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Lemley Yarling Management Co
15624 Lemley Drive
Soldiers Grove, Wi 54655
Bud: 312-925-5248

Comments on activity in client accounts

21 February 2020

With the Bernie Band looking like they will get the nomination, the markets have baked in the Trumpster's reelection as a given. Markets have also refused to worry about the coronavirus until a case arrives on Wall Street- known as the I own a Tesla so it must be a great buy syndrome.

We were sideswiped by our oversize ViacomCBS position when the markets decided -after a disappointing earnings report – to lop 20% off its already depressed market value. we did buy shares at the marked down price but it is going to be a long haul with this value stock. When Sumner Redstone (he's 97 with dementia) moves on to his eternal reward we expect more interest to arise. VIAC has loads of already existing content which is what all the streaming folks need.

After the reaction to VIAC's earning's report we reduced our Sprout's position ahead of earnings -that were better than- and eliminated the position when it popped 15% on what we think was short covering rather than investment buying; (we think it will pull back).

We have a very comfortable cash position and happily VIAC, Cisco and Wells Fargo all yield over 3% and our Marathon Oil and Under Amour positions are relatively small.

Recent comments on the tech stocks:

JP Morgan's trading guru says the bubble in defensive and tech stocks ‘will likely collapse'

https://www.cnbc.com/2020/02/19/jp-morgans-kolanovic-sees-a-bubble-in-defensive-and-tech-stocks.html

Outside of the big 5 tech companies, earnings growth is zero

https://www.cnbc.com/2020/02/18/outside-of-the-big-5-tech-companies-earnings-growth-is-zero.html

Goldman says to keep buying the big five tech stocks because this isn't 2000

https://www.cnbc.com/2020/02/03/goldman-says-to-keep-buying-the-big-five-tech-stocks-because-this-isnt-2000.html

GOLDMAN SACHS: Crowding in Big Tech is hitting dot-com bubble levels - but don't expect a similar implosion

https://markets.businessinsider.com/news/stocks/big-tech-stocks-most-crowded-sp500-dot-com-bubble-goldman-2020-2-1028869382

*****

Valentine Day 2020

Markets continue to meander around new highs as the coronavirus acts as a hindrance and positive earnings report are a stimulus. This is the second approach to new highs in the last month. The 30% gain last year coupled with the ten-year rise from the 2008-09 collapse suggests caution.

During the week we added Cisco at 12 times earnings with a 3% yield and Wells Fargo with a 4.2% yield and at 11 times earnings. We know good yields and low p/e ratios are a thing of the past for investors but we are/and have always been more comfortable trading negative market reactions in quality issues than chasing the 100-time earnings wonder stocks.

We currently own ViacomCBS, Cisco, Well Fargo, Sprouts Foods, Under Amour, Marathon Oil, and a 60% cash position or more in many accounts.

7 February 2020

Markets moved to nominal new highs on Thursday before pulling back slightly on Friday ahead of the weekend. The coronavirus in China continues to be a worry for markets as China is the second largest economy in the world and the measures being taken to contain the outbreak are surely having an effect on economic activity.

In the La La land, traders pushed Tesla to $940 on Tuesday before realizing that Tesla production and consumption in China might be affected by the virus. But the volatile action is being enjoyed by market makers and Tesla still remains the darling of the day traders.

Back to the real world, we traded AT&T for a 50 cent to 1 dollar per share profit this week and will continue to do so as this strategy has been working for us- and has been more profitable than just holding- for the past year.

We currently own ViacomCBS, Sprouts Foods Markets and Marathon Oil along with a 70% or more Cash/USFR position in most larger accounts.

Spring is on the way.

*****

Autumn 2019

Having just reached 76 and after 30 wonderful years owning the prettiest farm in America, we have decided that a move to a Madison, Wisconsin apartment while maintaining a small cabin in the area is the proper way to begin the next chapter of our lives.

Of course, we plan on continuing Lemley Yarling Management Company- Old traders (52 years and counting) never quit until ----.

With that in mind we have listed our farm for sale.

 


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15624 Lemley Drive Soldiers Grove, Wi 54655 312-925-5248
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