What are you buying today?

[CorpRaider]

8 hours ago, Dinar said:

Why do you say shit NY apartments?  A very substantial portion of the value is the Tribeca House, Brooklyn Heights property, 1010 Pacific, Dean Street property, the Upper West Side property and the Aspen, none of which  I would call garbage.  Sure, the Flatbush property is in that category, but how much value net of mortgage do you assign to it?

I meant...sheeeeeeatt <pause> NYC apartments for...(cheap).  Like as an expression of incredulity.  Yeah Flatbush is free/paid option.

[fareastwarriors]

4 hours ago, CorpRaider said:

I meant...sheeeeeeatt <pause> NYC apartments for...(cheap).  Like as an expression of incredulity.  Yeah Flatbush is free/paid option.

 

 

[Luca]

Small starter in Consol Energy

[50centdollars]

On 11/21/2023 at 1:19 PM, no_free_lunch said:

Atrion $ATRI

 

This is a mega compounder that is on sale.  Niche medical device market.  Good financial position with no real debt.  In regards to the huge decline (it's down 60% from ATH) I would just say that this is how it rides, and it isn't always clean.   We are currently at a down phase but the company is trading around 15x prior year earnings and has historically compounded at 15-20%.  Not sure if they can continue at that rate but I feel it's way too cheap.  There will probably be at least another quarter before sales turn around but most of the slow down has been due to oversupplying channels due to COVID demand.  I have the impression that the business is not fundamentally impaired.   I feel it could trade at 20-25x normalized earnings, which is 30-70% from here plus any growth they can pull off.

A few insider buys lately including CEO. 

[KJP]

Exchange Bank of Santa Rosa (EXSR)

OP Bancorp (OPBK)

United Bancorporation of Alabama (UBAB)

 

Part of a small bank bundle that also includes Truxton (TRUX), Citizens Bancshares (CZBS), and M&F Bancorp (MFBP)

[LC]

KJP - I have not done work on the small banks (so many of them, difficult to sort) What are you looking at that attracts you to these small banks? Strong interest earning book? Low CRE exposure? Valuation? I feel some of the larger banks also kind of fit the bill - what do you like small vs. big? 

[dipod]

QQQ puts expiring next year.

[KJP]

3 hours ago, LC said:

KJP - I have not done work on the small banks (so many of them, difficult to sort) What are you looking at that attracts you to these small banks? Strong interest earning book? Low CRE exposure? Valuation? I feel some of the larger banks also kind of fit the bill - what do you like small vs. big? 

 

The ones I'm buying are all very cheap and (I think) have good to very good sustainable businesses or other interesting aspects, such as access to extraordinarily cheap, permanent financing (CZBS, UBAB, MFBP), an excellent fee-based business (TRUX), or healthy insider ownership (TRUX, OPBK).  Also, I don't think any of them too many long-duration, low-yield assets.

 

I haven't looked at any of the big banks.  I find their financials and multiple business lines too complicated to understand.

 

 

Edited December 4, 2023 by KJP

[sleepydragon]

Added to LQDA after yesterday’s trial

[Castanza]

$SAVE shares

[Luca]

Added to Prosus

[KJP]

IDT Corp.

[longlake95]

FFH

[Spekulatius]

$NNI and $APA.

[texual]

Yesterday;

 

Bought large positions in Paypal, Block

Bought smaller position in Intel, GM, 

Bought even smaller positions in Paramount Global B, Spirit Airlines, Jetblue

 

[Luca]

1 hour ago, longlake95 said:

FFH

Conviction

[longlake95]

10 minutes ago, Luca said:

Conviction

well, it's a 12 ish percent holding. Trying to lean in here...

[Charlie]

Bought some Occidental shares for my parents, from the proceeds of selling Ali Baba (ouch!)

With Berkshire and Fairfax as big partners I think the risk/reward equation looks better and it´s safer.

Jack Ma made me nervous.

 

[LearningMachine]

Bought BTI yesterday.

 

My biggest position in any stock. Ever.

[Malmqky]

11 minutes ago, LearningMachine said:

Bought BTI yesterday.

 

My biggest position in any stock. Ever.

Oh my. That’s conviction alright!

 

I’m considering increasing my position as well - though I prefer a basket approach with PM (nice) and MO (ew…maybe one day it’ll be better/cheaper)

[LearningMachine]

25 minutes ago, Malmqky said:

Oh my. That’s conviction alright!

 

I’m considering increasing my position as well - though I prefer a basket approach with PM (nice) and MO (ew…maybe one day it’ll be better/cheaper)

 

 

At a 51B GBP Market cap yesterday, if you took out $16B ITC stake, you're paying 35B GBP for the company.  Management has publicly committed to 40B FCF over next 5 years.  So, you get your money back in 4.375 years, that is 22.8% FCF yield.

 

Even if you assume US menthol ban happens, you get your money back in 5 years for a 20% FCF yield, instead of 4.375 years. 

 

Few companies like this where management also has some direct control over pricing and margins.   I might still change weighting, and get out and in at different times. 

 

Also, took a small stake in WBA last week, where management currently doesn't have much control over re-imbursement rates, but revenues keep going up over years, and owner-led management is now building a business that will have some control over loss rates with primary care, adherence & specialty pharmacy that insurers would be willing to pay for. 

Edited December 7, 2023 by LearningMachine

[Castanza]

$SAVE

 

This is now a 22% position for me not including options which is another ~3%. Share cost basis of 11.20. 
 

 

Edited December 7, 2023 by Castanza

[Jaygo]

SSNT for a tracker on Brad Jacobs. On December 11th he is doing an announcement on his plans for the company.

[ValueArb]

1 hour ago, Castanza said:

$SAVE

 

This is now a 22% position for me not including options which is another ~3%. Share cost basis of 11.20. 
 

 

 

That's a tremendous basis, you almost bottom-ticked it. Hoping you get a monster payout, and soon.

[Castanza]

9 minutes ago, ValueArb said:

 

That's a tremendous basis, you almost bottom-ticked it. Hoping you get a monster payout, and soon.

 

I added quite a bit on that 11/15-11/16 dip after adding a reasonable amount with it was sub $10. If it weren't for that my cost basis would probably be 12-13ish which imo isn't bad either as a long hold. Been slowly adding more as I sold off other position (HQI and M) for profits. Shares are held in my Roth and options in brokerage (not ideal) but is what it is!