Robusta fundamental, leveraged investments

craft · 18 April 2012

Tech

Would you like us to paint you based on how the majority implement TA?

The arrogant superior scattering his seeds of wisdom on the unwashed masses isn’t really the way to get any of your points across even if they have merit.

You’re crashing one of the better FA threads where some real learning and honesty was present. I relish having open minded TA traders share their ideas and perspectives but tire of the TA superiority line especially by those that don’t grasp the potential of other alternatives and to be frank it is not what I expected from you.

If ignoring things that have no relevance to us and implementing time tested strategies makes us Dinosaurs then you are right I’m a dinosaur and proud of it.

As there are far more positive things to do in life then try to provide facts to someone who has already made up their mind. You can take this as my response to all your current and future posts.

sinner said:
You know what, nevermind, f this.

Classic

tech/a · 19 April 2012

craft said:
Tech

Would you like us to paint you based on how the majority implement TA?

The arrogant superior scattering his seeds of wisdom on the unwashed masses isn’t really the way to get any of your points across even if they have merit.

You’re crashing one of the better FA threads where some real learning and honesty was present. I relish having open minded TA traders share their ideas and perspectives but tire of the TA superiority line especially by those that don’t grasp the potential of other alternatives and to be frank it is not what I expected from you.

If ignoring things that have no relevance to us and implementing time tested strategies makes us Dinosaurs then you are right I’m a dinosaur and proud of it.

As there are far more positive things to do in life then try to provide facts to someone who has already made up their mind. You can take this as my response to all your current and future posts.

Classic

Again OK
I'll no longer answer posts
In this thread.Including points in yours

skc · 19 April 2012

robusta said:
Late February I bought a small holding in MEF

Well today

Increased Investment

Bought 3174 x MEF @ $0.63

I don't want to bore you with all the geological details but today SRQ announced they drilled some holes and found some stuff.

According to WebIress, MEF had 28.54m shares on issue.

MEF reported NTA was $1 per share (at 31 March)... putting total investment portfolio size at $28-29m.

As far as I see they have no debt.

On SRQ's WebIress info, MEF holds 17.33% or 69.7m shares in SRQ.

On 31 March, SRQ closed ~60c. So MEF's holding alone is worth $42m.

MEF supposed to represent 50% of investment portfolio.

So one or more of these numbers are wrong.

Do you know which one(s)? Thanks

craft · 19 April 2012

skc said:
According to WebIress, MEF had 28.54m shares on issue.

MEF reported NTA was $1 per share (at 31 March)... putting total investment portfolio size at $28-29m.

As far as I see they have no debt.

On SRQ's WebIress info, MEF holds 17.33% or 69.7m shares in SRQ.

On 31 March, SRQ closed ~60c. So MEF's holding alone is worth $42m.

MEF supposed to represent 50% of investment portfolio.

So one or more of these numbers are wrong.

Do you know which one(s)? Thanks

Merricks Capital is a larger animal.

MEF is just one holding/associate - It has 22.5m shares

skc · 19 April 2012

craft said:
Merricks Capital is a larger animal.

MEF is just one holding/associate - It has 22.5m shares

I see. Thanks.

Looks like Merricks Capital Pty Ltd (MCPL) holds 20.39% of MEF which is a special opportunity fund.

I assume the 69.7m odd SRQ shares owned by MCPL includes those owned under MEF.

robusta · 20 April 2012

New Investment

PET - Peters Macgregor Investments

Bought 4000 @ $0.78 = $3120.00

The liquidity on this one is almost trade by appointment, I moved the sp 4% today all on my own. Have been looking to buy for 3 weeks now and actually picked some up for my super earlier this month at $0.725, at the time all my spare cash was with the QBE spp.
Anyway since then the latest monthly NTA announcement jumped from $1.0222 to $1.0931 after tax, my bid has constantly been outbid at higher volume and I missed 5000 shares @ $0.75 with my bid @ $0.745

But so much for the negatives I am very happy to finally have a piece of this one and I like the investment strategy and the holdings within this LIC - also still at a decent discount to NTA.

Wayne Peters is the chief investment officer, they also run a managed fund with as far as I can see parallel portfolios.

