Monday, October 13, 2008


I bought my first non-dividend paying common stock in several months by buying 50 shares of Liberty Interactive (LINTA) at 7.73, having previously sold it before the meltdown less than a month ago for a small profit at around 16.  It's major operating asset is QVC at 95% of operations with about 5% of operating assets assets  in,, Provide Commerce and BuySeasons.

 LINTA also has significant stakes in in IACI, Expedia and GSI Commerce.

 I have a larger position in Liberty Media's senior debt, maybe 20 times larger (corrected from 10 times in the original post, had more than I thought) which has sold off recently and is rated as junk, though I believe near investment grade.

I am not sure of all of my buys and sells on this one.  I think that I sold some shares over 20 but my aging brain has trouble keeping track of everything that I do.  I do know that I have just about eliminated every non-dividend paying common stock in my portfolio before the meltdown and this is just a tip toe back into that pool.

Before buying, I reviewed again the most recent S & P report, Morningstar report, one from Barclays who took over Lehman's research operation, and recent news.  I would certainly expect a slowdown at QVC but who knows by how much now?  It would be fair to assume that LINTA's businesses will be hurt by a recession and a slowdown in consumer spending.  The question to me is can I make a good return on this kind of investment at the current price by holding for the next 3 to 5 years.   If it goes lower, say 4 to 6, I may add another 50 which just shows how cautious I am.  I may be cautions but not frozen and certainly not a deer looking into high beam headlights. 

I do not use a stockbroker as people who know me already know, for at almost 3 decades.  

  In full disclosure, I own shares of LINTA and will continue to buy additional shares at or below the current price of 7.73, but not  above.  I am just nibbling.  I am still very cautious.  I do not get excited about all of these meltdowns that I have been though all these years and rallies off panic lows.  This is not a recommendation to buy or to sell.  Trade at your own risk, and perform research about this security by reading stock reports and further studying the financial health, earnings releases and prospects of LIBERTY INTERACTIVE (symbol LINTA at yahoo finance) before making any investment. Consult with your financial advisor prior to making any purchase. In this blog, I am merely describing my reasons for purchasing this security and the potential pitfalls that I identified prior to purchase.  This security may not be suitable for others based on their unique financial position and risk profile.   

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