Dear Diary,
I bought shares of Decker Outdoor (DECK) at $103.26, based on a projected expanding Net Profit Margin in the "Value Line" presentation from 12.7% in August, 2009, to 13.3% presently, to 14.29% for 2010. The p/e ratio was 12.45 yesterday, about as high a p/e ratio as I would ever want to buy a stock.
Shares of Kinetic Concepts (KCI) were purchased at $38.32 a share, based on a projected expanding Net Profit Margin, as well. The NPM was 12.0% in the August, 2009, "Value Line," 12.5% presently and 12.7% in 2010. The p/e ratio was 9.98.
Shares of Buckle (BKE), one of the best run companies in the world, were purchased at $29.83 a share, based on a projected steady Net Profit Margin from 13.7% in the August, 2009, "Value Line," to 13.7% presently, to 13.7% for 2010. The p/e ratio was 10.87. This brings the average buy price to $29.02 a share.
Gene
Thursday, December 31, 2009
Tuesday, December 29, 2009
Sells @ Working Capital
Dear Diary,
I just sold out my PERY position at $14.90 a share, based on Working Capital of $14.70 a share. The buy price was $7.11 on April 27, 2009.
I just sold out my SBSA position at $0.78 a share, based on Working Capital of $0.56 a share. The buy price was $0.18 a share on April 27, 2009.
I just sold out my AGO position at $22.24 a share, based on Working Capital of $21.23 a share. The buy price was $13.60 a share on May 11m 2009.
I just sold out my CTHR position at $1.14 a share, based on Working Capital of $0.91 a share. The buy price was $0.4689 a share on September 9, 2009.
Gene
I just sold out my PERY position at $14.90 a share, based on Working Capital of $14.70 a share. The buy price was $7.11 on April 27, 2009.
I just sold out my SBSA position at $0.78 a share, based on Working Capital of $0.56 a share. The buy price was $0.18 a share on April 27, 2009.
I just sold out my AGO position at $22.24 a share, based on Working Capital of $21.23 a share. The buy price was $13.60 a share on May 11m 2009.
I just sold out my CTHR position at $1.14 a share, based on Working Capital of $0.91 a share. The buy price was $0.4689 a share on September 9, 2009.
Gene
Wednesday, November 25, 2009
Bought GLD (Gold)
Dear Diary,
I returned the monies I took out for living expenses earlier this year to zero out my taxes for 2009, as they relate to my Roth IRA.
I've been investing in a college degree this semester, so my stock activities are slow. However, I did take a substantial position in gold (GLD) today at $115.79 a share. I think the gross spending of our Marxist (Republican and Democrat) government should lead to hyperinflation in the real economy, so gold provides the safest hedge against such foolishness. And the education I'm seeking in a broad number of fields that can translate globally can provide assurances of food on the table in the years ahead, should my views on the collapse of the Untied States Government from its present form prove true.
Gene
I returned the monies I took out for living expenses earlier this year to zero out my taxes for 2009, as they relate to my Roth IRA.
I've been investing in a college degree this semester, so my stock activities are slow. However, I did take a substantial position in gold (GLD) today at $115.79 a share. I think the gross spending of our Marxist (Republican and Democrat) government should lead to hyperinflation in the real economy, so gold provides the safest hedge against such foolishness. And the education I'm seeking in a broad number of fields that can translate globally can provide assurances of food on the table in the years ahead, should my views on the collapse of the Untied States Government from its present form prove true.
Gene
Friday, August 21, 2009
160% Gain!
Dear Diary,
I just sold out my MNTX position for $1.95 a share, based on Working Capital of $1.97 a share. This represents a 160% gain over a holding period of just under four (4) months.
I reinvested the proceeds into ETFC at $1.43 a share, bringing down my average purchase price from $2.45 a share to $1.64 a share. This position is to be sold at Working Capital of $19.48 a share. All trades do not include minimal brokerage fees.
My overall investment activities are down only 1% since the crash of 2008-09 with multiple prospects for 100% gains or better in the coming months.
Gene
I just sold out my MNTX position for $1.95 a share, based on Working Capital of $1.97 a share. This represents a 160% gain over a holding period of just under four (4) months.