Anyway here is the investment philosophy.

http://www.petersmacgregor.com/about-philosophy.php

I like the way, the look at value, for example they bought BP in the middle of the oil spill disaster also Bank of America around $7.00.

Here is the most recent investment report

http://www.petersmacgregor.com/2012 March IMA Report.pdf

Top five holdings;

Michael Hill International - yes the jeweler!! Take a look at the cash flow, not much debt...

Berkshire Hathaway - have always wanted a piece of this one, just a cash generating machine.

Fairfax Financial - Another brilliant capital allocator at this insurance conglomerate a bit like BRK with more room to grow IMO.

Asta Funding - Americas version of Credit Corp

Bank of America - bought about a month before Buffet started buying.

I do not expect this one to shoot the lights out but a nice 10% CAGR of net tangible assets per share is more likely than not in my opinion, if that can be achieved I don't care what the share price does.

herzy · 21 April 2012

Just wanted to thank you Robusta for the absolutely fantastic thread. Please keep it up! All the best.

Huskar · 22 April 2012

Out of interest how do you find these amazing little companies Robusta? Are you doing a screen of LICs or similar?

tech/a · 22 April 2012

Robusta

This has an average of around $12,500 a day traded?
You allowed yourself 3c slippage to buy?? And were the only trade for the day.
Look I know your having a go and doing your best but--
Sorry I really shake my head.

This is an OST chart I posted on the OST thread 25/03/12

Still trading it.

robusta · 24 April 2012

You are probably right, however some silly bastard has a order at the moment at $0.77 and that is not filled, probably the same person who continually outbid me until I lost patience.

robusta · 26 April 2012

tech/a said:
Robusta

This has an average of around $12,500 a day traded?
You allowed yourself 3c slippage to buy?? And were the only trade for the day.
Look I know your having a go and doing your best but--
Sorry I really shake my head.

Well I had been trying to buy since the 6/4 since then (cant be bothered working out how many trading days that is) there have been two days that the stock has traded, 5000 shares @ $0.75 on the 13th (I had my bid at the time at $0.745 and my purchase of 4000 shares @ $0.78, now there is about 30,000 bid @ $0.77, the offer is still $0.78.

Have to admit I never look at the daily average, I think I will start looking now.

tech/a said:
This is an OST chart I posted on the OST thread 25/03/12
View attachment 46799
Still trading it.

Thank you for the OST chart, you must be smarter than me to make money this way, it is all I can do to find businesses that I think will be making more money in the future than now - OST is not on my list.

Sold MEF today and bought some more TGA, I will post the numbers up after dinner.

Ves · 26 April 2012

robusta said:
Well I had been trying to buy since the 6/4 since then (cant be bothered working out how many trading days that is) there have been two days that the stock has traded, 5000 shares @ $0.75 on the 13th (I had my bid at the time at $0.745 and my purchase of 4000 shares @ $0.78, now there is about 30,000 bid @ $0.77, the offer is still $0.78.

Have to admit I never look at the daily average, I think I will start looking now.

I am watching a few that are testing my patience, one of them didn't trade for nearly two weeks at one point! (Although, it has traded most days for the last two weeks...) They can move really fast (in either direction), but usually it is wise to wait for your entry point because they never go far unless there is some sort of news. I don't think you enter low volume stocks unless you have a very good reason to enter and don't want think you will have reason to get caught in a stampede when everyone hits the exits at once.

robusta · 26 April 2012

Ves said:
I don't think you enter low volume stocks unless you have a very good reason to enter and don't want think you will have reason to get caught in a stampede when everyone hits the exits at once.

This is probably one of the reasons I sold MEF today,

Investment Sold

5000 x MEF @ $0.69
400 x MEF @ $0.695

Picked up the first smaller parcel of MEF because of the large discount to NTA and to be honest the conviction these guys show to have 50% of the portfolio in one stock (SRQ).

The second parcel was because I saw SRQ share price shoot up and MEF had no change at all. Well the price has corrected and I no longer wish to have such a large exposure. Bit less than 10% gain is probably not enough compensation for the risk taken but happy to take the small profit.

Investment Increased

Bought 1074 x TGA @ $1.395

Enough probably said on the TGA thread, I really like the reoccurring revenues.

Lots of action in the portfolio this month, have taken some profits however and have a nice percentage of funds in cash to look for a home.

