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Update on portfolio

I’ve not been that active on updating the blog or my recent portfolio changes. Here is a quick update on what I’ve been doing with the portfolio

– Sold out of Taro Pharma. The recently quarterly numbers were good. The sell was not related to any earnings or future prospects. It was just a situation where I could deploy the cash elsewhere and could expect better returns. Also, Taro will likely have the Sun Pharma buyout cloud that will keep a hold on the stock price.

– Sold out of KFS. Again, nothing related to the operations of the company. I really like the company and the management team. The company has over $20/share in NOLs and recent acquisition is a sign of how management plans to make the most out of its NOLs. Since I have limited cash, I got to put the cash to work on what I think will be my best ideas.

– Bought Exco Resources. This is as much as play on NatGas rebounding as it is on Ross, Oaktree, and other great value investors. I think you will see the turnaround in NatGas prices having a huge impact on Exco’s stock price.

– Bought more Chesapeake. We love this company and the price it is selling at. We have been buying at anything below $20. I would love to buy more. The company has incredible assets and the changes in the Board and management team will help shareholders get the best value from this company.

– Bought Infusystem. This is a special situation where I’ve been putting most of my cash from Taro and KFS. There is a short-term catalyst in play. An activist, Ryan Morris, recently stepped down as Chairman of the Board to make an offer to take the company private. He has until mid-June make the offer. At current prices, I think there is great potential to make very good returns in less than 30 days. The downside is limited as it very low probability that Ryan doesn’t have the financing worked out.

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