Some of my recent buys:
DD and CTVA (Dupont fragments ). Both not super cheap, but have been and are still restructuring and poised or show higher profitability. CTVA pays $800M in royalties now and likely $1B annually in 2022 for Roundup ready seed tradings and this will likely go away starting in 2023 due to patents running out and CTVA using their own Enlist tech, so I see significant uplift in CTVA profits a few years out. FWIW, CTVA earns ~$2B in EBITDA in 2018 , so the $1B in improvement would be a ~50% uplift.
SDI - a cheap way to buy TPB (tobacco and cannabis and vapid play), announced restructuring a few days after I started buying.
MEGACPO.MX - 2 and largest cable provider in Mexico. Quite cheap and very strong balance sheet with low debt. Stock performer lousy as growth has slowed down and Capex is quite high.
WFCF - food inspection / certification growth play. Has shown improved execution in the last few quarters, yet stock is at a multi year low (but not cheap).
LBTYK - European cable play that is quite cheap, but lacks execution. (I likely will add to this position)
HDG.AS - Hunter Douglas - World Leader in window covering, very cheap, family run. Trades at about 8x earnings. Low liquidity.
CSW- B.TO - Canadian booze stock. Good dividend and some promising products. May be taken out by Pernod Richard (which essentially controls the company) eventually
WMB (adds) - dividend stock
Largest positions are BRK.B, GOOG, CMCSA, LAACZ, WMB and now MEGACPO.MX getting there.
I have peeled off some CMCSA recently, it would likely add back to my position, as the results have been very good and the stock remains undervalued.
My thinking right now is that with slower growth coming, I concentrate on stocks with strong pricing power. booze stocks, broadband and GOOG fit the bill, imo.
GOOG is pretty much my only tech play, other than opportunistic buys on the dip. I bought a few AMZN shares when it dipped after hours on the earnings report a while ago for example. I think GOOG even now is relatively cheap, while AMZN is not (but isn’t terribly overvalued either). |