Have to stop paying the broker so much.

tech/a · 27 April 2012

robusta said:
This is probably one of the reasons I sold MEF today,

Investment Sold

5000 x MEF @ $0.69
400 x MEF @ $0.695

Picked up the first smaller parcel of MEF because of the large discount to NTA and to be honest the conviction these guys show to have 50% of the portfolio in one stock (SRQ).

The second parcel was because I saw SRQ share price shoot up and MEF had no change at all. Well the price has corrected and I no longer wish to have such a large exposure. Bit less than 10% gain is probably not enough compensation for the risk taken but happy to take the small profit.

Investment Increased

Bought 1074 x TGA @ $1.395

Enough probably said on the TGA thread, I really like the reoccurring revenues.

Lots of action in the portfolio this month, have taken some profits however and have a nice percentage of funds in cash to look for a home.

Have to stop paying the broker so much.

Robusta you really love buying the falling knife??

robusta · 27 April 2012

tech/a said:
Robusta you really love buying the falling knife??

Well I guess if something I want gets cheap enough my first reaction is to look to buy.

robusta · 28 April 2012

PORTFOLIO UPDATE[/B]

Lots of action in the portfolio this month.

Picked up 15 QBE shares in the spp for $160.50 bringing the total investment to $2160.35, sold for $2752 so a capital gain of $591.65
Had $3821.44 invested in CCP, sold for $4981.51, capital gain is $1160.08
Bought some more MEF for $1999.62 to add to the $1874.88 holding, sold the lot for $4245.25 capital gain of $370.75.

This brings my capital losses to date down to $1832.95, paid $151.26 to the bank in interest to bring this total to $2017.51 plus $139.65 to the broker for a way to large sum of $538.30

$211.24 in dividends bought the income up to $884.81

So that is a loss of $3503.95

Better have a look at where the open positions are

Open Positions
Bought:
1115 x MTU @ $2.62 = $2921.30 08/08/11
65 x COH @ $45.85 = $2980.25 30/09/11
1373 xOKN @ $1.455 = $1997.72 23/11/11
916 x PRV @ $0.655 = $599.98 25/01/12
1023 x NVT @ $2.93 = $2997.39 02/02/12
972 x TGA @ $1.505 =$1462.86 05/04/12
4000 x PET @ $0.78 =$3120.00 20/04/12
1074 x TGA @$1.395 =$1498.23 26/04/12

Subtotal $ 17,577.76

Current Portfolio Position

65 x COH @$64.35 =$4182.75
1115 x MTU @ $3.63 = $4036.30
278 x MTUR @ $0.40 = $111.20
1023 x NVT @ $3.81 = $3897.63
1373 x OKN @$1.315 = $1805.50
4000 x PET @$0.78 =$3120.00
916 x PRV @$0.645 = $590.82
2046 x TGA @ $1.45=$2966.70

Subtotal = $20,142.25

Cash contributed $1650.00

This brings the total loss considering the open positions to $939.46

Return on contributed equity (by me not the bank) is around -43%, the good news for me is I finally have some positive equity in this portfolio and out of the original $30,000 LOC have $10,347.76 available to invest.

Bring on the volatility.

robusta · 28 April 2012

Probably should highlight Thorn Group and Peters MacGregor Investments were added this month among that flurry of activity.

robusta · 28 April 2012

Missed the OKN dividend in the above update, $75.52 brings the total dividends to $960.33.

This is how I track this portfolio by the way, no expense spared on software:

At the end of the financial year I will reconcile with bank and broker statements and correct any errors.

tech/a · 30 April 2012

robusta said:
Well I guess if something I want gets cheap enough my first reaction is to look to buy.

Well with a - 43% return on capital you may consider how successful this idea is.

Doing the same thing day in and day out and expecting a DIFFERENT result is often not that productive.

Klogg · 30 April 2012

tech/a said:
Well with a - 43% return on capital you may consider how successful this idea is.

Doing the same thing day in and day out and expecting a DIFFERENT result is often not that productive.

Yes, but he only started in July. Given that FA is closely related to the earnings of a company and these are reported every 6months, you'd need to watch it over a longer term.

But I do agree that if that sort of return were to continue, there are some serious issues there.

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