June 2017 Performance
I can’t believe we’ve already reached the half
way point of the year… I just squeaked out a gain of +1.34% for June with help
from Constellation Brands (Ticker: STZ), which announced strong results this past week with the stock hitting new highs. It’s been an amazing run for Constellation Brands
as the company was the prime beneficiary in Anheuser-Busch InBev’s (Ticker: BUD) acquisition
of Grupo Modelo back in 2013. I believe there’s still plenty of upside
remaining in the stock as their Mexican beer portfolio: Corona, Modelo Especial (my favorite!) and Pacifico are continuing to gain strong momentum. This is a keeper for the foreseeable future.
June was definitely a quiet month for me as I did
not execute any trades. Just sat around waiting for a good risk / reward merger
arb opportunity.
Now looking back at the past 6 months, I guess
the trade that stands out the most was the blowup in Rite Aid (Ticker: RAD) back in January.
That trade really made me focus on risk management. So in a way, I’m glad that
I was able to experience this loss in the beginning of the year and really
build from the experience.
Here’s a snap shot of my current portfolio:
That’s about it for now…
2017 Performance Year to Date = +23.54% with the
running monthly returns as follows:
January -4.50%
February +10.18%
March +5.1%
April +4.34%
May +5.67%
January -4.50%
February +10.18%
March +5.1%
April +4.34%
May +5.67%
June +1.34%
posted by Money Turtle @ 12:08 PM
11 comments
11 Comments:
FTC approved Cabela. Last hurdle is the sale of its bank to Synovus. The spread is still about 3%. Seemed like a good bet now? I m in a big position.
I was looking at CAB today after the FTC news. I agree that the risk / reward is decent here...
the bank merger was moved to board of governors' action so there could be a max of 90 days (can be extended but unlikely) review after submission. I understand that the submission date is 19th April from the DEFM14A. Before the agreement was inked, Synovus had discussions with Federal Reserve Bank and therefore I am sure they are confident that the revised bank merger agreement could work.
So we are looking at end of August approval latest.
any thoughts on SNI and ABCO? both seems very close
I haven't done any work on either SNI or ABCO...
Hello, please, I know that is off topic, but can some of you let me have an idea of which will be my total taxes in % if I earn (as individual)around 225K usd per year and I've residence in New York state. And/or if there is a way to lower this rate.
I read about and calculators says to me that I will pay 43% that seem too me too much because in Europe in many countries we pay less than half of that.
Please if you can be so gentle to give me an idea, not an advice of course. thank you.
The report by Goldman Sachs regarding STZ.Are you selling some of STZ?
Tax on $225,000: You should end up paying a total of ~ 31% (State - $13,923 and Federal - $55,779). Each individual situation is different. Contributing to a 401K can lower your Federal taxes. Donations can be lower your Federal taxes if you itemize, etc... I would consult with a tax expert to review your scenario.
STZ: Nope, not selling a single share on that Goldman report. You just have to look out 2 to 3 years and see the enormous free cash flow from this company. I see shareholder friendly moves with that cash flow (dividend increases and share buy backs).
Millennials gravitating to wine from beer? I would think that Constellation would a prime beneficiary since they have a portfolio of some of the most popular / fastest growing wine brands.
Any ideas on CAB? Looks like the spread has widened in the past week.
CAB: Don't know why the spread started to widen. Bank regulators do seem to take their own sweet time in approving deals.
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