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.
Thursday, June 4, 2009
Afternoon Comments 6 4 09/ Bought Lottery Ticket 100 DRAD/Glimcher and First Industrial/SOLD USPH
1. Sold US Physical Therapy at $14.88: My shares in USPH were bought in December 2008 at $11.5. DWS GLOBAL COMMODITIES (GCS)/ U.S. PHYSICAL THERAPY (USPH) BUY/TCs Ex Interest/PFX SOLD This is my second round trip on this stock with the prior sale being at around $14.5. USPH was recently downgraded by Stifel Nicolaus. I thought that the last quarterly report was okay: MSN Money The company had guided down in early March for the current fiscal year to 84 to 90 cents (see p. 2 of earnings call transcript: Seeking Alpha) The stock subsequently sold off hitting a closing low of $7.51 on March 11, 2009. I would not buy it at the current price, and was just waiting for an opportunity to sell it.
2. Bought 100 of Digirad (DRAD) at $1.24-Lottery Ticket: I am going to use the proceeds from the USPH sale to buy lottery tickets. Digirad is a micro, micro cap with a total market capitalization of just 23.5 million based on the $1.24 price. Yahoo! Finance DRAD has no debt and $1.48 cent per share in cash. So my purchase today was less than the cash on the balance sheet. The company turned profitable last quarter, earning a grand total of $44,000 which included a $145,000 restructuring charge. Yahoo! Finance Revenue was 17.7 million compared to 18.3 million in the prior quarter. The company has more cash on the balance sheet now than it did a year ago, so cash burn does not appear to be a problem, at least for now. At Yahoo Finance's Key Statistics page, price to sale is stated to be .29 and price to book is at .48. Morningstar has it rated five stars but points out a number of problems in its report. The company furnishes diagnostic nuclear and ultrasound imaging systems, along with solid-state gamma cameras for general nuclear imaging. Reuters has the best description of DRAD's business: Reuters.com I really do not expect much from this one, and would be happy to make a $100 at anytime within the next five years. This is a link to Reuters summary on recent key developments: Reuters.com This is a link to DRAD's web site: Digirad: Revolutionary solid-state nuclear cardiology equipment and services. This is a link discussing a recent FDA approval: StreetInsider.com
3. First Industrial: Both the common and preferred shares of First Industrial took off today in a big way, with the my recent purchase of FRPRJ gaining $2.58 or 25.82%. Yahoo! Finance I also own the common as a lottery ticket, and FR gained 37.65%. Yahoo! Finance This was in response to FR being able to pay off some senior notes that come due this month. I have discussed FR in the following posts, just in the past week:
4. Glimcher Realty: I also have lottery tickets in Glimcher's common (GRT) and preferred stock GRTPRF. LOTTERY TICKET PURCHASES: LINKS IN ONE POSTThe common rallied 22.11% today. The preferred bought at $2.9 rallied 24.37% to close today at $10.36. My yield at the $2.9 cost is around 75% with 2 dividends received since purchase. Glimcher Realty presented today at Nareit's Investor Forum. A audio of this presentation can be found at Industry Stream The presentation started with the statement GRT was more positive. Even though my interest in the two GRT preferred stocks and its common is small, I did nonetheless listen to this entire presentation. The main issue is the 470 million unsecured credit line coming due at the end of the year, which can be extended for a year, provided GRT maintains compliance with the covenants. I still view GRT as high risk, but this presentation was at least a ray of sunshine.
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