thanks to the LONGS on this board and others I have put together a nice little bundle of income producing stocks
I am thinking of adding CMO
Here is what I hold today - largest to smallest
NRF - reit
AVF -an AIG debt
MPG - reit
PEI - mall reit
XTEX - nat gas
KVU - Ford debt
BBEP - nat gas
CBL-prD mall Reit
WPZ - nat gas
SHO-prA hotel Reit
LPIH - pink sheets China spec play
AIV - apt reit
AHT-prD hotel reit
CPNO -nat gas
XTXI - nat gas
AHT common hotel reit
SHO common hotel reit
SCLX - pink china spec play
GNK - shipper
ENP - nat gas
GRT m - mall reit
I know it sounds crazy but I bought all of these by listening to the reasonable people here and on other boards
I am a novice investor who saw the last year as a once in a lifetime buying opportunity
I am up from around 30 percent to 250 percent - not counting the divi's
Like you, my vendor limits what I can do with my 403(b) - well actually it is my wife's 403! She is limited to Fidelity mutual funds. At one point she was limited to a set of funds through Fidelity. This year they changed the plan and we now have a Brokeragelink account into which we can transfer her 403 money and invest in any mutual fund Fidelity sells. Unfortunately if it not a no transaction fee fund the commission is $75. That stinks.
What we have done in the past year as we prepare for retirement is move 16% of our money into high yield bond funds (Artio Global, Metropolitan West, Janus, and Drefus high yield) plus another 16% in high dividend funds and stocks (ADVDX, RSO, BKCC, CIM, NLY, BGY). The dividend yield from these investments plus social security replaces her working income.
The remainder of our investments are in stocks and funds with growth potential to compensate for the poor growth potential in those high yield funds and stocks.
Plus I have two 403 accounts from two different employers.
I keep cash in my Wells Fargo PMA account which links my checking and brokerage accounts there and gives me 100 free trades a year. We keep a pretty high level of cash available for quick trades like doubling my GSL and SCLX.OB positions this past week.
Wife retires next January. I have four years to go. We expect to replace all of our current working income with investment income and actually should exceed it. I would retire earlier, but we would have a health insurance issue.
The selectivity strategy is a wise one. I now look every day for stocks that have taken a bath because they didn't meet guidance or analyst expectations, but returned better performance than the year or quarter prior.
I have had excellent gains from Tenet Healthcare (THC), Green Mountain Coffee Roasters (GMCR), LSI, and Micron in the past few months using that approach. The market overreacts and you see a big tumble and that's the buying opportunity for companies that have just reported good results.
I know what I am doing but it doesn't always pan out. But thanks.
If you are having troubles, then I find the best strategy is to be more selective and look for opportunities that seem 'transparent'.
What I mean is, for example:
1) CIM recently had a several million shares 2ndary offering. Anytime there is such a 2ndary and you know something about the company, its fundamentals, trading range, for example, watch it carefully early in the morning. If it seems to recover from the strike price of the offering, buy up some shares. Had I been available that morning, I would have done that and rode from 3.70's to 3.90 in a day, practically, and had shares paying 17% dividend. I still got in at 3.90 to fill out my initial position at 3.99 (which I got just before ex-date and booked the dividend). My basis is 3.95 at 2500 shares with $170 in dividend in the bank. Not yet a success story, and not one fully exploitative of the opportunity but you get the idea. I would have happily bought at 3.80 had I been around that morning to do so.
2) HTGC declared lower dividend to marshall funds for investing. It dropped 1.5 pts from 10 and I caught it at 9 just a month ago. Its at 11 now. I know HTGC and saw this as an opportunity. At worst, I was looking at shares paying some 9% at the buy price.
3) PNNT had a 2ndary and like CIM dropped. But PNNT dropped more severely and so I got in at 9.75. Again, this was a solid company with good earnings and good prospects. No reason it should stay in the 9's for too long.
4) RSO, well you know about. I missed an earlier entry that Ex-divy advocated that would have gotten me in at 6.50. The opp came around though a few weeks later when it was as low as 6.65 or so and I got in then and also at 6.86 and 6.90. But I started a position in RSO at 9+ back in 2007 so I am just even despite these additions. The data from Q4 raised my confidence in the stock and it was confirmed by its activity - I had to be able to feel some intuitive understanding of the stocks price behavior before I would invest and average down.
