With all this nonsense talk about dividends... if you want yield, why don't you just buy a corporate bond or bond fund and make life easy? Sorry - I'm with the "growth" crowd...sell into strength, but into weakness.
fatman JF is happy w/ all the div's because he can afford to live on interest alone - must be nice.
Ahh PTSX. I made a bunch. Lost it all and more. Lost some more. Made it back. Lost it all. Made a bundle. Then bolted. Net, net ... about 5% total return on two to three years effort. Pitiful. Yep, one frustrating play that PTSX. The board was a real source of entertainment though.
BG, yes Brazil soybeans. Was there last year from $24 to $28 or so. What a damn shame. I left way too early. Got nervous about Brazil economy. Didn't know that China would save the day by sucking up the world supply.
KMP, KMI ... yes, yes, yes. The only sane Ex-Enron executive with enough sense to bolt the house of greed. The man is one to admire. He puts his shareholders first. Wish I was there.
What am I kicking around in these days? Coal, Rails, Steel, Ag. Am thinking the dollar slides more. Implications are huge. China currency peg to US Dollar will drive China to the US for basic materials. High shipping costs will change acquisition patterns for coal, steel, ag products. In many cases it now costs more to transport than for product acquisition. This will drive Europe business away from South America and to the US. I think US is headed into a huge economic boom that few foresee. Too much handwringing, worry, concern. Basic industries, their suppliers, and the transport sectors will be the big winners. Throw a dart and buy anything related to steel, coal, ag, transport ... those are the winning plays out 12 to 18 months.
What do I like? ... MSB, CLF, ARLP, ACI, MTLM, MLT, HUBG, SCST, GBX and other boring stuff.
Thanks for the heads up on FRO transaction. Was not in-tune to what is happening there. Will look into it.
[ How about iron ore, coal, steel ... any other basic industry plays? ]
I have been buying a lot of CA stocks in basic materials.
WTN, Western Coal, new miner to start later this year producing metallurgical coal
FL, Falconbridge, #3 Ni miner with lots of Cu also.
BWR, Breakwater Resources, Mostly Zn, but other metals as well. Has been beat up due to low Zn (and profit), but Zn has increased from .35/lb to >.50/lb in the last year.
LIM, Lionore International, Ni & Au. Has not done well due to the strong Roo & Rand.
FCO, Formation Capital (my favorite), owns the old Sunsuhine hydrometalurgical complex. Will be refining Au & Ag early summer and plans to start mining & refining Co next year. Co has gone from $6 to $30/lb. If one believes that they will bring their mine on line, then this stock is being given away.
Right now, today, with respect to tankerage I'm 100% FRO and 0% TNP. I first bought FRO last August at around 15 after finding it in a dividend value screen. My DD told me the economics of charter shipping were flashing a big, bright green up-arrow Two months ago it seemed TNP was lagging and marginally better short term (FRO at 25, TNP at 19), so I shifted most into TNP. Have traded back and forth a few times for some additional bucks.
IMHO both are exceptional income investments but right now FRO is about to restructure with a clever spin-off/IPO that IMO will be copied by others (as Richard Kinder did with the Kinder-Morgan MLP -- another value holding that has done well for me). Besides paying out qualifying dividends from operations the restructure is going to return a good chunk of the BV traditionally tied up in the ships to shareholders as a special dividend. I guess that makes me more of a cash flow guy?
A few months ago I screened consumer commodities and BG (agricultural commodities, esp. soy -- a competitor to Cargill, ADM, etc.) caught my eye as a darn good though unglamorous value. Bought at around 31, and they're making steady progress toward well into the 40s hopefully.
Then there're the traditional step-children of the markets, the O&G producers -- especially gas. I plan to keep and add to my long-term Shell (RD/SC) holding. Pays a very respectible divvy and eventually the markets will figure out that they will do very well IMO for a very, very long time no matter what crazy things happen to the world economy.
What are your thoughts and ideas?
Now why would you choose to believe me? I dropped a bundle on VDI/Point.360 and got about half a bundle back.