Sometimes Blind Squirrel Finds An Acorn

Finding An Acorn

Well, my regular readers know that my May MFI tranche has been my albatross this year:

5/6/2017	Start	Current	Dividend	Pct Gain	R3K Gain
WSTC	$24.15	$23.50	$0.00	-2.7%	13.1%
TGNA	$25.75	$23.41	$0.21	-8.3%	13.1%
TIME	$15.05	$18.60	$0.08	24.1%	13.1%
MSGN	$23.55	$20.40	$0.00	-13.4%	13.1%
QCOM	$54.93	$65.38	$1.71	22.1%	13.1%
Totals				4.4%	13.1%

And it was much much worse a couple months ago, here is a snapshot from (mid August)

5/6/2017	Start	Current	Dividend	Pct Gain	R3K Gain
WSTC	$24.15	$23.34	$0.00	-3.4%	1.2%
TGNA	$25.75	$20.61	$0.07	-19.7%	1.2%
TIME	$15.05	$12.35	$0.04	-17.7%	1.2%
MSGN	$23.55	$20.55	$0.00	-12.7%	1.2%
QCOM	$54.93	$51.92	$0.57	-4.4%	1.2%
Totals				-11.6%	1.2%

So, I have added 16 points since mid August while the benchmark is up 12 points.  If you look at individual stocks, you'll see ,y gains are in QCOM and TIME.

Initial Plan

When I first bought these 5 stocks, my rationale was that they all had catalysts to be acquired.  WSTC was acquired, but sadly not at a premium.  TIME is being acquired.  QCOM is being courted by AVGO.  And MSGN was written up as being attractive given DIS buying FOX.  So last one left is TGNA.

TGNA actually had a spinoff this summer where CARS was spun off from the newspaper/broadcasting business.  I still think the pure TGNA is a takeover target.  And it seems Activist investor Starboard thinks CARS is underappreciated as they bought a 9.9% stake announced today:

Cars.com +8% on Starboard 9.9% active stake disclosure

So we will see what happens next.  Starboard was also involved with DEPO, which helped me but eventually did not end well.

Off to find another acorn.