top of page
  • Writer's pictureIshfaaq Peerally


April 2020 was quite disappointing as stock prices went up and it was hard to find great deals but if you know where to look, you can always make great investments. The first stock which I'm buying in May 2020 is Caesars Entertainment $CZR , which is part of an arbitrage deal. Caesars entertainment is going to be bought by Eldorado Resorts $ERI in a cash and stock transaction. Right now the spread on this deal is 12% but we can make more money if the stock price of Eldorado resorts go up. In other words, I'm investing in Caesars Entertainment because I'm betting on Eldorado Resorts. The deal is supposed to go through this June but I don't think it will and I hope it doesn't go through. It will be a little hard for them to raise capital in this recession and the deal may take some time to happen. This is good news since we can make bigger profits when the markets recovers. This is a risky deal. If the deal doesn't go through we can lose everything. That's why I'm not going to put more than 1% of my portfolio in Caesars Entertainment. Carl Icahn invested in Caesars Entertainment and I think that he will make his best to keep the deal as it is. The second stock which I'm buying in May 2020 is Alaska Air Group $ALK . Unlike the other airlines, Alaska Airlines didn't use its cash to buy back shares. Instead it bought marketable securities and bought Virgin America. Since Alaska Airlines has mostly US based business, it will recover faster than the competitors. Alaska Airlines also got a good bailout deal from the government and will need to dilute only 0.6% of the shares. The reason why they are in such a good position is because of good management and because of customer satisfaction. The third stock which I'm buying in May 2020 is Whiting Petroleum $WLL . This is conditional. The oil company recently filed for a Chapter 11 bankruptcy and they already restructured the debts giving 97% of the equity to the bondholders. Right now, it is expensive. My condition is that the stock price falls low enough for me to make an investment. Another condition is that I can be sure that they will not be delisted from the NYSE. Watch the full video on YouTube and Subscribe: You can find the whole analysis of the airlines on my research partnership: Join my private investing group on Facebook for more:

21 views0 comments
bottom of page