Friday, March 21, 2008
Given the action with Bear Stearns recently, you may take this worth a grain of salt ;-)
Books
- Stocks Bonds Options Futures: Investments and Their Markets (Prentice Hall Business Classics)
- Inside the Yield Book: The Classic That Created the Science of Bond Analysis, New Edition
- The New Market Wizards: Conversations with America's Top Traders (A Marketplace Book)
- Bond Markets, Analysis and Strategies (6th Edition)
- Reminiscences of a Stock Operator (Wiley Investment Classics)
- A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing, Ninth Edition
- Security Analysis: The Classic 1940 Edition
- The Investor's Anthology; Original Ideas From the Industry's Greatest Minds
- Memos from the Chairman
- Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets
- Options, Futures and Other Derviatives
- Fixed Income Securities: Tools for Today's Markets, Second Edition, University Edition
Periodicals
Websites
- http://www.thestreet.com/
- http://www.wsj.com/
- http://www.bloomberg.com/
- http://www.cboe.com/ (The Learning Center)
- http://www.nyse.com/ (Education Tab)
- http://www.nasdaq.com/ (Trading Simulation)
Monday, January 07, 2008
My portfolio saw a few changes over the course of 2007, but my core holdings and overall strategy remain unchanged. My strategy is very long term – I don’t make trades because frankly I’m just not that good at spotting a top, or a bottom for that matter.
My holdings fit either one of two categories (or maybe both). They either have serious long term growth potential (years – many years), create meaningful current income which can be reinvested, or both.
Securities that I have bought and sold either served their purpose or helped me tweak my understanding of my expectations and refined my strategy and discipline. As General Electric CEO Jeffery Immelt said recently: “…we tolerate failure, but we don’t tolerate a lack of learning.” That really resonates with me – because as individual or retail investors we certainly do not have the knowledge, experience, or access to resources that institutional investors have. So we have to rely on our own experience and knowledge (which should be increasing all the time).
In 2007 I increased my holdings of the aforementioned General Electric Co. (GE) six and a half times over. I made purchases in January, March, and in October. I am getting ready to buy some more as the stock hovers in the $36 range. You might say, GE – that stock has done nothing, why bother holding a non-performer? Like I said I think long term and if you pay attention GE is always looking at businesses to get into. In the last year or so they have made a serious effort to get into energy producing businesses and get out of energy consuming businesses. Their growth prospects for 2008 look good but I’m more concerned about growth in 2028. The dividends are also attractive – they will be helping to fund my retirement one day.
The newest holding is Harvest Energy Trust (HTE), a Canadian refiner and marketer of petroleum and natural gas. They have acquired some other smaller refiners in Canada recently and they pay a substantial monthly dividend – the reason I’m in. I bought at the end of September and collected a .3865 monthly dividend in November and then the stock got hammered after some less than encouraging news about its margins. The stock lost about a third of its market value in less than 6 months. If that wasn’t enough the dividend was cut from roughly .39 per share / month to about .30 per share / month. The cutting of the dividend is a positive for me personally. Not in the sense that I want to make less money but in the sense that management is doing what it needs to in order to protect shareholder value and attractiveness. If the numbers had come back weak as they did and management left the dividend at .38 per share / month this would have set off an alarm with me in terms of future cash flows (perhaps dividends outstripping revenues eventually) similar to the situation with the now pink sheets traded New Century Financial Corporation (NEWCQ). New Century was trading at 31.57 just one year ago – now it’s worth a disgraceful 2 cents a share and has spent some time at just a penny a share. Obviously New Century was in a different industry that has its own problems but you get the point I’m making about cash flows with consideration to dividends. I also like Harvest’s home currency the Canadian Dollar, although some recent metrics suggest the country’s currency maybe slightly overvalued. The dividend, which is paid monthly, is whats attractive to me. Being paid monthly, it gives me more time to put that money to work by either earning interest on it or reinvesting it. I bought more recently after it was beat up which let me lower my average cost and essentially buy the income at a price that’s more inline with the current share price.
One of my first buys was Goldman Sachs Group Inc. (GS). Goldman Sachs is in my opinion the best brokerage out there. They are always well positioned for the economy (at least as well positioned as possible). When compared with Merrill Lynch (MER), Morgan Stanley (MS), Lehman Brothers (LEH), and Bear Stearns (BSC) over the last year Goldman Sachs is hand down the winner. Merrill is down 45%, Morgan is down 39%, Lehman is down 25%, Bear is down 51%, and Goldman is up 0.2% (basically flat) in the face of these big losses. As Goldman dips under $200 I will be looking to add some more shares. I have collected the .35 per share / quarter dividend since owning it. In the very long term this is going to be a big one I think.
Big oil stocks, but which one? I couldn’t choose – I didn’t have to. I bought shares of iShares S&P GSSI Natural Resources Index ETF (IGE). I am very bullish on oil and energy going forward, especially as oil touches $100/barrel. The fund represents the Goldman Sachs Natural Resources Index. One thing is for sure – we can’t make new natural resources. So essentially you have commodities and resources for which demand is always increasing as global growth continues and a limited supply. Its not rocket science here: increasing demand + decreasing supply = higher prices. I don’t own shares here for the short term pops and drops; I am looking at these for the long term, very long. IGE also pays a dividend, nothing exciting usually around or under .30 per share /quarter. See my upcoming post specifically my about energy and oil holdings.
The process of getting oil to where it can be consumed is often under recognized. Magellan Midstream Partners (MMP) handles the transportation, storage, and distribution of refined petroleum products. Again, I was enticed with the dividend – which is paid quarterly. Most recently MMP paid .64 per share / quarterly and the stock price is very steady. This stability and good dividend represent an attractive holding for me – although I had considered folding this one up a few times when it was above $50 back in April, but I held on mostly for the dividend. Good solid performer.
I just sold my position in Credit Suisse Asset Management Income Fund (CIK), which is a Closed End Fund that holds mostly fixed-income securities such as high-yield corporate debt. It paid a .03 per share / monthly dividend (about a 10% yield). I bought this about 1 year ago and it got hammered along with other Closed End Funds. It is now trading at a significant discount to its Net Asset Value (NAV). The NAV is a metric for determining the valuation of such securities. It paid a faithful monthly dividend but its share price had been battered and I sold it to post a loss against some of my gains. I was holding this to collect the income and reinvest to collect more dividends, so on and so forth. When investing for income though the efficiency at which you use your money is more evident than if you were investing for growth. You can see right away if you are getting the income your think you’re paying for. 10% is pretty good, right? Harvest Energy Trust’s (HTE) 16.22% is better. And since both securities (which I already owned) had taken a beating in share price I looked at them compared to each other. Harvest was up almost 10% in the last year while CIK was down 18% in that same period. CIK paid less of a dividend and had more ground to make up in share price. Harvest was the smarter bet of the two for me.
