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Posted
On 10/21/2024 at 10:04 AM, gfp said:

 

Back from Japan finally and going to close out this TLT short since it was always just a seasonal pattern trade.  I suppose Trump win odds going up could push long yields up some more but I'm out.  The trade worked out as expected

Well done GFP.

Posted

6723.T/ Renesas, Japanese semiconductor company that is producing decent numbers now. They were reduced by Japan Inc and most of those have or are selling their appreciated stake now.

 

I think the best may still be to come if they continue to execute. They are in god markets (microprocessor units, automotive, embedded processing) and their business model is relatively capital light. This is not your typical Japanese co any more, they very much seems like they’d follow  more and US style model.

 

I believe the market is concerned about the relatively expensive Altium acquisition.

 https://www.renesas.com/en/about/investor-relations/event/presentation#analyst_day

 

Unless the wheels come off, the stock is cheap (10x 2023 earnings). Earnings will go down this year though.

.

Posted
31 minutes ago, TwoCitiesCapital said:

Started the roundtrip on Eurobank. Sold most of my shares between $1.00 and $1.16. 

 

Started repurchasing with a limit buy today @ $0.97. 

I see the stock at E 1.91, what am I missing?

Posted (edited)
11 minutes ago, Dinar said:

I see the stock at E 1.91, what am I missing?

 

My bad - I'm talking the ADRs. Ticker EGFEY. 

 

I used to own some European shares too, but that isn't the account I've had liquidity to rebuy in. 

Edited by TwoCitiesCapital
Posted
On 10/22/2024 at 10:53 AM, pricingpower said:

Anyone with a good understanding of whether $GYRO would generate UBTI / if one ends up getting double taxed in a US retirement account?  From quick googling it seems like the paperwork burden around UBTI has gotten worse in recent years.  I remember reading the VIC writeup on GYRO probably 5y ago where it was expected to liquidate in the next year as they were finalizing approvals.

 

Doesn't seem like there is a clear cut answer to this. The IRS has some cases on their website and one of them seemed to indicate that if you're not improving the land you could make the case to maintain your exempt status. But this is just a guess from what I was able to find. Seems like the standard is not cut and dry. Not sure if @Gregmal has ventured down that rabbit trail. 

 

Their latest 10-Q is worth a read if you have not done so. Some good tidbits in their. 

 

"4. Statements of Net Assets in Liquidation Net assets as of June 30, 2024 and December 31, 2023 would result in estimated liquidating distributions of $35,387,309 and $30,721,034, respectively, or approximately $16.09 and $19.51 per common share, respectively, based on 2,199,308 and 1,574,308 shares outstanding, respectively (see Note 12– Rights Offering). The increase of $4,666,275 in estimated liquidating distributions is mainly attributable to the rights offering (net proceeds of $4,418,380) that closed on March 7, 2024. Approximately $3.39 per share of the reduction in net assets per share was driven by the issuance (stemming from the Rights Offering) of 625,000 shares at $8 per share (reflecting a discount of $8.12 per share to the proforma net assets in liquidation as of December 31, 2023)."

 

I have no position in this, but looks interesting pending the UBTI outlook...

Posted

I’m the furthest thing from an accountant but from what I’ve seen the issues often are a result of forms from the disposition or assets. The K1s stopped years ago. Not sure about the UBTI

Posted

NEP and ENPH were both down double digits today, so after I finished crying into my coffee I bought a few shares on principle. Upon further reflection, I think I'll wait for them to stop dropping, then when I sell some stuff on Nov 1, to harvest tax losses, I'll buy some of these and sell in 30 days to adjust my cost basis before the end of the year.  When life gives you lemons, after you accidentally squirt yourself in the eyes with it, go wash your eyes out and make some lemonade. 

 

Posted
6 hours ago, Castanza said:

 

Doesn't seem like there is a clear cut answer to this. The IRS has some cases on their website and one of them seemed to indicate that if you're not improving the land you could make the case to maintain your exempt status. But this is just a guess from what I was able to find. Seems like the standard is not cut and dry. Not sure if @Gregmal has ventured down that rabbit trail. 

 

Their latest 10-Q is worth a read if you have not done so. Some good tidbits in their. 

 

"4. Statements of Net Assets in Liquidation Net assets as of June 30, 2024 and December 31, 2023 would result in estimated liquidating distributions of $35,387,309 and $30,721,034, respectively, or approximately $16.09 and $19.51 per common share, respectively, based on 2,199,308 and 1,574,308 shares outstanding, respectively (see Note 12– Rights Offering). The increase of $4,666,275 in estimated liquidating distributions is mainly attributable to the rights offering (net proceeds of $4,418,380) that closed on March 7, 2024. Approximately $3.39 per share of the reduction in net assets per share was driven by the issuance (stemming from the Rights Offering) of 625,000 shares at $8 per share (reflecting a discount of $8.12 per share to the proforma net assets in liquidation as of December 31, 2023)."

 

I have no position in this, but looks interesting pending the UBTI outlook...

Sales in assets often creates UBTI, which are a pain in the arse in IRA account to deal with.

Posted
38 minutes ago, Spekulatius said:

Sales in assets often creates UBTI, which are a pain in the arse in IRA account to deal with.


Yeah I was reading on that a bit more. Does sound like one major headache to deal with in a Trad or Roth IRA. Having to deal with a K-1 is annoying enough and has made me pass on a few other investments. Dealing with the extra paperwork and potentially sizable tax bill makes it a tough call. 37% tax rate….ehhh 

Posted

Velan VLN.to      Nuclear renaissance play combined with Cryo for LNG. I think we are in a industrial recession similar to 2015 era but nobody is getting dinged yet. Graco showed that today with poor results. 

 

I think Velan will push right through due to the nuclear and LNG projects then get acquired by an industrial trying to boost the sales slump.

 

I am aware I have a major bias here, I have a very soft spot in my heart for small industrials for some reason so I could be totally out of whack here.

Posted (edited)

Little EVO and more VAL/VAL warrants. 

 

Wanted to buy HAYPP inside my IRA as well, but fidelity won't let me. Maybe I'll buy some in the IBKR brokerage instead.

Edited by Malmqky
Posted
On 10/24/2024 at 8:04 AM, Jaygo said:

Velan VLN.to      Nuclear renaissance play combined with Cryo for LNG. I think we are in a industrial recession similar to 2015 era but nobody is getting dinged yet. Graco showed that today with poor results. 

 

I think Velan will push right through due to the nuclear and LNG projects then get acquired by an industrial trying to boost the sales slump.

 

I am aware I have a major bias here, I have a very soft spot in my heart for small industrials for some reason so I could be totally out of whack here.

I like the concept.  Need to do some DD on my end.  What is your base case scenario if you look out a few years?

Posted
On 10/26/2024 at 11:02 PM, no_free_lunch said:

I like the concept.  Need to do some DD on my end.  What is your base case scenario if you look out a few years?

Well my hope is it gets caught up in the wave of Nuclear fomo and gets bid up outside of fundamentals thus delivering a really great return.

 

Actual fundamentals gets me a slightly better valuation than the attempted acquisition a few years out. Say in the range of 14-17 a share. When the company was involved in getting acquired last time there was a lot of interest. 

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