Speculating in Takeover Targets Message Board

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Strategies & Market Trends : Speculating in Takeover Targets

ULBI 7.040

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Nov 5 3:59 PM EST

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To: richardred who wrote (5425)	8/13/2019 5:57:24 PM
From: E_K_S	Read Replies (2) of 7242

RE: SENEA Would be nice if they paid a dividend then worth holding if you get in at a good price. Other than that, it's just a swing trade and/or revision to the mean play. Those two classes of stock would make it difficult for an unfriendly take out so maybe some friendly deal can get done if economies of scale matter. I know Buffet has a hoard of cash and he likes owners to continue to operate. That may/could be an exit plan for the family. Also watching Macy's (M) as they announce earning before the open tomorrow. Lots of value in their real estate but M has the FCF and not too much debt so no need for cash infusion (at least at this time). ------------------------------------------- Picked up some BE as I like their Energy Fuel Cell product (uses NG to produce electricity) but CEO came out and warned about future orders based on CA/NY iffy states not promoting using NG. City of Berkely just voted to not install NG pipes in any new construction. I still think w/ NG prices so low and how clean their product is, cost may come down further w/ more efficient manufacturing. The can make a Home unit for $50K and could replace grid electricity especially if you have NG to the home. FWIW sold my high cost shares of RKDA and booked a profit. I like their research and based on recent volume, lots of buying in this nano/micro cap company. Earnings out tomorrow but they continue to burn cash. Lots of volitility so a good trading stock but long term, I like their research. Last month there was $17mln cash infusion limited to private investors at $4.69/share. RKDA would make an excellent research arm for a company like CVTA. I have an avg cost of $3.50/share and will add more if this sells off on earnings if I can get at that price or lower. -------------------------------------------------------- Finally started a position in HL a silver miner. I have little exposure to Silver and HL is profitable and has excellent reserves. The issue is they sold a lot of next year's production in forward contracts so this year gains are capped for this year. Based on the Gold/Silver ratio, Silver is undervalued. Some see $75/oz for Silver and $5K/oz for Gold. For me HL selling at 0.5x BV is a good speculation especially if the Gold/Silver ratio comes back in line. HL pays a small dividend and is eaisier to own than silver coins. A good hedge for the portfolio and complements my Barrick Gold position(GOLD). I have 45% gains in my GOLD position that I started to accumulate late last year. ------------------------------------------------------------ With negative interest rates arounf the World and almost $16Trln in Bonds now yielding negative rates, you want to own hard assets and/or un leveraged assets that generate good cash flows in companies that are essential (ie food, power, utilities). If/when my Credit Union ever pays negative rates (most my cash reserves are parked there), I will put into these types of stocks and/or real estate (even cash but that may be limited as only $5K can be withdrawn per each transaction w/o special reporting to IRS). Even Australia just passed legislation limiting any cash transaction to under $10K. My point is if US gets into a negative interest rate scenario what's the plan/options? Having extra cash available to pay property taxes, gas/fuel, food (can load up Costco Cash cards). Better to have property taxes paid in full for 2 years than pay a bank to hold your money. If we never get into such a scenario then that's even better especially for investors and the US. EKS

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