But first . . .
Friday I linked you to Glenn Sonnenberg’s Mother’s Day column on over-wokeness.
Well, guess whose Day comes after Mother’s?
That’s right!
If only I had kids and a lawn, I’d so want one of these June 18:
A “Roomba” for your lawn and the environment. Amazing.
(Where do I come up with this stuff? Thanks go — again and again — to the amazing Tony Seton for sharing his favorite links with me, which I frequently share with you. The link to Sherlock Holmes was also Tony’s.)
And now . . .
UNIT
Twice suggested, though only for money you can truly afford to lose .
Rob: “Saw this article at fool.com. Highlight: <<Uniti, which was spun off from Windstream, is another problem child. This REIT owns fiber optic cables, with Windstream accounting for around two-thirds of rent even after nine years as a stand-alone company. Along the way, it has been caught up in the bankruptcy proceeding of its former parent, and right now is eyeing a big lease renewal that is likely to be very contentious. In fact, Windstream, which is now a private company, has been explaining in presentations that it expects rent costs to drop by around two-thirds when the lease is renewed in a few years. If that comes to pass, Uniti will be in a financial pickle, and a dividend cut would be nearly impossible to avoid. This helps explain why Uniti’s dividend yield is an eye-catching 19%. For most investors the risk/reward balance probably won’t be worth the investment.>>”
My guy: “I’m well aware of the UNITI/Windstream situation. First, the lease contract does not expire until 2030. Second, while they are at odds with each other, they will clearly settle over the next few years as it is in their best interest to do so. Third, Windstream has no alternative to using UNITI. So they can blather about huge reductions but they won’t get them. Fourth, Aurelius Capital essentially stole Windstream in a bizarre lawsuit and is trying like crazy to monetize the acquisition so they will say all kinds of things. So I will collect my dividend for the next seven years. UNITI will continue to grow away from Windstream. There will be a new agreement between the two sides. UNITI has put a huge amount of new fiber in place. The projections show massive growth over the next five years. A final point: UNITI refied its debt last year so they are good to 2027. It’s a carefully run company. I am buying down here. Maybe I’m wrong but I’ll take the chance.”
→ I’m with my guy, but we’ll see.
PRKR
Humayun Mian: “Are you still hanging on ? If so why?”
→ Yes.
My hopes were shattered by a judge who could just as easily have made us all rich (and, at least as I understand the situation, allowed justice to prevail). But I hang on because I’d feel worse seeing it quintuple after I sold than I would seeing it hit zero. Intel’s $25 million patent-infringement settlement, though puny, may not be PRKR’s last. And the company claims to have new technology on its shelf that could conceivably prove valuable.
APE
Continues to sell at less than a third ($1.59) what its identical twin AMC sells for ($5.20), and APE shares will almost surely become AMC shares this year. No one can say where the stock will trade then — it could be even lower than APE’s current price. But wherever it is, today’s APE holders will be a lot happier (or less sad) than today’s AMC holders.
OPRT
Mentioned around $4 few weeks ago. Though up 30%, my friend who knows it well is holding all his. He calls it “ridiculously cheap, selling at less than 2x management’s projected cashflow which itself is roughly 1/2 of what it reasonably could be if they radically downsized their bloated overhead and focused on only the profitable parts of their business.” I listened to this whole interview and read this hopeful press release over the weekend and then bought some more yesterday. Only with money we can truly afford to lose — who knows (for example) what will happen if the extreme MAGA Republicans throw the world into chaos by reneging on our Debt — but Brian Finn sees a company that could be earning $3 a share in 2024.
Editors Note: This article was originally published on May 16th, 2023 on andrewtobias.com, syndicated with permission.
Andrew Tobias is the author of The Only Investment Guide You’ll Ever Need.
