Mar

15

Interesting to watch the limit offer size of epm at 255550 now at 6800… when it starts reducing?

Stefan Jovanovich writes: 

Based on the current futures, our family office should be have a YTD loss of 1.6% when markets open tomorrow.. On the equities - all small caps - that we bought with our first 5% bet of our capital, we will be down a third. So, of course, the logical thing to do is bet another 5%. These speculations are all public companies that might as well be privately owned. None of them is over $5B in market cap; and several are less than $100M. If they had any size, they might be considered "value" companies; the worst of them has a Z-Score higher than 3.30 and a Quick Ratio of 2. At the open tomorrow the portfolio's yield will probably be over 3% (it is 2.86% right now). None of those financial ratios will stand up to the collapse of the but I the current Mellon episode; but they are an indication that the businesses can survive and have enough cash that, if they are smart enough to cut their dividends by as much as half, they can begin looking around for assets to buy. That is what our private company is doing. On the same day we bought our first 5% batch of public common stocks, we suspended all distributions in our private company. If you work there, you continue to be paid; if you are a "capitalist", your income has gone to zero, just like the interest rates on "safe" Hamiltonian IOUs. We presume that, if our income is going to be nil either way, our capital is better wasted on companies that make and do things (none has anything to do with finance). Next week we will begin making calls to competitors to see who wants to liquidate part of their inventory. We know we will be buying too soon because we have never ever made a profit on any investment with a duration of less than several years; and we always lose money before we make any. But, precisely because we can't do what LW and so many of you all do, we have to apply with the careful monotony of the floor man whose job is to playing the nickel slot machine by the main aisle - the one that is set to pay 3 points above even. (Do they still have those? It has been 22 years since I saw the inside of a casino). In the next month or two we will feed in another batch of coins. By 1931 we should be fully-invested.


Comments

Name

Email

Website

Speak your mind

3 Comments so far

  1. Mr Tar on March 16, 2020 12:31 am

    Stocks, unlike bonds, do not have a maturity date. They can look like shit for a long time, but their ability to reinvent is why they will always trade at a big premium to conventional assets. It’s precisely why macro oriented traders hate stocks and killed trying to short them.

  2. Jim Davis on March 16, 2020 2:22 am

    At this rate, it never reduces and simply chases the bid down on reopen

    Who knows how much size is lurking even if someone comes it to lift to offer.

  3. Jim Davis on March 16, 2020 2:24 am

    Speaking of size, what’s with these Friday PPT rip jobs ?

    No accident I suspect, that they sched the conference for 3:30 est

Archives

Resources & Links

Search