A little over one year after I bought into Freeport-McMoRan Copper & Gold (FCX) I sold my entire holding. I bought Freeport because I like materials and commodities and I thought they had more room to grow than others in the area. As I said before I invest for the very long term. This is where it gets complicated – what happens when “the very long term” becomes 14 months? I had figured that FCX would grow and develop new mines and over time I would profit nicely. It will still likely do all those things, but it ran up on me on short order. In the period I owned the stock it exploded just over 100% from about 50 to over 107 dollars. I had collected some dividends (including some sizeable special dividends) and had doubled my money – I took it. I would have been happy doubling my money a few years later, but just over 1? Dumb luck – remember that I’m not good a picking tops and bottoms. This time it just worked out for me – not because I’m smarter than anyone else. I did my research and bought in – I just “got the bat on the ball” to borrow a term from baseball. I took the profits and moved to something else.
I also sold my shares of iShares MSCI Brazil Index ETF (EWZ), albeit a bit early. Not good at picking tops. I enjoyed about a 54% return at time of sale but the stock continued to climb after my sale. That’s okay – experiences like this help me to stay focused and not get emotional about a stock. I could have agonized about my lost gains, but I have a piece of paper above my desk that reads “You can never go broke making a profit.” This isn’t an excuse I keep on hand but rather a reminder that making a profit (54% in this case) is better than any loss (or for that matter a 53% profit). Sold and no regrets. I am looking for another place overseas to put some money to work though.
That’s about it. I did want to mention Ruth’s Chris Steakhouse (RUTH) very quickly. Some people advocate investing in what you like. I like steak. A lot. Especially when it’s sizzling in butter on my plate with glass of something aged in a barrel. I have dined at a few Ruth’s Chris Steakhouses and when they went public back in 2005 I watched closely. A few months later I jumped in and on pull backs I bought more. Steak, and damn good at that, where can you go wrong? As it turns out the stock has gone horribly wrong, down 61% since its IPO. Downfall of the consumer, credit crunch, mortgage meltdown? Probably, the company has tons of room to grow. All I know is that investing in something you’re emotionally connected to can be dangerous and I failed to the tune of 24%, but the lesson was invaluable. Just because you like it, you buy it, Main Street likes it and buys it, doesn’t mean Wall Street will. Does that mean you should stop? Of course not, but don’t put your money on line for it. In my case it was steak. I like my steak – steak and my investments – investments. I don’t mix the two anymore.
I’ll be writing a bit about my oil and energy holdings soon. Please feel free to comment on your stocks and why you hold them or on anything that I have written here. Happy New Year.
Friday, November 23, 2007
JP
Back in March I started the $1,000 Portfolio to see how hard it would be to trade on $1,000. Hoping to see if you really could get rich from just $1,000. Turns out its a lot of work to make sure you don't lose it first. The flaw with this experiment is that I could make critical mistakes that you would easily navigate and I have had the money on the sidelines for months now as the markets were rallying. Now that things have moderated a bit I'm back in.
Back on March 9th I made my first purchases: KMG Chemicals, Inc. (KMGB) and PowerShares QQQ Trust, Series 1 (ETF) (QQQQ). I bought 47 KMG Chemicals shares at a price of 10.40 each and a commission of 19.99. Total Cost: $508.79. I then purchased a mere 11 shares of the Q's at a price per share of 43.44 and the 19.99 commission. Total Cost: $496.62. I know; the total is about 5 dollars over 1,000.
April 1st I collected a cool $0.02 interest on my account. On May 14th I pulled the trigger and sold my KMGB shares for a price of 13.96/share and of course, the $19.99 commission. A realized gain of 3.56 per share ($167.32 for the entire position - $127.34 by the time you account for my $39.98 worth of commissions). (See the chart of this trade).
June 1st and July 1st I collected some more interest payments $0.32 and $0.52 respectively. On July 17th I sold my shares of the Q's at a price per share of $50.07 and the 19.99 commission. A gain of 6.74 per share ($74.14 for the entire position - a meager $34.16 after factoring in the 39.99 in and out commissions). (See the chart of this trade).
I did qualify for the $0.04 dividend that was paid on July 31st; $0.44 total. Since then I have been just waiting as markets have been climbing; I received interest on my cash balance Aug 1st ($0.72), Sept 1st ($0.89), and November 1st ($1.88). Obviously things are a lot more volatile now so I figured we might be able to get back in.
On the 19th of Nov I made two purchased: 8 Shares of iShares Dow Jones Select Dividend (ETF) (DVY) and 10 Shares of PowerShares QQQ Trust, Series 1 (ETF) (QQQQ). I figured it might be easier to spot an oversold market right now than an oversold stock. Purchase price of DVY: $64.96 + $19.99 and price of QQQQ: $49.73 + $19.99. Now were just waiting.
Current Value of this Portfolio: $1,116.00.
As of this morning positions were down 1.06% or $10.76.
So far this portfolio is up 11.98% - I feel pretty good about that.
Let me close by saying this: I am personally a long term investor. I am inexperienced at trading and I think this serves this demonstration well. Anyone with only 1,000 to grow will likely not have the market experience to spot perfect tops and bottoms. Also of note - many traders watch the markets like hawks to spot the *exact* point to buy and sell. I am trying to create a portfolio with some some level of safety and enough upside to make it worth our while.
Monday, November 19, 2007
JP
I just read an article on TheStreet.com: Six High-Yield Stocks You've Never Heard Of. Well I have heard of a few of these actually but thats only becuase I like dividend stocks - a lot. I encourage you to read the article and then keep up with my 2 new model portfolios. The first portfolio features the old-name, high yields that are named in the article as the usual suspects when talking yield:
- Wm. Wrigley Jr. Company (WWY): 1.87%
- The Procter & Gamble Company (PG): 1.91%
- The Coca-Cola Company (KO): 2.17%
- Emerson Electric Co. (EMR): 2.18%
- The Allstate Corporation (ALL): 2.89%
- General Electric Company (GE): 2.90%
- Koss Corporation (KOSS): 2.93%
The second portfolio will consist of higher yield, less well-known known stocks:
- Atlas Pipeline Partners, L.P. (APL): 8.06%
- Ferrellgas Partners, L.P. (FGP): 9.18%
- Genesis Lease Limited (ADR) (GLS): 10.04%
- Southern Copper Corporation (USA) (PCU): 7.27%
- The Standard Register Company (SR): 7.20%
- Vector Group Ltd. (VGR): 6.95%
I'm going to pit these two portfolios against each other. The first potfolio with its well-known names, relatively low volatility, and pretty good yields should provide some measure of quality and safety. The second portfolio, has less well known names but higher yields, could outperform the old standards. We'll see.
Keep checking up with the blog to see hows these portfolios are doing. I will be buying all of these stocks this morning.
Monday, October 08, 2007
Just how hard is it to grow $1,000? First you have to not lose it. I set up a portfolio with just one thousand dollars to see what it would be like. I will be featuring it here this week and wanted to do a short intro.
