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Love it or hate it the "new" SIRI started trading today. Certainly not a get rich quick scheme but the risk/reward looks to be pretty good. Think the worst-case scenario is that it becomes a value trap and remains in the same range. Now has a single ticker (the tracking stocks are gone) and is now eligible to be in the indexes. P/E is around 8. P/FCF is around 7. Free cash flow is $1+ billion per year and they have authorized a $1.1 billion stock repurchase plan. Supposedly selling at a 40% discount to NAV but that is probably a lower % as some write-offs are expected. Dividend expected to be 27 cents per quarter so right now a dividend yield of 4+%. Berkshire Hathaway, in what I believe is a portfolio manager Ted Weschler position, should own 25+% of the company.
For a decent period of time insurance companies whether they be auto, property & casualty, specialty, etc. have been the beneficiaries of favorable pricing. At the same time there have been hardly any major events (such as a $50 billion in damages from a hurricane) resulting in large claims for the industry. If you own an insurance stock and it has not done extremely well the question is, "if not now...when?" To each his own but at this point in time owning a small insurance company does not appear to be a favorable risk/reward scenario. IMHO.
Relentless upward move and with decent volume. Have not seen or heard any news but I it seems safe to say that somebody thinks that they know something positive is going to happen.
PESI: encouraging PR today which provides additional information beyond what was mentioned in the recent CC. If they actually have a commercially viable process that successfully treats "forever chemicals" than with a market cap under $200 million the stock is an absolute steal here. And as always, they still have opportunities with the Hanford waste site.....
Aaron Warwick just posted another update. Does let you read some of it. I'm not a subscriber so can't read the rest. Appears to be focusing on the treatment for "forever" chemicals.
PESI: up another 8+%. Aaron Warwick (Breakout Investors) did a podcast which does a great job of breaking down and explaining the 3 distinct opportunities that the company has at Hanford. I found it on his Twitter feed.
NYCB: plus within 12-18 months it will become very clear as to how big a bargain/deal they received on the Signature Bank assets. At this point buying/holding bank stocks is not for everyone, but this is definitely a must own.
CVS/WBA: no position in either stock but my take is that CVS is doing everything possible to transition itself into a healthcare company and is trying to incorporate the retail stores into that vision. WBA has shared similar ideas but at this point they are a retail drug store company whose profits remain heavily dependent on their pharmacies filling drug prescriptions. The obvious reason that WBA is selling so cheaply is the looming threat presented by mail order pharmacies and that is taking place on multiple fronts. Amazon is just getting started and now the large insurance companies are offering (not requiring) that service as well.
PESI-monster: Now $11+ per share. Had the CC last week. Definitely worth listening too especially the first two callers in the Q&A.
BMY: Think that is a great entry point. Would not at all be surprised if within the next 12-24 months we see something similar to the move that MRK has had. Healthcare is pretty much a must own I have decent sized positions in MRK and BMY and on any weakness have been adding to ABBV. Have a smaller position in GILD and recently started a position in PFE when it dropped below $40.
Own it as well. Miracle rally from where the price was 2 months ago.
PESI: up 10+% to $7.50. Still no contract announcement, etc. from the DOE but expectations have to be pretty high.
PESI: company issued a PR this morning commenting on the DOE paper. Appears highly likely that PESI will be receiving a 10-year contract, but it should be mentioned that the DOE moves at a snail's pace. . The PR is in itself unusual because previously whenever PESI management has been asked about the DOE on CC's they would become tight lipped and say as little as possible.
PESI: dead money for years PESI up another 6% this morning. Still have not seen/heard any news. I wish I knew what those buying know or think they know.
PESI: dead money for years PESI up another 6% this morning. Still have not seen/heard any news.
Dead money for years PESI was up nicely yesterday and us up another 13% today. No news.
PESI: higher on a very positive SA article. I'm not as optimistic as the author but there are so many potential positive developments that could possibly occur that if only by accident one or two of them will likely materialize. My take is that there is a really good chance of seeing a $10+ stock price within a year or two.
BELFA/BELFB: the buyer of the A's must want the voting rights.
POAHY: I have had decent success trading this in an IRA. In a nutshell they are the largest shareholder of Volkswagen. The company also pays a 2.8% dividend. The catalyst is that VW is expected to IPO Porsche hopefully sometime in Q4. POAHY has indicated that they will take a stake in Porsche via the IPO and thus reduce their ownership position in VW. Sometime back VW did this with Ferrari and that stock has done quite well. Also, a frequent guest (Steve Weiss?) on CNBC is always mentioning it and has done so at much higher prices.
Stocks a good hedge against inflation: Depends on the business/company. Those with wide moats and pricing power will continue to do well. Also, the best run companies will take advantage of economic uncertainty via acquisitions that increase market share and profits, cost cutting, etc.
