PTB, NGE, AAPL:US,

PTB – reaffirmed guidance and clearly stressed their preference to pay fully franked dividends as much as possible. We may not be far from a large dividend that will hopefully provide a catalyst here.

NGE – they have finally moved to utilize some of this cash box. The target is KAR with now 18% of NGE representing a KAR investment. They seemed to have perhaps timed the purchase near the low. I don’t mind this as KAR itself trade at about a 30% plus discount to their cash now. A year or two ago they were subject to a bit of activism with an investor trying to displace the board, albeit unsuccessfully. Here KAR could be placed to move higher by a higher oil price, or preferably some measures from NGE to sharpen up the company. They do not own much yet, but I feel they could team up with others on the KAR share register to kick things along. Maybe it’s changing the board, a buyback, stopping some of the waste or new acquisitions for a while, or being very receptive for someone to take over KAR. Maybe they will be a nuisance such that KAR takeover NGE! Anyway there is enough smoke in this situation for me to buy some KAR also. Not sure if I mentioned it previously but as a reminder Kentgrove capital are the investors essentially controlling NGE, their performance looks very good.

AAPL:US – I don’t own this yet but put it down for a mention as the stock plunged 6% on its earnings release. I shall not write much other than to say it is a watch for mine to potentially own down the track, though I am uncertain when to enter. I recommend digging up comments from 3 investors I respect who were very bullish on the stock even BEFORE this 6% drop. Carl Icahn, Magellan Financial Group from Australia and Watermark Neutral Fund. The key bullish themes are overlapped with these three and covered well. UPDATE – I put this together last night before the news of Icahn selling. However, it doesn’t change my view that this might be a good stock to own down the track. His selling decision does not differ from my view in a way, it is one that hopefully gets beaten up a bit shorter term that will be very cheap to profit from later on. It does seem Icahn wants to de-risk in general also at the moment.

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