Some assumptions: $19.99 Commissions and I can't own all of one stock (I must have some diversification).
I bought my first round of stock about six and half / seven months ago and I sold it last summer. Now I'm looking to get serious about turning this portfolio into a money maker.
Overall this portfolio is up 16.44% for the year and I have only bought and sold two stocks. Next time I'll talk about those trades and my next ones perhaps.
Friday, October 05, 2007
Jon Petrino
Citigroup's Tobias Levkovich gave some picks for 2007 on CNBC back towards the begining of the year. Lets check out his picks as Q3 comes to an end. (Returns are YTD)
- American Tower Corporation (AMT): +14.67%
- Avon Products, Inc. (AVP): +13.62%
- DST Systems, Inc. (DST): +37.87%
- Intel Corporation (INTC): +26.12%
- KLA-Tencor Corporation (KLAC): +12.00%
Pretty good. Perhaps trading with Levkovich can make you some money. How are the markets doing overall YTD though?
- DOW JONES INDUSTRIAL AVERAGE INDEX (.DJI): +12.86
- NASDAQ COMPOSITE INDEX (.IXIC): +15.11%
- S&P 500 INDEX (.INX): +9.82%
From this we can conclude that Tobias picks at least kept up with the market and Intel and DST Systems both outperformed the market.
Jon Petrino
So...for the most part I have taken the summer off. Now that were back I thought I would update whats going on with my personal portfolio.
I sold all my shares of Freeport-McMoRan Copper & Gold Inc. (FCX) a few days ago. I had been buying in the low 50 and high 40 dollar range all year. When the price reached north of the 107 mark I decided to cash in my chips. The stock has gone up since I sold but I feel good about my overall return. Real good.
I also sold my iShares MSCI Brazil Index (ETF) (EWZ) holdings. A nice run up gave me a chance to make a tidy profit. As with my FCX shares, the price has increased slightly since I bought in. But once again - I'm happy with my gain.
With some of the proceeds from my sale of FCX and EWZ I bought some shares of Harvest Energy Trust (USA) (HTE). What drew me to Harvest? I've been watching it for months now and the price topped out at almost 34 dollars. The stock then sold off down to the $25 range. After seeing some support at about that level I pulled the trigger. The yield on the stock is also pretty attractive - and I love dividends. HTE pays .38 per share per month (minus the Canadian tax that is required). The yield is good and I think the stock got a nice re-valuation this summer.
So...I didn't spot the top perfectly on my sells but you can never go broke making a profit.
Saturday, September 22, 2007
Jon Petrino
Were getting back into the swing of things at Sector Investor. After just about totally taking the summer off we are getting back to business. Ted Araya gave the only updates during the summer and we want to thank him for that.
Over the summer the popular Pipeline Portfolio ended with an impressive return of 33.27%. I will be starting a few new sector portfolios to track so check back. I still have the income/growth and total market portfolios running and I will be updating them as well. One new portfolio that I am currently working in is a portfolio with an initial value of just $1,000. We'll see just how hard it is to trade on a $1,000 portfolio and we'll see if we can make any money. More to come on this very soon.
Also, if you would like to become a contributing writer to Sector Investor please e-mail us at sectorinvestorblog at yahoo dot com. Obviously replace the at with @ and the dot with .
Thanks for visiting!
Monday, August 13, 2007
Ted Araya
Original Article: 31 July 2007
A title like that your thinking how can this be so? As with anything the devil lies within the details let me try and put things into clear perspective backed using some data. As of late the markets recent declines represents about a 3 percent loss. Experts have continued to say that's almost insignificant compared to the 23 percent drop of the markets back in 1987 during Black Monday.
With the ever-growing concerns over the continuing decline in sales of new and existing homes, in addition to a tight lending market, this has mandated even the most willful investors to cut their losses.
As analysts from different sectors (both housing, and investments) predict the housing market could remain weak until the middle of 2008, investors have reacted by laying low over the past quarter. The bottom is believed not to be completely seen until the next several quarters. That being said is those investors who came in a little early by jumping the gun, and are now bailing out of their intended positions which lead helping to drag down the rest of the market."
After doing some research and filtering at this given moment there are now more than 7,800 companies that are trading at 52-week lows. This in turn means they're at a bargain price versus this time last year, which means there's an upside there as opposed to more downside and I think that's a good thing."
In a contradictory stance (devil in the details) all in all global growth remains very strong, and corporate profitability still remains very strong exhibiting fundamentals still look good. Add that to the already known volatility of the current state of the stock market and you now know why advisors are preaching the benefit of investing in the long term and not going in for the quick buy and sell. Even with that being said, investors are preparing to snap up shares of telephone, health-care and computer companies after the recent $2.1 trillion global stock market rout which left U.S. equities the cheapest in 16 years.
I am always pondering stock valuations in search of key bargains and have been thinking that there are many bargains to be had. Having come to this conclusion though is not based on the relative market strength or weakness, or whether the over all market is cheap or not.
Some companies have reported terrific earnings Intuitive Surgical (NASDAQ: ISRG), Apple Inc. (NASDAQ: AAPL). With that being said as of late some earning have been lackluster for example Johnson & Johnson (NYSE: JNJ). Some have been dismal like housing stocks Pulte Homes (NYSE: PHM) and Toll Brothers (NYSE: TOL). While one could make the argument that stock valuations are at a low point there is more to the story.
A key to look for is Valuations (think price-to-earnings (P/E) ratios) when they are at a cumulative low, especially since the market prices stocks are based on future earnings and growth of equity potential. That being said one has to assume the brokerage houses, investment banks, hedge funds, institutions and the like have priced in a continuation of the same low interest, high liquidity conditions that lead to this economic situation. The only thing which is not clear even with all facts and trends aside, is the future projection within this current validity.
The average investor should view all markets and promoters of these markets as full of bull. The best way to invest in stocks is the same way you invest in friends - one by one, respectfully, fairly and refraining from judging the proverbial book by its cover. You should look deeper and think long term.
Thursday, July 05, 2007
Ted Araya
So far in the first half of 2007, media stocks have not lived up to the hype that it was once adjoined by despite consolidation in its sector. While the broader market has had a great jumpstart since the beginning of the year many have been left wondering why media stocks with so much potential have been left to flounder month after month.
On the last trading day of the first half, the S&P Broadcasting and Cable index and S&P Publishing Index are both up just 1 percent versus a 6 percent gain for the S&P 500. The Dow is up about 7.7 percent so far this year while the Nasdaq has risen about 8 percent. What's more, the S&P Movies and Entertainment index is down 1 percent year-to-date.
Here is a brief synopsis of some of the surprising winners on Wall Street, and some stocks which are struggling during the first half 2007.
List of some of the best media stocks so far of 2007….
Crown Media Holdings 96.1%
LIN TV 87.0%
Primedia 73.4%
Dow Jones 52.1%
Discovery Holding 42.4%
Liberty Global 40.3%
List of some of the worst media stocks so far of 2007…..
