LB Goes Nuts: Buys 50 TMWEF at $3.24/Sold BMLPRG/ Proctor Update

1. Proctor & Gamble Update:  I recently added some PG as a long term hold at $47.59.Buy 50 LXPPRD, Bought PG/ Lexington Realty/Outrage at AIG/   This news about Proctor's update was disappointing.  P & G expects fiscal 2010 earnings to be in the $3.65 to $3.8 range.  The fiscal 2010 year ends in July 2010. The Street was estimating $3.92.       WSJ.com If I did not own PG at a favorable price for a long term hold, I would not buy it now unless it fell to the low to mid 40s.  I agree with Cramer on this one.  TheStreet.com   So, at best, P & G is hold for me now, with a slight lean toward selling my recently acquired position on any kind of pop.  Flexibility is the second most important word here at HQ, right after the word  "research" with the #3 word being "cautious".   

2. LB can be wild and crazy  at times: Bought another lottery ticket-50 shares of  TimberWest Forest Corp in a retirement account at $3.24:   TimberWest Forest is a Canadian company that trades on the pink sheets here in the U.S. under the symbol TMWEFPink Sheets   TMWEF

It is traded on the Toronto stock exchange under the symbol TWF.Un. I bought  50 shares at $3.24 as another lottery ticket purchase and put it in a retirement account for the reasons discussed below.  The 52 week high was 14.55 and a 52 week low of $1.75.   Most of what I know about this company comes from reading the material at its web site. TimberWest  

The company owns 796,000 acres of land on Vancouver Island, British Columbia.  About 134,000 acres of that land has been identified by the company as best used for other uses besides timber, and it plans to make those acres available for higher uses over the next 10 to 15 years.  That part of the business is managed by CouverdonCouverdon Real Estate  

There are some nice pictures of this land on Coverdon's web page that RB enjoyed looking at.  For anyone interested, this is a map of the land that is for sale by Coverdon. Couverdon Real Estate  

If you want to develop a headache, you can read more about what I just bought at this web page.  TimberWest Forest Corp - Investor Returns 

This security is called a stapled unit which consists of common stock stapled to $8.98 face amount subordinated note, and the stapled unit will accrue interest anywhere from 2 to 12%.  Payments are made quarterly and may be deferred for up to 18 months.  The company has already deferred the January distribution for up to 27 months.  So this is probably best held, if at all, in a retirement account. 

This is a link to its last report.  

http://www.timberwest.com/pdf/SEDAR%202009%20Q1%20Interim%20Report.pdf

 

As you would expect by the fall in price and the current economic environment, things could be a lot better for this timber and land company than they are now.  I am willing to wait, however, since this is just another lottery ticket purchase with less than $200 in exposure. 

3. What to do with BMLPRG:  I just bought this floater at $8.8 for reasons that had nothing to do with what caused it to spike almost 50% today. Minutes Afternoon Staff Meeting/Bought BMLprg at $8.8/ Sold 2 HSBC Bonds

Maybe a thought found a momentary home in one my yet to die aging brain cells about the possibility of a conversion offer from BAC to raise more equity capital. Like a lot of thoughts these days, that kind of thought was both ephemeral and fleeting, playing no role in my decision to buy.  So it is best to write the few thoughts that I have down quickly in this blog before they escape me entirely.     I thought that I would grant my magic coin the power to decide the fate of BMLPRG.  The coin said sell that sucker. Some may say, with an over abundance of  good rational and logical reasons, that a coin flip is not an appropriate way to make decisions on the timing of a security sale.  For the first 50 years of my life, I would be inclined to agree with that point, now I am leaning to believing that randomness may almost be as good a method as a deep, penetrating and thoughtful analysis of the hundreds of pros and cons.  I sold my shares this afternoon at $ 12.45. 

 DISCLAIMER

  I am not a financial advisor but an individual investor trying to navigate my way through a difficult market. I have never worked for a financial institution and never will.  In these posts, I am acting as an unpaid financial journalist and an occasional political commentator.   I am also aggregating financial news stories that I view as important and providing readers of these posts with links to those articles, sort of a filtered, somewhat intelligent, free search engine.  Any discussion made by me of particular securities  is not a recommendation to buy or to sell.  Trade at your own risk.  Consult with your financial advisor prior to making any purchase or sale. I will try to identify my sales too but it may take a few minutes after I implement them to create a post explaining my reasons.  The sale may before or after the post.  Before buying or selling any stock, even one recommended by a trusted financial advisor,  please research it and make up your own mind which is what I always try to do.  Research would include reading reports, reviewing financial records, earnings estimates, sec filings and prior earnings releases and news.  In this post, and all others by me, I am merely describing my reasons for purchasing  or selling securities, and the potential pitfalls that I identified prior to purchase or the reasons for a sale.  The securities mentioned in this and all posts written by me may not be suitable for others based on their unique financial position and risk profile.  By way of example, it is unlikely that I will ever need the funds contained in my retirement accounts. Always read the prospectus before buying a Trust Certificate, bond, preferred stock or other bond or bond like investments.  Information contained in my posts has been obtained from sources believed to be reliable but cannot be guaranteed.  It is always important to follow the investment process. the investment process/links to further information on canadian energy or royalty trustsInvestment Process Part II: Bonds and Bond Like Investments   NOT A RESEARCH SERVICE/Add of PWE Last Week   These posts by me do not constitute investment advice, nor shall they be construed as a guarantee of future results, or as an offer of any transaction in securities.   All content in these posts is provided for informational and entertainment purposes only, and it is a form of entertainment for me.  Anyone interested in a topic may want to review all discussions contained in the blog about it by using a relevant search term in the box at the top. Opinions are subject to change and they certainly evolve over time as information is assessed and analyzed for compatibility with prior opinions, the only process for a serious investor, and a topic of frequent discussion in this post.