I reinvested the proceeds into ETFC at $1.43 a share, bringing down my average purchase price from $2.45 a share to $1.64 a share. This position is to be sold at Working Capital of $19.48 a share. All trades do not include minimal brokerage fees.
My overall investment activities are down only 1% since the crash of 2008-09 with multiple prospects for 100% gains or better in the coming months.
Gene
Monday, August 10, 2009
Buying Buckle, Inc.
Dear Diary,
I just sold out my minor CTDB position at $0.061 a share (buy was $0.135) and my HLYS position at $2.05 (buy was $2.16) in order to take a substantial position in Buckle, Inc., a pure Holy Grail.
BKE has a projected p/e ratio of 10, and so I bought at $27.23 with a widening Net Profit Margin.
All trades do not include a minimal brokerage fee.
My overall investment activities are now down only 3% from my original investments began before the crash of 2008-09.
Gene
I just sold out my minor CTDB position at $0.061 a share (buy was $0.135) and my HLYS position at $2.05 (buy was $2.16) in order to take a substantial position in Buckle, Inc., a pure Holy Grail.
BKE has a projected p/e ratio of 10, and so I bought at $27.23 with a widening Net Profit Margin.
All trades do not include a minimal brokerage fee.
My overall investment activities are now down only 3% from my original investments began before the crash of 2008-09.
Gene
Monday, July 27, 2009
Sold ROX
Dear Diary,
The best presentation I had for ROX in "Value Line" was that ROX had Working Capital of $1.19 a share in 2007. This past week, the new "Value Line" listed it to have $0.16 a share for 2008, so I' sold out at $0.2233 a share just now, a razor thin profit from the $0.22 a share original purchase price.
Conclusions: 1) Buying at a 70% discount to Working Capital protects the investor from loss. 2) The investor should stay away from stocks that do not have current information, it seems.
Gene
The best presentation I had for ROX in "Value Line" was that ROX had Working Capital of $1.19 a share in 2007. This past week, the new "Value Line" listed it to have $0.16 a share for 2008, so I' sold out at $0.2233 a share just now, a razor thin profit from the $0.22 a share original purchase price.
Conclusions: 1) Buying at a 70% discount to Working Capital protects the investor from loss. 2) The investor should stay away from stocks that do not have current information, it seems.
Gene
Friday, July 24, 2009
Sold JAVA
Dear Diary,
I just sold out my JAVA Cash on Sale Arbitrage position to get some cash for personal expenses. The sale price was $9.21 a share, a slight profit from my buy price and only $0.29 a share below the expected closing price on August 6, 2009.
Gene
I just sold out my JAVA Cash on Sale Arbitrage position to get some cash for personal expenses. The sale price was $9.21 a share, a slight profit from my buy price and only $0.29 a share below the expected closing price on August 6, 2009.
Gene
Monday, July 20, 2009
Updated Activity
Dear Diary,
I sold shares of JAVA for $9.19 a share on June 24, 2009, a 2% gain in a Cash on Sale Arbitrage over a 15 day holding period. While I continue to hold half the position, I needed some cash to live on.
Today, I sold half my GE position for $11.69 a share, a 64% gain from the $7.18 average purchase price at a 70% discount to Net Quick Assets back in the March time frame.
I took the proceeds of GE and reinvested them into BARE, a near Holy Grail situation that only lacks Zero Long term Debt and the ratio of $2 in Total Assets to $1 Shareholder Equity.
Gene
I sold shares of JAVA for $9.19 a share on June 24, 2009, a 2% gain in a Cash on Sale Arbitrage over a 15 day holding period. While I continue to hold half the position, I needed some cash to live on.
Today, I sold half my GE position for $11.69 a share, a 64% gain from the $7.18 average purchase price at a 70% discount to Net Quick Assets back in the March time frame.
I took the proceeds of GE and reinvested them into BARE, a near Holy Grail situation that only lacks Zero Long term Debt and the ratio of $2 in Total Assets to $1 Shareholder Equity.
