Snapshot
My Implied Share Price: $32.31
Recent Decisions
1. Added Pinterest, Inc. (PINS)
Decision: I added PINS.
Reason: Price dropped dramatically.
Ongoing Thoughts: After the quoted price dropped over 20% in a day, I quickly added PINS (a position I previously held some time last year). At the time I added, this time, the stock is down over 60% over the last year. The balance sheet looks good, with Total Liabilities of $747M, but I adjust the balance sheet to show a surplus, based on the cash and equivalents and receivables. I would consider this a surplus of $2.5B. EV of $8B. Even if it maintained its current net cash flows of around $600M, it would be worth it at this current price. Plus, the company indicated that part of the reason advertising is down is because of the tariffs, and I believe that issue will be resolved fairly shortly. The company gets most of its revenue from the US but is growing internationally.
2. Added PayPal Holdings, Inc. (PYPL)
Decision: I added PYPL
Reason: Price dropped.
Ongoing Thoughts: I’ve been monitoring PYPL for some time. It’s down 47% over the last year. EV of $39B. Considering the balance sheet, it would be fairly valued with only slight growth of its net income, which I believe it is well positioned to do. This is a turnaround thesis and PayPal, although it has not done well, is still well positioned as a leader to get back on tract to participate in growth. I would foresee improvement and competition with money movement and competition with stable coins. It needs to dominate payments. But, to get this opportunity, with a great company like this, at this price, it is worth taking a position.
3. Maximized American Integrity Insurance Group, Inc. (AII)
Decision: Maximized the investment in AII, to the most I would generally be comfortable with investing in any position.
Reason: The price dropped and the company has so much potential, even considering the risks.
Ongoing Thoughts: This company seems to have been able to benefit from policy changes and the crisis. I’ve watched interviews and videos of the leaders of the company and everyone appears really knowledgable about this industry. They are focused on Florida. The price was fairly priced and the company appears to be stable. But, recently, for unknown reasons, the price dropped, which is why I’ve added in a big way. There are risks with this company as Mother Nature is unpredictable at times. However, the recent price drop overemphasizes the risks.
4. Sold United-Guardian, Inc. (UG)
Decision: I sold all of UG.
Reason: This was a mistake to buy in the first place. Plus, I wanted to add more cash cushion to my holding company.
Ongoing Thoughts: I have been losing with this company since the first day. I initially thought it would benefit once the tariffs are discontinued, however, now I am not sure when that would be and I’m not sure it is worth it at the current price.
5. Other Updates
I made a really bad decision recently and I must take accountability. I briefly went against my mindset of investing like an owner and ventured into a future position. I speculated that the market would go down and bought a position in the S&P futures to drop. It was extremely volatile, and at a particular time I could have been right, had I waited, but I could not handle the dramatic price changes and sold. My account fluctuated much more than my stomach could handle. The mistakes I made regarding future trading alone lost ILAO about .50 cent off My Implied Share price. It was a huge lesson and I discontinued any futures on the account related to ILAO. Lesson learned!
Besides that there were just minor adjustments to ILAO including selling the GRAB LEAP position I held, adding GTEC, CHCI, FVRR and WEYS, and adjusting positions in REI, VHI, and MED.