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I’m going to make some trades here this morning, nibbling on two names using common stock:

Applied Materials – I’m buying some common stock in this name, maybe 1/4th position here near $15 per share and would like to build it up closer to $13 or even $12 a share if we get another market mini-crash that takes this name down again. $AMAT is one of the best-run semiconductor equipment suppliers and the stock has been crushed lately, down 50% to near 52-week lows because the cycle of spending from their semiconductor customers is looking like its peaked or is peaking at least. Trading at 12x next year’s earnings estimates, though topline growth is likely to be only in the single digits. You get a 2.6% dividend which is way better than a savings account while you wait for the cycle to turn.

GoPro – The stock is down at new all-time lows and down nearly 70% from its highs and is trading at less than 17x next year’s earnings. Remember, I’ve been bearish on this stock since its IPO but it’s now cheap enough that it’s on my radar and I’m going to nibble on some shares here to get a toe in the water with the stock at $35 per share. Starting with about a 1/8th tiny position here.

A few other notes for you:

Yahoo’s VERY cheap – Yahoo market cap is $29BB, but their stake in $BABA is worth $24BB (before taxes) and they have $6BB in net cash too. The Yahoo company itself makes less than 70 cents per share or about $600MM per year with little topline growth. Throw a conservative 5 or 6 multiple on the $600MM earnings and you get $3BB in value there. So adding it all up, you get Yahoo $6BB in cash plus $3BB in earnings valuation and subtract that from the $29BB market cap, and you see that:

$YHOO‘s valuation right now is probably discounting at least a 20% tax haircut or that $BABA itself falls another 20% in valuation or something along those lines. All of this makes Yahoo aninteresting as a deep value kind of play.

Cody Underground Podcast: Cody Willard talks about how to game this wildly volatile market, how to find a 100 bagger, why Periscope is so important to Twitter, why Facebook’s been better than Twitter, why the Fed does but doesn’t matter and much more.