What are you buying today?

[benchmark]

What's the PDLI liquidation play? simple google didn't yield anything

 

https://www.sec.gov/Archives/edgar/data/882104/000088210420000057/pdli-2020def14adoc.htm#se100117011f048748132db3631831519

 

You got some reading to do.  Cop a squint at the sections entitled:

"general information about the dissolution and plan of dissolution."

"Proposal #3"

 

wabuffo

 

Thank you Wabuffo.

 

I have some questions regarding the timeline of this, especially with the long tail mentioned in the doc:

_•

_{principal and interest payments due under a credit agreement entered into by the Company, as a lender, with CareView Communications, Inc., the recoverable amount of which is expected to be substantially less than the principal and interest payable;}

_•

_{amounts received in connection with our agreement with a counterparty pursuant to which we sold the remaining assets of DFM, LLC, to which we are entitled to a single-digit percentage of any net final award in connection with its monetization process using certain intangible assets included in the sale;}

_•

_{amounts received from a royalty based on a “know-how” license for technology provided in the design of solanezumab, an Eli Lilly-licensed humanized monoclonal antibody being tested in a study of older individuals who may be at risk of memory loss and cognitive decline due to Alzheimer’s disease. The 2% royalty on net sales is payable for 12.5 years after the product’s first commercial sale, and is currently in ongoing clinical studies with Phase 3 testing results expected in July of 2022;}

 

If they distribute the cash say by end of 2020,  but receives royalty payment later. Is the shareholders supposed to track this themselves for tax purpose? How are these treated?

 

Overall, what's your eval of the potential payment and timeline?

 

thanks much.

[Charlie]

Bought some Berkshire b shares. Value up through acquisition, price still cheap.  :)

[writser]

I've been accumulating some PDLI too. Starts to look attractive at current prices.

[wabuffo]

Hi benchmark - I just saw your questions.  Perhaps we should set up a new topic on this one.  I'll do that now.

 

https://www.cornerofberkshireandfairfax.ca/forum/investment-ideas/pdli-(pdl-biopharma-inc)/#new

 

wabuffo

[LC]

Bought some livenation and wells.

[Castanza]

WFC, PBCT

[Lance]

PBCT and VNO

 

Thanks

Lance

[Gregmal]

ESRT, SWKH, TMO

[CorpRaider]

Bot some more wells gotdamnit.

[LC]

Bot some more wells gotdamnit.

 

Man, I hear ya.

[K2SO]

MO

[Every Banana Counts]

WFC

[LC]

Sold 75% of Cloudflare and reallocated this into Akamai.

[ourkid8]

Same, this is getting silly.  I sold my cash account position in BAC and moved the funds into my registered RRSP account and bought WFC.  I am getting tax benefits and a significantly cheaper stock.  Let the good times roll  :)

 

Bot some more wells gotdamnit.

[CorpRaider]

I think BAC got to like 40% of TBV in 2011 (the good times when they were stroking all those settlement checks), so we could get some more pain (probably when they cut the dividend next week), but what can you do? 

[ourkid8]

Cutting the dividend is definitely already priced into the stock.  If there is irrational selling when the dividend cut is announced, that's a no brainer buying opportunity again.  Continue to keep cash on hand. 

 

I think BAC got to like 40% of TBV in 2011 (the good times when they were stroking all those settlement checks), so we could get some more pain (probably when they cut the dividend next week), but what can you do?

[Gregmal]

PCYO, WM

[fareastwarriors]

PCYO, WM

 

Any plans to add more to office REITs?

[LC]

I owned WM for a while - Greg, can you share your short thesis?

[Broeb22]

Sold 75% of Cloudflare and reallocated this into Akamai.

 

How do you think about the threat from competitors like Fastly?

[Gregmal]

PCYO, WM

 

Any plans to add more to office REITs?

 

Yes, I bought more ESRT today as well, just dont want to seem like too much of a blowhard posting every single day the same name. I would clarify, that I dont necessarily "love" office. Push comes to shove I prefer retail. But the prices right now are so outrageous that in specific instances I dont think it matters. Pupil posted a good piece in the VNO thread yesterday. It is consistent with what Ive been hearing from people as well. The private market is in a totally different space than the public, and Ive talked to numerous folks who said the private market people are coming to play in the public markets because the deals are just too good.

 

ESRT I think is an easy way to play office/retail on a small scale. Backstopped by a trophy asset; one that could be vacant and still sell basically at the EV. But I think in general, people are wayyy too occupied with the virus and almost everyone is missing the fact that it will be the definition of short term. A year, maybe two out, we will be back to normal. Dont think so? Look at all the places, not just US, once the restrictions are lifted. Everyone goes back out, yearning for their normal life. Heck even some started prior to the end of government interference. The death of office/retail is greatly exaggerated, but even if it isn't, being in the right places at $200 sq/ft likely pays off really well.

[Gregmal]

I owned WM for a while - Greg, can you share your short thesis?

 

I dont have anything sophisticated. Its a great, irreplaceable business, definition of moaty, that Ive always looked at but put off buying. Its recession proof, and has a solid balance sheet. Seems to be managed well. Its a very unsexy stock, but one I have a hard time consistently looking at and thinking I know better than to not own it. I take your comment as you no longer own it? What are your thoughts?

[LC]

I owned WM for a while - Greg, can you share your short thesis?

 

I dont have anything sophisticated. Its a great, irreplaceable business, definition of moaty, that Ive always looked at but put off buying. Its recession proof, and has a solid balance sheet. Seems to be managed well. Its a very unsexy stock, but one I have a hard time consistently looking at and thinking I know better than to not own it. I take your comment as you no longer own it? What are your thoughts?

 

Agree on all your points - addition of relatively slow growth (at least in terms of pricing - in the very long term, volume I think it will never stop growing as we are a trash-producing species) . Bill Larson's 13F is what got me interested at first, years ago.

 

I sold it back in Mar/Apr (around $92/sh IIRC) on relative valuation, was buying other stocks (as I'm sure you were too) which dropped in price more significantly and had/have higher growth prospects.

 

I agree it does look interesting now that the market has run up again, and WM price has not recovered (as much). Thanks for the reminder & sharing.

[LC]

Sold 75% of Cloudflare and reallocated this into Akamai.

 

How do you think about the threat from competitors like Fastly?

 

Akamai is industry leader particularly for large multinationals, governments, etc. I liken this business to security services, and prefer Akamai for a few reasons:

 

1) They are the oldest CDN and have the largest customers - for these customers, Akamai's price is a drop in the bucket so to speak. Cloudflare and other smaller players cater to small/med size customers for whom these prices are a higher % of their total costs.

 

2) This is a business where the longer you are ingrained, the less likely you are to switch. Particularly for the larger clients who have more to lose. It is the "if it ain't broke, don't fix it".

 

3) Akamai has never had an outage, has I believe the most servers worldwide, and is consistently a top performer:

https://www.cdnperf.com/

 

If you google things like "akamai vs. cloudflare, fastly vs. cloudflare, akamai vs. fastly, etc." you will find a lot of good discussion from techies (once u sort past the marketing websites)

[Castanza]

PNC