Gene
Friday, June 5, 2009
Recent Deals
Dear Diary,
I've been working a new job recently, and it's keeping my full focus.
I sold HRB on May 22, 2009 for $13.98 a share, a loss from the $15.85 a share purchase price on April 21, 2009, due to a projected narrowing in the Net Profit Margin in the "Value Line" presentation. The loss was minimal and is balanced out with gains in MDT.
PDCO was sold on May 30, 2009 for $20.68 a share, based on the same narrowing of the Net Profit Margin. The average purchase price had been $19.24 a share, making a slight gain on the deal.
SYK was also sold on May 30, 2009 on the same basis for $38.95 a share. Purchase had been for $33.22 a share, another slight gain.
Note how Holy Grail protects the investor from substantial loss, while making money more often than not.
On the Cash on Sale Arbitrage front, I took a substantial position in JAVA, due to be sold for all cash to ORCL on August 6, 2009. I bought in for $9.0477 a share and will let the deal close naturally at $9.50 a share, a 25% annualized gain.
Gene
I've been working a new job recently, and it's keeping my full focus.
I sold HRB on May 22, 2009 for $13.98 a share, a loss from the $15.85 a share purchase price on April 21, 2009, due to a projected narrowing in the Net Profit Margin in the "Value Line" presentation. The loss was minimal and is balanced out with gains in MDT.
PDCO was sold on May 30, 2009 for $20.68 a share, based on the same narrowing of the Net Profit Margin. The average purchase price had been $19.24 a share, making a slight gain on the deal.
SYK was also sold on May 30, 2009 on the same basis for $38.95 a share. Purchase had been for $33.22 a share, another slight gain.
Note how Holy Grail protects the investor from substantial loss, while making money more often than not.
On the Cash on Sale Arbitrage front, I took a substantial position in JAVA, due to be sold for all cash to ORCL on August 6, 2009. I bought in for $9.0477 a share and will let the deal close naturally at $9.50 a share, a 25% annualized gain.
Gene
Tuesday, May 12, 2009
Sold COH and HANS
Dear Diary,
I just sold all but one share of Coach (COH) at $23.99 a share, based on a Narrowing Net Profit Margin and project earnings for 2009 of $1.89 a share.
I sold out all but one share of Hansen Naturals for $43.86, based on the Holy Grail approach, as the stock now trades at 20 times projected earnings per share with a widening Net Profit Margin. My original purchase price was $35.97, far above what I should have paid last year, but the concept works out the same, just with less profit.
Gene
I just sold all but one share of Coach (COH) at $23.99 a share, based on a Narrowing Net Profit Margin and project earnings for 2009 of $1.89 a share.
I sold out all but one share of Hansen Naturals for $43.86, based on the Holy Grail approach, as the stock now trades at 20 times projected earnings per share with a widening Net Profit Margin. My original purchase price was $35.97, far above what I should have paid last year, but the concept works out the same, just with less profit.
Gene
Monday, May 11, 2009
5-11-09
Dear Diary,
I just sold out all but one share of CROX at $2.83, based on a narrowing Net Profit Margin and Working Capital of $1.75 a share. My original average purchase price was $8.31 a share last year.
I also sold off all but one share of ICON, based on a narrowing Net Profit Margin at $14.99 a share. This was purchased for $11.74 a share on 4-21-09 a slight gain under the Holy Grail approach.
I sold off also all but one share of JSDA, based on a narrowing Net Profit Margin and Working Capital of $0.67 a share. The sale price was $1.08 a share, up from my original $0.81 a share purchase price.
With proceeds, I purchased CTDB at $0.135, based on Working Capital of $0.39 a share,
AGO at $13.60, based on Working Capital of $21.40 a share and VOXX at $5.04, based on Working Capital of $11.79 a share.
My overall activities are down only 8% against a Dow Average that is down 39% since the crash of 2008. I'm quite happy to be beating both the Dow and the S&P 500 in this market.
Gene
I just sold out all but one share of CROX at $2.83, based on a narrowing Net Profit Margin and Working Capital of $1.75 a share. My original average purchase price was $8.31 a share last year.