McClatchy -41.0%
Warner Music Group -37.0%
Citadel Broadcasting -36.8%
Martha Stewart Living Omnimedia -22.0%
XM Satellite Radio -20.0%
Sirius Satellite Radio -14.7%
The weak stock performance overall came even as merger interest in the media sector warmed up. Not surprisingly, some of the group's biggest winners were takeover targets, real or rumored, or companies that are up on the block.
LIN TV has shot up 87 percent. The owner of local TV stations said in May it was exploring alternatives, including a possible sale. Shares of Cablevision have gained 25 percent so far in 2007 as the company's founding family agreed in May to take the cable operator private.
CKX, a media licensing company that owns the rights to the names and likenesses of Elvis Presley as well as the rights to the popular "American Idol" television show that airs on News Corp.'s Fox, have surged 18 percent. The company's top executives announced in May that they were taking CKX private.
Of course not all media stocks have benefited from mergers. Shares of newspaper publisher Tribune, which agreed to be taken private by real estate mogul Sam Zell in April, have fallen 4.5 percent this year showing that not all media stocks see positive numbers based on a merger.
Another perfect example of this that hits home for myself and many others deals with the fact that satellite radio companies Sirius Satellite and XM Satellite Radio agreed to merge in February, but the stocks are among the worst performers in the media sector as of this year. Sirius stock has tumbled 15 percent while XM stock has plunged 20 percent. One of the main reasons for the decline many on Wall Street doubt the deal will win approval from regulators.
The future outlook for the rest of the year is still out for the jury. With the continued hype about summer blockbusters, the early signs of high-profile sequels not living up to expectations shows us this might be a weak third and fourth quarter for media stocks.
Wednesday, May 30, 2007
Ted Araya
Original Article Date: May 15 07
Here’s a snapshot view into some of the stocks I am currently invested into as well as a brief explanation as to why I have these stocks within my investment portfolio. These stocks range from local businesses all the way to internationally traded stock. These stocks help exemplify the various arenas I am currently investing in such as; real estate, pharmaceutical, electronics, and entertainment. Hopefully this motivates other investors to invest in diversified arenas as well.
Microsoft Corp (NYSE: MSFT $30.85) (52 week $31.48-$21.46)
Microsoft Corporation engages in the development, manufacture, licensing, and support of software products for various computing devices worldwide. Microsoft is the second stock that I ever purchased when I first got into investing in stocks years back. To this day Microsoft has yet to let me down, due in large part to the innovation that continues to come out of Microsoft’s brain trusts and the continued entertainment related products that continue to have consumers young and old as regulars. With Microsoft’s new 3 division tier of (Platforms and Services, Microsoft Business, and Entertainment and Devices) I expect great things to continue to come from Microsoft as well as great quarterly numbers over the next few years.
TASER INTERNATIONAL INC. (NYSE: TASR $9.39) (52 week $10.75-$6.86)
Taser International locally based in Arizona development and manufacture of electronic control devices for use in law enforcement, corrections, private security, and personal defense. I originally purchased shares in Taser after their first initial collapse betting that they would beat the court cases placed against their. By buying them as at their all time low and watching Taser clear up all lawsuits brought against them, my portfolio has seen a significant boost to increases by stocks such as TASR.
MARVEL ENTERPRISES (NYSE: MVL $27.28) (52 week $30.95-$17.20)
Marvel Entertainment, Inc. engages in the licensing, publishing, toy making, and film production businesses with a proprietary library of approximately 5,000 characters. If you have been to the theatres recently you have continued to support the run Marvel is continuing to generate. This inturn leads to continued returns for us as shareholders. With He-Man rumored to be shooting starting this year, to the records currently being set by Spiderman 3, and the continued DVD sales of the X-Men movies Marvel continues to CAPITALIZE off their four key segments: Licensing, Publishing, Toys, and Film Production.
ARIZONA LAND INCOME CORP. (NYSE: AZL $70.19) (52 week $74.89-$54.90)
Arizona Land Income Corporation, also located here in AZ is a real estate investment trust that engages in the acquisition and origination of first mortgage loans on unimproved real property located primarily in the Phoenix, Arizona metropolitan area. I purchase this stock in early 2006 while the AZ housing market was still hot, but even in the cool market AZL is still reach their 52 week high. The reason you may be asking? AZL elected to be taxed as a REIT and would not be subject to federal income tax, provided it distributes at least 90% of its REIT taxable income to its shareholders.
SYNTAX-BRILLIAN CORP. (NASDAQ GM: BRLC $7.10) (52 Week $11.70-2.02)
Syntax-Brillian Corporation engages in the design, development, and distribution of high-definition televisions (HDTV’s) in liquid crystal display (LCD), and liquid crystal on silicon (LCoS) formats. I originally purchased shares in Syntax around the $3 mark, and saw it noticeably rise over a year once Syntax negotiated deals to distribute high-end consumer electronics products to retailers not only in North America but Asia, and Europe as well. The company went on to agree on a joint venture, with “Olevia Senna do Brazil”, to assemble and market Olevia branded HDTV’s in Brazil and throughout South America. With projected joint ventures still be rumored with China Syntax is assured to continue to bring us even higher returns on our shares.
Monday, April 23, 2007
Jon Petrino
Fear and greed - thats what most investors are driven by, I didnt make that up and I'm sure you've heard it before. Dendreon (DNDN), which is a recently high flying biotech stock which has a cancer drug in the works is, in my opinion, the latest in the list of "hot stocks" to suck investors in.
I was actually listening to CNBC on XM Radio back in march when I was on the road and heard that trading of Dendreon would be halted while they met with the FDA concerning their cancer drug. I thought "wow...what a trade this could be." But, I was on the road and wouldnt be able to get the order placed until it was too late. Sure I could have called my broker, but I wanted to find out a little more about this stock before I just called in my order and paid a commission 3 times higher than if I placed it myself.
I missed the movement. I know three people however who did buy it and one of them bought it correctly. Once again, all this is just my opinion. Person A had a broker at a big asset manager who called them to get them in the stock in the high 4 low 5 dollar range. Person B heard about it from Person A and bought it once at 12 and one at 15, not bad. Person C is way behind Persons A&B. They bought in at the 23 - 24 dollar range after reading about it in the Saturday edition of the Journal a few weeks ago.
This is a prime example of how investors can get caught up in a stocks hype. I assume Dendreon is a good company with a bright future, but to hear people talk about its stock performance like its a sure thing is just foolish. If that was certain these investors would put thier entire net worth into its stock. This isnt investing, its gambling. And when these people tell how how great it will be they are just making themselves feel good about their purchase.
I understand the differences in investing styles (i.e. growth, income, ect...) what I dont understand is the blind foolishness that goes with buying a risky growth stock in one fell swoop at its peek. Person A here is in the stock at a solid point and at any time can "ring the register" to borrow a phrase from Cramer. Person B is smart and bought once and then bought again to lower their average cost, thus increasing their return. Person C is just greedy, but is being so on the wrong end. Buying the stock after the huge runup and then counting his chickens before their hatched is a recipe for disaster, or at least disapointment.
