Let's Go Splunking - Splunk Inc (NASDAQ: SPLK)

I finally get to write about a stock in my line of work -- CYBERSECURITY! So awhile back, I was tracking the DMs of a few friends in my Mansa Musa Network. I don't recall which ones, but it may have been my guys from the A-Billi squad: Mario Gabelli (Gamco Investors) or Jeffrey Smith (Starboard). But long story short is SPLUNK had been underperforming in the stock world. In the regular world it's like the person that has been single for too long and is finally looking for someone to "Put a Ring on It". So, like the horrible reality TV shows of today, they announced they were looking to hook up in a very public way. I saw my buddies mentioning the value in SPLUNK, but I didn't pull the trigger early on. I was tardy and finally decided to pick up some shares ONLY when they finally announced they had found a partner. This partner was the deep pocketed company, called CISCO. They are well known for their enterprise networking and routing equipment. If you don't know what I'm talking about, it's the device most people attach to their home network for internet that allows you to have wireless or WIFI service.

Definitely do not quote me because it has been a while, but I believe the buyout price was set at $157.50. So, what I did was use a well-known trading strategy on wall street. You've heard me refer to it before at the arbitrage approach. This means if I have high confidence that the deal (or hook up) is going to get done, an investor like me can benefit from the "spread" or difference between the price of when the deal is announced and what the final buyout or hook up price is. The risk becomes IF the deal does not get done (if the bride is left at the altar), this situation becomes a train wreck. Is this possible? Yes, it is --- see my posts on Tegna. This deal was thought to be all but certain and then the FTC stepped in and said the deal was harmful for customers across the country. So, you saw a stock go from $17 to nearly $22+ and come all the way back down because the deal was under investigation and ultimately canceled.

Now back to SPLUNK. I wanted to show you all what corporate governance looks like and what ownership looks like from an investor's standpoint. I got an email telling me it's time to vote on whether I think the merger should occur. I've pasted that screenshot here. I hope and believe this means we are one step closer to closing the deal. This is a great example of how hookups can help your portfolio.

Stock Motivation 101 - Standing Ovation: Your 1st 10 Bagger

These are more than words, this is more than rap

This is the streets and I am the trap

Standing ovation

Standing ovation

Once upon a time, I used to grind all night (grind all night)

With that laptop screen, that was iPod white (yeeeeeah)

I'm a boss, I got Juice like the magazine (jeah)

And everyday I see CEOs like a magazine (ha ha)

Psychopathic wordplay, schizophrenic flow (flow)

I guess it's safe to say I got schizophrenic dough (daaaaamn)

Artist: Young Jeezy / Album: Thug Motivation 101 / Song: Standing Ovation

Not too long ago, I watched two rappers, Young Jeezy and Gucci Mane square off on the VERZUZ platform. For me, VERZUZ is a musical boxing ring - one artist plays/performs a song and then the next artist gets their opportunity to play a memorable track. This internet only event live streamed over 1.6M+ people watching two titans of the south battle over of the world's favorite trap rap classics. Before I segway, I want to remind people this is the power of positivity as this internet only event easily competed with the viewership of the American Music Awards and many other prime time events that week. This event showcased two talented people of color who have been at a literal cold war for over two decades and shows how growth, maturity, and time can begin to heals old wounds. Imagine the business that can be done for our people in Atlanta if these two dare to work together in the future...powerful stuff.  Shout out to Stacey Abrams for making a brief appearance during the show. She reminded us of the important work that needs to be done on the streets. Voting, changing hearts, changing lives.

I'll segway to a first ever event I've had as an investor, Collectors Universe deserves a "Standing Ovation".  Why does it deserve a standing ovation? Well when I first taught myself to begin trading stocks at the age of 17, I use to listen to my dawg, the big homie Mario Gabelli. Yes, he's on the Forbes Billionaire list, has a business school named after him, has large stakes is a shitload of companies...and most people don't know he's one of the top 1500 of billionaires. 

Over the years on CNBC, Mario would describe this almost magical feeling (in my mind) about owning an asset that increases over time to a monumental threshold called a "10 BAGGER"! This sweet utopian moment is when your investment has increased over 10 FOLD! Collectors Universe has been on an amazing tear this year and hit this unicorn status for me, for us this year. Here was the latest news that jointly cemented our legacy in history:

Collectors Universe to be Acquired by Investor Group Led by Entrepreneur and Collector Nat Turner for Approximately $700 Million.  

Note: Don't forget Steve Cohen, yes the investor who just bought the New York Mets is a part of this investment group as well.

Steve and this Nat Turner fellow ended my run but let's take a bow. Here is a nice montage to CLCT, they were a part of the family. Here is what Collectors Universe does: 

A 10 bagger means if you would have invested $1K with me it would have gone to $10K. This deal closes in in 2021. Can't wait to get into some "Good Trouble" with such a profitable investment. 

#mariogabelli #natturner #stevencohen #collectorsuniverse #10bagger #youngjeezy #stockmotivation101

What Are You Reading - Barron's 2013 Roundtable

I will detail in a future post what book I'm currently reading and the tips that I've picked up along the way.  But for now I am going to try and help you (1) Learn from some of the smartest investors in the game and (2) Observe some of their best picks for 2013.  The link I will post is from Barron's and their Roundtable discussion 9 notable investors.  I instantly recognize from CNBC the familiar names (and faces) of the following investors:

• MARIO GABELLI - Dr. Love (He enjoys companies merging or making love and has a nice track record to prove it.

• BILL GROSS - PIMCO Bond King 

• ABBY JOSEPH COHEN - Goldman Sachs Strategist

But then reading the insight from the other 6 panelists left me very with some very good insight from each of these investors predictions on what to expect from the market in 2013.  The other gang of 6 were:

• Scott Black
• Fred Hickey
• Brian Rogers
• Oscar Schafer
• Meryl Witmer
• Feliz Zulauf

I am slowly becoming a sponge of information about what is happening in the rest of the world and really enjoyed Feliz Zulauf's commentary.  I also love to hear them quote history because I am a firm believer that it repeats itself , however; humans never take the time to listen.  This article also include stock selections and may serve as a great place to start for new investments in 2013. 

Barron's Rountable Part I

Barron's Rountable Part II