We are in a bear market and there has not been a better time to buy stocks in years. In April (so far), I'm buying 3 stocks: 1. Caesars Entertainment $CZR This is an arbitrage play. Caesars Entertainment is one of the largest casino operating company in America and they are going to be acquired by Eldorado Resorts in a cash and stock transaction. If the deal happens today, we immediately make 40% on the spread but it is going to take some time and hopefully, the markets are going to recover by then and we will be able to make more money. Caesars Entertainment is in a bad financial position, the company went bankrupt in 2015. Normally, I would not have invested in it but because of this deal, the reward is much bigger than the risk. Nevertheless, I will not invest more than 0.5% of my portfolio in it as it is riskier than the average arbitrage deal. Activist investor Carl Icahn is also interest with this deal as he owns 19% of Caesars Entertainment. 2. Alaska Air Group $ALK The airlines have been badly hit by this bear market and I've recently analyzed all the airlines. The one that I liked the most was Alaska Air Group, which owns Alaska Airlines and Horizon Air. Alaska Air Group has been growing rapidly over the past years, they acquired Virgin America and unlike their competitors, they didn't use all their cash to buy back shares. Instead, they used the cash to buy marketable securities. Alaska Air Group also has a great management and they are one of the best rated airlines in the US. 3. China Mobile $CHL China Mobile is the largest network operator in the world with over 900 million users. The network operators will always be making money as people will always be using their phones and the internet. With the launch of 5G, they are going to be making even more money. Stocks in China are still very cheap and it is a great time to invest in China. 4. EWY ETF $EWY I'm also investing in the EWY ETF, the South Korean stock market ETF. Stocks in general are very cheap in South Korea and I've decided to buy the whole ETF instead of looking for individual companies. I'm betting on the South Korean economy. I'm still looking for other stocks and hopefully, if stocks remain that cheap in April 2020, I'll be investing in more companies. Watch the full video on YouTube: https://www.youtube.com/watch?v=svEnEC3M334&list=UUPO3uUyoXSaFWG-Ldq1mqEQ Here's my full analysis of the airlines: https://ishfaaqpeerally.teachable.com/courses/662813/lectures/14996960 Join my private investing group on Facebook for more: https://www.facebook.com/groups/IshfaaqInvesting/
Comments