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Posted

Chinese are sending tanks into HK. Obviously they don’t want two wars at the same time. As long as US do not interfere with their HK crack down, China will want to reach deal sooner, preferably before they crack down the demonstrations in HK before the 10/1 holiday. If they delay reaching a deal, it will only get more difficult as protests in HK continue to escalate.

 

Posted

"They're trying to delay when the damage occurs until election season to maximize the odds that Trump gets removed from office"

 

I believe that this strategy could easily backfire with the bunch of "crazies" on the Democratic side to borrow the expression from Stanley Druckenmiller.

 

Trump is in a weak spot and they know it. Might as well sign an easier deal now.

 

Cardboard

Posted

Ive actually long believed the opinion put in play by some ex Obama fella yesterday or the day before...That Trump/China is the real collusion story. That Trump's given them a deal under the table and is now just timing the shit out of it so he has momentum going into the elections. If this were the case you'd see a trade deal announcement finalized in either Q4 or early Q1 so you have the economic data showing blowout figures in July, August, September, October.

Posted

Ive actually long believed the opinion put in play by some ex Obama fella yesterday or the day before...That Trump/China is the real collusion story. That Trump's given them a deal under the table and is now just timing the shit out of it so he has momentum going into the elections. If this were the case you'd see a trade deal announcement finalized in either Q4 or early Q1 so you have the economic data showing blowout figures in July, August, September, October.

 

My only hope is that this bizarre presidency one day inspires someone to write the best political thriller ever.  cc: @netflix

 

Done.

 

https://www.amazon.com/dp/B01N1R9W4X/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1

Posted

MO.  I think people should really look at this one.  Yes there are risks, but I have watched the tobacco industry have a target on it since I started investing 20 years ago.  They just push through it.  I am just not sure if MO or PM is the better pick but went with MO as it is cheaper.

Posted

Short term you may see more pressure on PM/MO due to vaping:

 

https://www.webmd.com/mental-health/addiction/news/20190826/as-vaping-injuries-grow-doctors-seek-answers

 

The adult from Illinois who died is among 193 potential cases in 22 states of people hospitalized for the lung injuries, the CDC said last week.

 

Doctors say they are seeing injuries ranging from severe inflammation -- also called pneumonitis -- to bleeding in the lungs. “Injuries varied, with most including inflammation in the lining of the airway and some even have bleeding in their lungs,” said Louella Amos, MD, a pediatric pulmonologist at Children’s Hospital of Wisconsin, Milwaukee, who has treated some of the patients involved.

 

No cause has yet been identified, but a common thread joins each of the patients: All of them vaped.

 

 

 

Posted

There is always something like this going on with these companies, it never ends.

 

In the short-term you are getting a 7.3% dividend, which is covered with no issues.

 

Maybe they shut down vaping or maybe there is some adjustment to make it safer.  If they shut it down, kids just start smoking again.  I don't know how it all plays out but I am telling you, they are always, always under attack.  They just keep making money in the meanwhile.

 

For me, it's more an ethical issue.  Do I really want to be investing in tobacco companies?  I actually struggle with that more than the investment merits (not that it's a perfect investment but I am comfortable with the risks).  In the very short-term I have overcome my ethical concerns.

Posted

So I very much agree with you, in fact particularly so on the ethical roadblock (vs the actual investment thesis).

 

In fact I would prefer if they would give up on the vaping, or at least study it more first. By comparison cigarettes are a known quantity. People have been smoking things for, hell, thousands of years and we have been studying the effects for at least decades. With cigarettes, people are making an honest decision (akin to alcohol).

Posted

Entered the abyss. Bought a little TEVA and ENDP. Looking at a basket approach as it seems everyone thinks this is the end of all of them. Very small spec position.

Posted

Berry

 

Sold some of my $47.50 puts for $9.25 today (paid $1.90 for them).  In short, I am going long the stock by exiting the puts.  Looking to use the put proceeds to either buy more stock and/or calls.   

Posted

Berry

 

Sold some of my $47.50 puts for $9.25 today (paid $1.90 for them).  In short, I am going long the stock by exiting the puts.  Looking to use the put proceeds to either buy more stock and/or calls. 

 

Just curious - what was the expiry date on that put?

Posted

Berry

 

Sold some of my $47.50 puts for $9.25 today (paid $1.90 for them).  In short, I am going long the stock by exiting the puts.  Looking to use the put proceeds to either buy more stock and/or calls. 

 

Just curious - what was the expiry date on that put?

 

Jan 2020 - Not much premium at this point on that put because it is so far in the money

Posted

CLF

 

Why is the stock down 15% today?

 

Been on the go today operating from my phone but all I saw was the special dividend and continued plummeting of Iron Ore. Company did ~300M Ebitda at 2015 low prices.... despite the drop from $120-$80 we're still nearly double those levels. Maybe I'm missing something though. Who knows?

Posted

"Berry

 

Sold some of my $47.50 puts for $9.25 today (paid $1.90 for them).  In short, I am going long the stock by exiting the puts.  Looking to use the put proceeds to either buy more stock and/or calls."

 

Maybe you could expand on the Berry thread instead of here but, would like to understand your approach as I thought you were squarely long the stock.

 

Cardboard

Posted

More SMTA. As far as I can see all looks good. Vote passed, portfolio sale expected to close in a few weeks, Shopko term loan fully recovered. According to the proxy management expects $8.50 - $9.35 per share in distributions. My own calculations get me closer to the top of that range. In fact even slightly above that range but that probably means I am too optimistic about the workout assets.

 

Shares were initially up today (what I would have expected) but around the close there was massive volume and SMTA ended down ~2% instead. Best explanation I could come up with is that some funds are not allowed to hold companies in liquidation and had to sell at today's close. Seems congruent with what happened in the market.

 

But maybe I missed something. Not the most fireproof explanation ever.

Posted

More SMTA. As far as I can see all looks good. Vote passed, portfolio sale expected to close in a few weeks, Shopko term loan fully recovered. According to the proxy management expects $8.50 - $9.35 per share in distributions. My own calculations get me closer to the top of that range. In fact even slightly above that range but that probably means I am too optimistic about the workout assets.

 

Shares were initially up today (what I would have expected) but around the close there was massive volume and SMTA ended down ~2% instead. Best explanation I could come up with is that some funds are not allowed to hold companies in liquidation and had to sell at today's close. Seems congruent with what happened in the market.

 

But maybe I missed something. Not the most fireproof explanation ever.

 

Even back in the $8.40s SMTA still looks cheapish to me. Not hard at all to come up with an expected distribution figure of over $9, even using conservative assumptions.

 

 

Posted

Agreed. Already had a decent position but couldn't resist adding yesterday. Now one of my larger positions. Some potential tax issues due to me living in Europe (FIRPTA) but yeah, management estimates seem conservative. Now we'll see where they will burn some money to get distributions in line with their estimates ..

 

Bought some SYRCF today. Similar story.

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