What are you buying today?

[dpetrescu]

Does anyone know much about TYL and TDG? I bought some shares recently but Just a starting position, didn’t have enough time to fully understand the companies. But they both seem to have a competitive advantage with pretty impressive pricing power.

 

TYL just seems to have unusual pricing power, don’t fully understand them. I heard about TYL while listening to a Munger DJC Q&A. He mentioned TYL is the main company digitizing  government agencies. The main but larger competitor of DJC and their software plan. Sure, would have been better 10 years ago but federal agencies are slow to change and most have a way to go. I can say this from experience, I’ve been waiting g for my city to digitize permit intake and review for 12 years now. It’s a good competitive advantage and the tide is in their favor for a while.

[bskptkl]

Does anyone know much about TYL and TDG? I bought some shares recently but Just a starting position, didn’t have enough time to fully understand the companies. But they both seem to have a competitive advantage with pretty impressive pricing power.

 

TYL just seems to have unusual pricing power, don’t fully understand them. I heard about TYL while listening to a Munger DJC Q&A. He mentioned TYL is the main company digitizing  government agencies. The main but larger competitor of DJC and their software plan. Sure, would have been better 10 years ago but federal agencies are slow to change and most have a way to go. I can say this from experience, I’ve been waiting g for my city to digitize permit intake and review for 12 years now. It’s a good competitive advantage and the tide is in their favor for a while.

 

TYL at 85 PE and 11x sales! - never heard of the company, but you must think they have some kinda secret sauce.

[lnofeisone]

Does anyone know much about TYL and TDG? I bought some shares recently but Just a starting position, didn’t have enough time to fully understand the companies. But they both seem to have a competitive advantage with pretty impressive pricing power.

 

TYL just seems to have unusual pricing power, don’t fully understand them. I heard about TYL while listening to a Munger DJC Q&A. He mentioned TYL is the main company digitizing  government agencies. The main but larger competitor of DJC and their software plan. Sure, would have been better 10 years ago but federal agencies are slow to change and most have a way to go. I can say this from experience, I’ve been waiting g for my city to digitize permit intake and review for 12 years now. It’s a good competitive advantage and the tide is in their favor for a while.

 

Curious what makes TYL different from Accenture Federal or Booz Allen? I think there is plenty of $ to be made in updating current processes and taking care of the legacy paper, etc., just not sure the best way to play it.

[dpetrescu]

Infeisone - not familiar with those companies but it seems like they’ve been growing quite a lot also. My impression of the two you mentioned that the more technology consulting and cloud services? But I might be wrong? Have to look into them. Tyler is interesting because it seems a pretty good pure play on software platforms for city, local and federal departments - software operating platforms (pay parking tickets online, send permit drawings and applications online, receive plan check letters online, etc). Instead of every department (court, permits, licenses, receive RFPs) having their own website, it’s one single platform.

 

Someone on here started a post - what people will do more of longer term after this pandemic is over. He mentions a lot of people will get haircuts on day 1 and then back to normal. Once this pandemic is over I think every city in the US will be accelerating their digitization plans. It allow the cities to make revenues (collect court tickets online) and keep employees during pandemics (review building permits while working from home) without having to lay people off. And it’s just inevitable.

 

Bsk. - That’s right it is extremely expensive. I think there’s a reason why Charlie Munger is taking the daily journal of commerce in that market as competitor. Imagine what an unprecedented market position that market is:

 

1. City group of departments hires TYL to digitize their operations - this likely takes 5 or more years?

2. TYL now has a contract to service the systems on an ongoing basis

3 thyre going software as a service. See Microsoft, adobe, auto desk

4. Once they digitize a City, seems like they have a better competitive advantage than Microsoft. If a better platform comes out a city would have to undue 5-10 years of commitment and years of progress and all departments would have to agree.  Imagine if we learned that there is a better language than English, would anyone switch?

5. I could be wrong about all this and price could collapse, it is expensive

6. Wish I heard about it 10 years ago :)

[Jurgis]

Once this pandemic is over I think every city in the US will be accelerating their digitization plans.

 

On what budget?

 

Once this pandemic is over I wonder how much money any city/state in the US will have to do anything new and non-essential.

[Castanza]

Once this pandemic is over I think every city in the US will be accelerating their digitization plans.