Be smart, buy what you know, have researched, or have had researched by your financial professional. Dont buy for the wrong reasons at the wrong price. Just my two cents.
I do not own shares of Dendreon (DNDN) am I am not short the stock.
Saturday, April 14, 2007
Jon Petrino
You may have noticed the change in the look of Sector Investor. Blogger has recently undergone some changes for the better, so I upgraded the blog template to take advantage of them.
I did away with the quote section that was on the right side of the screen and replaced it with a list of my existing model portfolios that I will update every week. I will be featuring these portfolios 1 at a time...the list includes 4 portfolios:
- Total Market - Is an all ETF Portfolio that includes ETFs from all major indices as well as emerging markets, real estate, natural resources and bonds.
- Monthly Dividends - This portfolio contains only two stocks. 1 ETF and 1 stock, both of which obviously pay monthly dividends.
- All Pipleine - This is by far the most popular of the portfolios with readers. The portfolio is made up of 12 high yielding pipeline stocks and nothing else.
- Income / Growth - Given the amount of time, this portfolio is the most successful. In just 81 days this portfolio is returning over 17%. It is made up of ETFs, CEFs, and Common Stocks.
Be on the look out for some upcoming updates where I will talk about these portfolios and my own portfolios and for you GE Investors like me, check out: http://geinvestors.blogspot.com/
Monday, April 09, 2007
Ted Araya
A month after the Dow Jones industrial (.DJI) took a 400 point plunge; U.S. stock market indicators surprisingly stand close to where they began the year.
In general when such a plunge occurred in the past, you would feel the fallout for month’s one end. Precarious as it may be to say, something must be different this time around.
There is one of two reasons that may justify this dissimilar occurrence. One of the main reasons that come to mind off the top and is justifiable is the economy itself is healthier and more stable than most modern investors are accustomed to. With growth worldwide on the rise factored in with relatively calm conditions in regards to inflation and interest rates volatility does not place such a key role in the stable controlled environment.
The other explanation being such low volatility is that the markets themselves have grown more competent in the acquisition of the major and knowledgeable investors the world has ever seen
While a lot of people fearing the effects of inflation and recession, that same inflation apprehension really should not cause alarm simply on the fact that the inflation rate is only running at 2.4 percent in the US.
That current 2.4 percent is less than a percentage point above where the Federal Reserve would prefer it to be. In the ever infamously sensitive bond market, the interest yield on a10-year Treasury notes sits comfortably at a kind-and-gentle 4.6 percent feeling no affects of the current inflation rate.
The application of these two explanations, both economic and financial, for concentrated volatility is only enhanced by the neat way they fit together.
Low volatility can be a serious symptom of complacency in today’s current market which like pride, often goes before a fall. Also, low volatility can make it harder for investors in the essence that it will reduce the supply of bargains to buy.
Whichever it may be, complacency or low returns, or even both, can drive investors to take the newfound risks. Over time, this increases everybody's susceptibility should something go wrong. This ultimately would send surprise waves through a system that currently is not prepared.
Friday, March 30, 2007
Jon Petrino
Back in January I brought you some picks from some Wall Street pros, one was Citigroup's Tobias Levkovich. 2007s 1st Quarter is over, so lets have a look at just how he did:
American Tower Corporation (AMT) - YTD: +4.48%
Avon Products, Inc. (AVP) - YTD: +12.77%
DST Systems, Inc. (DST) - YTD: +20.07%
Intel Corporation (INTC) - YTD: - 5.53%
KLA-Tencor Corporation (KLAC) - YTD: 7.18%
It turns out Tobias could have (or maybe did) make you some money! How did the major indices perform YTD?
S&P 500 INDEX (.INX) - YTD: +0.18
DOW JONES INDUSTRIAL AVERAGE INDEX (.DJI) - YTD: -0.87%
NASDAQ COMPOSITE INDEX (.IXIC) - YTD: 0.26%
The markets are mostly flat for the year after a major "selloff" and rebound. So Tobais handily outperformed the markets in all but of his picks (Intel). Levkovich gets the thumbs up from me (I'm sure he's really concerned what I think!). Check back as I'll be looking in Cramer's picks for 2007.
Saturday, March 17, 2007
Ted Araya
If you have been watching the news, reading the papers, and most importantly keeping up with your personal portfolio you should be observant of the current fluctuations in today’s market. What are the leading indicators/causes of the matter you may be asking yourself?
One of the keys that are hurting the market as of late has to do with investor concerns. Large in part, the growing crisis in the US subprime mortgage market.
Over the last few weeks here in the US market shares have shifted dramatically before positively producing a recovery.
*The Dow Jones Industrial Average (.DJI) slid below the 12,000 level at one point for the first time since November of 2006. (Key because stats like these are what lead to investor concern, before the information can be received and inferred.)
To break it down basically, the US volatility came after a rout on Asian and European bourses as investors (both domestic and foreign) feared the US sub prime mortgage market problems would have a negative impact on the economy. This inturn, leading to a slow overall American housing market.
I read a great quote recently on a flight back home from a Mr. George Magnus, senior economic adviser to UBS. He said “the US subprime mortgage market was a potentially very serious problem for the US economy and markets akin to the US savings and loan crisis of the 1980s or the 2002 US credit crunch.”
He also pointed out that subprime and Alt A (a credit category above subprime) mortgages accounted for 26 to 30 per cent of outstanding mortgages and 40 per cent of securitized mortgage issuance.
All in all, although there are many causes in regards to the current fluctuations in today’s US market. A large portion of these inconsistencies have to deal with the current instability with the US subprime mortgage market tied in with the ever growing concern amongst investors.
Saturday, March 10, 2007
Jon Petrino
257 days ago, on my very first post at Sector Investor (when the blog was still in its infancy, and it still is in many ways) I wrote about how auto parts would always be demand. At least to the extent that cars will always have routine maintenance (oil changes, washer fluid, windshield wipers, headlights, ect...). So I featured 7 retailers/wholesalers of auto parts: Genuine Parts Company (GPC), LKQ Corporation (LQKX), Keystone Automotive Industries, Inc. (KEYS), AutoZone, Inc. (AZO), Advance Auto Parts, Inc. (AAP), O'Reilly Automotive, Inc. (ORLY), The Pep Boys - Manny, Moe & Jack (PBY).
This tiny sector of the market is far from exciting, lets face it. But often times some great investment opportunities dont involve the the most orginal ideas. You'll see some of these stocks did much better than others:
- Genuine Parts Company (GPC): Performance in the last 257 days: 18.06%. Remarkably no real news has developed for GPC since late June when I initiated the portfolio of auto parts. It has paid $1.05 in dividends since then and has most recently posted a 10% increase in profit last month. MSN Money reports the average analyst rating on the stock is a HOLD.
