Friday, 11 March 2016

Bought Essex Rental / Updates on several position / re-entered UMS United medical

Essex Rental

Essex Rental (ticker:ESSX) is up 30% on higher than average volume today. There is a write-up on seekingalpha. I have not much to add. The company has two subsidiaries. One is worth zero and the other more than the current market cap of Essex Rental. Because of the price action today, I believe now is a good time to initiate a position. Technically the debt of the worthless sub should be non-recourse. Maybe someone knows more. This is a specualative position and liquidity is low. This has to be sized accordingly.

Update Cleco

I have decided to hold on to the position after the sale was rejected by the commision. The hearing was webcasted and I listened to it. Should have sold the position with a small gain as soon as I realized a negative outcome is probable. The decision process looks very non fact-based to me. Although the decision to reject may be right. It looks like it played a role that the buyer was not American...

Update Medisana

As expected the money has arrive in the bank account. This was a nice gain in a short time period.

Medisana€ 2.80€ 2.702/25/20163/3/20163.70%

Update SPIL

The offer might not go through. Good that is a just an odd-lot. The downside should not be high. SPIL is not expensive at this price. The position is at a small loss. If this gets slaugthered as a broken arb I may increase the position


Update KWG Komunale Wohnen

At last Conwert has come out with a offer to acquiry shares of KWG. Because of the complex land transfer tax in Germany the company does not tender for all remaining shares. It is important not to get over 95%. The price on offer is €10.80. This was one of the more successful position with an IRR of 26.2% since the start of 2014.

KWG Komunale Wohnen€ 10.56€ 6.361/6/2014yes66.04%

Update Apple

As written this was a short-term play. As you could have seen on the portfolio tab of the blog, the position was already sold again. Yes, I think Apple is still undervalued... It is just that I also want to hold some cash. Since 2012 I went with near 100% stock at all times.


Update snow

Same with SNOW. The tendered odd-lot was accepted and the position eliminated. I am not bullish on SNOW as a core long position because the maintenance capex looks high to me.


Update Dream Global

Obviously with the current decision of the ECB and the low interest rate environment German Real estate is still very attractive. DRG has started to rise. There is also a write-up on seekingalpha. Not much to add here. This a big position and I intend to trim a little bit at higher prices.

Dream Global ReitCA$ 8.68CA$ 8.3012/2/2015yes6.18%

Update Pfandbriefbank 

Dt. Pfandbriefbank€ 9.49€ 8.662/5/2016yes9.58%

 This is a typical case of being early. Six days after purcase on 2/11 the stock was as cheap as €7.43. I did not dare to increase the already full position. That is the disadvantage of a bank stock it is not good to average down because you will get diluted at the buttom in most cases. Although this time no one already knew more...

Just look at the chart:

I am very happy with the results this year sofar. This also reminds me of the time when I bought a Greek stock in their crisis. The next day it was down 10% on one day and I felt terrible about my timing.

Re-entered UMS

UMS was already part of the blog portfolio:

UMS€ 10.15€ 9.409/5/20149/22/20147.98%

UMS€ 10.88€ 9.529/5/20144/28/201514.29%

Liquidity is very low but with patient limit orders, it was possible to built a small position for the blog again.

UMS€ 3.31€ 3.253/11/2016yes1.85%

If everything goes according to plan, it would look like this:

pre-tax IRR46.00%5/31/2016

Please fell free to comment and do your own homework as always!