What are you buying today?

[EricSchleien]

Sold 85% of my MKL today and bought more BAM.

 

Nice! Sold MKL the same day. Also own BAM & PVI ;)

[investmd]

Sold 85% of my MKL today and bought more BAM.

 

Nice! Sold MKL the same day. Also own BAM & PVI ;)

 

Rkbabang & EricSchleien1:

I like BAM for their management, alternative investments, and ability to deploy capital wisely during downturns. Plus, am able to buy in C$s. I too have been adding to BAM recently, while continuing to hold previous investments in BIP (Brookfield Infrastructure) and BEP (Brookfield Alt Energy). Also adding to recent Brookfield spinoff : TSU - Trisura. So overall I'm bullish on Brookfield.

 

My question is why are both of you selling MKL? I bought into MKL a year ago with the idea of it being a BRK like stock that could be held for a long time/forever. After a 25% gain in past 12 months, are you finding it overvalued? Has there been a structural change at the company that caused both of you to get out?

 

Thanks,

 

[rkbabang]

Sold 85% of my MKL today and bought more BAM.

 

Nice! Sold MKL the same day. Also own BAM & PVI ;)

 

Rkbabang & EricSchleien1:

I like BAM for their management, alternative investments, and ability to deploy capital wisely during downturns. Plus, am able to buy in C$s. I too have been adding to BAM recently, while continuing to hold previous investments in BIP (Brookfield Infrastructure) and BEP (Brookfield Alt Energy). Also adding to recent Brookfield spinoff : TSU - Trisura. So overall I'm bullish on Brookfield.

 

My question is why are both of you selling MKL? I bought into MKL a year ago with the idea of it being a BRK like stock that could be held for a long time/forever. After a 25% gain in past 12 months, are you finding it overvalued? Has there been a structural change at the company that caused both of you to get out?

 

Thanks,

 

 

For me it is that it isn’t cheap anymore like it was a year ago, I was way overweight in MKL, I now think BAM is a better bet long term, and, finally, I did this in my IRA so there were no tax considerations in making the reallocation.

[John Hjorth]

AMAT [Applied Materials Inc.]

IRDM [iridium Communications Inc.]

 

[Micro positions/trackers - only in my PA, not for any other family members.]

[EricSchleien]

Sold 85% of my MKL today and bought more BAM.

 

Nice! Sold MKL the same day. Also own BAM & PVI ;)

 

Rkbabang & EricSchleien1:

I like BAM for their management, alternative investments, and ability to deploy capital wisely during downturns. Plus, am able to buy in C$s. I too have been adding to BAM recently, while continuing to hold previous investments in BIP (Brookfield Infrastructure) and BEP (Brookfield Alt Energy). Also adding to recent Brookfield spinoff : TSU - Trisura. So overall I'm bullish on Brookfield.

 

My question is why are both of you selling MKL? I bought into MKL a year ago with the idea of it being a BRK like stock that could be held for a long time/forever. After a 25% gain in past 12 months, are you finding it overvalued? Has there been a structural change at the company that caused both of you to get out?

 

Thanks,

 

I have more ideas than capital. Markel is a bit too pricey to me at these levels. Re-allocated into other positions which are more undervalued IMO.

[DooDiligence]

More BRK.B

 

I bought today since the markets will be closed on the 1st & I expect we'll never see sub $200 again.

(even so, the bargain hunter in me is filled with cogbias & thus, I'll continue thumb sucking & averaging up while pining for a crash.)

[cubsfan]

Allergan - AGN

[bskptkl]

Some RELYQ.

 

I'm speculating shell w $900 million NOL is worth more than $8 million market cap and have a sale of business for more than $600 million (admittedly not very likely) as upside.

[longlake95]

more BRK.B

[EricSchleien]

Some RELYQ.

 

I'm speculating shell w $900 million NOL is worth more than $8 million market cap and have a sale of business for more than $600 million (admittedly not very likely) as upside.

 

LOL how'd you find this?

[TwoCitiesCapital]

Some RELYQ.

 

I'm speculating shell w $900 million NOL is worth more than $8 million market cap and have a sale of business for more than $600 million (admittedly not very likely) as upside.

 

What are your thoughts on the equity surviving the current bankruptcy proceedings? I have limited knowledge to know the situations where equity can be expected to continue and those where it gets wiped out.

