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 Street
Apt 544
Madison, WI 53703
Bud: 312-925-5248

Comments on activity in client accounts

25 October 2019

We will be traveling all of next week and so our next post will be November 8.

During the week we repurchased AT&T at $36.90 after selling it last week at $38.40. We also received a 50-cent dividend. We have had good luck trading T this year.

Nokia dropped 25% on Thursday on good sales and earnings but a less than forecast and the elimination of its dividend for the next year to concentrate on its 5G business. We bought shares at $3.95 in some large accounts

We currently own AT&T, ViacomB, CBS, Nokia, and Ascena. All large accounts are 80% cash with smaller accounts at that level if their AT&T position is included.

Happy Halloween!!

"In three words I can sum up everything I've learned about life: it goes on." Robert Frost

*****

18 October 2019

During the week AT&T moved higher on news that management was seeking accommodation with the Elliot Group. we added our retail trades which have backed off 10% and more from our sale price levels of last month. Even with those purchases larger accounts are 70% to 80% cash (Wisdom Tree Reset Treasury ETF) and smaller accounts have overly large position in AT&T as aggressive cash substitute with a 5.5% yield.

Markets are ignoring the Trumpster Daily Variety show and given that the Senate Is not inclined to convict the markets are ignoring the brouhaha.

We currently own; AT&T Urban Outfitters, Michael's Stores, ViacomB, Abercrombie, Macy's, The Gap and American Eagle Outfitters.

We also repurchased small amounts of Ascena in tax free accounts and will repurchase small amounts in taxable accounts next week when the 30-day wash sale period expires. We have been whipsawed and wrong on Ascena this year. But in their last quarterly report phone conference the company said they were not considering Chapter 11. We also read that Ascena is considering selling Lane Bryant. Our thought is that the negotiations on Lane Bryant and maybe Justice might-hopefully- be why insiders and the company are not purchasing shares at these levels. The position is minor -less than 1% in all accounts but if ASNA a does survive the upside is rewarding.

Hope springs eternal.

Ascena Retail Group Inc.'s ASNA, Interim Executive Chair Carrie Teffner used the fiscal fourth-quarter earnings call to reaffirm that the company won't be filing Chapter 11 like so many other retailers recently. "The company continues to consider options to optimize its balance sheet and liquidity from a position of strength," she said on the call, according to a FactSet transcript. "[T]o be clear and for the avoidance of doubt, bankruptcy of Ascena is not one of the options being evaluated." Ascena is in the process of winding down its Dressbarn business, which should see all of its stores closed in December. And Ascena has divested the Maurices business, a $300 million deal with OpCapita LLP announced in March. Remaining Ascena brands include Ann Taylor and Lane Bryant. "We have a portfolio of strong brands, three of which individually generate revenue of approximately $1 billion or more," Teffner said. Ascena reported a quarterly loss, revenue that was slightly down from last year and flat same-store sales. Ascena stock has lost more than 92% of its value over the last year. The stock was trading at 32 cents Friday afternoon. The S&P 500 index SPX, -0.08% is up 1.5% in the last 12 months.

https://www.marketwatch.com/story/bankruptcy-of-ascena-is-not-one-of-the-options-being-evaluated-says-interim-chair-2019-10-04?siteid=yhoof2&yptr=yahoo

(Bloomberg) -- Struggling Ascena Retail Group Inc. is considering the sale of two more of its chains amid mounting losses and signs that creditors are losing confidence in the company's prospects.

Ascena has held discussions about divesting Catherines and Lane Bryant, which specialize in plus-size women's apparel, according to people with knowledge of the matter. They asked not to be identified because the process isn't public.

https://finance.yahoo.com/news/ann-taylor-parent-considers-sale-215211460.html

Is Gap (GPS) Stock Undervalued Right Now?

https://finance.yahoo.com/news/gap-gps-stock-undervalued-now-131001492.html

Abercrombie

https://finance.yahoo.com/news/abercrombie-anf-witnesses-balanced-risk-140702867.html

*****

11 October 2019

Markets recovered late week as the Trumpster decided to talk with the Chinese and promised something might occur from the reenergized talks.

We remain negative on the markets but did repurchase Urban Outfitters and Michaels as non-mall retailers who would benefit from any positive China/US action.

And we repurchased Viacom B near its 10-year low. CBS will acquire VIAB in the near future for .59625 shares of CBS stock. Both companies are ridiculously cheap. They both have a huge amount of content in their libraries and they continue to produce content every day. Eventually someone is going to buy the combined companies. We have traded profitably in the past.

Even with those purchases most accounts are 60% and more cash (USFR) or majority AT&T stock (smaller accounts) which went ex-dividend 51 cents this week.

Big freeze coming tonight.

*****

4 October 2019

Markets were lower this week but still within two- or three-trading days of new highs.

We are content on the sidelines maintaining our all cash position. We bought shares of AT&T in larger accounts for a trade since it's backed off 10% from its recent high and is going x-dividend 51 cents next week.

The fall colors are arriving this week in the land of milk and honey.

*****

 


Comments on activity archives

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.