I also sold off all but one share of ICON, based on a narrowing Net Profit Margin at $14.99 a share. This was purchased for $11.74 a share on 4-21-09 a slight gain under the Holy Grail approach.
I sold off also all but one share of JSDA, based on a narrowing Net Profit Margin and Working Capital of $0.67 a share. The sale price was $1.08 a share, up from my original $0.81 a share purchase price.
With proceeds, I purchased CTDB at $0.135, based on Working Capital of $0.39 a share,
AGO at $13.60, based on Working Capital of $21.40 a share and VOXX at $5.04, based on Working Capital of $11.79 a share.
My overall activities are down only 8% against a Dow Average that is down 39% since the crash of 2008. I'm quite happy to be beating both the Dow and the S&P 500 in this market.
Gene
Monday, April 27, 2009
New Dynamics Explored
Dear Diary,
I just sold out all but one share of American Eagle Outfitters (AEO) at $15.54 a share, a loss of loss of $6.30 a share, as the Net Profit Margin is projected to narrow.
I also sold the Huntsman (HUN) position in total for $4.89 a share, a $0.21 a share gain. This was a Cash On Sale Arbitrage that I started last August 25, 2008. It was one of those 100% deals that fell through, discussed in "The New Buffettology," in the Arbitrage section.
I'm now buying several stocks based in their price being at a 50% or better discount to Working Capital. They were just bought as follows:
Symbol/ Buy$/ Working Capital
PKOH/ $4.09/ $22.99
ETFC/ $2.45/ $17.16
HDNG/ $4.57/ $13.23
PERY/ $7.11/ $15.08
MNTX/ $0.75/ $2.32
CCIX/ $2.53/ $6.92
SBSA/ $0.18/ $0.66
ROX/ $0.22/ $1.19
I have a few more stock to buy under this arrangement, but my portfolio looks very good.
Gene
I just sold out all but one share of American Eagle Outfitters (AEO) at $15.54 a share, a loss of loss of $6.30 a share, as the Net Profit Margin is projected to narrow.
I also sold the Huntsman (HUN) position in total for $4.89 a share, a $0.21 a share gain. This was a Cash On Sale Arbitrage that I started last August 25, 2008. It was one of those 100% deals that fell through, discussed in "The New Buffettology," in the Arbitrage section.
I'm now buying several stocks based in their price being at a 50% or better discount to Working Capital. They were just bought as follows:
Symbol/ Buy$/ Working Capital
PKOH/ $4.09/ $22.99
ETFC/ $2.45/ $17.16
HDNG/ $4.57/ $13.23
PERY/ $7.11/ $15.08
MNTX/ $0.75/ $2.32
CCIX/ $2.53/ $6.92
SBSA/ $0.18/ $0.66
ROX/ $0.22/ $1.19
I have a few more stock to buy under this arrangement, but my portfolio looks very good.
Gene
Sunday, April 26, 2009
4-21-09
Dear Diary,
I sold my position in Waters Corp. (WAT) at $36.48 a share, a $0.78 a share gain, noting the projected Net Profit Margin is now in decline.
I also sold almost all of my Southeby's (BID) position on the same basis. The sale price was $9.60 a share, a $0.59 a share loss.
The proceeds were used to buy up the average purchase price of my H & R Block position from $15.85 to $16.16 a share, based on a widening Net Profit Margin and a P/E Ratio below 10.
I'm down 19% from 2007, while the Dow Jones Average is down about 42%. This is pretty good news, as Ben Graham, Warren Buffett's teacher, spent seven years in negative territory through the Great Depression.
It appears that the bottom has been found in this recession around 6,500 in the DOW, as I'm seeing all my stocks drift upward the past few days. I'm going to do some changes in strategy tomorrow, I think, to maximize some purchases. I'm very happy with the way my investments have gone the past 1.5 years, relative to the market.
Gene
I sold my position in Waters Corp. (WAT) at $36.48 a share, a $0.78 a share gain, noting the projected Net Profit Margin is now in decline.
I also sold almost all of my Southeby's (BID) position on the same basis. The sale price was $9.60 a share, a $0.59 a share loss.
