A short update on recent buys. I have been active in the market in Nov but just haven’t blogged about it.
– MBIA Jan ’15 call options: I bought some MBIA call options. The play here is clear, MBIA is going to get a credit rating upgrade, they will write new biz, stock will move up. Options give me a good way to play the upside and the Jan ’15 date gives plenty of time for the company to get the rating upgrade. I think the upgrade happens in a few months.
– Freddie / Fannie stock: I have been buying this up as I think the Berkowitz lawsuit has leg. The stock has been risky bet until Berkowitz came out with his plan to take parts of Freddie/Fannie private and Ackmann reported his 10% position. It will be an interesting ride to watch. I expect the stock to do very well.
– Hollywood Media: I bought shares of HOLL the day I saw the settlement on the court website. I was buying more on 11/14, as people are selling the shares due to the confidential nature of the settlement. I think the stock has plenty of upside once the details come out. I think the details will come out fairly soon.
– Auxilio: This was one of the few micro-cap positions that I had bought for my basket. It was the second biggest after XPEL. I sold the shares to buy Freddie/Fannie stock. The return on this was a nice 40%+ in little over 2 months. It is still cheap given the tailwinds, but I liked other things more.