Featured
- Service Properties Trust – A Special Situation with a Catalyst $SVCFebruary 9, 2022
Quick idea today: I am looking at Service Properties Trust (SVC). I think the idea is interesting and there is a catalyst. Here’s the situation: Company Overview: SVC is an externally managed REIT (managed by RMR – more on this later), owning 304 hotels and nearly 800 “service-oriented properties” which …
- Expectations Reset for Vimeo, Risk/Reward Attractive $VMEOJanuary 23, 2022
Vimeo stock collapsed following the spin from IAC. That caught my attention, I read some of their calls, but I never really dug in. Then, in early January, I tweeted there was an interesting cash-covered put trade you could do at $12.50 strike. As Vimeo stock has fallen more, I …
- What Keeps Me Up At Night? The Bullwhip Effect Plays OutJanuary 6, 2022
When I look around at the risks facing the market expectation, there is one main concern I have. The Bullwhip Effect. via GIPHY We saw a massive “destocking” of inventories occur in 2020 (the initial response to the pandemic). Then, a massive “restocking” occurred as demand returned with limited inventories. …
Columns
- $KAR Gets (Less) Physical with $CVNA Asset Sale: I’ll Sell KAR Stock TooFebruary 25, 2022
I wrote up KAR stock back in 2021 when investors were confusing secular issues (auctions are becoming more competitive with online presence) with cyclical ones (there just were no cars to sell!). Now, KAR is selling it’s physical auction business to Carvana in a $2.2BN transaction ($1.6BN after–taxes). This is …
- Apollo Buying Tenneco $TEN – Highlights Value in Auto SuppliersFebruary 23, 2022
Here’s something you don’t see everyday in efficient markets: A company being acquired for a 100% premium. Tenneco is being acquired by Apollo private equity for 100% premium to yesterday’s close. It’s not a premium to is 30 day VWAP or the premium 90 days ago before a rumor of …
- Earnings Check-in: I thought people liked it when companies invest for growth? $ABMDecember 23, 2021
ABM reported a fine Q3’21 – EBITDA increased 20% on a 14% increase in sales and was slightly ahead of expectations. However, the stock is down about 10% since reporting and was down >15% at one point. Must be a terrible outlook, right? Well, their EPS guide at midpoint was …
Personal Finance
- Opportunities in the Muni Meltdown
First, some personal news. My wife and I have been blessed with our first child, so I’ve been a lot less active on here lately. That said, I’ve been watching the turmoil pretty closely in the market. In particular, the bond market is starting off with one its worst years …
April 25, 2022 - Tax loss Harvesting: How to Reap the Most Rewards
Tax loss harvesting is something I tend to think about after a strong year of equity returns. I find myself asking if I should reduce risk in some names or at least re-balance the portfolio. The problem is that this can create significant capital gains. That said, if you are …
October 14, 2019 - What asset allocation performed best over time?
“Past performance is not indicative of future results” you say as you read this post. But it can be a tool for analyzing what asset allocation performed the best. The markets are particularly tough to apply history to, though, because of the wide amount of factors involved. Interest rates, valuations, …
February 18, 2019
Real Estate Investing
Quick idea today: I am looking at Service Properties Trust (SVC). I think the idea is interesting and there is a catalyst. Here’s the situation: Company Overview: SVC is an externally managed REIT (managed by RMR – more on this later), owning 304 hotels and nearly 800 “service-oriented properties” which …
February 9, 2022Real estate prices are booming right now. Supply is tight and competition for investment properties tend to also overlap with first time home buyers. To me, the math doesn’t add up as much as it used to, even with low rates to finance the properties. The funny thing about super …
April 10, 2021One benefit of real estate investing is being able to take your initial capital out of the deal and still own the property. My wife and I just did this through a cash out refinance on investment property we’ve owned. It is fairly straightforward, but let me try to explain …
April 26, 2020