What are you buying today?

[Saluki]

Added a little OXY, TV and SWBI.  Just listened to the SWBI conference call after the close, it probably won't be this cheap tomorrow

 

 

[Mick92]

Finished building out a position in Nintendo (7974). Valuation seems reasonable and they have a few potential catalysts for success in the next couple of years, but happy to hold for the long term if there's no imminent re-rating.

Edited March 9, 2023 by Mick92

[Spekulatius]

Regarding SIVB:

https://seekingalpha.com/article/4585904-svb-financial-selloff-overdone-well-positioned-long-term#comment-94677294

[CorpRaider]

3 hours ago, Mick92 said:

Finished building out a position in Nintendo (7974). Valuation seems reasonable and they have a few potential catalysts for success in the next couple of years, but happy to hold for the long term if there's no imminent re-rating.

I'm with you.

[Spekulatius]

17 hours ago, dipod said:

Bought C, ZION, BAC, WFC today. NVDA September puts a few weeks ago. 

@dipod - what is your take at $ZION. they also got a bunch of AFS securities and moved a large bunch to HTM ( yellow flag). They also have seen a huge bump in deposits in 2020 and have seen some of them disspear. the bank is very cheap, if they can hold on to their security portfolio and they seem to have very low cost deposits, but there are definitely reasons why some investors are concerned, based on a preliminary look.

 

Edit - i just saw that they also drawn ~$10B from federal funds already, so they are definitly liquidity constraint. those Federal funds loans are quite expensive and might lead to negative carry relative to their securities.

Edited March 10, 2023 by Spekulatius

[Castanza]

Liquor 

[WFF]

Added BAC.  The deposits at BAC should be quite sticky, and if the events at Silicon Valley Bank and Silvergate scares people, I would venture a flight to safety towards the big banks like JPM, BAC and WFC will occur.  
 

If we starts to see it spreading, and impacting the big banks (too big to fail anyone?)  I would venture the government will step in like it always do.   

[Spekulatius]

Banks Are fun - just have a look at $FRC.

Bought more $USB $ESB and $CATY myself.

 

I always wondered what Fintwit experts are seeing in that one. Not any more.

 

Edited March 10, 2023 by Spekulatius

[Spooky]

Bought some more Citi, BRK, VOO, GVLU

[Gregmal]

Still can’t really find much to buy. So I bought some MKL

[Red Lion]

I bought a hair more KKR and new starter in OWL. 

Edited March 10, 2023 by RedLion

[John Hjorth]

4 minutes ago, Gregmal said:

Still can’t really find much to buy. So I bought some MKL

 

@Gregmal,

 

 - Never thought - ever - I should see this posted by you. [Please don't take it too seriously! ]

[LC]

Added BAC, TV

 

Proceeds (well, not received yet) from the FSTX tender that went thru. Was interesting to see it show up on Fairfax's book - will be a nice gain for them as well. 

[dealraker]

BAC for me.

[CorpRaider]

@Spekulatius  You're referencing Cathay?  That's the California kind of Chinese-American dominant bank?

[dealraker]

11 minutes ago, CorpRaider said:

@Spekulatius  You're referencing Cathay?  That's the California kind of Chinese-American dominant bank?

Ah ha!  My first co-owner of CATY!  CATY was written up in Outstanding Investor Digest in 1994 and it was beyond incredible to read.  The bank was earning almost 20% on equity selling for book value.  There were earthquakes, recessions, fires, OJ riots, etc. knocking stuff all down and around.

 

All while the east coast banks, small banks, were earning 10% of equity and selling for 2.5 to 5 times book value based on Eddie Klutzfield (Crutchfield) being willing to pay up and flush all the equity and expenses down in a one-time charge such that "I can pay 5 times book and make it all work out."  So Eddie at First Union went through 20 years of no book value growth (those flushes...ya know) and eventually was "earning"  (fake earnings, fake ROE) 30% on equity (there wasn't any equity).

 

Ole Buffett once said, "Librarians read financial statments; investors need to know what the figures mean."  30% on equity for First Union was just 30% on evaporation.  

Edited March 10, 2023 by dealraker

[CorpRaider]

Haha, yeah I worked with some guys built up banks and sold to First Union several times.  They ruined Wachovia faster than I thought they would.

Edited March 10, 2023 by CorpRaider

[DooDiligence]

The Wells Fargo stepped in to complete the massacre.

[n.r98]

Bought some SUMO

[DooDiligence]

Patience has resulted in hitting a stinker bid at $48 for C that's been marinating for a bit.

I've got another one in at $46 that would fill a 2% position.

Edited March 10, 2023 by DooDiligence

[Intelligent_Investor]

IDFB at low $11s

[dipod]

5 hours ago, Spekulatius said:

@dipod - what is your take at $ZION. they also got a bunch of AFS securities and moved a large bunch to HTM ( yellow flag). They also have seen a huge bump in deposits in 2020 and have seen some of them disspear. the bank is very cheap, if they can hold on to their security portfolio and they seem to have very low cost deposits, but there are definitely reasons why some investors are concerned, based on a preliminary look.

 

Edit - i just saw that they also drawn ~$10B from federal funds already, so they are definitly liquidity constraint. those Federal funds loans are quite expensive and might lead to negative carry relative to their securities.

@SpekulatiusBought as part of a basket of banks. There's risk there but the price is just too cheap to ignore. Of all the banks, it's my smallest position. Bulk is in BAC, WFC, and C. 

Edited March 10, 2023 by dipod

[sleepydragon]

2 hours ago, dealraker said:

Ah ha!  My first co-owner of CATY!  CATY was written up in Outstanding Investor Digest in 1994 and it was beyond incredible to read.  The bank was earning almost 20% on equity selling for book value.  There were earthquakes, recessions, fires, OJ riots, etc. knocking stuff all down and around.

 

All while the east coast banks, small banks, were earning 10% of equity and selling for 2.5 to 5 times book value based on Eddie Klutzfield (Crutchfield) being willing to pay up and flush all the equity and expenses down in a one-time charge such that "I can pay 5 times book and make it all work out."  So Eddie at First Union went through 20 years of no book value growth (those flushes...ya know) and eventually was "earning"  (fake earnings, fake ROE) 30% on equity (there wasn't any equity).

 

Ole Buffett once said, "Librarians read financial statments; investors need to know what the figures mean."  30% on equity for First Union was just 30% on evaporation.  

Anyone looked at BAnk of Hawaii? Mostly Japanese American depositors , I think

[dealraker]

Bought some TFC, Truist.  Have a tad of insurance broker rev/inc in the mix.  8% selloff, guessing a bit too much...

 

...but what the hell do we know?  LOL.

 

 

[ourkid8]

Bought more BN.