Bought Back Into MAA For $67.74

Good morning and I hope I find you well.

The 9th Floor’s estate is in tatters from the storm, with many trees down and trash littering the landscape. The weekend was warm and pleasant save for Saturday, which brought wanton destruction to many in this good state.

I bought back MAA this morning for $67.74 a share. Cash is down to 10% of account value.

I owned MAA as a legacy position from CLP being bought out last year. I sold the shares back when I was raising cash heavily towards the beginning of 2014. I always communicated a desire to buy back in and if you would like to read up on the position and reasons for owning, a quick search of my archives under MAA or CLP should get you plenty well started.

Some Small Trades

I added to HCLP for $39.42.

I also nibbled on some more UEC for $1.13 (WARNING: if you are following at home, this position is to be kept LIGHT. I’m at less than 3% of assets, with a 1.5% unrealized loss on this. It’s down almost 40% YTD – my worst call this year so far – but precisely because I’ve been keeping it small, that’s not a problem. This is a true investment, not a trade. Big cash flow losses are expected in early years of a young company, but bad luck could easily snuff out any holders to $0.00)

My cash position is still right around 20%, thanks to capital losses. *hurray*

Added To HCLP and UEC

I increased my HCLP position for $38.00. The partnership has been in a sustained uptrend and every encounter with the standard moving averages have resulted in strong resurgences.

I added to BAS for $24.03.

I love both HCLP and BAS here, more than I did before the Ukraine. The threat of Russian aggression is going to keep natural gas prices bid. You can also bet now is the time when EU members start looking to establish long term arrangements to wean off the Russian gas pipelines. Where else is big enough to supply that demand, besides the USA?

US drilling activity is going to be well supported going forward, and that means profit boon for BAS and HCLP (as if they weren’t about to rake it in anyway).

I also added to UEC, because…why the hell not? Just a couple more percent.

Cash stands at 25%. Positioning: AEC, CCJ, BAS, HCLP, NRP, UEC, physical silver, PGJ puts, TSLA puts.

Raising Cash

I sold out of my entire MAA stake for $66.74. That was the position I received for my shares of CLP when they were acquired. I feel the need to raise cash and that was a good position to trim.

I also paired back my shares of CCJ. They dropped guidance for expanding the uranium mining. I don’t think it matters – they basically said they’re working to force pricing higher by refusing to mine at these ridiculous prices – however, I think the stock keeps getting beat down. It’s just the way the uranium market has been trading.

CCJ is now 18%, down from more than 20%. Cash stands back at 40%.

I Bought More HCLP, Because They Grew 218%

Look this is quite straightforward. This partnership is trading at a paltry 14X income and just tripled in size inside of one year.

And a cursory glance immediately revealed another 15% growth just sitting in the pipeline; unaccounted for as of yet. As in, without trying – whammy – have another 15% growth guy.

“Why yes, I believe I will, thank you.”

Just having this trade like the high growth play it is, for 20X income or more, sends it to $50. Add in the 15% growth I’m seeing (and will detail later) and you’re at $59. And that’s before the company even does anything.

This thing is easily going above $60 for a partnership unit. That’s 66% higher from where it’s at right now.

My cash positions rests above 30%.

Added Back To AEC – Full Position

AEC’s most recent performance was solid, and the earnings call clinched it for me.

This company is too cheap and literally everyone knows it. Above and beyond the consistent and regular return they’re pulling in, there’s chatter of “realizing the portfolio’s true value”.

With a company this size, in this environment, I can only reach the conclusion that means a corporate buyout is looming.

Their CEO and main shareholder is old. Friedman can’t be around forever. And his company’s management have proven themselves over the past five years to be highly competent. The move to separate their debt covenants from their properties in 2009 alone was probably the smartest move of any real estate company around.

So AEC is going to start getting some real attention from larger companies, who are sitting on piles of cash and looking to keep that shareholder growth coming. CLP getting gobbled up by MAA was the first, but it won’t be the last.

Cash stands between 30-40%.