[Tim Eriksen]

Quick glance at the most recent 8-K filing noted that Goldman Sachs would get 45% of equity at a cost of up to $10 million for providing a rather small $4 million DIP financing.

https://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12449410

 

[Lance]

Volatility

 

(shorted SVXY / ProShares Short VIX Short-Term Futures)

 

Thanks,

Lance

[tiddman]

Also adding to recent Brookfield spinoff : TSU - Trisura.

 

I have looked at Trisura on and off.  When spun it didn't seem especially cheap, around 1.2-1.3x book and about 15x earnings if I remember.  I am in the US and have gotten a little confused by the different securities.  It trades on the TSE with a tracking stock on the US markets. They recently did a 1:10 reverse split followed by a 10:1 split, I guess to get rid of all of the shareholders that had less than 10 shares.  But this seems to have created a new US security, so it's hard for me to see the trading history since the split.  Do you have any idea about its current valuation?

[woltac]

SRG

[james22]

BAM

[kh812000]

ETM.  Super cheap valuation,  no sell side coverage,  CBS radio has 10% margin lift to 30% EBITDA post integration.... 

 

[bskptkl]

Quick glance at the most recent 8-K filing noted that Goldman Sachs would get 45% of equity at a cost of up to $10 million for providing a rather small $4 million DIP financing.

https://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12449410

Objection to Goldman "stealing" half the equity filed by ad hoc equity committee yesterday that lays out a bull case (of course).

RELYQ responds by rallying 80% today.

RELYQ_objection_252.pdf

[gjangal]

DSW, BOJA and SAVE. They benefit from tax reductions , but my thesis is that it’s not reflected in the price. I am buying this as a basket or cheap stocks. not too heavily into one name

[frommi]

sold a japanese netnet (holding period over), GGP (I don`t expect a bid that is much higher from brookfield and think that SRG offers more value now) and

bought more KDM Shipping, SRG, TSLA puts, KRNT puts, IT puts, ERI puts, SPNS puts, RBA puts and OTEX puts. Reduced net long exposure from 25% to 15%. The puts are based on profitable short screens, so the selection is purely based on financials. (F-Score,Asset growth,Accruals,M-Score)

[no_free_lunch]

sold a japanese netnet (holding period over), GGP (I don`t expect a bid that is much higher from brookfield and think that SRG offers more value now) and

bought more KDM Shipping, SRG, TSLA puts, KRNT puts, IT puts, ERI puts, SPNS puts, RBA puts and OTEX puts. Reduced net long exposure from 25% to 15%. The puts are based on profitable short screens, so the selection is purely based on financials. (F-Score,Asset growth,Accruals,M-Score)

 

This is great, so much information embedded in your post.  I have been looking for a good set of shorts so I will do some dd on your put names.  Curious what you mean with your japanese netnet, do you have a fixed period of time you will wait before selling?

[LightWhale]

frommi, how far out of the money are you buying the puts?

[frommi]

This is great, so much information embedded in your post.  I have been looking for a good set of shorts so I will do some dd on your put names.  Curious what you mean with your japanese netnet, do you have a fixed period of time you will wait before selling?

 

I sell netnets at NCAV, but after 1 year i reassess the situation and when i find something a lot cheaper i make the switch. I can recommend the short screens that James Montier mentioned in 2008, here is a link: http://www.designs.valueinvestorinsight.com/bonus/bonuscontent/docs/Montier-Shorting.pdf

 

frommi, how far out of the money are you buying the puts?

 

I only buy in the money put options where the strike price is 5-20% above the current price. (implied volatility is normally lower on higher strikes). Ideally the implied volatility you pay is lower or equal to the historical volatility of the stock.

[kab60]

I keep coming back to buy more Trip

[frommi]

frommi, how far out of the money are you buying the puts?

 

I have to say thank you for your question. After thinking about it i realized that i never really questioned my put strike selection, so i did some tests today. Using the probability distribution from Montiers paper i tested it with several strike prices and stocks. I realized that my selection was in some cases flawed and i will change this in the future. In general it looks like it is best to use higher strike prices for puts with high implied volatility(>30%), but with lower imp vola it makes more sense to use ATM (~25-30% impl. vola) or even 10-20% OTM options (20% impl. vola and highly levered stocks). But only if >=1 year put options are available, otherwise i would stick to higher strike prices, this is most equal to direct shorting and has the highest probability to end in the money.