Sunday, May 03, 2020

April 2020 Performance

A nice rebound in April, but I continue to be cautious with the market as I don’t see any good values. I still have a relatively high a cash position of ~ 15% and that will increase when Qiagen (Ticker: QGEN) closes (assuming that it will close in the first half of 2021). I just don’t see a snap back recovery as many small businesses will not re-open. There’s a small mom & pop coffee shop around here that has gone out of business. It’ll be interesting to see how many small businesses are able to survive this pandemic. It’s these small businesses that make up a good chunk of the US economy.

I‘ve been nibbling at some merger arb plays. My latest is SORL Auto Parts, Inc (Ticker: SORL). It’s another one of those China going private situations. I have a small position (less than 2% of my holding) for the time being. The shareholder vote is May 8th and assuming the majority votes in favor, this deal should close soon after with shareholders receiving $4.72 in cash per share.

We’ll see what the remainder of the year brings. Hopefully, no more negative surprises…

2020 YTD Performance = -3.2% with the running monthly returns as follows:

January +2.7%
February -6.8%
March -9.9%
April +12.3%

5 Comments:

At May 03, 2020, Anonymous Anonymous said...

MT: With a global recession coming or already happening, do you think anyone will counter TMO offer of 43 for QGEN? Would you invest in TMO, considering the spread is only about 1.5 for QGEN with almost a year to go.
Thanks

 
At May 03, 2020, Blogger Money Turtle said...

I would say that most companies are in a cash conservation mode in this environment so I would place low odds of a counter bid for Qiagen. I'm actually looking at cashing in Qiagen and investing in TMO. TMO is so dominant that there are very very few viable competitors.

 
At May 04, 2020, Anonymous Anonymous said...

TMO : stocks close to ATH, bought some and BDX.
Thanks for the input

 
At May 28, 2020, Anonymous Anonymous said...

TECD: looks interesting with only Australian review remaining, and the company still aiming to close by june. ~5.5 dollar spread remaining. does it seem safer

 
At May 29, 2020, Blogger Money Turtle said...

TECD: I haven't done much work on this one, but from a first glance it looks like a reasonable bet.

 

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