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Lemley Yarling Management Co
309 W Johnson St
Apt 544
Madison, WI 53703
Bud: 312-925-5248

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26 February 2021

The farm is sold and we and Lemley Yarling & Co are now residents of Madison Wisconsin. Our new address is:

309 W Johnson Street
Apt 544
Madison Wisconsin 53703

Same phone 312-925-5248


We entered the week with a bundle of cash. When the NASDAQ 100 dropped 3% Tuesday morning and then recovered to close flat for the day we decided to trade a bit. Then an hour before Wednesday's close the big boys and girls and the Reddit crowd conspired to get GameStop moving again to the tune of 150 points and so on Thursday morning, we sold our trades and kept our staider investments. The market gave back the 400 points it gained on Wednesday and more. Friday was an up and down day and we entered the weekend with an 80% and greater cash position.

We currently own AT&T, Verizon, Wells Fargo, Walgreen Boots and Hewlett Packard Enterprises.


BITCOIN, the true emperor's clothing gambling tool, rose to $60,000 last weekend and then proceeded to drop and rise during the week ending at $46,000. Horse racing is a better gamble.

On the subject of BITCOIN Charlie Munger (who with Warren Buffet made the investment decisions at Berkshire Hathaway for 50 years) doesn't know what's worse: Tesla at $1 trillion or bitcoin at $50,000



Lincoln's Birthday 2021

We are in the process of moving to Madison WI. And so this post will be short and next week's nonexistent. Our next post will be February 26.

We remain afraid of this market and so continues to trade and take scratch profits while maintaining a 70% and more cash position. All the stocks we own/trade are real companies priced at less that 12 times earnings with 3% or more yields. The 2 exception are Ford and GE which we have finally been able to trade profitably for the last 6 months.

Stay Warm! It's been zero here for a week and will be until the middle of next week. Brrrrrrrr.


SPACS are the new broker yachts/customer bicycles ideas from your friendly Wall Street folks who you must remember create new investments for their own risk-free profit- and use their customers dollar to provide that profit.

In Wall Street's usually brash way, a new saying is making the rounds. It isn't in good taste, but it speaks to a phenomenon that is transforming finance and corporate America.

"I know more people who have a SPAC than have Covid," several financiers have told me recently. (If you're wincing, you're not alone. I am, too.)

SPAC stands for special purpose acquisition company, the biggest thing in financial markets of the moment. Hundreds of these publicly traded shell companies are being created by everyone from KKR, the leveraged-buyout firm, to Alex Rodriguez, the baseball player turned entrepreneur. Just on Tuesday, the football player Colin Kaepernick filed for his own $250 million SPAC.

These vehicles have only one purpose: to find a private company and buy it, usually within two years. SPACs are sometimes known as "blank check" companies — as in, investors give them a blank check to go buy a business, sight unseen.



5 February 2021

We continue to trade taking scratch profits and maintaining a very large cash position. Our small accounts are up 15% to 20% this month and our larger accounts have gained 4% to 6% so we no reason to push our luck at this time.


Well, it was fun for the little guys and dolls and pain for some behemoths; and very profitable for option market makers while it lasted. So passes the attempt to route the big boys and girls as Game Stock and Koss and AMC et al slowly return to earth.

The answer to containing short sellers is to reinstate the uptick rule. That rule said you can only short (sell a stock you don't own) on an uptick. That rule was instituted in 1934 and worked for years to control unbridled short selling. But the rule was removed so the big boys and girls and their computers could trade all day long ahead of orders place on computers slower than theirs.


Melvin Capital Management, the hedge fund that has borne the brunt of losses from the soaring stock prices of heavily shorted stocks recently, lost 53% in January, according to people familiar with the firm.

Maplelane Capital, another hedge fund that has sustained significant losses this month, ended January with a roughly 45% loss, said a person familiar with the fund. It managed about $3.5 billion at the start of the year.

We have no sympathy for the hedge funds, they can take care of themselves. Usually when they drop as much as a few of them did last week they close up shop and then start a new fund. But real short sellers do a service by finding overpriced stocks that have problems i.e., Enron, Blockbuster, Borders, DeLorean, etc. https://finance.yahoo.com/news/enron-24-other-most-epic-010039873.html


Good for them.

The family behind the publicly traded Milwaukee-based stereophone-maker Koss Corp. made more than $30 million off its stock's wild ride last week, according to documents filed with the Securities and Exchange Commission Wednesday night.

That's more than the company was worth, based on its stock price, at the end of the year.


As it was with the gasoline driven autos so it is with electric autos. History rhyming again.