The proceeds were used to buy up the average purchase price of my H & R Block position from $15.85 to $16.16 a share, based on a widening Net Profit Margin and a P/E Ratio below 10.
I'm down 19% from 2007, while the Dow Jones Average is down about 42%. This is pretty good news, as Ben Graham, Warren Buffett's teacher, spent seven years in negative territory through the Great Depression.
It appears that the bottom has been found in this recession around 6,500 in the DOW, as I'm seeing all my stocks drift upward the past few days. I'm going to do some changes in strategy tomorrow, I think, to maximize some purchases. I'm very happy with the way my investments have gone the past 1.5 years, relative to the market.
Gene
Tuesday, April 21, 2009
Still Buying
Dear Diary,
I just bought shares of H&R Block (HRB) due to a Holy Grail dynamic; however, it does carry some long term debt. My buy price was $15.85 a share.
Also, I just bought shares of Iconix Brands (ICON), a brand owner of some high profile clothing lines. The buy price was $11.74.
My portfolio has been on the rise in recent weeks. Holy Grail is holding its own against Buffett-Graham Net Quick Asset Deals so far.
Gene
I just bought shares of H&R Block (HRB) due to a Holy Grail dynamic; however, it does carry some long term debt. My buy price was $15.85 a share.
Also, I just bought shares of Iconix Brands (ICON), a brand owner of some high profile clothing lines. The buy price was $11.74.
My portfolio has been on the rise in recent weeks. Holy Grail is holding its own against Buffett-Graham Net Quick Asset Deals so far.
Gene
Thursday, April 9, 2009
Buying MDT
Dear Diary,
I just bought more Medtronic, Inc. (MDT) for $30.99 a share, bringing my average purchase price down from $36.86 a share to $35.01, based on projected earning per share for 2009 of $3.20 and a widening Net Profit Margin.
Gene
I just bought more Medtronic, Inc. (MDT) for $30.99 a share, bringing my average purchase price down from $36.86 a share to $35.01, based on projected earning per share for 2009 of $3.20 and a widening Net Profit Margin.
Gene
Saturday, April 4, 2009
More Buys
Dear Diary,
I bought some Southeby's (BID) yesterday at $10.19 a share, based on projected earnings per share of $2.82 for 2009 and a widening Net Profit Margin. Because of Long term Debt, this is not a Holy Gail but is trading just above Working Capital of $9.88 a share, according to my most recent "Value Line" presentation.
I also picked up shares of Stryker (SYK), a pure Holy Grail, but it is trading at $33.22 at purchase, just above 10 times projected earning per share for 2009 of $3.15. The widening Net Profit Margin tells us that an upward pressure is on the stock price when the price is at 10 times earnings or below.
I sold the Decker's (DECK) at $56.89 yesterday, a 19% approximate gain over the 10 day holding period.
Gene
I bought some Southeby's (BID) yesterday at $10.19 a share, based on projected earnings per share of $2.82 for 2009 and a widening Net Profit Margin. Because of Long term Debt, this is not a Holy Gail but is trading just above Working Capital of $9.88 a share, according to my most recent "Value Line" presentation.
I also picked up shares of Stryker (SYK), a pure Holy Grail, but it is trading at $33.22 at purchase, just above 10 times projected earning per share for 2009 of $3.15. The widening Net Profit Margin tells us that an upward pressure is on the stock price when the price is at 10 times earnings or below.
I sold the Decker's (DECK) at $56.89 yesterday, a 19% approximate gain over the 10 day holding period.
Gene
Friday, April 3, 2009
Decker's Outdoor CFO Resigns
Dear Diary,
I just read that the Chief Financial Officer of Decker's Outdoor (DECK) "abruptly resigned" on March 23, 2009. This can't be good news, so I've put in a sell order for the entire position.
These Holy Grail situations can turn on a dime, but a competent investor can still profit, as it appears my sell price will be about $10 a share above what I paid a short time ago.
Gene
I just read that the Chief Financial Officer of Decker's Outdoor (DECK) "abruptly resigned" on March 23, 2009. This can't be good news, so I've put in a sell order for the entire position.
