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LowIQinvestor

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Bought some SPAQ warrants. No reason other than I felt like gambling. Come on now RobinHooders, do your thing!

 

$SPAQ down a good amount. Beware Boredom! $SDS also has a dry cough.

 

Sold the SPAQ warrants Monday at the open. Was just banking on the Fisker announcement confirmation, which happened.

 

SDS sucks, but to me, especially if you consistently reposition it, it can be a cheaper hedging alternative. Dont at all recommend holding over night for more than a day or two tops, as the decay will kill you.

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Bought some SPAQ warrants. No reason other than I felt like gambling. Come on now RobinHooders, do your thing!

 

$SPAQ down a good amount. Beware Boredom! $SDS also has a dry cough.

 

Sold the SPAQ warrants Monday at the open. Was just banking on the Fisker announcement confirmation, which happened.

 

SDS sucks, but to me, especially if you consistently reposition it, it can be a cheaper hedging alternative. Dont at all recommend holding over night for more than a day or two tops, as the decay will kill you.

 

Thx. I always wonder how folks deal with trades, especially losing ones. I had a small one going on with a “BLM“ Bank, but that was cheap stock that I wouldn’t have mind owning for a bit too. That trade made a little profit.

 

Typically, I find these things just a distraction and rather stay away, but sometimes there is an urge to do something.

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Bought some SPAQ warrants. No reason other than I felt like gambling. Come on now RobinHooders, do your thing!

 

$SPAQ down a good amount. Beware Boredom! $SDS also has a dry cough.

 

Sold the SPAQ warrants Monday at the open. Was just banking on the Fisker announcement confirmation, which happened.

 

SDS sucks, but to me, especially if you consistently reposition it, it can be a cheaper hedging alternative. Dont at all recommend holding over night for more than a day or two tops, as the decay will kill you.

 

Thx. I always wonder how folks deal with trades, especially losing ones. I had a small one going on with a “BLM“ Bank, but that was cheap stock that I wouldn’t have mind owning for a bit too. That trade made a little profit.

 

Typically, I find these things just a distraction and rather stay away, but sometimes there is an urge to do something.

 

Yea I'd generally agree. I read a pretty neat quote somewhere about how "more money has been lost "preparing" for the crash, than has been lost in crashes"... or something like that. However I think the current situation is quite extraordinary and to a degree, if the market goes up 15% by the time this is over and done with, and I only make 5%, I'm OK with that provided I'm putting on trades that protect against things going badly the other way.

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SDS sucks, but to me, especially if you consistently reposition it, it can be a cheaper hedging alternative. Dont at all recommend holding over night for more than a day or two tops, as the decay will kill you.

 

Is there a reason why you prefer something like SDS over just shorting ES? I don’t see it, but I may be missing something.

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SDS sucks, but to me, especially if you consistently reposition it, it can be a cheaper hedging alternative. Dont at all recommend holding over night for more than a day or two tops, as the decay will kill you.

 

Is there a reason why you prefer something like SDS over just shorting ES? I don’t see it, but I may be missing something.

 

Regulatory burdens make it very difficult to operate managed accounts using certain types of instruments/securities. Even leveraged ETFs require a nonsensical amount of paperwork and disclosure/cya material. Futures I won't touch for SMAs.

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SDS sucks, but to me, especially if you consistently reposition it, it can be a cheaper hedging alternative. Dont at all recommend holding over night for more than a day or two tops, as the decay will kill you.

 

Is there a reason why you prefer something like SDS over just shorting ES? I don’t see it, but I may be missing something.

 

IRA accounts can’t use margins so shorting is not possible. That might be one use case for SDS. Puts are preferable imo, but are expensive right now due to high volatility (VIX~28 right now)

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Started buying a starter position in LLOY at 30p today. Trading at nearly half of tangible book value now. Its dividend and buy back program has been suspended which has shaken out a lot of the income investors and removed some of the positive momentum. They have already taken a lump of covid related impairments in their Q1 results with more to follow in Q2 - even at that they will still be very well capitalised. Of all the British lenders, they would have one of the most conservative books and are probably akin to the likes of a WFC. If we get to a scenario where Lloyds is in trouble, that is the day when most of the rest of the UK banking system is in even worse shape and we're looking at mass nationalisation like we saw in 2007. If Lloyds can weather this crisis like I think it can, then it's trading about about 5-6x normalised earnings. My guess is that it could be a double in 2 years at these prices.

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Started buying a starter position in LLOY at 30p today. Trading at nearly half of tangible book value now. Its dividend and buy back program has been suspended which has shaken out a lot of the income investors and removed some of the positive momentum. They have already taken a lump of covid related impairments in their Q1 results with more to follow in Q2 - even at that they will still be very well capitalised. Of all the British lenders, they would have one of the most conservative books and are probably akin to the likes of a WFC. If we get to a scenario where Lloyds is in trouble, that is the day when most of the rest of the UK banking system is in even worse shape and we're looking at mass nationalisation like we saw in 2007. If Lloyds can weather this crisis like I think it can, then it's trading about about 5-6x normalised earnings. My guess is that it could be a double in 2 years at these prices.

