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
Monday, March 23, 2009
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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