Lemley Yarling Management Co
15624 Lemley Drive
Soldiers Grove, Wi 54655
Comments on activity in client accounts
Washington's Birthday 2019
Markets meandered this week and we spent the time buying quality companies that missed.
CVS, the drugstore company, dropped 10% on an earnings miss and our purchase makes a nice companion to our Walgreen Boots position. These two major drugstore chains are taking a different approach to the future with CVS buying Aetna Insurance in 2018 while WBA has chosen a more traditional path.
We also tepidly purchased Kraft Heinz in small amounts in many accounts as it crashed 20% (to $35 down from $90 a few years ago). Warren Buffet owns 350 million shares (26%) of the company and a Brazilian Company 3G owns 22%. Should be an interesting next few months with this stock.
We abandoned Activision (sorry Aby and Tyler) when it zagged instead of zigging. Some trades don't work. We lost 5% on the trade.
We added Southwest Airlines when it dropped $3 on a Goldman downgrade. We traded the company in January for a nice profit at slightly lower prices. It is the only airline that has more cash on hand the debt.
We also repurchased Baker Hughes (which we also traded for a scratch profit at lower prices) in January. BHGE announced improved earnings and revenue and we decided to hop back on. GE wants to sell the position and we think the shares with the good earnings can (magically) climb back into the $30s before GE sells.
Markets are awaiting the conclusion of the China trade talks at which time the Trumpster will declare victory no matter what the outcome.
We have re-ordered portfolios into quality companies having temporary (we hope) issues. Time will tell.
W currently own:
AT&T, Walgreen Boots, CVS, Coke, Twitter, Southwest Air, Newell Cos, Kraft Heinz, Hain Celestial, Teva Pharmaceutical, Marathon Oil, Baker Hughes, GE, Ford, Avon and Ascena.
8 February 2019
As we watched Amazon and Google move lower during the week (they have been market leaders for the past 15 months) and because of the substantial recovery in our accounts since year end we decided to raise cash. We also recalled that our accounts had risen smartly in early 2017 and 2018. Those two years we remained invested to our ultimate dismay.
We decided that this third time we would vary our actions by taking a large chunk of money off the table. And so beginning on Wednesday we took profits and a few scratch losses to get many accounts to 50 % cash. We also have an oversize position in accounts in AT&T which yields over 6%. The 6% dividend gives us $2 downside protection over a year.
We will continue to trade earnings misses in quality stocks such as Intel and retail stocks as they report this month, but for now we plan to remain on the sidelines.
We currently own: AT&T, Walgreens Boots, Under Armour, Hain Celestial (which reported bum earnings and dropped 10% this week) Marathon Oil (our sole oil stock), and normalized holdings in GE and Ford.
We are watching: Teva Pharmaceutical, Coty (in which we realized a nice profit this week, United Natural Foods, Bristol Myers Intel, IBM, Viacom and others.
Hain Celestial, Ugh!! : https://finance.yahoo.com/news/hain-celestials-hain-q2-earnings-140002380.html
Coty, good earnings and also a nice profit on short covering bounce.
United Natural Foods Sues Goldman Sachs for Not Disclosing That It Would Behave Like Goldman Sachs
Speaking of taking advantage:
So now the institutional investors are encouraging the hedge funds to take more risk to beat the market since the hedge fund managers won't earn anything if they don't. Go figure
Comments on activity archives
FAIR USE NOTICE
This site contains copyrighted material the use of which has not always been specifically
authorized by the copyright owner. We are making such material available in our efforts to advance understanding of environmental,
political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any
such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107,
the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for
research and educational purposes. For more information go to:
http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use
copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.
Check the background of this firm at https://brokercheck.finra.org/
For Information on RBC LLC SIPC and Excess SIPC protection https://www.rbcwm-usa.com/legal/rbc-cs/cid-319579.html.
For those clients of LY & Co and other
interested persons the Quarterly Report on the routing of customer orders under
All SEC Rule11Ac1-6 Quarterly reports up to March 2, 2012 may be found by visiting
the diclosures at LY& Co Clearing Broker Mesirow Financial
From March 2, 2012 forward all
SEC Rule11Ac1-6 Quarterly reports may be found by visiting the website
Annual offer to present clients of Lemley Yarling Management Co. Under Rule 204-3 of the SEC Advisors Act, we are pleased to offer to send to you
our updated Form ADV, Part II for your perusal. If any present client would like a copy, please don't hesitate to write, e-mail, or call us.
A list of all recommendations made by Lemley Yarling Management Co for the preceding one-year period is available upon request.
Business Continuity Plan