|Posted on November 14, 2013 at 10:25 AM||comments (2)|
On Nov 1st Seth Klarman filed his Q3 investments portfolio with the SEC. One of the new changes listed in the Baupost Groups' holdings was a significant increase in shares of Idenix (IDIX). You can see the full listing here. While there is not a lot to like about the financial position of this healthcare firm, they do have a promising pipeline and are entering clinical trials with a Hep C drug.
When I was at MIT I heard Seth Klarman speak about investing, and one of the points he emphasized was that he always looked to find distressed valuations. Even though IDIX jumped 40% when they reported news about the clinical trials on Nov 1st, my assumption is that this stock is still valued at "distressed" levels.
I'm a buyer of IDIX at $4.54.
UPDATE August 2014
Merck acquires Idenix for $24.50/share. Position closed out.
|Posted on August 27, 2013 at 9:50 PM||comments (0)|
Looking at the recent earning from EBAY, there was a lot to like. The three things that made me a buyer are the stock's PE, the growth of EBAY's core business units, and the recent price performance of the stock.
- PE Ratio: The stock is currently trading at a P/E of 25, significantly lower than it's main competitors. Compared to AMZN and FB which both have triple digit PE ratios, 25 seems like a bargain in the high growth tech sector. Even compared to GOOG, which is trading at a 26 PE, EBAY seems to be on the lower end of the PE spectrum within the tech industry.
- Business Unit Growth: Looking at the 10K, the two newer BUs are growing at a very attractive rate. Payments growing total payment volume at 24% and Enterprise growing merch sales at 21%. All this high growth while the huge core business of Marketplaces continues to grow in the low double digits.
I'm a buyer of EBAY in the low $50s