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Chris DeMuth Jr.'s  Instablog

Chris DeMuth Jr.
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"It's not given to human beings to have such talent that they can just know everything about everything all the time. But it is given to human beings who work hard at it - who look and sift the world for a misplaced bet - that they can occasionally find one." - Charlie Munger I look... More
My blog:
Rangeley Capital on Harvest
My book:
Rangeley Capital Best Investment Ideas
View Chris DeMuth Jr.'s Instablogs on:
  • My First Kickstarter Project

    Branching out from portfolio management, he is launching his first operating business.

    Jul 14 2:08 PM | Link | 7 Comments
  • Not The Typical Lemonade Stand

    It may have come to your attention that there have been some stunning successes on getting funding on Kickstarter recently.

    The production of this potato salad raised $48,466 from 5,905 backers.

    So, my son, the portfolio manager of Lion Investments, thought he would give it a try and is going to launch an effort to find backers for his first operating business, a boutique lemonade stand. He watched William Ackman: Everything You Need to Know About Finance and Investing in Under an Hour and is ready to start his first round of financing to cover his start-up costs. If you have any feedback on this project, please leave it here. The link takes you to his first draft effort at a first business plan. If you ever operated a lemonade stand or ran any other type of small business, you might have advice on how to get started.

    Thank you.

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jul 12 9:10 PM | Link | 1 Comment
  • Stocks To Watch Discussion Forum

    Seeking Alpha contributors give readers an early look at stocks that could be moving today in SA Stocks To Watch. In this discussion forum, you can ask questions regarding my ideas or discuss other ideas that appear on StW. So far, this is what I have offered:

    Stocks To Watch Today: Jul. 9, 2014

    If anyone tries out Chris DeMuth's CBS/CBSO share exchange, let us know how it goes. Chris, a systemic arbitrageur, has a track-record with these kinds of opportunities.

    CBS (NYSE:CBS) - long - Chris DeMuth Jr.

    • You can exchange CBS for OTC:OTC:CBSO at a 7% discount on Wednesday.
    • If you own fewer than 100 shares, you can avoid proration.
    • CBSO received a favorable REIT ruling from the IRS for a conversion.
    • CBSO can be lent out at a very high rate for added yield.

    Stocks To Watch Today: Jul. 10, 2014

    GSI Technology (NASDAQ:GSIT) - long - Chris DeMuth Jr.

    • GSIT announced a Dutch Tender Offer priced at $6.50-$6.70.
    • At a cost of $6.50 per share, you can tender 99 shares at $6.70.
    • Holders of fewer than 100 shares are not prorated.

    Questcor Pharmaceuticals Inc (NASDAQ:QCOR) - short - Chris DeMuth Jr.

    • The arbitrage spread of over $7 equals an annualized return of over 50%.
    • However, it is unclear whether the deal will close. Where is the amended proxy? It is currently almost a month late. Why?.
    • There is over a 25% downside in the likely event that the deal breaks. Buyer could be concerned with the insurers' skepticism towards Acthar.

    Any suggestions for other ideas that would be well suited for StW?

    Disclosure: The author is short QCOR.

    Additional disclosure: Chris DeMuth Jr is a portfolio manager at Rangeley Capital, a partnership that invests with a margin of safety by buying securities at deep discounts to their intrinsic value and unlocking that value through corporate events. In order to maximize total returns for our partners, we reserve the right to make investment decisions regarding any security without further notification except where such notification is required by law.

    Jul 10 8:01 AM | Link | 6 Comments
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