Note: Compensation is tallied from proxy filings as of Friday. Includes salary, stock grants, bonuses and other benefits. John Legere, James Murren and Randall Stephenson stepped down from their chief executive roles in 2020. Netflix has co-chief executives.
"Of all the preposterous assumptions of humanity over humanity, nothing exceeds most of the criticisms made on the habits of the poor by the well-housed, well- warmed, and well-fed."
1 June 2021
We are heading out to the land of milk and honey for the week so our next post will be on June 11.
The markets were tame the last week of May except for Bitcoin which was up and down and the center of attention of the talking heads. Seems that everyone thinks they should own some but they never say what percent of their investable funds they have committed. We continue to view Bitcoin as an emperor's clothes situation and not an investment. Folks make big money in Las Vegas and at the track. Actually, horses make more sense because they do have records while dice and roulette are much more akin to Bitcoin.
On Friday we decided to raise cash since our accounts were up 5% to 10% for the year and the summer doldrums are approaching in tune with the sell in May and go away adage.
Markets continue to fluctuate between value reopening stocks and tech new age stocks. Many Value Stocks are now higher than they were pre- Covid and are reflecting a goldilocks economy over the next year.
And New Age stocks are a mirror of the 2000 Dot Com who cares about fundamentals era. And even though most of them are 25% to 50% off their highs they are still selling at exorbitant price to sales with no relation to earnings, if they even have any.
And so, we end the month with some dividend stocks: IBM, Gilead, Intel, Verizon, Walgreens Boots, and we are back in AT&T 10% below our last sale price.
We also own retailers; Macy's, The Gap and have been trading Nordstrom, The Container Store and Bed Bath on good earnings reports that resulted in price drops. One day the markets love retail -the next they don't- and the price action has been difficult to trade but overall, we are ahead.
We own Discovery because of the AT&T spinoff deal coming next year. We think the spinoff is positive for AT&T and Discovery but since it over 9 months off we will trade either if the opportunity arises.
We have a reduced trading stake in Apache Oil: we are trading GE in amounts suitable for the proposed 1 for 8 reverse split and have a reduced position in Ford, taking some money off the table after its 20% run-up in May.
And we have unprofitably traded QuantumScape as insider lockup selling hit the stock this week more severely than we expected. QS is a reasonable amount in accounts as a speculation down from $132 to $27.
Finally, we have a very comfortable cash position in all accounts for come what may.
Nice work if you can get it.
Snowflake Inc., a cloud-based data-warehouse company with a market cap over $70 billion, is giving its CEO Frank Slootman over $1 billion per year in stock options based upon the current stock price, per Bloomberg. Slootman gets monthly stock options in addition to his $375,000 annual salary. As such, his pay can fluctuate greatly, assuming he cashes out on his stock options, based upon the share price of Snowflake. When the stock price is riding high, Slootman can make more than a fortune.
By the way, SNOW reported a $500 million loss on a trailing 12 months basis - but the gurus say the future is bright and even Berkshire Hathaway owns stock- purchased before the public offering at a lower than market price and represents an insignificant a very small percent of the Buffet run company's investment portfolio. See https://www.fool.com/investing/2021/01/04/3-buffett-stocks-to-avoid-like-the-plague-in-2021/
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