Recent Buys – GE, ENDP

GA

Hello everyone!

I have been working on my books so I can do taxes. And it takes longer than it should.

…. Well, the truth was I’ve been getting on the March Madness bandwagon. heheh, college basketball in March is super chaotic. My bracket again was busted on the very first day.

Even that, I’ve still manage to make 2 purchases – GE and ENDP

I’m not going to do analysis either one of them. But I know GE is a solid company that is going through some transition period, so the price has been falling, so I’d like to catch it on the way down.

ENDP – I broke my rule again not to buy pharmaceutical company. The stock fall from $100 all the way down to $9.xx, I couldn’t resist. I know it doesn’t sell bad drugs, we are using its products at our hospital. The one thing I probably don’t like is it debts super high compare to ABITA. We’ll have to see if they will be able to ride this waves and get a few of their products approved by the FDA.

Overall, I’m pretty negative about the current market. I feel like there is a 10-30% correct coming:

  1. With the recent terrorist attack in London that killed 4 and injured 20 others, the Britons has moved forward to activate article 5 and exited out of the Euro to take hold of their border. The conservatives want out. They voted, and that that’s what they are going to go through. With British is out, I can see that Greece would be out sooner also.
  2. Greece Debts – They can’t cut their spending, the EU hasn’t released their funding. This Greece debt problem will not going away until they separate themselves from the EU, so they can create their own currency again to pay for the outrageous national spending.
  3. The US economy is not strong as you think, the wages don’t grow as fast as housing price.
  4. Interest rate is going to go up – this actually hurts businesses (except for the banks)
  5. Trump Economic Growth plan is a no plan. You can see it clearly he’s not a negotiator when they call the Repeal and Replace ObamaCare off. On the campaign trail, he promised the sky, now he wants to see ObamaCare to fail, then come back to negotiate. Well, apply this to everything else …
  6. 2008 Crash to 2017 is 9 years, the average correction period is 7-13 years. The market has a run from 15000 to 21000 points, it deems to correct.

For that, any rent money that I’m going to collect, I prefer to leave it in cash and paying debts.

Housing market:

  1. I went to show my property today and I saw a whole chunk of abandon buildings are turning into business and condos. I’m thinking it’s going to be a buyer market again at some point, as the inventory are going up with those rapidly redevelop buildings.
  2. Rental market – I probably won’t be able to raise rent after this year, as the competition go up. Older millennial are going to buy their own house, settle down, and have children.
  3. I probably will  not buy anymore property unless there is a deal that is just throwing at me that I couldn’t resist, but right now I have 12 units to manage and my time is valuable. I want to take care of this body. “Money can buy me a good doctor, but can’t buy me good health”. For that, I will always choose my health over anymore business opportunity that requires more time from me.

Weather:

  1. It’s been dryer spring that usual where I’m at. There has only been one winter storm, I fear a hot summer coming … diseases may follow, and it could be a stormy summer and fall.
    • I remember in 2006, there was a couple of earthquakes in San Francisco, one of my colleague, he went to San Francisco to buy up damaged home for a fraction of the going price. Fixed up and made a fortune.
    • I’m looking to buy a small place in Puerto Rico if opportunity arise (this contradict what I said about not buying earlier, but only when there is a price/place that I couldn’t resist). My checklist would be – close to the beach, have snorkeling space, close to all amenities, cheap, cheap cheap…
    • 1. Hotel for $750K in Fajardo
    • 2. 10 acres in Rincon for $1.2M
    • 3. Beat up house in Old San Juan for $50K
    • 4. Condo near Condado beach for $60-150K
  2. I guess, what I mean is being patience, do your research, when opportunity arise, recognize the deal immediately and make the executive decision immediately.

Well, I’ll get back doing my taxes. I might disclose some of the financial piece once I’m done with it. Depend on how I feel about it. LOL 🙂

 

GA

8 Comments

  1. Thanks for sharing your recent pick ups. It’s been a long, long time since I added to my GE. Any particular reason GE interested you at these levels? Never heard of ENDP but that is some decline they experienced in the last year plus.

    • I had some money in my Roth IRA from selling BAC to fund my Commercial Property. I had GE in my portfolio before unloading in ~$32. GE @less $30 is okay to load it back up for me.

      GE will have strong support around $26-$27 range, so if it come down to this level, I don’t mind adding a lot more.

  2. 12 units to handle at the moment. I can’t even imagine you need to run around keeping tabs on the rental, paperworks and any admin stuff you have at your end. How does the roi works for you so far in terms of property rentals, after netting all taxes?

    • Luckily, I bought these units in bulk. Just 4 books to run. Unlike my brother, who’s up to 15 properties now. … his accountant is happy, that’s for sure.

      Still tons of work. 🙂

  3. Nice to see a few more buys from you, given that you are putting so much focus on your properties. Do you constitute 2015 as a market correction or just a bearish year given the fact everything has shot up significantly to record highs in the past year? I agree, we are due for another correction soon as everything now is so overvalued. That will be the time to purchase more so having capital available for that opportunity is important. Thanks for sharing.

    • 2015 was barely 10% correction. Although I do believe the oil and gas did have a real correction being down 60% in oil price and quite a few went bankrupts.

      With each presidential administration, there are a few projects that would cause a few companies or sectors to do well.

      Clinton was tech boom
      Bush was an oil boom, and he started a war so defense or weapons company did well
      Obama was clean energy boom, he also started another war in Afghanistan so more defense boom

      With this kind of trend, Trump is property even worse. There were merely chaos, he immediately cause chaos with the immigration ban.
      There will be even a lot more competition in price war or how successfully he could bring back job to America,or it’s not even feasible for American companies. It’s probably too late as China economic opportunity for the West has come to a close – when they partner with the West,part of the deal was they get to own some of the intelligence and patents. If they can’t, they’ve granted patents to domestic companies. Then,they kick the West out.
      China is benefit greatly by not obeying or complying with economic sanction to Russia, Cuba, North Korea, etc.

      The US economy is so fragile that it’s probably doesn’t take much to crumble. Just go to a rural town to see all of their plants are shut down. Most of our current jobs are service job. That’s mean money everybody are collecting are coming from the printing machines. China is prodcing everything, and the US is consuming ev

    • So, correction would be good for Main Street to catch up to Wall Street. House prices are increased at much higher rate than wages.

      Silicon Valley with unrealistic companies and IPOs needs to go away or brings back to realistic level.

      But with that said, I still don’t have any money if a correction come today. I wanted a good run all the way until the end of the year. I might have tons of cash build up by then 🙂

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