Shit’s Lit – August 2017 Financial Update

The following financial update for August 2017 covers all performance and happenings from the month of July, and is based on the latest valuation date of 8/1/2017.

Us right now…

Key Metrics

SFE Share PriceMoM Change in PricePortfolio ValueCashOverall Return
$8.81-3.54%$16,767$3,085-12%

We have reached the lowest “SFE Share Price” in Sneaky Falcon history. More on this later. Although the total value of our portfolio is growing, the return on the assets remaining continues to fall.

For those of you keeping score at home, our overall return (since December 2015) is -12%. In that same time, the S&P 500 has risen 18%. Damn.

2017 Performance to Date

Burn baby burn.

And where did all that stellar return come from? Everywhere.

StockJuly CloseAugust Close% Change
CVS$80.62$79.69-1.2%
UAA$22.28$18.30-17.9%
UA$20.52$16.23-20.9%
FRO$5.85$5.67-3.1%
NVAX$1.15$1.03-10.4%
ABUS$3.65$3.650.0%
INO$8.03$5.55-30.9%
BWLD$128.15$111.00-13.4%
ZTS$62.67$62.27-0.6%
FLR$46.55$43.90-5.7%
MGP$28.53$29.995.1%

While the biotech numbers (NVAX, ABUS, INO) look bad, these only make up a small portion of our portfolio. Our bigger positions in UAA/UA, BWLD, and FLR are continuously taking a beating, driving our overall return straight into the dumpster.

And the dumpster is on fire.

And the fire extinguisher? Also on fire.

Transactions in the Period

DateTransaction TypeDescriptionAmount
7/5/2017DividendFLR Dividend$21
7/14/2017DividendMGP Dividend$30
7/17/2017DepositMember Contributions$300
7/24/2017DepositMember Contributions$400
7/26/2017InterestInterest on Cash Balance$0.01
7/31/2017DepositMember Contributions$1,000

No stock transactions this month. Contribution money continues to flow in from the team. We also collected ~$51 in dividends from our to latest buys, Fluor and MGM Growth properties.

Chart of the Month

As mentioned earlier, our “SFE Share Price” is at an all-time low. But what does that really mean?

To take a step back, I’ll just briefly touch on investment club accounting. I know, I know. Zzz… If you are actually interested in learning how it all works, check out this article on unit valuation.

Long story short, in order to allow members to contribute different amounts of money at different times, we created “shares” of Sneaky Falcon Enterprises that track to the value of the underlying assets we hold. We arbitrarily set the initial share price at $10, so a contribution of $1,000 on day one would get you 100 shares.

As time has passed, the value of our stock holdings has ebbed and flowed, and therefore so has the SFE share price. Think of this like a mutual fund pricing, which is recalculated daily. We just revalue monthly, as part of our month end financial process.

So any money contributed this August would “buy” new shares at a price of $8.81 instead of $10. This allows us to track the underlying performance of the stock value, independent of cash being added to the portfolio. This also allows each member to calculate their exact % ownership, and individual returns.

While complicating the accounting, it provides for significant flexibility.

Finally, back to the chart. As you can see, share price was flying high in 2016 until things fell off the rails. So it goes.

This is a very quick way of looking at overall performance without getting into the detail of dollars lost or gain. It also allows for comparing against a benchmark, like our S&P 500 comparison.

But just like in the real stock market, lower stock prices can make for excellent buying opportunities… And once we find one of those, we’ll let you all know…

Sneaky Falcon Admin
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Sneaky Falcon Admin

Admin Account at Sneaky Falcon Enterprises
Updates & news on the website are generated by this author
Sneaky Falcon Admin
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Updates & news on the website are generated by this author
COMMENT (2)
Dan / August 10, 2017

Hi Sneaky Falcon Team,

So I guess you could say it was a tough month…that’s just how the market works though, very humbling in that regard. I’m a value investor myself so and I actually own shares of CVS. I think the company is a pretty solid value play with an intrinsic value around $108. Just hang in there and don’t judge yourself yourself on short- term performance. Good luck guys, all the best.

-Dan, http://www.ninjacapitalist.com

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Sneaky Falcon Admin
Sneaky Falcon Admin / August 10, 2017

Hey Dan,

Thanks for checking us out and sharing your thoughts. CVS is definitely a stock we think can turn around in the long run. Also, really enjoyed your new ninja capitalist site. Your “Be Your Own CFO” is a great piece. Thanks again. Cheers!

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