Snapshot
My Implied Share Price: $34.33
| Symbol | Price | Weight |
| Cash | 1.00 | 12.60% |
| JTAI | 2.16 | 10.39% |
| AII | 18.66 | 8.31% |
| IIPR | 64.47 | 2.89% |
| WEYS | 39.20 | 2.81% |
| ZM | 91.13 | 2.70% |
| PETS | 1.97 | 2.65% |
| WW | 14.57 | 2.62% |
| PINS | 23.20 | 2.19% |
| NUS | 5.24 | 2.02% |
| UPWK | 9.06 | 1.98% |
| FLYX | 1.15 | 1.97% |
| LEN | 83.89 | 1.96% |
| USNA | 21.82 | 1.94% |
| HGBL | 1.23 | 1.93% |
| FVRR | 11.22 | 1.91% |
| EXE | 88.13 | 1.90% |
| LNC | 42.24 | 1.78% |
| MKL | 1972.43 | 1.77% |
| EGAN | 6.57 | 1.74% |
| BBBY | 5.03 | 1.60% |
| Stock Options | 1.00 | 1.52% |
| MAT | 14.30 | 1.39% |
| JOYY | 70.07 | 1.32% |
| NVO | 50.32 | 1.31% |
| LULU | 116.33 | 1.25% |
| CNC | 66.44 | 1.25% |
| GRAB | 3.57 | 1.23% |
| MOH | 225.37 | 1.21% |
| TAYD | 54.67 | 1.18% |
| WMK | 78.05 | 0.98% |
| JBSS | 79.47 | 0.86% |
| MED | 10.26 | 0.78% |
| LYFT | 15.52 | 0.77% |
| RAVE | 3.30 | 0.76% |
| TGT | 139.60 | 0.75% |
| BG | 119.15 | 0.75% |
| DRH | 12.55 | 0.74% |
| VZ | 43.59 | 0.74% |
| CROX | 137.13 | 0.74% |
| CHCI | 15.75 | 0.71% |
| FLR | 49.08 | 0.70% |
| MOV | 38.65 | 0.69% |
| LYB | 59.17 | 0.69% |
| INTC | 95.04 | 0.68% |
| SBUX | 105.49 | 0.66% |
| VHI | 13.89 | 0.66% |
| PYPL | 56.56 | 0.66% |
| UBER | 72.46 | 0.65% |
| AWX | 2.58 | 0.65% |
| ACN | 143.57 | 0.64% |
| UFPI | 85.93 | 0.62% |
| YALA | 5.38 | 0.60% |
| SITC | 4.48 | 0.60% |
| VTSI | 3.10 | 0.54% |
| REI | 1.23 | 0.54% |
| UNFI | 49.10 | 0.26% |
| DOLE | 14.42 | 0.23% |
Situation
My goal was to slow down on buying additional companies but there were a couple of stand out opportunities which I had to take.
Response
I bought a few positions and sold one.
JTAI and FLYX
I previously owned JTAI but sold. I had researched the company extensively in the past but sold it based on my concerns that it was getting overvalued shares of FLYX in exchange for planes. My valuation at the time for FLYX was that it was extremely overbought and would likely come down after the transaction was done. I wasn’t sure what would happen to shares of JTAI after the sale but continued to watch it after I sold.
Since then the price of FLYX dropped way down, more than half. The company also already did an ATM capital raise. Although financially it is not where I would like it to be as far as value, it is within a decent range and stable. After listening to conference calls, I also find the CEO of FLYX to sound capable. He has delivered on a lot of what he said he would and I believe he got a decent deal between FLYX and JTAI, so he is savvy. He said he is moving into the execution phase of his plan and I am investing in FLYX with the understanding that he will deliver. It’s still uncertain and I will watch closely. However, he has delivered enough so far that I am confident in establishing a small position.
In the meantime, JTAI also came down, which would be expected after the close of the FLYX deal, but it immediately went up, in part based on a letter of intent and $10 per share offer with an unnamed private company. The potential expectation now is a spin-off to 2 companies, one with the deal with the private company, which would give shareholders a $20 million stake in a over $300 million new company, which will keep the JTAI ticker. Then a second company, a Data Center company that will get another ticker name and will hold the data center assets and the rights to AIIA, which the company has about a 50% stake in the sponsor, which owns 25% of AIIA. Essentially, JTAI’s stake would be worth 12.5% of AIIA.
Considering the debt, I calculated JTAI’s value to be $9.70 per share and I’m getting shares at $2.40. If things workout with the deal, it could be worth even more. But, there is no guarantee the deal will close. But, I’m comfortable with exposure to a large position in JTAI now, considering the value of its assets and the possible deal. I remain concerned that management does not have a real stake in the deal, so they are not on the same level as shareholders/investors. I’m also concerned whether or not the deal will close, and the burn rate of the operations if the company continues to run without a deal.
But, with all of this in mind, at this time, I’m comfortable with the investment. I made this my largest position.
Bought NUS and sold PZZA
For NUS, the numbers look really good. Although I like PZZA too and did not want to sell, I found it just a little overpriced. I have continuously reduced my allocation but now it is under the minimum I want to hold and it would not be justifiable for me to add more. So, I bought NUS and sold PZZA in exchange. PZZA will remain on my watchlist.
Reflections
My holding company has be fluctuating around all time highs and depending on a couple of big possible moves, my portfolio could blow out my current levels, in a good way. I am continuing to monitor my allocation levels with all of my investments. And, I have a functional cash level, which I’m happy with and have some flexibility and optionality. The JTAI position is my largest and is at the max I would be comfortable with. It is slightly outside of my comfort level, but I think it’s an extraordinary opportunity and valuations justify the risks, as long as management can execute on it’s plan.