 

On what budget?

 

Once this pandemic is over I wonder how much money any city/state in the US will have to do anything new and non-essential.

 

[dpetrescu]

True it is an upfront investment but it’s inevitable and it is the simplest way to cut budgets long term and remove all the current inefficiencies and slow timelines. I  think Ron would approve ... at least in spirit. Well maybe not but Ron’s daughter would definitely approve.

 

Once this pandemic is over I think every city in the US will be accelerating their digitization plans.

 

On what budget?

 

Once this pandemic is over I wonder how much money any city/state in the US will have to do anything new and non-essential.

 

[orthopa]

I have been looking at selling some puts as a way to get access to some cash. Puts on BA exp Jan 2021 in the 60-70 range trading at ~$7.00. Selling some of those seem interesting. Gov not going to let BA go bankrupt and CEO doesn't believe a bailout is necessary. A lot would have to and can go wrong but owning BA in the 50s may not be the worst thing in the world. Worst case you buy them back for pennies on the dollar.

 

Thoughts or examples otherwise of companies that likely to make it through but options pricing in a lot of volatility?

[LC]

Good question and idea. I am thinking some of the banks? And maybe oil majors? Maybe even Berkshire given their banks exposure. I need to check the option prices but the general thesis is look for good businesses with one time COVID impacts.

[TwoCitiesCapital]

Been rolling a number of my long positions into two year, deep in-the-money LEAPS which has freed up 40-50% of the cash in the positions.

 

 

Will be missing out on some sizable dividends, but have same notional exposure for capital gains and will hopefully make more than the dividends missed by putting the incremental capital to work as new names go down further.

 

Rolling those LEAP positions back into cash shares. Rolled for no net change in cash, but my notional exposure will drop by 30-40% on this reduction. Grateful for the ride up and the ability to sell the calls at larger premiums to spot than what I purchased, but skeptical that this rally continues and don't want the leveraged exposure on the way back down.

[jeffsreng]

No position:

 

Buyer 100,000 $SLV Jan2021 $30/$35 bull call spreads for 14 cents potential 3500% return if it hits  ---Silver

 

https://www.macrotrends.net/1470/historical-silver-prices-100-year-chart

[orthopa]

No position:

 

Buyer 100,000 $SLV Jan2021 $30/$35 bull call spreads for 14 cents potential 3500% return if it hits  ---Silver

 

https://www.macrotrends.net/1470/historical-silver-prices-100-year-chart

 

Tons of more options traded as above today.

[orthopa]

No position:

 

Buyer 100,000 $SLV Jan2021 $30/$35 bull call spreads for 14 cents potential 3500% return if it hits  ---Silver

 

https://www.macrotrends.net/1470/historical-silver-prices-100-year-chart

 

This seems to be a play on endless QE obviously. Silver traded way up in 2010-2011 after QE2. Tempting for gamble.

[alwaysdrawing]

Buying a basket of tankers (Crude & products):

ADS NO

DHT

DSSI

EURN

INSW

NNA

STNG

TNP

 

Supercontango looks like a sure thing, now that everyone is waking up and realizing that the OPEC cuts were a farce and much less than the drop in global oil demand.  Oil down, VLCC rates up, and I expect both to continue along those paths.

 

 

[matts]

Buying a basket of tankers (Crude & products):

ADS NO

DHT

DSSI

EURN

INSW

NNA

STNG

TNP

 

Supercontango looks like a sure thing, now that everyone is waking up and realizing that the OPEC cuts were a farce and much less than the drop in global oil demand.  Oil down, VLCC rates up, and I expect both to continue along those paths.

 

why not TNK?

[Castanza]

No position:

 

Buyer 100,000 $SLV Jan2021 $30/$35 bull call spreads for 14 cents potential 3500% return if it hits  ---Silver

 

https://www.macrotrends.net/1470/historical-silver-prices-100-year-chart

 

This seems to be a play on endless QE obviously. Silver traded way up in 2010-2011 after QE2. Tempting for gamble.

