Economy:
Last Monday, Japan said that its GDP declined at a 6.3% annualized rate in the last 2019 quarter. Japan's economy shrinks at fastest pace in 6 years, virus clouds outlook
Japan's exports fall for 14th straight month - MarketWatch
Japan's exports fall for 14th straight month - MarketWatch
Empire State manufacturing index hits highest level in nine months - MarketWatch-Empire State Manufacturing Survey (overview) - FEDERAL RESERVE BANK of NEW YORK ("The headline general business conditions index moved up eight points to 12.9. The new orders index shot up 16 points to 22.1, and the shipments index climbed to 18.9." In the regional FED manufacturing indexes, any number above zero indicates an expansion)
A survey of German business confidence fell to 8.7 this month, down from 26.7 in January and lower than the consensus estimate of 21.5. Breaking: EUR/USD refreshes 34-month low on German Feb ZEW Economic Sentiment big miss
'Chernobyl-like' response by China means 'worst is yet to come' for coronavirus, Raymond James says I would characterize that opinion as being in the minority. The rate of infections did slow according to China last Tuesday. Coronavirus live updates: China says infections declining but experts say many cases may be undetected
I view China as one large petrie dish for growing new viruses. Draconian measures were taken by China's government to contain the virus, but only after the it was allowed to spread into an epidemic.
The growth rate of infections in China is suspect. Just look at the growth rate in infections on the Diamond Princess cruise ship that started with one infected passenger from Hong Kong who disembarked from the ship on 1/25. The ship was quarantined after 10 cases were reported on 2/4. More than 540 infections have been confirmed just in that cluster. Reporting of the infection rate of passengers aboard that one cruise ship is not under China's control. Coronavirus: 542 cases on quarantined Diamond Princess cruise ship
Russia temporarily bans Chinese nationals from entering country amid coronavirus outbreak | Euronews
A survey of German business confidence fell to 8.7 this month, down from 26.7 in January and lower than the consensus estimate of 21.5. Breaking: EUR/USD refreshes 34-month low on German Feb ZEW Economic Sentiment big miss
'Chernobyl-like' response by China means 'worst is yet to come' for coronavirus, Raymond James says I would characterize that opinion as being in the minority. The rate of infections did slow according to China last Tuesday. Coronavirus live updates: China says infections declining but experts say many cases may be undetected
I view China as one large petrie dish for growing new viruses. Draconian measures were taken by China's government to contain the virus, but only after the it was allowed to spread into an epidemic.
The growth rate of infections in China is suspect. Just look at the growth rate in infections on the Diamond Princess cruise ship that started with one infected passenger from Hong Kong who disembarked from the ship on 1/25. The ship was quarantined after 10 cases were reported on 2/4. More than 540 infections have been confirmed just in that cluster. Reporting of the infection rate of passengers aboard that one cruise ship is not under China's control. Coronavirus: 542 cases on quarantined Diamond Princess cruise ship
Russia temporarily bans Chinese nationals from entering country amid coronavirus outbreak | Euronews
+++++
Markets and Market Commentary:
Stocks to march higher, but switch into value delayed until virus fears recede, strategist argues - MarketWatch
Stocks to march higher, but switch into value delayed until virus fears recede, strategist argues - MarketWatch
Fidelity: There's now a record number of 401(k) and IRA millionaires
Stocks expected to rise even as virus creates volatility: 'The market thinks the worst is over' The Stock Jocks were never worried about this epidemic materially impacting the U.S. economy or U.S. companies with limited exceptions. It remains to be seen whether the worse is over.
Stocks expected to rise even as virus creates volatility: 'The market thinks the worst is over' The Stock Jocks were never worried about this epidemic materially impacting the U.S. economy or U.S. companies with limited exceptions. It remains to be seen whether the worse is over.
30-year Treasury yield breaks below 2% as coronavirus disrupts supply chains - MarketWatch (2/18/20 article)
Walmart (WMT) Q4 fiscal 2020 earnings miss estimates (adjusted E.P.S. reported at $1.38 with consensus at $1.43; revenues reported at $141.67B vs. $142.49 consensus estimate; U.S. same store sales growth at +1.9% vs. +2.23% consensus); SEC Filed Press Release
Apple warns on revenue guidance due to iPhone delays in China; ESEC Filed Press Release "Investor update on quarterly guidance"
The breakeven inflation rate for the 10 year TIP currently stands at 1.65%. That is the annual average CPI rate necessary for the buyer of 10 treasury inflation protected note to breakeven with the buyer of the nominal 10 year treasury which has a lower coupon. 10-Year Breakeven Inflation Rate-St. Louis Fed
Compare Daily Treasury Yield Curve Rates with Daily Treasury Real Yield Curve Rates Yesterday the 10 year TIP closed with a real yield of -.1% while the nominal 10 year treasury had a 1.55%. The difference is the breakeven inflation rate.
