Wednesday, November 05, 2014

A little Shopping Yesterday

I did buy some small stakes yesterday in a couple of recent spin offs yesterday.

KE - this is a spin off from KBALB.  I tried to do some back of the envelope analysis and I'd say they have an earnings yield of around 12%. (price of $8.85)

HYH - this is a spin off from KMB, healthcare related.  They are still a big company, $1.7 billion market cap and I showed proforma operating income of $222 million. (price of $36.27)

ATVI announced earnings last night.  I almost fell out of my chair laughing at their own headline:

Activision Blizzard Announces Better-Than-Expected Third Quarter 2014 Financial Results

I had never seen a company describe their own earnings as "better than expected". How do they know what we were expecting? It just feels so weak.  Investors seemed to like the earnings though, they traded up 2 to 3%. I have to say that I was under-whelmed. ATVI is in my November tranche, so I'd be grateful for a little bump before I sell in two weeks.

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