These Holy Grail situations can turn on a dime, but a competent investor can still profit, as it appears my sell price will be about $10 a share above what I paid a short time ago.
Gene
Monday, March 23, 2009
Deckers Outdoor Purchase
Dear Diary,
I bought a substantial position in Deckers Outdoor (DECK), today, for $47.92 a share, based on projected earning above $8 a share for 2009 and on the Holy Gail criteria. This is a pure Holy Grail: no debt, double digit Net Profit Margin, widening Net Profit Margin, upward trend in earnings, double digit Share Holder Equity and Return on Total Assets. Everything looks perfect, but it can change in a moment. Such is the nature of the Holy Grail approach.
General Electric (GE) is my big Buffett-Graham Net Quick Asset Deal, and it's up a couple of bucks from my original purchase price.
Gene
I bought a substantial position in Deckers Outdoor (DECK), today, for $47.92 a share, based on projected earning above $8 a share for 2009 and on the Holy Gail criteria. This is a pure Holy Grail: no debt, double digit Net Profit Margin, widening Net Profit Margin, upward trend in earnings, double digit Share Holder Equity and Return on Total Assets. Everything looks perfect, but it can change in a moment. Such is the nature of the Holy Grail approach.
General Electric (GE) is my big Buffett-Graham Net Quick Asset Deal, and it's up a couple of bucks from my original purchase price.
Gene
Friday, March 6, 2009
More GE
Dear Diary,
I bought more General Electric (GE) on 3-4-09 at $6.63 a share, bringing my average purchase price down from $18.79 a share to $7.18 a share.
The DOW is trading at around 6500.
Gene
I bought more General Electric (GE) on 3-4-09 at $6.63 a share, bringing my average purchase price down from $18.79 a share to $7.18 a share.
The DOW is trading at around 6500.
Gene
Friday, February 27, 2009
GE to Cut Dividend
Dear Diary,
General Electric (GE) announced today that it will cut its dividend from $0.31 a share to $0.10 a share later this year. I like the move, as this will help the balance sheet in time.
Jones Soda (JSDA) is up 167% from last month's low of about $0.30 a share to $0.80 a share today on news of a new tea to be distributed. Net Quick Assets is listed at $0.60 a share, lending credibility to the Buffett-Graham Net Quick Asset Deal. My average buy price is $0.81 a share.
Gene
General Electric (GE) announced today that it will cut its dividend from $0.31 a share to $0.10 a share later this year. I like the move, as this will help the balance sheet in time.
Jones Soda (JSDA) is up 167% from last month's low of about $0.30 a share to $0.80 a share today on news of a new tea to be distributed. Net Quick Assets is listed at $0.60 a share, lending credibility to the Buffett-Graham Net Quick Asset Deal. My average buy price is $0.81 a share.
Gene
Time For An Update
Dear Diary,
I've been busy the past month, so I'm taking time to play catchup.
First, I bought more Medtronic (MDT) on 1-28-09, bringing my average purchase price down from $49.85 a share to $36.86.
Second, I bought more Heely's (HLYS) at $1.99 a share, bringing the average purchase price down to $2.16 a share from $3.28.
Lastly, I saw the ALO Cash on Sale Arbitrage finally pay me on 1-30-09 for a profit. I find that this Arbitrage approach has significant downside and little upside potential, so I'll probably not do too many of these in the future, unless I see significant upside on a deal.
I continue to have faith in my Buffett-Graham Net Quick Asset Deals, and Holy Grail remains outstanding.
Gene
I've been busy the past month, so I'm taking time to play catchup.
First, I bought more Medtronic (MDT) on 1-28-09, bringing my average purchase price down from $49.85 a share to $36.86.
Second, I bought more Heely's (HLYS) at $1.99 a share, bringing the average purchase price down to $2.16 a share from $3.28.
Lastly, I saw the ALO Cash on Sale Arbitrage finally pay me on 1-30-09 for a profit. I find that this Arbitrage approach has significant downside and little upside potential, so I'll probably not do too many of these in the future, unless I see significant upside on a deal.
I continue to have faith in my Buffett-Graham Net Quick Asset Deals, and Holy Grail remains outstanding.
