Speed Musings on CSL, SNDK, HHL and PTM
CSL has now dropped below $30. In my initial CSL analysis I said to pay attention under $30. Yes, I’m talking to myself. $26 remains my buy target.
Sandisk (SNDK) jumped 9% last night on positive comments from an analyst who said the flash memory products maker finished its second quarter strong. Lazard Capital Markets analyst Daniel Amir said he believes SanDisk gained market share of about 3 percent at the expense of rivals in the MicroSD memory card market during the quarter. via MSN
I have a position in Sandisk. I continue to hold to remind me of the worst analysis I’ve ever performed. My faulty thinking on Sandisk and Syntax Brillian resulted in large losses last year. Margins always remain important.
For responding to a survey I received a three month free subscription to the Eureka Report. I plan on writing more about that publication and comparing it to my Intelligent Investor experience, but that’ll be another day. Yesterday I read an interesting take on Platinum Asset Management by Roger Montgomery. It was a good overview of the funds management business and he valued PTM at $2.15, it currently trades at $4.21. Back in Mid May I said “It’s time to start watching PTM as the federal budget just put a pin in asset managers by lowering the superannuation contribution limits. PTM has pulled back 10.8% to $4.05 in the last five days, but is still up 39% from the March 10 low of $2.91. Look but don’t touch.” PTM did dip, but never got as low I wanted and in the meantime I liked what I saw at Hunter Hall. As I commented a pair trade was in order. I mention all this now as despite viewing PTM as overvalued, much of my investment thesis in HHL was the comparative valuation to PTM. Perhaps I should look into filling the other leg of that pair trade and selling PTM short.
Disclosure: Long positions in SNDK and HHL.AX.
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