- LKQ Corporation (LKQX): Performance in the last 257 days: 12.02%. They released guidance a couple of times below analysts expectations and above in February. It just reported that its revenue is up 44% and it was planning to a big expantion into refurbished headlights. MSN Money reports the average analyst rating on the stock is a MODERATE BUY.
- Keystone Automotive Industries, Inc. (KEYS): Performance in the last 257 days: -19.49%. Shares of Keystone have been on what looks like kind of a slow burn since late June. There are couple of slides that stock has taken. One in early August of about $6 a share and another in December of more than $8. I dont think this position acurately displays the stocks performance though. I paid no attention to the stocks relative strength or weakness and simply initiated positions on these stocks. If I owned them I probably would have bought on the pull backs which would have lowered my cost basis a couple of times and at least covered some of my losses. That being said, this obviously isnt the best stock in the group here if you judging simply on peformance. MSN Money reports the average analyst rating on the stock is a MODERATE BUY.
- AutoZone, Inc. (AZO): Performance in the last 257 days: 36.14%. Clearly the best performing stock in the group. It has been on an absolute tear since June. Just last month they released inline Q2 earnings, news of a share buyback, and lower inventory costs. In the last week alone its up alomost 4%. After the run-up MSN Money reports the average analyst rating on the stock is a HOLD.
- Advance Auto Parts, Inc. (AAP): Performance in the last 257 days: 1.38%. Just after initiating this position AAP lowered guidance which sent the stock on a 7 day slide of alomost $10. No earnings consistancy here...they missed earnings, issued inline guidance, and then noted earning were to fall again. However...it looks that they are getting it together or attempting to. Reuters reports "private equity buyers may be interested in the company." I have posted a link at the bottom of the page here to the full Reuters article which actually paints a pretty bright picture for AAP. MSN Money reports the average analyst rating on the stock is a MODERATE BUY.
- O'Reilly Automotive, Inc. (ORLY): Performance in the last 257 days: 0.03%. Performance here doesnt tell the whole story either. If I had waited just 20 days to initiate the position the performance would be north of 10%. The earnings have been inline and they just forcasted strong 2007 growth. Certainly worth the look. MSN Money reports the average analyst rating on the stock is a MODERATE BUY.
- The Pep Boys - Manny, Moe & Jack (PBY): Performance in the last 257 days: 26.18%. Nice and easy, nice and slow. Paying $.21 per share in dividends since June Pep Boys have managed steady growth and moderate income. The stock has seen some dips but has rebounded nicely. In July the CEO resigned, but other than dividends, no other real news has emerged. MSN Money reports the average analyst rating on the stock is a HOLD.
I dont own any of these stocks. If I was to look into owning any of these I suppose I would look at LKQX, AAP, ORLY. I do not endorse any of these stocks. It is certainly interesting to compare these stocks to their peers over the time frame of 200+ days. I will continue to update this and my other model potfolios.
Thursday, March 08, 2007
Jon Petrino
The Wall Street Journal reports regularly on stocks that are being bought on weakness and sold on strength. This is of interest because I am concidering adding to my General Electric Company (GE) position and I have been taking notice that it appears to be oversold.
Because of the stocks weakness it appears on the "Buying on weakness" list in todays Journal. Along with these others:
- S&P 500 Index - "Spiders" (SPY)
- iShares Russell 2000 Index (ETF) (IWM)
- Weyerhaeuser Company (WY)
- General Electric Company (GE)
- iShares MSCI Emerging Markets Indx (ETF) (EEM)
- Microsoft Corporation (MSFT)
- General Motors Corporation (GM)
- JPMorgan Chase & Co. (JPM)
For those of you, like me, on the get rich slow train with GE...I belive this is one of those buying opportunities that come up every so often. I will be buying if nothing else just to lower my cost basis. By the way, the Journal lists the following security as number one in "Selling on strength" - Energy Select Sector SPDR (ETF) (XLE)
Wednesday, March 07, 2007
Jon Petrino
My Pipeline Portfolio is performing outstanding to date. My All Pipeline Portfolio is currently 166 Days old and is currently enjoying a 18.95% market appreciation and many stocks in the portfolio are well above that.
You may remember from my first post about my pipeline model portfolio that I started with an imaginary $10,000.00 and bought equal weight positions in 12 pipeline companies. Well, here is some what of a detailed break down of the portfolios current mkt appreciation:
- Atlas Pipeline Partners, L.P. (APL): 10.45%
- Buckeye Partners, L.P. (BPL): 13.97%
- Enbridge Energy Partners, L.P. (EEP): 14.27%
- Kinder Morgan Energy Partners LP (KMP): 14.40%
- Kinder Morgan Management, LLC (KMR): 19.40%
- Oneok Partners LP (OKS): 16.98%
- Plains All American Pipeline, L.P. (PAA): 13.61%
- Sunoco Logistics Partners L.P. (SXL): 30.34%
- TC Pipelines, LP (TCLP): 21.27%
- TEPPCO Partners, L.P. (TPP): 16.03%
- Valero L.P. (VLI): 26.07%
- Holly Energy Partners, L.P. (HEP): 28.00%
Total income from dividends: $345.08 (3.45% on initaial $10,000)
Total interest income: $8.32
Market Appreciation: 18.95% ($1,804.14 on initial $10,000)
Total Overall Return: 22.45% (IN JUST 166 DAYS!)
Anyway...I'm sure the 10 people that read this blog are getting tired of pipeline talk so I will really be talking about something new in a day or two.
Wednesday, February 28, 2007
Jon Petrino
After yesterdays sell-off that saw the markets lower, how did my Pipeline portfolio fare? Remarkably well. If you did not catch the first post I wrote about the portfolio, you can catch it here.
As of this morning the overall portfolio was up 21.13% with dividends after the markets had the biggest down day since September 2001. Just 17 days ago I featured the Pipeline Portfolio writing that it had posted a 20.40% return. After the major sell-off, its at 21.13%, a .73% increase.
Best Performing Stocks in Portfolio:
- Sunoco Logistics Partners L.P. (SXL) +27.08%
- Valero L.P. (VLI) +23.89%
- Holly Energy Partners, L.P. (HEP) + 21.79%
Worst Performing Stocks in Portfolio:
- Atlas Pipeline Partners, L.P. (APL) +9.46%
- Enbridge Energy Partners, L.P. (EEP) + 13.86 %
- Plains All American Pipeline, L.P. (PAA) +14.37 %
As you can see the portfolio is still strong, as the weakest stock in the group is posting a 9.46% return in just 159 days (the age of the pipeline protfolio in days). I will get a little more detailed in a couple of days and talk about a few other model portfolios I put together, which are all performing very well. I will also discuss my personal portfolio which did stumble about 4% yesterday.
This pullback wasnt the first one in history, and wont be the last!
Please check out my other posts!