BMY/MRK: Keytruda is owned by MRK. I established positions in both BMY and MRK at the same time with BMY being 2 times the size. I like the chances of both stocks being $100+ within 3 years. Definitely like & agree with your mention of the 10-15 year time frame. Easier said than done but that's how one can accumulate real wealth in a taxable account as opposed to trading in and out of stocks and paying short term capital gains taxes on any profits.
BMY: their pipeline is poised to do quite well plus a solid and hopefully increasing dividend. For me it's a long-term holding in a taxable account.
BELFB: agree, still waiting to see a day with massive volume.
HQI (17.43): Have been reloading during the recent decline. Stock was upgraded this morning by Barrington Research.
Outperform, with a price target of $29
Franchise based business model differentiates them from the other job staffing companies.
BELFB: There's been some recent M&A activity in the automotive related sector by private equity. For example, Tenneco (TEN) received a huge premium from Apollo. Regardless of what valuation metric one uses the company has to be worth at least $25 per share.
SCX: joined you guys with a small position. The CEO could pick up the phone and with a few calls could easily sell the company for a lot more than it is currently valued at. Also, like that Gabelli has a 12+% ownership position.
BMY: Also management just raised the dividend. It's as if they are waving a flag and signaling that going forward business prospects are looking really good.
BMY: They just did a presentation at the JPM Health Conference. Going forward they have a very impressive pipeline. Before the conference I bought a decent number of shares between $59-61. Think this is one that you just put away, see what develops, and collect the 3+% dividend. Within 2-3 years could easily be priced @ $100+.
JOB: In the temporary staffing field HQI is what I would call a hidden gem. They have a franchise business model with really good margins. Stock is down 20% from its recent high. Not much volume though. Very small position for me but I would definitely add more on any additional price weakness.
Berkshire Hathaway cash position: As a % of total assets the current cash position is actually LOWER than it has been in previous years.
They will always keep a minimum cash balance of $30-40 billion in order to support their extensive insurance operations.
Every quarter they have been buying back shares and when BRK does that it is a true buyback as the executives do NOT have any stock options.
BRK is one of the few companies that meets the classic buy and hold criteria. it has been my largest position for the past 15 years.
The stock is near an all-time high and yet relative to the market it is not at all expensive. It is a cash generating machine that is well positioned to do well in just about any economic environment.
PESI: per the Yahoo board one of 4 companies that has been awarded a $95 million contract. Not clear as to what % will go to them...no PR yet.
AVNW: sold @ $36. Continue to add shares of AUS which is still below the $10 price that CNNE is backstopping the entire SPAC deal at....a $640 million commitment.
AUS: one of the best risk/reward opportunities that I've seen in quite a while. Bill Foley led SPAC that reached an agreement to take public the online gaming properties of WYNN.
Based on the projected valuation the company will be selling at 4.5X revenue. DraftKings sells at 30X revenue.
Per the CNNE CC (CNNE is another Foley led entity...equivalent to a publicly traded private equity fund) they had hoped to be part of the deal but WYNN did not want to give up any more equity. So CNNE is backstopping the deal and will buy any redeemed shares for $10 each. CNNE CEO Rick Massey said that he does not think they will get any shares. He also recommended buying the AUS shares.
Current price is around $9.90 per share...below the $10 redemption figure.
Cramer mentioned that Bill Foley will be discussing the transaction on his show tonight.
Never a guarantee but both short and long term this appears to be a nice opportunity.
PESI: just doubled my position (prices between 7.37-7.44). Earnings and CC are tomorrow morning. Not expecting blowout results but in regards to their business outlook for the remainder of the year think the CC could be quite positive.
AVNW: initiated a small position in the low 28's. If additional weakness will add to it. No way to predict when but like the chances of the 5G stocks making another nice run. If so then AVNW should easily be back in the $35-40 range.
PESI: getting a bump...do not see any news. This one has been trading in a narrow range and has struggled to stay above $7. Have a very modest position....on most days volume is quite low so liquidity is always been as issue. Could be a low float candidate for a sharp upward move though. I've always wondered why a bigger player hasn't acquired them.
CUBI
Still long. Has been a ride with a lot of potholes but finally being given some recognition for earnings. Relative to its peer group there still appears to be some room for upward appreciation. Also the possibility of of a stock buyback was mentioned but no idea if they ever acted on that. Also still have the Bank Mobile lottery ticket which could be an upside catalyst..
SEAC: I picked up quite a few shares today so much so where it is now one of my largest positions. At the current valuation the company is selling under 2X revenue. Also a situation where they have successfully been reducing expenses while at the same time increasing higher margin revenue. The risk/reward is simply compelling.
OXY: BRK>a/BRK.B (Warren Buffett) likes it. They own stock, debt, and cheap warrants. I don't think they would want to acquire it but might have an interest in loaning them additional money at terms that are incredibly favorable to BRK.
SEAC: nice find on the available jobs & descriptions. I added some additional shares earlier today @ 3.89 & 3.90.