Author name: David J Hoare

Masters of Science in Accounting, 30 YRS of business administration and financial reporting; prepared over 4,000 tax returns. Big believer in the business concept of 'marginal value' and its impact with market price. An advocate of the feedback loop in construction.

Sold Comerica Bank Two Hours Later

Banking Pool / By

One of the advantages of value investing utilizing pools of similar stocks from a single industry is that every now and then, like once a decade, a unique opportunity will present itself to take advantage of the knowledge and hard financial analysis work one does. In this case, it happened today. Comerica Bank experienced a roller coaster price drop and recovery in one day. It’s intrinsic value was calculated to be greater than $40 per share and the price dropped this morning to just below $30 per share. 

Bought Comerica Bank

Banking Pool / By

Today, the Value Investment Fund took advantage of the chaos in the banking industry and purchased 1,200 shares of Comerica Bank after the the share price dropped below $30 per share.

Value Investment Fund – End of June 2022 Report (Halfway Through 2022)

Investment Fund / By

Overall, the Value Investment Fund is performing remarkably well in relation to the balance of the market during the first six months of 2022. This is even with the error associated with the failure to sell Wells Fargo back in second week of January. Overall, the market is down at least 15% as indicated by the DOW; this reflects the top 30 companies. The reality is that the market overall is down about 21% (S&P 500, S&P Composite 1500) since January 1, 2022. The S&P 500 and Composite 1500 are a more conservative comparative indices to this Fund’s selection pool of investments. As stated above, if using the NASDAQ 100, the Fund is simply crushing the market with Fund down 5% and the NASDAQ 100 down 29%.

Bought Essex Property Trust

REITs Pool / By

On June 14, 2022, the Value Investment Fund purchased 77.7000 shares of Essex Property Trust at $256.40 per share. Adding the $1 per share transaction fee, a total of $20,000 was invested into this security.

In addition, the Fund sold a PUT option for 100 shares at $9.90 netting $8.80 per share. The strike price is $240 per share with an expiration date of October 21, 2022.

PUT Options – Leverage Tool for Value Investors

Phase III - Sophisticated Investing / By

PUT options are an excellent tool to leverage the realized return for a value investment based portfolio of securities. In general, options are very risky financial derivatives and are not recommended for unsophisticated investors. In laymen terms, options are classed as mildly speculative instruments in the world of investing. The key to proper use is to eliminate the risk aspect by only utilizing PUTs in a very restrictive set of circumstances.

Value Investment Fund – End of May 2022 Report

Investment Fund / By

During May, the Value Investment Fund expanded the portfolio to include two new positions from among the existing 48 potential investments. The first included three separate tranche purchases of The Walt Disney Company and the second was an opportunity presented when Essex Property Trust, Inc. dropped below its intrinsic value. In addition, the Fund sold two separate option contracts in both positions. The Walt Disney Company position was exercised within a few days of that sale and the current option contract for Essex Property Trust, Inc. remains active. The sale of PUT options (three separate companies) generated $3,019 of realized income after associated transaction fees. Finally, Wells Fargo did issue a dividend worth $271 for the Fund. This dividend sits as a receivable on the books of record as Wells Fargo will pay the dividend during the first week of June.

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