Saturday, February 17, 2007
Jon Petrino
CNBCs Business Arabia reported today that Kuwait Airways is looking to replace its ageing fleet of which is made up of 15 Airbus and 2 Boeing aircraft. The airline will open talks with manufacturers and expects negotiations to be wrapped up by May, at which time it will place the order which is estimated to be worth several billion dollars. The purchase comes at a time when Kuwait Airways is looking to become more competitive.
Jon Petrino
Its been about a month since I last wrote about whats happening with my portfolio, so I figure I would do so today.
Starting with Credit Suisse AM Inc Fund Inc. (CIK) which I was feeling good about right off the bat after purchasing it. Its now back to about where I purchased it as the price has come back down after being overbought and after a little volitility has returned to the bond market. Its down about 3% since I wrote about my positions last (Jan 19 2007). However I have collected 2 rounds of dividends now (it pays monthly) and I'm happy.
General Electric Company (GE) what can I say about GE. I went in big last month and more than doubled my position in GE and since then it has come down about 5%. I have no plans to make a trade out of GE to be sure, but it would be nice to see a little upward momentum. As nice as that would be, it in no way compares to the future value of their shares and dividends I'm sure. I will be accumulating shares of GE forever or until they look unfavorable, which I dont anticipate. They are making big movements in regards to M&A and a recent Reuters article suggests that until all these deals are "digested" the price wont move much.
Freeport-McMoRan Copper & Gold Inc. (FCX) has rebounded nicely in the last month, up about 7% and paying its regular dividend on the 1st. It seems metals are coming back into favor lately which brings me to a point. Trying to get in and out of stocks with the big boys is almost impossible, not to mention all the money you'll be paying in commissions to you broker, a big boy making them even richer in the process. I have owned FCX for a while and while the price does indeed fluctuate I am still way up on my position. Use the cycle to accumulate on dips and celebrate on peaks. Freeport-McMoRan also scheduled their special meeting to vote on the acquisition of Phelps Dodge for March 14, 2007.
Magellan Midstream Partners, L.P. (MMP) is one of those stocks that you wish you had bought more of. I went in making it a minority position in my portfolio and now I'm wishing it was one of my top holdings...oh well. I am looking to accumulate shares somewhere in the 39-40 range but I may have to adjust my comfort zone. MMP just paid a .60/share dividend and has been performing extremely well lately. Also check out my post on my All Pipeline Portfolio (which doesnt include MMP). It is currently running at about 20% return.
iShares MSCI Brazil Index (ETF) (EWZ) is also doing well lately. EWZ is the smallest holding in my portfolio as it is the most volitile. It is up almost 9% in the last month and is up 4.6% YTD. I will continue to acquire shares when it drops but I am looking to keep it in proportion to the rest of my holdings.
My other holdings in brokerage and natural resources are doing well, but nothing new to report.
Ben Stein was on Fox News this morning and picked MACQUARIE BANK LIMITED (MQBKY) as Austalia's version of Goldman Sachs Group, Inc. (GS). I certainly thought that was worth passing on. MacQuarie is at the top end of its 52 week range which is 45.40 - 66.30. It has only been trading since the Summer of 2006. Possible huge upside here, although information on it is not as plentiful as I like.
Saturday, February 10, 2007
Jon Petrino
The following U.S. economic indicators are due out next week according to Dow Jones. Below is a list of indicators by day and other information.
MONDAY
- Treasury Budget @ 1400 for January. Previous: +$21.0 Bln (Jan 2006). Consensus: +$40.0 Bln.
TUESDAY
- International Trade @ 0830 for December. Previous: -$58.2 Bln. Consenus: -59.5 Bln.
WEDNESDAY
- Retail Sales @ 0830 for January. Previous: +0.9%. Consenus: +0.6%.
- Excl. Auto Sales @ 0830 for January. Previous: +1.0%. Consensus: +0.5%.
- Business Inventories @ 1000 for December. Previous: +0.4%. Consensus: +0.0%.
THURSDAY
- Initial Jobless Claims @ 0830 for Feb 10. Previous: 311,000. Consensus: 315,000.
- NY Fed Mfg Index @ 0830 for February. Previous: 9.1. Consensus: 11.5.
- Import Price Index @ 0830 for January. Previous: +1.1%. Consensus: -1.5%.
- Industrial Production @ 0915 for January. Previous: +0.4%. Consensus: -0.1%.
- Capacity Utilization @ 0915 for January. Previous: 81.8%. Consensus: 81.6%.
- Philadelphia Fed Index @ 1200 for February. Previous: 8.3. Consensus: 5.0.
FRIDAY
- Producer Price Index @ 0830 for January. Previous: +0.9%. Consensus: -0.6%.
- Excl. Food & Energy @ 0830 for January. Previous: +0.2%. Consensus: +0.2%.
- Housing Starts @ 0830 for January. Previous: 1.642 Mln. Consensus: 1.600 Mln.
- Building Permits @ 0830 for January. Previous: 1.613 Mln. Consensus: 1.605 Mln.
- Michigan Consumer Sentiment @ 1000 for February. Previous: 96.9 (Jan 07). Consensus: 96.0
SectorInvestor Home
Jon Petrino
I have been pretty impressed by pipeline stocks performance for a while now. Most of them pay hefty dividends and seems to stable in an unstable market environment. Back on Sept 22 2006 I set up a model portfolio of 12 pipeline companies that pay dividends north of about 6%. I set up this portfolio to see how pipelines would behave though various market cycles and 141 Days later, I'm still impressed.
I have been pretty impressed by pipeline stocks performance for a while now. Most of them pay hefty dividends and seems to stable in an unstable market environment. Back on Sept 22 2006 I set up a model portfolio of 12 pipeline companies that pay dividends north of about 6%. I set up this portfolio to see how pipelines would behave though various market cycles and 141 Days later, I'm still impressed.
About the portfolio: I started with a small enough amount for this to have some relevancy. A $1,000,000 sure would have some impressive dividends and gains, but the dollar values would be a little abstract. So I started with $10,000 to put this in perspective. The portfolio is non-diversified so for obvious reasons it has significant risk, although you would never know it from looking at it. All positions in the portfolio are equal weight and had an average purchase price of $787.66 per position, an avergae purchase price of $43.37 per share, and an average number of shares per position of 18 shares.
The stocks in the portfolio are as follows: Atlas Pipeline Partners, L.P. (APL), Buckeye Partners, L.P. (BPL), Enbridge Energy Partners, L.P. (EEP), Kinder Morgan Energy Partners LP (KMP), Kinder Morgan Energy Partners LP (KMP), Kinder Morgan Management, LLC (KMR), Oneok Partners LP (OKS), Plains All American Pipeline, L.P. (PAA), Sunoco Logistics Partners L.P. (SXL), TC Pipelines, LP (TCLP), TEPPCO Partners, L.P. (TPP), Valero L.P. (VLI), and Holly Energy Partners, L.P. (HEP).
