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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (61777)	3/7/2019 2:49:00 PM
From: Sisyphus	Respond to of 78750

thinking about following you on BRKB, am always hoping for lower, would love sub 190, but maybe I'm just being too greedy ;)

To: Paul Senior who wrote (61777)	3/7/2019 6:26:05 PM
From: Spekulatius	2 Recommendations Recommended By ekimaa Lance Bredvold Read Replies (1) \| Respond to of 78750

Bought some REZI (Honeywell spin-off) today on weakness. I also added to WBA. REZI has an interesting capital structure. it’s a bit of an leveraged equity stub because in addition to some debt ($900M), they have a liability to pay up to $140M/ year for up to 25 years to pay for environmental remedies. This payment is capped and administered by Honeywell, but it’s not tax deductible for REZI. If the environmental remediation is less, the amount and duration will be reduced. The business itself is the old thermostat/sensor/ controller business from Honeywell an pretty stable and cash generative. I bought a reasonable position be sure the upside is pretty good, if management can grow this business.