What are you buying today?

[Red Lion]

1 hour ago, Sweet said:

I have never bought a Treasury before, what’s the minimum buy size?

If you buy through a brokerage it’s usually $1,000 face amount. I’m not a big fan of treasury direct except I bonds, I use Schwab but I know fidelity and Ameritrade also have commission free trades on treasuries. 

[Saluki]

Some TV and CPNG

[Castanza]

$LW tracker position

 

Anyone else look at this? 

 

Potato company that specializes in frozen French fries. Operations in the US, Argentina (plant being built) and China. They supply big shops like MCD (~10% of Rev), as well as other chains and restaurants. Contracts negotiated every 3 years. Covid disruption has yet to normalize but they have been able to pass on the majority of this increase in COGS without issue. Global Margins is the key category and those margins have not yet come back to pre-covid levels.

 

This could be close fully priced here at $100. But there could be upside if margins come back to normal levels and the contracts are re-negotiated at higher prices. Andrew Walker had a podcast on it and in the Global segment there seems to be room to do this. Not sure management has the appetite to do so. Being that fries are one of the highest margin food products for restaurants I can see this happening. Recession proof too.  Management does have incentives at $140 and $212 share price so it's possible <--- but not necessarily a bet I'd make just on that alone. They do seem to have a new focus on dividend payout and share repurchase. They are also open to more aggressive M&A which would help reduce COGS pending locations they can secure. 

 

The Play TLDR: 

- Margins normalize around 25% (pre covid)

- Global Margins come back as supply chain issues ease, crop production comes back to normal and sales volume comes back. Management has said they are trending up. 

- Management is incentivized to grow share price with targets at 140 and 212

- Contracts renegotiated and pricing power is flexed. (MCD pays like .11-.13 per pound of fries)

 

Could be fairly valued here but worth a spot on the watchlist regardless imo. Low leverage smooth operating business with a very healthy market share, M&A hungry management in specific markets (EU & Africa) with a new focus on div and buybacks. 

[Red Lion]

Starter in JNJ.

[John Hjorth]

Added to BN [using proceeds from sale of all BAM shares today and basically all available liquidity]. So, back to being fully invested again.

Edited March 2, 2023 by John Hjorth

[investor1]

RPAY

[ourkid8]

Small amount of BABA

[Saluki]

I sold another slug of ATCO (not going to wait for the last dividend before Prem takes it private) and bought some SWBI in addition to the TV and CPNG I bought earlier. 

 

If my better half bought shoes the way I buy stocks ("I know I have a lot already, but it was on sale!") we would need a bigger house. 

[Sweet]

3 hours ago, gfp said:

 $100 USD on treasury direct

Thanks.  For some reason I thought it was much higher.

 

  

2 hours ago, RedLion said:

If you buy through a brokerage it’s usually $1,000 face amount. I’m not a big fan of treasury direct except I bonds, I use Schwab but I know fidelity and Ameritrade also have commission free trades on treasuries. 

I'm on Schwab, will check it out.

 

I thought it was 1 million minimum buy for some reason.

Edited March 2, 2023 by Sweet

[Saluki]

7 minutes ago, Sweet said:

Thanks.  For some reason I thought it was much higher.

 

  

I'm on Schwab, will check it out.

 

I thought it was 1 million minimum buy for some reason.

I think that $1 million thing was certain kinds of bonds that people like Salomon would bid for and then break them up into smaller units and sell to their clients. If I recall from Buffett's involvement in the scandal, there were only certain firms that were allowed to bid and Salomon was the biggest. 

 

On treasury direct, retail people can buy them directly in smaller lots.  I know that for the inflations bonds (I Bonds) the minimum is $25 and the max is $10k per person per year.  I don't know what the min/limit is for other ones. 

[gfp]

$1 million minimum!  That would be bonkers.  Since short term T-bills are purchased at a discount like zero coupon bonds the minimums are actually little bit lower still...  .98-.99 on the dollar vs face value

[Sweet]

Yeh, not sure why I was of the view that it was a million minimum buy.  I looked it up years ago on my then broker 

[Ross812]

I bought some LUV and 1-yr T-Bills yielding 5.2%. The minimum at FIDO is $1K and no transaction fee. At IB there is a $5 TF and $1K minimum. 

[gfp]

1 hour ago, Ross812 said:

I bought some LUV and 1-yr T-Bills yielding 5.2%. The minimum at FIDO is $1K and no transaction fee. At IB there is a $5 TF and $1K minimum. 

 

How did you get 5.2%?  What is the CUSIP and what price did you pay?

[Ross812]

1 hour ago, gfp said:

 

How did you get 5.2%?  What is the CUSIP and what price did you pay?

 

0.25 Mar15'24 - 91282CBR1 - $100k @ an average price of $95.053 - YTW - 5.198%

[Ross812]

9 minutes ago, Ross812 said:

 

0.25 Mar15'24 - 91282CBR1 - $100k @ an average price of $95.053 - YTW - 5.198%

 

I guess I goofed and didn't account for the extra 13 days so its 5.02%

[aws]

How do you guys feel about floating rate treasuries? Current yield is just over 5% and they can float upward if rates rise. Never really looked into them before but they seem like they should offer the highest yield unless you assume there will be substantial rate cuts within two years.

[no_free_lunch]

11 hours ago, aws said:

How do you guys feel about floating rate treasuries? Current yield is just over 5% and they can float upward if rates rise. Never really looked into them before but they seem like they should offer the highest yield unless you assume there will be substantial rate cuts within two years.

I own Canadian floats via ETf. Yield around 4%, maybe a touch higher. It's where I keep some cash buffer.  Not exciting but decent safe spot. 

[Red Lion]

14 hours ago, aws said:

How do you guys feel about floating rate treasuries? Current yield is just over 5% and they can float upward if rates rise. Never really looked into them before but they seem like they should offer the highest yield unless you assume there will be substantial rate cuts within two years.

Are you referring to just rolling short term t bills? Or is there an actual floating rate treasury security?? I’ve been rolling them since 3 months rates hit 3% commission free, so this has the effect of a floating rate. 

[gfp]

There is a two year note that resets every week

[texual]

Floating Rate Notes — TreasuryDirect

 

I hope this helps. I did purchase this in a small amount just to have an alternative to the i-bond, and a variety of short duration paper as part of a cash strategy over the next 6 months. 

[longlake95]

more SNC at the open

[Saluki]

A little more CPNG and TV.  I also bought a tiny amount of Vista Outdoor.  I know they talked about splitting into two companies, so I just wanted a token amount to remind me to check in on that periodically.  

[Red Lion]

2 hours ago, texual said:

Floating Rate Notes — TreasuryDirect

 

I hope this helps. I did purchase this in a small amount just to have an alternative to the i-bond, and a variety of short duration paper as part of a cash strategy over the next 6 months. 

Great info don’t know how I hadn’t heard of these. Seems comparable to rolling t bills but less work. 

[dealraker]

Messing with Angela's parents trust money again a couple of days ago.  I know, I know...a few here who I totally respect are thinking "not too smart dealraker"--- but for me old habits are hard to break.

 

03/02/2023

Buy

100  LOWPopup LOWES COMPANIES INC @ $194.3561

-$19,435.61