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
Monday, April 27, 2009
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
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