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What are you buying today?


LowIQinvestor

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Bought and sold some BRYN (Berkshire Hathaway Class B, BRK.B, traded in Germany & denominated in EURO) as a day trade using a little margin. I won't be making a habit of day trading, but I was pretty sure it was mispriced and due for a rally to at least $205 and would have been happy to hold at my buy price anyway.

 

Seemed too cheap early on given that earnings beating estimates by quite a margin so I bought at €175.49 ($202 and sold once US markets opened and rallied at €178.82 (something close to $206.75 USD) well before the German markets close so I wouldn't carry the margin overnight. Commissions 0.1% each side, so gained about €2.98 per share net. Commissions are quite a large part of gains when day trading, but happy enough with the trade even if I left some further gains on the table.

 

Having closed that trade I still have a very full position in BRK.B, and have a heck of a lot more unrealised gains than realised gains today. Great time to be very long Berkshire, though I'd be happy to see the price fall when I'm ready to buy more, of course.

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Tesla bear put spread. Bought a 300 put, sold a 200. Expiry is Jan 2020, cost was $20.

 

I think there is less than a 20% chance the Musk LBO goes through. If it does, this is a zero, but it's probably at least a double if it doesn't. The shares probably go back to 300 on a deal break, or much lower than that on a SEC investigation of Musk tweeting if he didn't have the $ lined up and said he did.

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Bought some MXP and EUR futures and hedged the rest of my $ exposure back to €. Currency exposure is now 40% MXN, 60% € (home currency).

Sold TYO:9885 and TYO:6466, while both still have a discount to NCAV (40-50% upside) i felt that a similar upside in a REIT is a better bet. So i bought more KIM and a little bit more of OXY.

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Added to my TSLA bet with selling 420$ calls jan2020 and buying 500$ calls as a short squeeze protection. I will now make money regardless if TSLA goes private @420$ or the stock just tanks. Under 200$ my put spreads will multiply in value. Only case to lose money is now if TSLA magically trades above 435$ in 2020.

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SYF 30-strike, Aug 3 expiration puts for $0.50 per share

 

Some 29.5 strike, Aug 3 expiration for $0.60 per share

 

Wrote Aug 24 and Aug 31 expiration 30-strike covered calls.

Wrote Aug 17 expiration 29-strike puts for $0.25 per share

 

Wrote Aug 24 expiration 29.5 strike puts for $0.40 per share

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Rebought HKG:0398 Oriental Watch Holdings, Netnet with >60% upside, P/E<9, pays 23 Cents dividend at the end of the month. (10%) Shareholder friendly and has already turned around last year through cost cutting. Value is mainly in cash and inventory (luxury watches, pretty stable in value). Also some hidden value in Real estate. There was a VIC writeup back in 2015.

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Rewrote puts that are expiring today, GILD at 70 and AMGN at 170.

 

Again

 

Wrote March 16, 165-strike puts on AMGN for $2.05 per share.

 

I have been continually writing puts with strike prices of $165-175 on AMGN since March 2017.

 

GILD back down so wrote 70-Strike, Sept 21-expiration puts

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Bought a bit of BLX ( Pan American trade finance bank) below tangible book and with a nice!7% dividend yield.  Bank suffers somewhat from spread contraction and negative perception on EM’s.Asset side looks quite safe though and is mostly US$ based.

 

I also bought some shares in PHH2.DE based on ValueandOpportunity blog post. Well managed and family run German health care company.

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Bought a little Laurentian Bank (TSX:LB) today at just under $44/share.

 

The stock is beaten down for a couple of reasons. They had a small mortgage scandal that's pretty much dealt with. The company bought back ~$140 million in loans that had been sold to third parties. Management also did a through review of mortgage origination practices, which makes me confident the problem won't come back again in the future.

 

Results have also been disappointing. Both revenue and earnings missed analyst targets by about 5%.

 

The good news? The valuation is fantastic, with shares trading at less than book value and 8x earnings. A recent acquisition should help boost the bottom line. It doesn't have much exposure to Toronto or Vancouver real estate either. It could easily end up 20-30% higher if it gets valued even close to its peers that trade at 11-13x earnings. And the 5.8% to wait is the biggest dividend in the sector in Canada.

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