Best in Portfolio: Sunoco Logistics Partners L.P. (SXL) 25.03%
Worst in Portfolio: Plains All American Pipeline, L.P. (PAA) 12.37%
Total Market Appreciation expressed as a percent: 18.06%
Total Return with Interest & Dividends as a percent: 20.40%
Total Income from Interest & Dividends in dollars: $177.72
The dividends represented here only account for dividends paid for 1 quarter. Projected dividend income for 1 year is about $700.00 on a $10,000 initial investment. I will continue to update the progress of this portfolio. I also have a few other model portfolios that I will feature here.
Tuesday, February 06, 2007
Jon Petrino
The markets have been feeling a little top heavy to me lately. Even everyone's hot growth economy of China seems to be cooling off or correcting. The iShares FTSE/Xinhua China 25 Index ETF (FXI) is down over 7% YTD. I mulled over purching FXI but didn't back in December. I wasn't comfortable purchasing it after its run of over 64% since mid-June. If you have been reading my blog here at all you have probably picked up on the fact that I'm mostly a value investor. Back to China: BusinessWeek.com had the following article that I found interesting back in January..."Stocks: The Chinese Correction. S&P says charts for a fund that tracks a key Chinese index look "'downright scary"', and it could be due for a major pullback". If that wasn't warning enough for you, this morning MSN Money Senior Markets Editor Jim Jubak has the following article: Time running out on China's boom. A decade of roaring economic growth has come at the expense of workers and the environment. That model for growth can't last.
Brazil on the other hand (the B in the BRIC) has performed a little more reasonably, although still has had quite a run up. The iShares MSCI Brazil Index ETF (EWZ) is up just over 3.5% YTD and over 35% since mid-June. Sure those are some big numbers too, but compared with 64% they seem a little tame. Perhaps the focus will shift to the other BRIC countries as people realize that China is overheated, overbought, and overhyped. Obviously there are great prospects for growth and opportunity for you in China, but just as with anything else, growth has to be looked at in relation to its sustainability. Brazil's growth probably will not be able to keep up with its past performance either but it doesnt have as far to fall.
Another safer way to play the BRIC Emerging Markets is the Claymore/BNY BRIC ETF (EEB), it tracks the performance of all 4 of the BRIC countries, saving you from having to own individual country ETFs. I will be analyzing EEB coming up soon.
Resources:
- Goldman Sachs Research: Global Economics Paper No. 99: Dreaming with BRICs: The Path to 2050
- Wikipedia: BRIC
- IndustryWeek: BRIC Crumbling?
- iShares ETFs for US investors - Exchange Traded Funds (FXI, EWZ)
- Welcome To Claymore Securities, Inc. (EEB)
- BusinessWeek.com
- MSN Money
Disclosure: I own shares of EWZ.
Friday, January 26, 2007
Jon Petrino
The Wall Street Journal lists just about everyday, the top yielding ETFs in the Money & Investing section of the paper. Those ETFs are listed below for your research:
(TIP) iShares Lehman TIPS Bond (ETF) ~ 5.93%
(LQD) iShares IBoxx $ InvesTop Invest Grad Cor ~ 5.05%
(RWR) DJ Wilshire REIT (ETF) ~ 4.70%
(TLT) iShares Lehman 20+ Year Treas.Bond (ETF) ~ 4.59%
(AGG) iShares Lehman Aggregate Bond (ETF) ~ 4.27%
(IEF) iShares Lehman 7-10 Yr Treas. Bond (ETF) ~ 4.27%
(EPP) iShares MSCI Pacific ex-Japan Idx (ETF) ~ 4.14%
(SHY) iShares Lehman 1-3 Year Treas.Bond (ETF) ~ 4.13%
(VNQ) Vanguard REIT ETF ~ 3.96%
(RKH) Regional Bank HOLDRS ~ 3.51%
(UTH) Utilities HOLDRS ~ 3.50%
(EWU) iShares MSCI United Kingdom Index (ETF) ~ 3.44%
(SWH) Software HOLDRS ~ 3.25%
(IYR) iShares Dow Jones US Real Estate (ETF) ~ 3.23%
(FXM) CurrencyShares Mex Peso Tr ~ 3.15%
Other resources:
Disclosure: I do not own any of these securities.
by: Jon Petrino
Here are a few securities that are offering initial dividends in the coming weeks:
- The First Bancshares, Inc. (FBMS)
Amount: .30
Record: Feb 05 07
Payable: Feb 15 07
- Hiland Holdings GP, LP (HPGP)
Amount: .2075
Record: Feb 05 07
Payable: Feb 19 07
- Penn Virginia GP Holdings, L.P. (PVG)
Amount: .07
Record: Feb 05 07
Payable: Feb 14 07
Below are the securities that announced irregular dividends to paid in the coming weeks:
- Columbia Sportswear Company (COLM)
Amount: .14
Record: Feb 15 2007
Payable: Mar 01 2007
- Mer Lyn Depost'r 6% Tr Ctfs (PYY)
Amount: .75
Record: Feb 14 2007
Payable: Feb 15 2007
Disclosure: I do not own any of these securities.
Thursday, January 25, 2007
Jon Petrino
If your looking to invest in a bank you have probably researched the usual suspects: Bank of America Corp (BAC), Citigroup Inc. (C), JPMorgan & Chase Co. (JPM), Wells Fargo & Company (WFC) & Wachovia Corporation (WB). But consider looking to Europe for solid investments. Being diversified doesnt only mean you should own stocks in different sectors but you should look to be a little geographically diversified. Favorable currency conditions can also aid your investment in a European bank.
I have included some European bank ARDs below that may be of interest along with some information about them:
Credit Suisse Group (ADR) (CS)
Switzerland
1 Year Performance: 26.47%
5 Year Performance: 66.75%
Avergae Rating: Moderate Buy
P/E: 18.57
UBS AG (USA) (UBS)
Switzerland
1 Year Performance: 21.07%
5 Year Performance: 159.72%
Avergae Rating: Moderate Buy
P/E: 10.90
Deutsche Bank AG (USA) (DB)
Germany
1 Year Performance: 38.51%
5 Year Performance: 101.18%
Average Rating: Hold
P/E: 13.45
Barclays PLC (ADR) (BCS)
United Kingdom
1 Year Performance: 43.25%
5 Year Performance: 87.42%
Average Rating: Moderate Buy
P/E: 14.27
HSBC Holdings plc (ADR) (HBC)
United Kingdom
1 Year Performance: 12.43%
5 Year Performance: 64.04%
Average Rating: Hold
P/E: 12.93
As you can see these stocks have provided good returns over the past 5 years and have the very favorable valuations of domestic banks. It pays to look into banks and financials as they are looking to break into China and other emerging markets. The Wall Street Journal just had an article about UBS being accomodated in China and on the 8th of Jan they were granted a banking license in Mexico.
Another way to invest in Europe is through CurrencyShares Euro Trust (FXE) and CurrencyShares Swiss Franc Trust (FXF) however these securities are subject to risks associated with trading currency.
Disclosure: I dont own any of these securities.
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