Jaygo Posted March 6 Posted March 6 I sold out of Aecon And LUNR and bought Fairfax for the kids RRSP. What a ride!
backtothebeach Posted March 6 Posted March 6 Swapped some CSU for FFH. Not too long ago they were both the same price, now CSU 30% above FFH. Kind of a weird pair trade, but if their prices cross over again I may swap back.
Parsad Posted March 6 Posted March 6 1 hour ago, backtothebeach said: Swapped some CSU for FFH. Not too long ago they were both the same price, now CSU 30% above FFH. Kind of a weird pair trade, but if their prices cross over again I may swap back. Nice! I had the opportunity to do the same...but didn't act that day CSU fell just below $2200. Saw it...didn't act fast enough. Cheers!
nsx5200 Posted March 7 Posted March 7 14 hours ago, backtothebeach said: Swapped some CSU for FFH. Not too long ago they were both the same price, now CSU 30% above FFH. Kind of a weird pair trade, but if their prices cross over again I may swap back. Apologies. @backtothebeach, do you mind explaining the logic behind this pair trade? I can't seem to figure it out. The best I can come up with is that you're swapping one value for a better value due to random walk of two stocks/variables. No real correlation involved between the two stocks in the classic pair-trade definition. Let me know if there's another angle that I'm not seeing. TIA.
Parsad Posted March 7 Posted March 7 1 hour ago, nsx5200 said: Apologies. @backtothebeach, do you mind explaining the logic behind this pair trade? I can't seem to figure it out. The best I can come up with is that you're swapping one value for a better value due to random walk of two stocks/variables. No real correlation involved between the two stocks in the classic pair-trade definition. Let me know if there's another angle that I'm not seeing. TIA. It's not a pair trade. I think he stated "weird pair trade", meaning he essentially thought both were worth more...traded to value in one probably knowing that they would not go up in value at the same time. Or at least not likely. And might have the opportunity to sell and buy the other before markets recognized fair value again. Cheers!
hardcorevalue Posted March 7 Posted March 7 I like both FFH and CSU/TOI a lot here. The multiple on FFH is obviously more attractive but the historical stability of CSU/TOI growth has been incredibly stable. Obviously the past few weeks have seen the narrative shift on death by AI but I think there could still be a long way to go.
backtothebeach Posted March 7 Posted March 7 9 hours ago, nsx5200 said: Apologies. @backtothebeach, do you mind explaining the logic behind this pair trade? I can't seem to figure it out. The best I can come up with is that you're swapping one value for a better value due to random walk of two stocks/variables. No real correlation involved between the two stocks in the classic pair-trade definition. Let me know if there's another angle that I'm not seeing. TIA. Good question. Here is some of my, not entirely logical, thinking. A few weeks ago I noticed that both CSU and FFH were at the same price, so both being considered reliable compounders I wondered which one might win the race from there on out. I also looked up the historical relationship, which you can do on stockcharts, CSU stock price divided by FFH stock price (last 5 years). For the last 5 years, the "new" Fairfax had been outperforming CSU (the stock price). (Before that, CSU had steadily won, up to its stock price being 4.5x that of FFH). I kind of think it's a toss up from here on out, and with what you call the random walk of two stocks/variables, I wouldn't be surprised to see the two stock prices cross paths again in the future, even though they are not in the same sector. Having bought some CSU on the way down at $2690 (catching the falling knife), and seeing CSU outperform FFH over the last month by 30%, and yesterday alone by 7.5%, I thought selling 75 CSU at $2928 (for a quick 10% profit), and buying 100 beaten down FFH from the proceeds would be a fair bet. If they cross paths again I'll happily swap back and pick up 25 "free" CSU. If not, I'll keep the FFH. Also, CSU earnings are coming up and could go either way. I still have some CSU, but taking advantage of this short term bounce and selling this batch of CSU for a profit and buying Fairfax felt like a reduction of risk.
frommi Posted March 8 Posted March 8 Your chart would convince me to sell FFH to buy even more CSU, not the other way around.
backtothebeach Posted March 8 Posted March 8 2 hours ago, frommi said: Your chart would convince me to sell FFH to buy even more CSU, not the other way around. You may be right, should have asked @gfp first, lol.
Libs Posted March 9 Posted March 9 Maxed out my SKYH to a 10% position. Nice dip today.....as if billionaires will balk at paying more for jet fuel
KPO Posted March 10 Posted March 10 2 hours ago, Spekulatius said: JEF and more PAX. I have a lot of respect for your views after following your thoughts for probably as long as I’ve been on here. Outside of the Leucadia historical connection, what gives you comfort in trusting these guys? I looked at it recently after following for over 20 years, but now that it’s JEF it seems much more like a black box.
John Hjorth Posted March 10 Posted March 10 Today, I reinvested dividends, received today, from SPKSJF.CPH [SJF Bank A/S, a Danish regional bank] into the bank [at DKK 327.50]. [CofB&F topic].
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