Bought Back Into MAA For $67.74

Good morning and I hope I find you well.

The 9th Floor’s estate is in tatters from the storm, with many trees down and trash littering the landscape. The weekend was warm and pleasant save for Saturday, which brought wanton destruction to many in this good state.

I bought back MAA this morning for $67.74 a share. Cash is down to 10% of account value.

I owned MAA as a legacy position from CLP being bought out last year. I sold the shares back when I was raising cash heavily towards the beginning of 2014. I always communicated a desire to buy back in and if you would like to read up on the position and reasons for owning, a quick search of my archives under MAA or CLP should get you plenty well started.

Some Small Trades

I added to HCLP for $39.42.

I also nibbled on some more UEC for $1.13 (WARNING: if you are following at home, this position is to be kept LIGHT. I’m at less than 3% of assets, with a 1.5% unrealized loss on this. It’s down almost 40% YTD – my worst call this year so far – but precisely because I’ve been keeping it small, that’s not a problem. This is a true investment, not a trade. Big cash flow losses are expected in early years of a young company, but bad luck could easily snuff out any holders to $0.00)

My cash position is still right around 20%, thanks to capital losses. *hurray*

Added To HCLP and UEC

I increased my HCLP position for $38.00. The partnership has been in a sustained uptrend and every encounter with the standard moving averages have resulted in strong resurgences.

I added to BAS for $24.03.

I love both HCLP and BAS here, more than I did before the Ukraine. The threat of Russian aggression is going to keep natural gas prices bid. You can also bet now is the time when EU members start looking to establish long term arrangements to wean off the Russian gas pipelines. Where else is big enough to supply that demand, besides the USA?

US drilling activity is going to be well supported going forward, and that means profit boon for BAS and HCLP (as if they weren’t about to rake it in anyway).

I also added to UEC, because…why the hell not? Just a couple more percent.

Cash stands at 25%. Positioning: AEC, CCJ, BAS, HCLP, NRP, UEC, physical silver, PGJ puts, TSLA puts.

Raising Cash

I sold out of my entire MAA stake for $66.74. That was the position I received for my shares of CLP when they were acquired. I feel the need to raise cash and that was a good position to trim.

I also paired back my shares of CCJ. They dropped guidance for expanding the uranium mining. I don’t think it matters – they basically said they’re working to force pricing higher by refusing to mine at these ridiculous prices – however, I think the stock keeps getting beat down. It’s just the way the uranium market has been trading.

CCJ is now 18%, down from more than 20%. Cash stands back at 40%.

I Bought More HCLP, Because They Grew 218%

Look this is quite straightforward. This partnership is trading at a paltry 14X income and just tripled in size inside of one year.

And a cursory glance immediately revealed another 15% growth just sitting in the pipeline; unaccounted for as of yet. As in, without trying – whammy – have another 15% growth guy.

“Why yes, I believe I will, thank you.”

Just having this trade like the high growth play it is, for 20X income or more, sends it to $50. Add in the 15% growth I’m seeing (and will detail later) and you’re at $59. And that’s before the company even does anything.

This thing is easily going above $60 for a partnership unit. That’s 66% higher from where it’s at right now.

My cash positions rests above 30%.

Added Back To AEC – Full Position

AEC’s most recent performance was solid, and the earnings call clinched it for me.

This company is too cheap and literally everyone knows it. Above and beyond the consistent and regular return they’re pulling in, there’s chatter of “realizing the portfolio’s true value”.

With a company this size, in this environment, I can only reach the conclusion that means a corporate buyout is looming.

Their CEO and main shareholder is old. Friedman can’t be around forever. And his company’s management have proven themselves over the past five years to be highly competent. The move to separate their debt covenants from their properties in 2009 alone was probably the smartest move of any real estate company around.

So AEC is going to start getting some real attention from larger companies, who are sitting on piles of cash and looking to keep that shareholder growth coming. CLP getting gobbled up by MAA was the first, but it won’t be the last.

Cash stands between 30-40%.

Previous Posts by Mr. Cain Thaler