My top 10-ish positions in no particular order: UVIC, GLW, MSFT, MGDDY, MHR-D, DRAGF. No changes
New positions: CJES, JPM, AAUKY
Positions increased: CYOU, ADVC, BAC
Positions reduced: GRVY
Positions eliminated: GTE, DO, SLT
Flip-flop: FBOD, POEFF
This month is mostly a story of not very successful buys and missed sell opportunities.
FBOD - A lesson in time value of money (and regulatory risk). Dinky bank that is trading at half cash (all its business is being sold), liquidating at the end of the year and returning all money to shareholders. So how can you lose? It appears you can. In two ways actually: regulators want $15-20 mln for assorted past misdeeds; and although bank liquidates in 12/2012, the money will be distributed to shareholders in 2014-2015. Double whammy to kill good returns. So much for sure liquidation deals.
POEFF - Let's say I chickened out. The company received good price for their producing concessions, but the remainder of the company is tough to value for me.
GRVY - coulda, shoulda, woulda sold higher. RO2 is not doing greatly and the stock cratered. Trading close to net cash again, but now there's almost no catalyst in the future. Dinky company with very limited pipeline. It only serves to show the power or margin of safety that I still have a tiny gain on my shares. But the loss of a higher gain hurts. Well, I decided to bet on somewhat good success of RO2 and I lost.
Sold GTE - no longer sure it's worth the price; DO - not fantastically cheap; SLT - benefits of upcoming merger are unclear - I managed to sell SLT on runup after which it plunged down again.
Added to CYOU, ADVC on valuation. Added to BAC on "valuation" - I can't claim I can value a bank. :)
Bought initial positions in CJES and AAUKY - both seem cheap if the cyclical downturn is not very deep. Bought initial position in JPM as a "Buffett-approved" bank. |
