Stock Buy - Osprey Energy Acquisition Group (OSPR)

Updated 7-31-19

A few notes on this investment. The price currently sits at $7.91 and is not unexpected.

I haven't had a chance to review the latest filings to see if my investment thesis has changed. Some investment advice for free: it's not very wise to not read keep up with your investments on at least a quarterly basis. I don't watch the stock ticker daily.

Osprey has undergone a couple of changes since I last posted.

First, the acquisition of Royal Resources LP was completed. In conjunction with the closing of the deal, Osprey changed its name to Falcon Mineral Corp and is trading on the NASDAQ as FLMN.

I will post more updates once I spend some time reading the latest filings.

Original Article - 6-22-18

I've wanted to get back in the investment game again. It's not really a game. I carefully consider the risks involved and the potential returns.

After careful consideration I decided to invest in Osprey Energy Acquisition Group.

OSPR is a blank check company that acquired mineral rights to leases is the Eagle Ford shale fields.

Make no mistake, this is a high risk investment. Currently, outside of the IPO and some warrant placements, the cash flow is nil, nada, zero.

What I'm buying is future earnings and cash flow that is currently untapped in the ground and the management team has the ability to create cash out of the ground. I'm also buying on the management teams past history of unlocking value from high risk situations.

There is a higher than usual risk of losing capital in this investment. My investment thesis rests on the potential of converting natural resources into cash.

When I write about investing, I never reveal a dollar amount I invest. I refer to positions. A full position refers to the amount I consider the most I'm willing to invest in most stocks I buy. Based on my investment thesis, I may buy a higher or lower amount of a full position.

For OSPR, I'm debating on how much to buy. I'm purchsaing my first batch in a week. I'm leaning to buying an initial half of what I consider a full position. My ultimate goal to buy a minimum of a full position and possibly over by a third.

My preferred entry price is $12.50 per stub. My goal is a minimum of a double but that would be a major disappointment. I believe that the initial investment will return ten times my investment.

Again, this is a highly speculative investment with high risk, high reward potential.

Don't buy on my writing. Do your own due diligence.

Updated Watch List 04-11-18

I've been waiting for the Saudi Aramco IPO. It was supposed to happen in the first quarter 2018. We are eleven days into the second quarter.

So what is the next best way to get a piece of the Saudi action? You know, wet your beak a little? Invest in companies with ties to the House of Al Saud.

A Little Background on Me

 I work in the O&G business...Oil & Gas. One of the best pieces of investment advice I can give is "invest in what you know." So I look for opportunities in my industry. I don't often find to much.

But it doesn't hurt to keep a watch list in my industry.

What Do I Know?

One of the reasons I'm interested in the Saudi Aramco IPO is because not only am I in the O&G business but I've been involved in Saudi ventures. 

Disclaimer: I don't own stock in any Saudi companies, subsidiaries or have any insider knowledge of any Saudi moves. What I know is from public info and nothing proprietary from my experience in the business.

It's no secret that the Saudis want to diversify. They are starting to realize that they cannot sustain drilling and selling oil. There is more money to be made in diversifying into all aspects of the petrochemical business.

SABIC (Saudi Basic Industries Corporation) is opening a massive project in Corpus Christi, Tx. 

Saudi Aramco just announced a big investment in TechnipFMC which is a public company. Honeywell UOP is also discussed in the article but they are not a publicly traded company. The article is worth the read.

Up In Smoke

John Boehner is joining the board of Acreage Holdings. Unfortunately they are not a public company either but it's worth looking for investment opportunities in the growing marijuana field.

Stock Watch - Louis Vuitton Moet Hennessy LVMH

8-17-17
One way to get investment ideas is to see where the money flows to from consumers. Being married, I started watching my wife's favorite brands that a single man wouldn't notice.

One of her favorite stores is Sephora. While at a Sephora location in a huge high end Texas mall, I noticed the amount of women that packed the store. So I decided to do a little digging.

Sephora is part of a larger company based in France - the LVMH group. My jaw dropped when I saw the businesses owned by LVMH. The stock ticker symbol derives from three of it's business lines: Louis Vuitton, Moet and Hennessy. Recognize those brands? Pretty high end.

It goes deeper. LVMH owns over 70 business. Or Houses as they like to call them. The Houses are divided up into six business sectors: Wine & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry, Selective Retail and Other Activities.

This is just the surface. I'll post all my LVMH rantings, research, commentary and ultimately if I think it is worth ownership.

Investor Education - The Most Important Metrics for REIT Investing

One thing that is important when you do you own investment selections is to understand what you are buying and how to investigate the underlying business.

There is always risk to investing. An investor cannot simple remove risk. What an investor can do is lower the risk factor by education. Armed with information, an investor can make a prudent investment for his risk tolerance.

All that stated, anytime I find a news article or website with what I feel is of important investment educational value, I will post the link under the heading Investor Education.

Real Estate Investment Trusts (REITs) are great income generating investments. However, REITs are not for every investor. How does one determine if REITs are proper for one's individual portfolio? Learning what an REIT is and how it works as well as how to evaluate an REIT is the key.

Linked article is The Most Important Metrics for REIT Investing by Brian Bollinger of Simple Safe Dividends. Click on the hyperlinks for more info on Bollinger and his newsletter.

Happy investing! As always, I present my research for educational purposes only. Please due your own due diligence before you invest. Mentions of my personal transactions are for full disclosure and education purposes and are not recommendations on my part for anyone else.

