The weather is too nice to be spending cycles on the blog, so here’s a quick summary of where I stand. Top 20% performers in green.
I added to my CTL position on news of the lawsuit. This strikes me as a ridiculous money-grab attempt by a disgruntled employee, and I expect any damages to be small. I think the stock has not rallied because investors are nervous about the report for this quarter. So I have a lot of exposure to CTL now. I appeared to be in good company. Activist Corvex submitted an updated filing showing that they added to their position and also owned some January 2018 call options.
I sold NSAT after a solid 40% gain in less than 6 months. I think the bidding war has mostly run its course.
ALIOY did what it was supposed to and did not move, but I did not end up getting any of the spin-off biotech shares.
HUM I closed out with a nice double-digit gain. I feel like the valuation is less attractive and there is a fair amount of healthcare uncertainty out there. I am still holding WCG because it still *looks* pretty cheap and they have consistently sandbagged guidance, resulting in big beats. I may change my mind depending on how they do now that they are through a long stretch of deals. Execution will be key, but I’m holding out some hope that they get bought.
I exited RDCM up 7%. I think this could be a one-trick pony stock, and while AT&T is a big customer to have they also have a lot of negotiating leverage and a track record of using it on small suppliers.
I also closed out of DISH and TMUS.
DISH I think will have other more attractive entry points within the next couple of years. I don’t see it being sold for several years at this point.
TMUS I was worried they were going to overpay for Sprint. It sounds like maybe they scoffed at the price Masa wants, and walked away for now. That’s a good thing. Operationally I think TMUS is doing just fine. The company should continue to take share away from VZ and T, and probably Sprint to a lesser degree. So I bought a few call options just out-of-the-money for November. At the very least I expect the phone cycle should help.
I did trim AOBC a bit immediately after the earnings report. I still think the stock is very cheap, but the share price had rallied a bit since I purchased and management sounded very cagey about 2Q in particular. Combined with a high accounts receivable, I decided to keep some powder dry. I plan to add more shares when I see insiders move or a change in the buyback setup.
I also added CBMX warrants and more DSKE warrants. My only real “new” company is SHECY since my last post. I plan to write more about them next month.