Brook Reef

Covering T short @ $28.43 Realized gain of $1.62 (5.39%) Part of being a successful short seller is knowing when to take profits and when to let it ride. I've had more success with quickly trading my short book and slowly trading my long book. Fundamentals drive long-term stock prices, but a lot of factors go into short-term price movements. In this case, I got the call right and will take me profits and find another short. I don't know enough about this stock to stay short - it's probably not going to zero. It's not a fraud. It's just over-levered. That might be ok in a world of low rates forever.

Covering IWM Short @ $223.25 Realized gain of $7.49 (3.25%) This was a way to reduce my NET exposure, not necessarily a straight-up bet on shorting the market. I like the idea of being short of meme stocks - but there's nothing from the Fed to slow down the easy money - and therefore, meme stocks might  keep flying. So I'll take this quick win and still have very low net exposure relative to most long-only investors.

Buying OGE @ $35.40 2% position OGE is one of the highest yielding utility stocks out there right now. And the CEO announced he's leaving a few weeks ago. Those two factors make me a buyer - either the stock works and goes up OR the company gets bought during this transition period. Either way, I win! OGE isn't a clean, pure electric utility that will benefit from the "electrify everything" movement - as is becoming my trademark investment thesis - but it is a cheap utility that has a a catalyst. 

Shorting IWM @ $230.74 5% position I've avoided shorting the indexes since going to all cash and trying to slow down and get back to truly investing.  Part of investing is managing risk. It seems we're still building the bubble, but the IWM is no longer just a broad index of a bunch of small cap stocks. The composition has tilted in favor of the "meme" stocks like AMC, GME, BB, and more. That's not sustainable - and the selloff will only be more pronounced as the short-sighted "meme" traders find a new ticker to manipulate.  Plus, adding some short exposure allows me to reduce my NET exposure without selling some real, growing, and undervalued companies.

Buying CMS @ $61.47 2% position CMS announced today that it's selling its banking subsidiary, Enerbank, for $960 million - or 16x 2021 earnings. It's not the most generous sales price - but it cleans up the story and makes earnings now nearly 100% regulated. Enerbank was ~$0.21 of the $2.84 guidance for the year (7%). Earnings guidance has been reset lower to remove the segment's earnings - but growth could pick up from the new base.  2022 guidance was introduced at $2.85-2.87 - which means the stock is trading at 21.5x 2022 earnings. Not cheap - but not bad for a premier regulated utility. I'll pick up some shared on weakness today and HODL for a while.