Feb 2022 - recent Value Buys mainly adds to current positions I am building
Conduent Inc (CNDT)- 3 different Buys in February. Earnings were good, making progress on integrating spin off w/ a few one time charges. $286 million electronic Toll Bridge 5.5 year contract signed in N. CA. 7 PE FCF positive and growing. This is a late 2023 and beyond w/ 2 Cloud Service divisions; electronic toll & medical billing. Market Cap $ 1 Billion; two new contracts signed this year valued over $750 million one out 3 years and the other 5.5 years.
Dana Inc (DAN) 20% add after disappointing earnings but better 2022 guidance. PE 11.6; Company is well positioned to deliver EV drive trains along w/ their regular gas lines.
Vontier Corp (VNT) 30% add to current position. 8.5 PE another spin off stock w/ earnings earlier this week. It's a 2023 stock w/ 2 new divisions from acquisitions; high end automated car wash equipment/software/platform and EV Fleet charging platform. Customers growing for each service w/ low teen growth. FCF growing 30% YoY
Builders Firstsource (BLDR) 20% add to small position I am growing. Very profitable truss manufacturer selling at 8.4 PE. Company announced $1 Bil stock buy back. Backlog in order now out 10 months. I continue to add shares every 5% lower and may/could see 17% more sell off if there is any substantial market sell off.
Kyndryl Hldgs Inc (KD) 12% add to current position. This is IBM's Cloud Service company spin off. earnings not expected until end of 2023 at which time I estimate at the current price would reflect 10 PE. My estimates may/could be wrong but buying now since typical PE's for Cloud Service are 20x or more. Going to need to be patient on this one.
S&W Seed Company (SANW) 20% add to this seed company. Still not profitable but w/ higher food/AG prices, this specialty seed company has certain hybrids that can grow plants in marginal soils specifically Alfalfa in saline water. They develop, license and sell to farmers all over the world. Part of the AG basket
Arcadia Bio (RKDA) took a loss on this last year and closed out my position; bought some of that back at 50% of what I sold it for. They research and develop new AG seeds, then license them to growers & distributors. It's like bio-tech for seed discovery. No earnings, burning cash. The Company's product includes nitrogen use crops, salt tolerant plants, sunflower oil and shelf-life produce.
Intel Corp (INTC) 28% add to position I am building. 8.2 PE w/ a new $52 Billion Fab in Ohio under construction (probably 4 years out). Part of the China construction Bill passed Feb 3, 2022. INTC announced all cash deal $5.4 Billion for TSEM. Stock is cheap but earnings (w/ growth) out at least 18 months. Buy now and be patient. 2.8% div while you wait.
Fat Brands Inc 8.25% Series B (FATBP) crashed over 36% on news that CEO may be complicit in 'fraud'. Part of the Preferred basket, pays monthly. Picked up this at what I believe is a bargain making it 6% of my preferred basket (preferred basket represents 5% of the taxable portfolio). This preferred is superior to the common shares that pays a div. Figure that common div may/could be cut before they cut the preferred. Company s/d be profitable in 2022
Village Farms Intl (VFF) 7% add to current position. marginally profitable but 2022 estimates have profits based on their two business; organic tomatoes/cucumbers & pot. Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. This goes into the AG basket and may benefit from higher food prices.
Oracle Corp (ORCL) 18% add to this High Tech Cloud Service platform. They acquired CERN a health information platform. At 16.6 PE you get growth at a reasonable cost. 1.6% div too. CERN and other bolt-on cloud service companies appears to be the toad to growth for old established ORCL.
Limoneira Company (LMNR) 26% increase as I grow this Ag & real estate company. It's all about the assets they own; orchards - avocados & lemons & real estate lots for development. The do burn cash but w/ food & real estate prices moving higher, the value is in their assets. Will give this one another year as 2022 earnings estimates are all positive and 2023 have earnings at $0.60/share.
other buys, LUMN, T, GILD, DKNG
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Sales are mostly selling high cost shares to book gains (especially into a decaling market). Several REITs have buy out offers by Blackrock; BRG & APTS and LXP w/ $16/share cash offer being reviewed. WSR REIT announced a management change and hit a 52wk high (maybe they will sell). Will buy back stocks on any correction 15%-20% lower as all of these I still see as good value holds but at lower prices.
Peeled off 25% IBM will Buy back 20% lower
peeled off 20% of NG basket; NRG, SO
closed out KRO; Never really got the infrastructure Bill that would see more use of the titanium oxide used in paints
Gave up on ADN closed out 50% (did book a s/t term loss) may revisit in 31 days but this SPAC shows it 'may' be profitable by 2024
peeled off 50% PLTR followed Cathy Woods; still booked a nice gain
FBIOP 25% gain in this preferred (used proceeds to buy FATBP)
closed out ETF KWEB; That was my BABA play and made money but China stocks too volatile
peeled off 8% of GOLD as it hit a new recent high; moved my avg cost down.
peeled off 2% CVX
peeled off 50% APTS, BRG Blackrock Buy Outs
REITs; UBA, FPI, ABBV, NWL (Icahn unloaded $250 million at $25,86/share)
peeled off 20% M (very good earnings, like the company owned real estate)
SEA Drill completed BK w/ $0.00 value |
