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What are you buying today?


LowIQinvestor

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SAP.TO, BCE.TO, SU.TO

 

I know you brought up SAP.TO (Saputo) and it looks interesting, as it is currently valued at a discount to its longer term metrics (EV/EBITDA, EV/ SALES). Looks like a GAARP stock which are hard to find nowadays.

 

Is there any catalyst you can see near term? Looks like the shares have been hit hard by COVID-19 although the business seems to chug along quite well.

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XONE

 

Borrowed from Catherine Wood (ARK owns 20%)

 

It might work out, but looking at financials, they haven't grown for last 5 years pretty much. Unless you know the area well, the counterargument is that it's not attractive for growth/momo crowd and the valuation differential will persist.

 

(Growth/momo crowd is not completely stupid. They don't necessarily invest in companies that don't grow.)

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November IWM and QQQ puts

 

It was the only thing I had on my list of things to do today. Sadly a day late. Congrats on the timing.

 

Thanks. Sold most of these today and rolled a portion down the chain, same November expiration.

 

Also added to AAPL puts.

 

Sold the AAPL puts and rolled a portion into closer dated Sept 25s, lightened up on the index puts as well.

 

Bought some BIDU

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Indicating you think the sell down is temporary?

 

I am still holding my substantial Visa and Brk LEAPs, but trimmed about 50% of my "Tech" holdings yesterday (Google, MSFT, etc) along with some minor sales (let's call it "pruning") of other stuff.

 

Sadly the main tech stock we own - a 15% position (Will remain nameless) was in a blackout period so I could not sell that.  ;D

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Indicating you think the sell down is temporary?

 

I am still holding my substantial Visa and Brk LEAPs, but trimmed about 50% of my "Tech" holdings yesterday (Google, MSFT, etc) along with some minor sales (let's call it "pruning") of other stuff.

 

Sadly the main tech stock we own - a 15% position (Will remain nameless) was in a blackout period so I could not sell that.  ;D

 

The timing was fortunate and given how things have played out, I wouldn't be shocked to see things keep heading lower but with the very quick and outsized move I've always found it prudent to rebalance so that when things do settle you arent giving back your gains. For instance the QQQ puts went from 5 to about 12 in a couple days. VIX calls from $3.xx to 9. So take off excess, chuck it into "core" non speculative portion of portfolio, and work the rest to maximize leverage. VIX especially can cause profits to vaporize quickly. 35+ has historically not lasted long. The AAPL as well as most momo has shown a crack. So I think it makes sense that the sell off would play out sooner than later, if indeed its going to be one of those bottom falls out moments.

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CRBP

 

Interesting clinical candidate with an unmet need. It looks to me like they will need to raise cash with a secondary very soon though.

 

Word of advice...this is a highly promoted stock at tier 4 brokerage houses and to date, the company has been very eager to use any sort of share price bump to raise capital. Note, that's what they all do, some just more regularly than others.

 

Thanks for the color. I have no idea what a Tier 4 brokerage is, but I suspect that these are the dinky outfits that recommend and pump microcaps? Anyways, the way I see it  CR P has maybe 2-3 quarter of cash left, which means that they probably raise in the next 3 month or 6 month at the very latest. Typically buying ahead of a secondary is not a winning proposition.

 

Tier 4 example

http://www.teribuhl.com/2019/03/19/honigs-broker-dealer-laidlaw-target-of-fbi-investigation/

 

Good warning on CRBP

https://seekingalpha.com/article/4245168-corbus-ties-suspect-investors-history-failed-clinical-trials-lenabasum

 

I have a bunch of accounts at a lot of different places either personally or for those I oversee. So occasionally the dirty wringer produces "sales leads" which I end up on. No joke I had a fellow maybe 4 years ago call me unsolicitedly and hard selling me some options strategy on....Corbus. At like $8. A few days later in went down like 50%.

 

I have nothing to add as to whether what the actual company is doing will bear fruit. But having been almost exclusively involved in seeking out and doing deep dives and short only candidates earlier in my career, I can tell you that many times, just using guilty by association with some of these names, is all you need to do(outside of securing a borrow and timing the short entry :P)

 

CRBP down to $2.1 ( down 76%) premarket on apparent clinical trial failure. Wheeee!

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