What are you buying today?

[Jaygo]

4 hours ago, Value418 said:

Do you mind sharing the podcast you listened to?  Thank you.

Unfortunately I don’t recall exactly what it was. I want to say it was a business breakdowns on one of the major home builders. 

[Xerxes]

5 minutes ago, Jaygo said:

Unfortunately I don’t recall exactly what it was. I want to say it was a business breakdowns on one of the major home builders. 

these ones ?

from Wealthtrack. 

he talks a bit about Toll Brothers and the whole segment. Pretty good one. 

 

[Jaygo]

Ok now you got me searching. 
 

it was business breakdowns or colossus. DR Horton from march 2024

 

[Head of Roller coasters]

Added Sandvik STO:SAND.

 

[Value418]

Perfect.  Thank you much!

[Mephistopheles]

Added to Autonation. Buyback machine trading at like 10x earnings or something with high returns of capital and a great management team. What more can you ask for?

Edited June 14, 2024 by Mephistopheles

[winjitsu]

44 minutes ago, Mephistopheles said:

Added to Autonation. Buyback machine trading at like 10x earnings or something with high returns of capital and a great management team. What more can you ask for?

Margins reverting to pre-covid levels, so not a real 10x.

 

Though it's a great company, and that entire industry, LAD, AN, GPI, ABG, really shows that iron sharpens iron. All making great moves. I'm in GPI

[Mephistopheles]

15 minutes ago, winjitsu said:

Margins reverting to pre-covid levels, so not a real 10x.

 

Though it's a great company, and that entire industry, LAD, AN, GPI, ABG, really shows that iron sharpens iron. All making great moves. I'm in GPI

 

If you sub in 2019's pre tax margin's to last year's revenues, the stock is at 12x, so yea a bit over 10x. But currently it's a bit under 10x. I just made up the # 10 bc I was too lazy to check but it's right in that ballpark. 

 

Agreed it's a great industry. I have only looked at AN and LAD so far. What do you think of LAD? Not nearly as much in terms of buybacks so that's why I avoided it. What made you buy GPI?

Edited June 14, 2024 by Mephistopheles

[winjitsu]

4 hours ago, Mephistopheles said:

 

If you sub in 2019's pre tax margin's to last year's revenues, the stock is at 12x, so yea a bit over 10x. But currently it's a bit under 10x. I just made up the # 10 bc I was too lazy to check but it's right in that ballpark. 

 

Agreed it's a great industry. I have only looked at AN and LAD so far. What do you think of LAD? Not nearly as much in terms of buybacks so that's why I avoided it. What made you buy GPI?

 

Saw that Greg Alexander (https://www.dataroma.com/m/stock.php?sym=GPI) had been adding. 

 

Looking at just the last call transcript, they seem to be the only player w/ growing SSS and maintaining the margins. Their product mix seems better (more Toyota) and geography (more Texas / South). Trading at 8x now, so maybe 10x normalized? Anyways a couple turns cheaper, disciplined growth between buybacks and acquisitions. 

Edit: Missed your comment about LAD. Just different models, AN more focused on buybacks, whereas LAD more focused on acquiring revenue. LAD did have the pendragon and big UK acquisition so I'm not sure what to make of that. 

 

But I think the roll-up model has lots of room. I have some wealthy acquaintance that are in the dealership business and I have no doubt a corporation coming in there with a clear playbook and best practices can rachet up earnings. There's some obvious advantages to size as well for inventory and LAD and AN are the two biggest now.

Edited June 14, 2024 by winjitsu

[Whensthepaintdry?]

Should Carmart be looked at completely different because of the low income financing they do? 

[Head of Roller coasters]

Established a bridgehead on Engcon AB (STO: ENGCON-B) – a Swedish manufacturer of tiltrotators for excavators.   

[Tenerife]

XPS:LSE, UK based pension actuarial services

[fareastwarriors]

picked up more JOE and nibbling on Fairfax

[nsx5200]

My buy limit price got triggered, and caught some baby Berkshire.

[bathtime]

LVMH

[Malmqky]

Hershey

[valueventures]

On 6/14/2024 at 5:06 PM, nsx5200 said:

My buy limit price got triggered, and caught some baby Berkshire.

Fairfax or Nelnet or something else?

[thowed]

Top-up nibbling on FFH and TVK.

 

Still wondering if next 2 weeks will see pre-tax-change sell-offs in companies like these which have such good performance.

[Kizion]

A bit Coupang (20% position now) and Pluxee, LVMH and a bit more Solvay

[Saluki]

3 hours ago, Kizion said:

A bit Coupang (20% position now) and Pluxee, LVMH and a bit more Solvay

 

I picked up a few shares of CPNG too, but it's less than 5% for me.  The article I posted hasn't been on Yahoo yet, so I suspect more selling when it does, and if it hits the teens again, I may start buying in bigger size. 

 

I trimmed some VTS and STNG, and added to some smaller positions that I'm still building. (Tsakos, Kraken, FRPH). 

[Head of Roller coasters]

Added a few shares of the crown jewel of the Nordic insurance business: Sampo (HEL:SAMPO).  

Edited June 17, 2024 by Head of Roller coasters

[DooDiligence]

More HSY.

[cash_incinerator]

Added a little HSY

[ValueArb]

I loaded up on MOMO (Hello Group) last week. Simple thesis is trading at about 80% of net cash, business declining but consistently profitable and some potential for a turnaround, and management scores an A+ on capital allocation. Dividend yield is close to 10% (though dividends are specials one time per  year) and it's buying back shares at a good rate. 

 

I try to avoid China due to concerns on accuracy of financials and regulation. In this case regulation is the reason sales have been declining so potentially the worst is behind them, and I have more confidence in its cash position and cash flows are real due to the very high dividend payments the last 4 years along with the share repurchases.

[Longnose]

2 minutes ago, ValueArb said:

I loaded up on MOMO (Hello Group) last week. Simple thesis is trading at about 80% of net cash, business declining but consistently profitable and some potential for a turnaround, and management scores an A+ on capital allocation. Dividend yield is close to 10% (though dividends are specials one time per  year) and it's buying back shares at a good rate. 

 

I try to avoid China due to concerns on accuracy of financials and regulation. In this case regulation is the reason sales have been declining so potentially the worst is behind them, and I have more confidence in its cash position and cash flows are real due to the very high dividend payments the last 4 years along with the share repurchases.

Ive Traded MOMO several times over the years and lost more than won. They've been undervalued for a long time... The only times ive made money on them is buying usually around November/December and selling Feb/Mar. Ive found for several years they suffer a pretty big sell off at the end of the year. likely tax loss harvesting. and then the special divys are usually announced in Feb/Mar and there are people that buy up for this.  Every time ive bought mid year like this ive lost money.

 

Best of luck. I want MOMO to be great! and its definitely undervalued.