5) MSN announced a 1-time special dividend of 1.10 per share for a stock that was valued $2+. Of course people were drawn like moths to a lamp. I reckoned that the price may go to 4.40 or so reflecting a 25% proportion of divy to price. It was rising at $3 and going up when I got in at $3. I only kept it 48 hours to 3.75 and got out. It hit a high of 4.50 and then cascaded down. It is a great chart btw. You should really check out the chart and the message board for some very interesting psychology.
These were trades in the last month. Been a good month and had a few others. But these illustrate the idea of transparency - a stock whose likely value you can read in advance. Of course when such a stock betrays you it is God-awful and you get real gun-shy. Knocking on wood right now.
I can share horror stories too and maybe they are even more valuable. But I don't want to go there as I am still bullish on RSO and the market. I do think that some caution is necessary with the thin trades and I look forward to some evidence of heavier entries to sustain these market prices.
WOW!! You exactly know what you doing. For me, I am always losing. However, please take a look at 'SHIP' financials. It currently trades at $1.30 area but this Greek Ship co. income statement and cash flows are pre healthy. Don't understand why this stock PPS is so low. Thanks for sharing your thoughts on this co.
Fred, I'll comment more as I look over some of your stocks that I am not familiar with.
I see you have loads of MFs. I use those in my IRA as my vendors (TIAA-CREF & Lincoln) limit what I can do as an investor. So I have some small caps, mid caps, int'l, equity income, growth, and small portion of bond index holdings in that account. I let my IRA use broad indexes and tend to keep them out of my non-IRA and Roth accounts.
My defensive play in equities rests on Gold primarily - miners and GLD. I view oil as a defensive/offensive commodity - I foresee that oil will remain expensive and the markups large as oil becomes more scarce. While not in my portfolio now, I have used coal also in this way but found it to be more volatile to economic prospects than oil. Coal tends to have a huge beta in response to economic and oil pricing conditions. I'm likely to get back into coal but am going to follow a winnowing strategy as spring comes to a close.
Also, having a cash reserve is good defense that while it doesn't pay anything, it does allow an opportune entrance when the market is down. If nothing else, I learned from the most recent crash that sidelined cash is a great asset to apply in a depressed market.
Winnowing is reducing exposure as I suspect we are reaching some temporary top in equities. So for example, my holdings in RSO may go from 2k shares to 1k with similar reductions in other small-cap high volatility stocks while keeping core positions from which to build upon as I think market volume warrants.
I think the market volume is thin for some of the gains we are seeing so I am becoming more cautious and more likely to take some gains off the table. Some of the issues I found attractive a month ago are reaching saturation levels. Of course, if the earnings round coming up next week confirms these levels, then I would delay my winnowing as I hope to capture a few more advances.
Thanks for sharing. I will look at some of those symbols you posted and likely comment later.
My stocks on tickerspy
Several of my stocks won't list on tickerspy nor my mutual funds. So the complete list is here.... FWIW
and mutual funds
You have a lot of the same securities I hold (also based on referrals here and elsewhere on Yahee), and you hold several securities that I sold to buy others. But looking back at it, if I would have held everything I bought back in the fall and spring of the crash, I'd be about in the same place. That was a time you could buy anything.
One difference is that I ended up holding nearly 100% cash flow securities, and that added real cash to book profits, and will continue to do so. Anyway, if I was you, and this is just for giggles, not advice, I'd probably bail out of NRF, because it's not flowing cash sufficiently, WPZ, which is yielding too low, SHO-A, which is near face, AIV which yields too low, XTXI in favor of XTEX, again due to yield, SHO, which is ahead of itself and yields nothing, and pile that cash on the sidelines and wait, or back into oily MLP's like ENP and LGCY. But I imagine you've done quite well listening to yourself!
Fred, here is my portfolio of holdings - most are 2 - 6% of my assets with some 25% in cash.
I try to canvass different sectors and tilt toward the faster growing ones as I rebalance.
I added 100 sh of WIN today to get some telecomm exposure. It was that or VZ.
Next thing is to set up a portion of my portfolio that is Dow Dog strategy using the top dividend payers with the lowest pps.