Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Senior who wrote (73367)	8/15/2023 1:18:20 PM
From: Sean Collett	Respond to of 78753

RE: BIG <<prices are sometimes pretty attractive if you use their discount card or shop on special 20%-off days>> This statement has me reminiscent of Borders Bookstore. In the end they were losing to Amazon and B&N, then they launched Borders.com which offered lower prices than brick & mortar (B&M) stores; store sales suffered. They then began offering discounts to drum up B&M sales, but eventually that trained customers to only shop on discount days with your Borders Reward + card. All the while the debt was ballooning to keep them liquid. Not saying they are Borders by any means, but that statement hit memory lane. I think there is more risk here than reward which echos your final thoughts, Paul. -Sean

To: Paul Senior who wrote (73367)	8/29/2023 3:20:20 PM
From: Area51	Read Replies (2) \| Respond to of 78753

BIG: I'll take the gain in shares today to exit most of my position at about break even. Earnings better than expected but still looks like declining revenues and margins and still not even close to profitable. I do like to invest in companies with high short interest sometimes (can get nice price bumps on short covering sometimes perhaps like today with BIG) but I'm not so sure the short thesis on BIG is flawed. PTMN: I thought they had a high CLO percentage (maybe from the old KCAP days?) but I see only 2.5% in CLO now but 72% of their investment loses. On the other hand I see XFLT with 50% of their investment portfolio in CLOs but NAV has been increasing over the last six months. But for today when the spread on KCAP is reasonable I like PTMN better than XFLT (and PTMN and XFLT have similar yields). I also still like SEVN as a cash alternative that may appreciate as money mrket rates decline next year. JXN: I'm out of a small position. Up on index inclusion, and I'm thinking that large gap opens based on index changes may just be temporary?