Bud's Poem Page
  Katie's Route 66 Blog
  Katie's Coast2Coast Blog
  Katie's West Coast Blog
  Katie's East Coast Blog
Lemley Yarling Management Co
309 W Johnson St
Apt 544
Madison, WI 53703
Bud: 312-925-5248

Comments on activity in client accounts

18 November 2022

We are traveling next week so our next post will be December 2.

The markets were mixed this week with Monday/Tuesday being 500 plus point move days for the DJIA. The rest of the week was tamer but still involved 1% up/down daily moves.

Thanksgiving week is usually positive and the seasonals are favorable but the computer boys and girls are always ready to add to the volatility. They don't care whether prices are up or down; they just want volatility. And thin (low volume) markets that we will have next week are just the ticket for computer gyrations.

On Monday we decided to lock in more gains from the previous week and moved to a 50% cash position in larger accounts. We then redistributed some of the cash into mor staid issues such as Intel, AT&T, Verizon, the domestic bank ETF (KBWB). We also traded our retails stocks pre and post earnings for nice profits. We sold The Container Store and Paramount Plus for losses and will reconsider them at the end of December.

We added one new issue, Dentsply. The symbol is XRAY and it is a leading dental supply company. It's been under pressure all year because former executives fiddled with earnings reports to enable greater bonusses. XRAY has a new CEO from Becton Dickinson and a new CFO and has restated its earnings for the subject quarters.

We now own: Disney, Twilio, Verizon, AT&T, KBWB, Key Bank, Intel, GSK (Glaxo Drugs), Organon (women's health), XRAY, Macy's, Portillo Hot Dogs and Ford.

We wish all a peaceful Thanksgiving.

Armistice Day 2022

Thank you, Mr. Market. We were fully invested when the positive inflation report (a drop in core inflation of food and energy and also the overall number) led to a 5% rally on Thursday. When the rally in our stocks continued into Friday, we took profits and a loss or two to replenish cash in accounts.

We sold the fancy stocks we had purchased for a trade and also eliminated -for profits or scratches- all non-dividend paying stocks except for our 2 retail issues, Under Armour and The Container Store. For the latest quarter Under Armour reported better than earnings and while TCS reported less than it remained profitable and at 5 times expected annual earnings. The one other non-dividend stock we now hold is Disney which we repurchased this week when it dropped 12% on less than to an 8 year low.

We continue to own Verizon, AT&T, Citicorp, Truist Banks, Key Banks, GSK (Glaxo Drugs), Organon (women's health) Paramount and Ford.

We also repurchased Walgreens higher than where we sold when WBA announced the purchase of Summit Health and analysts approved and raised ratings on the company. This may be the catalyst that brings WBA's share price back into the land of the living. https://www.fool.com/investing/2022/11/07/walgreens-villagemd-agrees-to-9-billion-deal-for-s/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

We still own our retail contingent of Foot Locker, Tapestry (Kate Spade & Coach), Macy's, Nordstrom, Levi Strauss, The Gap, Under Armour, and The Container Store. We traded out of Abercrombie (no dividend) for our fifth trading profit of the year.

We did predict the lower CPI (inflation number) although we thought the turndown would occur on October not November. The one month lag did cause us some give back; but Thursday's blast higher recovered the pullback and then some. All but the smallest accounts are profitable for the year (and the small ones will pop as/if the rally continues) and the seasonal action suggests higher into year-end since we have endured the early November weakness that usually occurs.

Sometimes it's better to be lucky than smart but being both is the best.

*****

The purpose of bitcoin is to replace cash. Then why did the bitcoin exchanges which are failing need an infusion of cash?

FTX investors have been warned that the crypto exchange may be forced to file for bankruptcy protection if it doesn't get a cash infusion, Bloomberg reported Wednesday. (It filed bankruptcy today)

The news follows reports that Binance balked at an earlier promise to buy the troubled trading empire after looking at its books. Bloomberg reported the FTX exchange faces an $8 billion shortfall.

FTX has been on a tailspin for a week following CoinDesk's reports of the blurred lines in the books of Sam Bankman-Fried's once-mighty empire.

*****

4 November 2022

We now inhabit a market where good news is bad news. According to the gurus the addition of 261,000 jobs in October was too hot when the ‘experts' guesses were that 200,000 jobs would be added. The 261,000 was down 50,000 from jobs added in September.

Markets were down for the week for the first time in five weeks. Wednesday's Fed announcement of a 75 basis point hike sent the markets into gyrations as the computer boys and girls pushed the DJIA 400 points higher in the first 15 minutes after the Fed announcement before reversing and slamming the major measures when Chairman Powell was speaking sending the DJIA down 400 points on the day. The intraday move was (1200 points – 4%, Ho Hum)

Friday also was at the mercy of the computer kids as an early 500 point DJIA gain was erased then regained to close up 400 for a 1400 point intraday move.

Our guess is that this up/down action will continue till the November or December CPI numbers exhibit any weakness.

We have been trading our positions for scratch profit and losses. It seems like every time we relax and feel good about accounts being back in positive territory for the year Mr. Market serves us a dish of humble pie.

This week we added Google, Amazon, Marvel Tech (chips nor Spiderman), and the NASDAQ 100 QQQM to larger accounts. All are down 50% from highs and were owned and sold by us at much higher levels.

We continue to suffer with Paramount and Newell. Both are 20% losers for us and Paramount has been a thorn for many years. But with now 6% yields we plan on riding this selling pressure out. We sold AMCX ahead of earnings (which were good-stock is priced at 3X earnings) and bought back 10% lower today. We did the same with Organon. We continue to trade The Gap for 5% profits and were able to repurchase the stock today. GSK (Glaxo) had good earnings and we added to holdings shares after the report. GSK pays a 5% dividend.

And so, it goes.

*****

 


Comments on activity archives

2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001

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.


Website Information

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

https://www.rbcwm-usa.com/legal/rbc-wm/cid-277883.html?_ga=2.135033585.173888424.1512949149-1756823932.1512949149

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.