 

I hope it was nothing but congressional members  ;D

[alwaysdrawing]

Buying a basket of tankers (Crude & products):

ADS NO

DHT

DSSI

EURN

INSW

NNA

STNG

TNP

 

Supercontango looks like a sure thing, now that everyone is waking up and realizing that the OPEC cuts were a farce and much less than the drop in global oil demand.  Oil down, VLCC rates up, and I expect both to continue along those paths.

 

why not TNK?

 

No special reason.  Fits with the trade.

[patterson]

No position:

 

Buyer 100,000 $SLV Jan2021 $30/$35 bull call spreads for 14 cents potential 3500% return if it hits  ---Silver

 

https://www.macrotrends.net/1470/historical-silver-prices-100-year-chart

 

This seems to be a play on endless QE obviously. Silver traded way up in 2010-2011 after QE2. Tempting for gamble.

 

Silver is an interesting idea. Like gold, I think it’s very misunderstood. It’s an asset that people don’t have much use for during times of monetary stability. And it isn’t a good hedge against steady inflation in a fairly stable monetary environment; I’d much rather outpace inflation by owning businesses that grow over the long run.

 

The price of silver, to the extent that its driven by non-industrial demand, is very psychological. Thus, it seems to be a good hedge against a very specific kind of risk: a loss of faith in the currency/fed. If you think that such a risk is not being appreciated by the market, owning silver could make sense.

 

Precious metals are “things” that can’t truly be valued, and this explains most value investors’ aversion to them. All of the arguments for owning silver are really the same whether it’s 15 dollars or 100 dollars an ounce. At the same time, precious metals are ridiculed by much of the public; pension funds barely have exposure, if any; retirement plans don’t offer it; and most financial advisors would probably laugh at you if asked them about gold. And, until recently, a person would have needed to search for fringe articles on the internet to find a pro-gold perspective. All of these things lead me to believe that metals are probably under owned.

[patterson]

WFC, WFC January 2022 27.50 calls (purchased last week around 5.95), FRFHF.

[plato1976]

JPM just said it would suspend dividend if situation turns much worse

 

WFC, WFC January 2022 27.50 calls (purchased last week around 5.95), FRFHF.

[sleepydragon]

No position:

 

Buyer 100,000 $SLV Jan2021 $30/$35 bull call spreads for 14 cents potential 3500% return if it hits  ---Silver

 

https://www.macrotrends.net/1470/historical-silver-prices-100-year-chart

 

This seems to be a play on endless QE obviously. Silver traded way up in 2010-2011 after QE2. Tempting for gamble.

 

Silver is an interesting idea. Like gold, I think it’s very misunderstood. It’s an asset that people don’t have much use for during times of monetary stability. And it isn’t a good hedge against steady inflation in a fairly stable monetary environment; I’d much rather outpace inflation by owning businesses that grow over the long run.

 

The price of silver, to the extent that its driven by non-industrial demand, is very psychological. Thus, it seems to be a good hedge against a very specific kind of risk: a loss of faith in the currency/fed. If you think that such a risk is not being appreciated by the market, owning silver could make sense.

 

Precious metals are “things” that can’t truly be valued, and this explains most value investors’ aversion to them. All of the arguments for owning silver are really the same whether it’s 15 dollars or 100 dollars an ounce. At the same time, precious metals are ridiculed by much of the public; pension funds barely have exposure, if any; retirement plans don’t offer it; and most financial advisors would probably laugh at you if asked them about gold. And, until recently, a person would have needed to search for fringe articles on the internet to find a pro-gold perspective. All of these things lead me to believe that metals are probably under owned.

 

I will add there is no silver mines. Silver are produced as a by products from other mines. But I have no positions.

 

[tgc]

TAO (Tag Oil): 0.17 CAD of net cash per share, a royalty stream for free (yielding 11% on average at the current price of 0.10 CAD per share) and all of their Australian assets for free.

[LC]

Over the last 1.5 weeks I dipped the toes into:

goog ; wfc ; tfsl ; xom ; nlsn & mo (told myself i wouldn't but so cheap...) ; irm

 

Some of these were repeat customers. At about 10% cash and can raise more if necessary over the coming months.

[KJP]

Moved a bit from Charter to Comcast for reasons explained here:  https://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/cmcsa-comcast-nbcuniversal/msg409247/#msg409247

[sleepydragon]

sold some PM to fund JPM

debating if I shall sell WFC and buy BAC