Starting From Scratch

Greetings all from Monkeyland.

I'm starting my portfolio over. A few years ago, I sold off all my holdings to buy a house. That was fantastic decision as I later sold the house for a sizable gain.

I've decided that now is the time to restart my investment portfolio.

You have to start from somewhere, so today I begin by assembling my watch list.

I signed up to receive an email from Daily Trade Alert. I try to scan it and read for ideas.

A while back, I talked to a coworker about the cannabis industry as a growth play. Lo and Behold, an article with seven cannabis stocks popped up on Daily Trade Alert recently.

The link is These 7 Cannabis Stocks Are Legal Monopolies.

The seven stock mentioned in the linked article:

Happy hunting as this is my first official watch list additions.  I'll keep this updated as I investigate each potential holding.

Stock Holdings Update and Current Purchases

I've been evaluating my portfolio and my current holdings and amounts.  As stated previously, I sold off the majority of my stocks to help fund the purchase of a new home.

I have a certain dollar amount which I call a full position.  Sometimes I overweight on a stock if I feel particularly confidant that it has potential.  Other times I underweight a position if is more speculative and risky.  A lot of investing involves investing money amounts that you are comfortable with.  If you put amounts that are keeping you awake at night.  You then need to rethink your philosophy and how much you put in.

For the record, my current portfolio contains the following holdings:

• Arctic Cat (ACAT) - currently acquiring shares for a full position.
• Ameresco (AMRC) - currently acquiring shares for a full position.
• Activision Blizzard (ATVI) - holding full position
• Dolby (DLB) - holding full position
• Momenta Pharmaceuticals (MNTA) - holding a third of a position.  Currently evaluating whether to continue to acquire shares.
• National Oilwell (NOV) - overweight 17% above a full position due to dividend reinvestment.
• Seaspan (SSW) - overweight 5% due to dividend reinvestment.

In my stock search, LinkedIn has move to the top of my list.  Next week's stock order will include my last purchase of ACAT to complete a full position.  It also included my first purchase of LNKD.  

LNKD will be an addition to my Thundercougarfalcon Fund.  That fund was started two years ago to track my own selections outside the newsletters.  Unfortunately, I neglected my own stock research so currently the fund holds one stock.  I wanted to add three to four stocks a year to it.  If I had followed through, I'd probably have a 8-10 stock personal fund.

Next post, I hope to have my reasons and some research on why I'm buying LinkedIn.

New Watch List for 2012

So what?  The year is starting the sixth month.  I'm sticking with the old adage that it's never to late to invest.  Since I purchased the house, I've neglected my portfolio.  Now is the time to start rebuilding it.

Today I was pleasantly surprised when I took a peak at my brokerage account.  I have a little more than I thought I did.  That's always nice.

I decided to start a new watch list.  It's been so long that I actually updated my old watch list that I decided it is better to start from scratch.

The new watch list consists of:

Regis (RGS)

Retail Opportunity Investment Corp (ROIC)

Brookfield Infrastructure Partners (BIP)

Builders FirstSource (BLDR)

From the Motley Fool article, 3 Unappreciated Stocks To Buy Hand Over Fist in 2012, , the three stocks mentioned are:

Regis (RGS) - Owns hair salons including Super Cuts.  

Article Notes:

1. Old ownership wasted shareholder capital  on bad deals and bloated middle management.

2.  Starboard Capital won a proxy fight and installed three members on the board. 

3.  Due to Starboard challenge, CEO-elect and COO resigned.  Middle management cut and company looking to sell non-core business such as beauty schools and hair restoration business.

4. North American operations is a cash cow.  Cuts of management, sell of non-core assets and other moves could leave it with plenty of cash.

Retail Opportunity  Investment Corp (ROIC) - a REIT that prefers property in affluent areas with a high traffic retail anchor store.  Also buys depressed commercial real estate and low prices.

Article Notes:

1.  CEO Stuart Tanz experienced with REITs.  Ran Kimco Realty that earned investors over 800% in ten years.

2. $600 market cap, 4% dividend, payout of 70-80% of funds.

Brookfield Infrastructure Partners (BIP) - owns a wide variety of assets such as "timberland, railroads, ports, power transmission assets and coal terminals."

Article notes:

1.  Looks to invest in high quality assets with steady income streams.

2. Lists acquisition of two Chilean toll roads and Australian Prime Infrastructure as examples of types of assets BIP invests in.

3.  Also states that company has goal of capital appreciation of 12-15% a year along with a payout growth of 3-7%.

From one of my newsletter subscriptions:

Builders FirstSource (BLDR) - supplies raw materials to home builders mostly in the South and East United States.   Basically anything a builder needs, from materials to contractor services,  BLDR will sell or install it.  Insiders are buying on the open market. 

In my opinion, this is a very risky stock.  With prices ranging recently from $3-4, it almost looks either like a garbage stock or undervalued.  Only more research will tell which direction I will go.

Note on subscription watch list stocks:  I don't feel obligated to not divulge watch list stocks from newsletters.  The stocks are mentioned as ones to keep an eye on and for further research for subscribers.  The stocks are not recommendations and are not tracked with sell, hold or buy and updates like the formal recommendations are.  A stock may only be mentioned once in a newsletter and never heard from again.  Thus, I feel free to discuss those stocks on my blog.

Finally I ran a stock screen on the Wall Street Journal website: WSJ Stock Screen 6-9-2012 (pdf file).