Starting with Duryea in 1895, at least 1900 different car companies were formed, producing over 3,000 makes of American automobiles.


There are currently (2021) about forty different electric vehicles available, from about twenty different electric car manufacturers. Some of them:

Jaguar I-Pace
Hyundai Kona Electric
Kia e-Niro
Mercedes EQC
BMW i3
Tesla Model 3
Volkswagen e-Golf
Audi E-Tron Quattro
Renault Zoe
Tesla Model X
Nissan Leaf
Hyundai Ionic
Volkswagen e-up
Porsche Taycan
Honda e
Vauxhall Corsa-e
MINI Electric
Peugeot e-208





A little-known intermediary in the process of buying and selling equities forced Robinhood and other brokers to restrict trading in several securities on Thursday, including GameStop, AMC Entertainment, BlackBerry, and Nokia. All have been swept up in the WallStreetBets-fueled short-squeeze phenomenon and have seen intense volatility in recent days.

Theories abounded online about Robinhood—a mobile-first, low-cost brokerage founded on the idea of expanding access to trading to more people—being in league with the "men in suits" at hedge funds on the losing side of those trades. Politicians on Twitter from across the political spectrum condemned the broker's move. But Robinhood's provided reason that it needed to restrict trading in those stocks until it could increase its collateral with the Depository Trust & Clearing Corporation, or DTCC, holds water.

Explaining that requires getting into a bit of market plumbing and elements of the trading process that usually don't get much attention.

When an investor orders their broker—Robinhood or E*Trade, for example—to buy or sell a security, the broker accepts the trade and sends it to an exchange like the New York Stock Exchange or the Nasdaq. The exchange then matches buyers with sellers, and from the investor's perspective, the transaction is as good as done. But there are still some mechanics that need to be worked out behind the scenes.

Investors may have noticed that the cash proceeds from selling a stock aren't immediately available to withdraw from their account after a trade is completed—that usually takes a business day or two. Back in the day, that time was spent physically exchanging stock certificates between brokers. Today's trading volumes make that an impossible task. (Curious readers should learn about the 1960s Paperwork Crisis.)

Today, after a stock exchange completes a trade, it sends the information to the DTCC, which keeps track of brokers' books. The DTCC is a clearing house, an important part of the financial system. Clearing houses not only process and complete trades in an efficient manner, they help limit systemic risk. The clearing house promises to make good on all trades that happen regardless of what happens to an individual broker.

The DTCC is responsible for transferring ownership of the stock from the seller's broker to the buyer's broker—and vice versa for the cash involved. Rather than doing that after every single one of the trillions of dollars of trades each day, the DTCC waits until it can net several trades into "one position per security, per client, per settlement date," according to its website. The settlement date is the day when the cash and securities involved in a trade actually change hands.

At the settlement date, which falls two days after the investor places their trade, the seller's broker must deliver the stock being sold and the buyer's broker must provide the cash. The DTCC guarantees that the transfer will happen and eliminates the risk of a single broker going under rippling across the market.

In exchange, the DTCC collects a fee per trade and requires some collateral from the brokers to ensure they have the assets to complete the transaction. It's like putting a refundable deposit on a purchase that reduces the middleman's risk while the package is in the mail, with full payment due once it arrives. The DTCC's collateral requirements for brokers are calculated by a much more complex formula, based on the specific shares' notional value, volatility, and other variables. https://www.barrons.com/articles/why-did-robinhood-stop-gamestop-trading-51611967696?mod=hp_LEAD_4



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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 SEC Rule11Ac1-6.
For Quarter Ending 09/30/2002 For Quarter Ending 12/31/2002 For Quarter Ending 03/31/2003
For Quarter Ending 06/30/2003 For Quarter Ending 09/30/2003 For Quarter Ending 12/31/2003
For Quarter Ending 03/31/2004

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 at: http://www.tta.thomson.com/reports/1-6/msro/.

From March 2, 2012 forward all SEC Rule11Ac1-6 Quarterly reports may be found by visiting the website https://www.rbcwm-usa.com/legal/rbc-cs/cid-360855.html.

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


309 W Johnson Street Apt 544 Madison, WI 53703 312-925-5248
The factual statements herein have been taken from sources we believe to be reliable but such statements are made without any representation as to accuracy or completeness or otherwise. From time to time the Lemley Letter, or one or more of its officers or employees, may buy and sell as agent the securities referred to herein or options relating thereto, and may have a long or short position in such securities or options. This report should not be construed as a solicitation or offer of the purchase or sale of securities. Prices shown are approximate. Past performance is no indication of future performance.