 

I was/am of the same opinion about the superior business mix/deposit base (following the Wells comparison) and agree they have done a good job simplifying and resisting questions about di"worsifying" into other businesses and continental Europe (so far).  I was mulling it over last year and listened to an appearance by the CEO and maybe it was the language barrier, but I was really turned off.  I think he was also really hawking insurance and/or investment management alliance?  I just put it in the no basket and now I can't exactly remember why.  I see he is stepping down so maybe time to take another look, but IDK; looks like new CEO is coming from Centerview Partners? Yikes.  Not sure what that means for the clean, simple banking business mix.

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LLOY is a wonderful customer focused retail bank in the mold of WFC and TD. Also one of the few FIs that didn't need a bailout in 2008. The reason i wouldn't buy it is the level household debt in the UK. I think that represents a large systemic risk.

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I bought a 10% position in WFC when earnings came out this week. I have been pretty active in selling puts on WFC (and now covered calls) and KMI which I think are two of the cheapest companies on the market right now. For the last few years I have been in fixed income using the proceeds to by long dated SPX options. With the VIX so high I have switched to selling options instead.

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rebought a small position in BAM, added to ESRT, and added a little to ILMN.

 

Why did you sell BAM in the first place?

 

I sold along with BX towards the end of last year because I just didnt like the risk/reward anymore. For myself, I'll never be the guy to find the accounting errors or shenanigans with companies of this type of complexity, so position sizing and awareness of where we are at least perceived to be, in the cycle is important.

I still find the risk to be quite high, but I think we are starting to get a decent idea of where/how the current situation can play out, and without question, players like BAM, SPG, BX have both the expertise, and finial strength, to become large benefactors of such opportunities. So I'd say the risk is probably the same, maybe even a bit higher than 6 months ago, but at the same time, the opportunity for reward over a medium duration time horizon has increased significantly.

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rebought a small position in BAM, added to ESRT, and added a little to ILMN.

 

Why did you sell BAM in the first place?

 

I sold along with BX towards the end of last year because I just didnt like the risk/reward anymore. For myself, I'll never be the guy to find the accounting errors or shenanigans with companies of this type of complexity, so position sizing and awareness of where we are at least perceived to be, in the cycle is important.

I still find the risk to be quite high, but I think we are starting to get a decent idea of where/how the current situation can play out, and without question, players like BAM, SPG, BX have both the expertise, and finial strength, to become large benefactors of such opportunities. So I'd say the risk is probably the same, maybe even a bit higher than 6 months ago, but at the same time, the opportunity for reward over a medium duration time horizon has increased significantly.

 

Absolutely awesome post, Greg,

 

Food for thought.

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LLOY is a wonderful customer focused retail bank in the mold of WFC and TD. Also one of the few FIs that didn't need a bailout in 2008. The reason i wouldn't buy it is he level household debt in the UK. I think that represents a large systemic risk.

 

I've searched the Investment Ideas forum, and TD does not pop up in my searches. Why is it so? [i remember posts from CorpRaider and Uccmal about Canadian banks here on CoBF.]

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rebought a small position in BAM, added to ESRT, and added a little to ILMN.

 

Why did you sell BAM in the first place?

 

I sold along with BX towards the end of last year because I just didnt like the risk/reward anymore. For myself, I'll never be the guy to find the accounting errors or shenanigans with companies of this type of complexity, so position sizing and awareness of where we are at least perceived to be, in the cycle is important.

I still find the risk to be quite high, but I think we are starting to get a decent idea of where/how the current situation can play out, and without question, players like BAM, SPG, BX have both the expertise, and finial strength, to become large benefactors of such opportunities. So I'd say the risk is probably the same, maybe even a bit higher than 6 months ago, but at the same time, the opportunity for reward over a medium duration time horizon has increased significantly.

 

Absolutely awesome post, Greg,

 

Food for thought.

 

6 months ago we had predators, pretend predators, and even some prey out hunting for scant fish. The tide has gone out quite a bit, and even some predators currently sport flesh wounds. The prey is superfluous, and in some aspects, the nets are closing in, forcing those vulnerable into their demise, one way or another. Not a bad time to bet on the ultimate apex predators. Just my opinion of course. My industry contacts seem to think that valuations may improve somewhat over the next 6 months, but the worst is yet to come in terms of companies "fighting the good fight", as their will to fight diminishes and they ultimately yield to the forces of nature, figuring energy is best spend on new ventures. So if I'm BX or BAM.... well, come to papa! We already know they are ruthless and predatory, and these are the environments in which they thrive.

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LLOY is a wonderful customer focused retail bank in the mold of WFC and TD. Also one of the few FIs that didn't need a bailout in 2008. The reason i wouldn't buy it is he level household debt in the UK. I think that represents a large systemic risk.

 

I've searched the Investment Ideas forum, and TD does not pop up in my searches. Why is it so? [i remember posts from CorpRaider and Uccmal about Canadian banks here on CoBF.]

 

Good question.  If I ever buy any I will post.  Canadian banks and rails sure are fine bidnesses.

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