Welcome back everyone! After that very busy earnings season (more here), I decided to take a bit of a “break” to focus on my “real job.” That busy period is over now though, so I will be back to writing regularly. Today, I am going to go through the trades I have made since my last article, and I will review the last few earnings reports that came out in that time. These articles are usually behind the paywall, but I wanted this one to be freely available. To make sure you do not miss future ones, you should subscribe or try out my 30 day free trial using the buttons below. Before we start: this is not financial advice.
Earnings Reports
I will be brief here since there is nothing earth-shattering to report. First up is Dorian LPG (LPG). Shareholder equity was down significantly, but that was largely due to buybacks. Still, book value per share is down a few dollars, so my intrinsic value is as well. My IV for LPG is now $19 (down from $21).
Photronics (PLAB) is next. PLAB increased its shareholder equity even in spite of buybacks. Its book value per share increased by about $0.20, so my IV for it is now up to $19 from $18.
Finally, Honda (HMC) released an earnings report. Book value per share was up by about $4 per share; my new IV is $56 (up from $54).
Buys
I actually found a new company to buy while I was away. Turquoise Hill Resources (TRQ) seemed like a winner to me: long-term debt to equity is less than 0.5, shareholder equity has steadily increased, the company is usually profitable. My only hesitancy here is that the company likes to dilute its investors by selling shares. I am going to keep a close eye on that as I wait for my profits to roll in. TRQ makes up 4.42% of my portfolio, with my average entry at $17.44. I think the IV of TRQ is $48, representing a 182% profit target.
For my existing positions, I bought more Hollysys (HOLI), as I said I would. I also picked up some more Tutor Perini (TPC) to lower my entry, although I think I might end up selling some once I get back to gray just to rebalance (I am very overweight in it). I may grab some more HOLI, TRQ, or TPC in the coming weeks as opportunities present themselves. I am hanging tight in my other stocks, and I will continue to do so unless something catastrophic happens.
Sales
I wish I could say I had liquidated my Cannae (CNNE), as I said I was going to in my last article, but that trade is still languishing at -10%. I will let you know when I finally get out of there. I did, however, cash out my shares of American National (ANAT). The profit that I had was just too much to risk on an acquisition rumor. I sold at $154.57, giving me a 74% profit on the trade. I still believe in it, and I think it probably will take out $180 when it completes its sale. The risk of a 30-40% downside move on bad news was just too much for me.
Before we go, I wanted to just point out one quick fun fact. Once Eagle Bancorp (EGBN) hits $58.28 (it peaked out over $58 today), I will be up 100% on it. It will be my second 100%er after Marathon Oil (MRO) earlier this year. Value works.
Thanks for reading! I hope you enjoyed. I am planning on writing about gamma squeezes in my next article after today’s mess in AMC Entertainment (AMC); be on the lookout for that. I would appreciate it if you shared this article with your friends, or joined my newsletter (for free), or subscribed (for $5 per month or $50 per year). See you next time!