[vince]

I was under the impression that you didnt like Chtr

[John Hjorth]

Added more BAC, C & JPM today.

[Spekulatius]

I was under the impression that you didnt like Chtr

 

Just asking questions. Even if I don’t like a stock, I don’t short it. I do own a bit of CMCSA and like it more, due to lower valuation and leverage.

[rolling]

Bought davita yesterday at 64... It is the first buyback window after the announcement of the sale of HCP and it has pulled back a lot.  Low earnings multiple, lower tax rate, low net debt after the deal, cannibal, a big runaway for expansion (international), a growing client base and expectations of profit  after achieving scale in international markets.

[boilermaker75]

Wrote BK 54-strike, 4/20 expiration for $0.35 per share

[Lance]

MO and PM

 

Thanks

Lance