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Tsachy Mishal's  Instablog

Tsachy Mishal
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Tsachy Mishal is the Portolio Manager at TAM Capital Management Inc.. He is the author of the investment blog Capital Observer. http://www.capitalobserver.com/
My company:
TAM Capital Management Inc.
My blog:
Capital Observer
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  • A Hint Of Activism At CA Technologies
    CA Technologies put out a seemingly mundane press release late Friday announcing a new addition to the CA Board of Directors. The new board member is the former CEO of Swisscom and a Swiss citizen. The largest shareholder of CA also happens to be Swiss.

    Walter Haefner, is a Swiss billionaire, who sold his company to CA in 1987 and now holds approximately 25% of the shares. In 2001 he defended management when they faced a proxy battle from an activist shareholder. It would not be unreasonable to assume that this new Swiss board member is there because of Mr. Haefner.  Why after nearly 25 years is CA's largest shareholder looking for representation on the board?

    I attended a CA Investor Conference in late July, where the company announced some changes. As a shareholder I was happy to hear that management was done making large acquisitions, although I was surprised as it seemed out of character. It was a break from their previously stated strategy of making a few acquisitions a year. Combined with the new addition to the board it seems to me that CA must be feeling pressure. A decade ago CA was the third largest independent software company in the World and the company has woefully underperformed since. My best guess is that CA's largest shareholder is fed up, as most would be after nearly 25 years.


    Disclosure: I am long CA.
    Sep 12 11:28 AM | Link | Comment!
  • Buy The Dips
    The market is finally oversold and is at oversold levels not seen since the Summer.



    We are also seeing levels of put buying not seen since September.

    The high level of put buying implies that market participants are well protected. Combined with the oversold reading that gives me confidence that dips should be bought. This is especially true because we are headed into the seasonally strongest month of the year.

    It is possible that we see a retest of the lows as some intermediate term indicators still give the bears some room. This decline started 18 trading days ago so we will not be maximum oversold on an intermediate term basis for 12 more trading days. The Investors Intelligence survey is still showing high levels of bullishness and Rydex traders are positioned bullishly.

    Tactically, I am positioned quite long leaving some room to buy if we get a retest of the lows or even a marginal new low. Any move lower from here would likely be the low, after which I would expect the market to rally strongly through April. I believe its equally likely that we have already seen the lows on the SPY.

    Disclosure: I am long SPY.
    Tags: SPY
    Mar 18 7:35 AM | Link | Comment!
  • Celgene On The Right Path
    In my article a few weeks back I noted that the only thing missing from Celgene's stock was a share buyback. A few days ago management announced a $1 billion repurchase plan, which amounts to about 4% of Celgene's outstanding stock. I would now be a buyer on a pullback for more than just a trade.
    Tags: CELG
    Feb 18 2:29 PM | Link | Comment!
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