Gene
Tuesday, February 24, 2009
Market at Lowest Point in Dozen Years
Dear Diary,
The talking heads are saying that "the Market is at its lowest point in a dozen years." I'm trying to get more cash into General Electric (GE) at $8 a share, a serious discount to Net Quick Assets of $22.00 and change, according to "Value Line." If this isn't Armageddon, I'll be a rich man on the other side of this crash.
Gene
The talking heads are saying that "the Market is at its lowest point in a dozen years." I'm trying to get more cash into General Electric (GE) at $8 a share, a serious discount to Net Quick Assets of $22.00 and change, according to "Value Line." If this isn't Armageddon, I'll be a rich man on the other side of this crash.
Gene
Monday, January 12, 2009
ALO: Voluntary Tender
Dear Diary,
A "Voluntary Tender" offer was made for the outstanding shares of ALO by the buyer, but I would have had to make the arrangement with my broker to do the deal and pay the transfer agent a $25 fee, my broker informs me. ALO stopped trading on December 31, 2008, but my broker tells me an "Involuntary Tender" will be coming soon to close the arbitrage out in my account without cost to me.
I've made money on Cash on Sale Arbitrage since I started in August, 2008, but it is volatile at times and the HUN deal is still trading at a $1 loss were I to sell it today.
So, I bought Patterson Companies (PDCO), a dental supply company, etc. with Consumer Monopolistic qualities at $19.24 a share on 1-7-09, near a p/e ratio of 10 on $1.90 projected 2009 earnings per share and a widening Net Profit Margin.
I also picked up shares of IEX today at $23.49 a share, also with Consumer Monopolistic qualities, based on 2009 projected earnings per share of $2.45 and a widening Net Profit Margin.
Gene
A "Voluntary Tender" offer was made for the outstanding shares of ALO by the buyer, but I would have had to make the arrangement with my broker to do the deal and pay the transfer agent a $25 fee, my broker informs me. ALO stopped trading on December 31, 2008, but my broker tells me an "Involuntary Tender" will be coming soon to close the arbitrage out in my account without cost to me.
I've made money on Cash on Sale Arbitrage since I started in August, 2008, but it is volatile at times and the HUN deal is still trading at a $1 loss were I to sell it today.
So, I bought Patterson Companies (PDCO), a dental supply company, etc. with Consumer Monopolistic qualities at $19.24 a share on 1-7-09, near a p/e ratio of 10 on $1.90 projected 2009 earnings per share and a widening Net Profit Margin.
I also picked up shares of IEX today at $23.49 a share, also with Consumer Monopolistic qualities, based on 2009 projected earnings per share of $2.45 and a widening Net Profit Margin.
Gene
Monday, January 5, 2009
ROH Deal Closed
Dear Diary,
I just closed the ROH arbitrage for $63.28 a share, a 2% gain over an 80 day holding period. The average buy price was $61.76 a share on two purchases (10-16-08 and 12-29-08). This represents a 9.13% annualized gain on the deal. I sold out because of the volatility of the deal: Kuwait dropped a $15 billion contract with DOW, the buyer of ROH, with the assumption that the Kuwait money is to be used to buy ROH.
All arbitrage situations are closing fine except for the HUN deal, but I'm only about $1.00 a share out of the black on that deal. Overall, arbitrage is a fine business, and I expect to be doing it a long time.
I had some trouble logging into my blog today, so I hope there is no problem with the system.
Gene
I just closed the ROH arbitrage for $63.28 a share, a 2% gain over an 80 day holding period. The average buy price was $61.76 a share on two purchases (10-16-08 and 12-29-08). This represents a 9.13% annualized gain on the deal. I sold out because of the volatility of the deal: Kuwait dropped a $15 billion contract with DOW, the buyer of ROH, with the assumption that the Kuwait money is to be used to buy ROH.
All arbitrage situations are closing fine except for the HUN deal, but I'm only about $1.00 a share out of the black on that deal. Overall, arbitrage is a fine business, and I expect to be doing it a long time.
I had some trouble logging into my blog today, so I hope there is no problem with the system.
Gene
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