Champton - Page 3 of 32

May 21, 2020

Added to Capital One Financial Corp (COF), Verizon Communications Inc (VZ), and Berkshire Hathaway Inc. (BRK.B)

Jeremy Ryan Berkshire Hathaway, Berkshire Hathaway Inc., BRK.B, brkb, Capital One, Capital One Financial Corp, COF, geico, verizon, verizon communications inc, VZ 0

Added small amounts to existing positions today in Capital One Financial Corp (COF) at 60.74, Verizon Communications Inc (VZ) at 54.0241, Berkshire Hathaway Inc. (BRK.B) at 174.74.

All are in my top 15th largest positions.

Here is my previous analysis/trades for all positions:

May 14, 2020

Community Bancorp (CMTV) – Buy

Jeremy Ryan CMTV, Community Bancorp, Community National Bank 0

I added more to my position in Community Bancorp (CMTV) today at $12.00. Community Bancorp is now my 4th largest holding.

The continued downward pressure on the banking sector makes for a good opportunity to add more or initiate a position to regional banks with conservative businesses. Similar to the 2007-2008 financial crisis, the banking sector was hit hard mainly due to issues with the larger banks and their riskier activities. Many regional banks were taken down with them in the stock market, but the underlying businesses were sound. Similar to Community Bancorp, I made significant investments in Merchant’s Bank at the time, which traded at really low book values and had very limited exposure to the crisis.

During the COVID-19 crisis, Community Bancorp has been able to participate in the PPP loans to small businesses. Banks can make 5% for loans of not more than $350,000; 3% percent for loans of more than $350,000 and less than $2 million; and 1% for loans of at least $2 million.

It appears that Community Bancorp did a great job reaching out to clients to apply early and secure loans for clients in need Here is a quote from a recent Burlington Free Press Article on PPP loans in Vermont:

“Community National Bank has saved thousands of Vermonters from total economic catastrophe through this program,” Heilenbach said. “You’re talking about people’s livelihoods.”

The price jumped a bit after I bought to 12.45/share. At this price the price/book is .95. I consider anything under 1.5 a good deal. Earnings yield is 13.57% and dividend yield is 6.10%.

I’m sure that there is some risk of loss of book value due some loans, but it appears that the government is intent on minimizing through the PPP loans to small business, unemployment benefits, low interest rates and continued stimulus. They don’t seem willing to let people and small business lose their homes or businesses due to the virus. I think the current price more than compensates for any losses they may see.

See more comments on Community Bancorp here.

May 13, 2020

Added to COF, UPS, VZ, CMCSA, INTC, and BRK.B

Jeremy Ryan Berkshire Hathaway, Berkshire Hathaway Inc., BRK.B, brkb, Capital One, Capital One Financial Corp, CMCSA, COF, Comcast, Comcast Corporation, geico, INTC, Intel, Intel Corporation, united parcel service, United Parcel Service Inc, ups, verizon, verizon communications inc, VZ 0

Added small amounts to existing positions today in COF at 53.8678, UPS at 90.7259, VZ at 54.5934, CMCSA at 34.7423, INTC at 57.2345, BRK.B at 170.26.

All except Comcast Corporation and Intel are in my top 15th largest positions.

Here is my previous analysis/trades for all positions:

May 12, 2020

Intel Corporation (INTC) – Buy

Jeremy Ryan INTC, Intel, Intel Corporation 0

I added to my position in Intel Corporation (INTC) position today at $59.265. Intel is not in my 15 largest holdings.

I first initiated a position in Intel back in 2013 at $21.1139. The pullback during the COVID crisis has made the stock a lot cheaper than it has been in a while. I’ve been considering getting some, but felt other companies were a better opportunity. Now that I’ve acquired a good amount of the top picks I feel comfortable with getting some of Intel even though it has recovered a bit itself.

Pros and Cons of Intel

Intel is one of the largest chip makers and makes most of the chips for PCs and servers including most of the computers I’ve every purchased. Even though PCs have been on the decline, the business community will most likely always depend on computers with strong processors and the growing work-at-home movement should provide more demand for their technology. They invest heavily in R&D, which helps keep them and the few other chip makers holding the market to themselves.

Most data centers rely in Intel technology. The growing usage of cloud services should continue to create demand for their technology. However, they will need to continue to invest heavily to stay ahead of competitors like AMD and Nvidia.

Intel is also investing a lot in Artificial Intelligence.

Valuation of Intel

Trailing PE: 11.49
Return on Equity: 30.25 (5yr high)
Earnings yield: 8.56% (5yr high)
Dividend yield: 2.20%

I may add more if the price stays around this level depending on other opportunities.

See more of my Intel comments/ analysis here.

May 12, 2020

Verizon Communications Inc (VZ) – Buy

Jeremy Ryan verizon, verizon communications inc, VZ 0

I added to my position in Verizon Communications Inc (VZ) position today at $55.6776. Verizon is still my 5th largest holding.

Verizon is one of the few investments that hasn’t recovered much from the lows. Therefore, still remains attractive in this market where much of what I like has already appreciated a lot.

Much of what I said in my previous Verizon analysis still stands.