I view the market's prediction of an annual average inflation rate of 1.65% over the next ten years as being too low. But that low inflation rate prediction is positively impacting stock multiples and negatively impacting bond yields.
United States Inflation Rate | 1914-2020 Data | 2021-2022 Forecast | Calendar
US Inflation Long Term Average
The 1.65% annual annual CPI prediction over the next years, if proven prescient, would create a negative real return of .1% per year for purchasers of the ten year bond yesterday, and that is before federal income taxes.
+++++
Trump:
Before the impeachment vote, Donald claimed that he did not send Giuliani to the Ukraine. Trump claims he never directed Giuliani on Ukraine In an interview with a Fox personality on 2/13, Donald admitted that he sent Giuliani to the Ukraine. Trump contradicts past denials, admits sending Giuliani to Ukraine
Before the impeachment vote, Donald claimed that he did not send Giuliani to the Ukraine. Trump claims he never directed Giuliani on Ukraine In an interview with a Fox personality on 2/13, Donald admitted that he sent Giuliani to the Ukraine. Trump contradicts past denials, admits sending Giuliani to Ukraine
John Kelly’s deepest shiv: People who rely on Fox News to reinforce their views — like Trump — ‘are not informed citizens’ - The Washington Post Donald is the Fake News President.
According to polls, a majority of republicans view our Dear Leader as a role model for their children and their children are responding to Donald's guidance. Trump’s rhetoric has changed the way hundreds of kids are bullied in classrooms; 72 percent of Republicans think Trump is 'a good role model for children'
Trump appears to link national security decisions to demand that New York drop investigations (just another abuse of power)
According to polls, a majority of republicans view our Dear Leader as a role model for their children and their children are responding to Donald's guidance. Trump’s rhetoric has changed the way hundreds of kids are bullied in classrooms; 72 percent of Republicans think Trump is 'a good role model for children'
Trump appears to link national security decisions to demand that New York drop investigations (just another abuse of power)
In his State of the Union address, part of Donald's "reality" show was to invite a homeless man to the address, have him stand up and be identified for a world audience, and then Donald falsely claimed (according to an AP investigation) that the guy found work as a result of Donald's "Opportunity Zone" tax break. Are Opportunity Zones Working as Intended? | Tax Foundation; Trump Tax Break That Benefited the Rich Is Being Investigated - The New York Times
Barr Installs Outside Prosecutor to Review Case Against Michael Flynn, Ex-Trump Adviser - The New York Times; Barr Orders Review Of Michael Flynn Case, Heightening Political Interference Concerns; Barr privately ordered re-examination of Michael Flynn's case, US officials say This is most likely yet another thinly disguised effort by Trump to interfere, either to punish an enemy or career prosecutors doing their jobs or to help a friend in a criminal case.
More than 2,000 former DOJ officials call on Attorney General William Barr to resign
Donald is using Barr to rewrite history about Russia's interference in the 2016 election. Trump is seeking to rewrite history of Russia probe after impeachment acquittal - The Washington Post Last week, Trump referred to the Russia investigation in these words: “tainted,” “dirty,” “rotten,” “illegal,” “phony,” a “disgrace,” a “shakedown,” a “scam,” “a fixed hoax” and “the biggest political crime in American History, by far.”
Analysis: Another case Trump meddled in. Another unorthodox intervention from Barr.
'No One' at the State Department Believed Trump's Ukraine Conspiracy Theory: Taylor
Trump administration greenlights drilling, logging at Bears Ears, Grand Staircase-Escalante - The Washington Post
Barr Installs Outside Prosecutor to Review Case Against Michael Flynn, Ex-Trump Adviser - The New York Times; Barr Orders Review Of Michael Flynn Case, Heightening Political Interference Concerns; Barr privately ordered re-examination of Michael Flynn's case, US officials say This is most likely yet another thinly disguised effort by Trump to interfere, either to punish an enemy or career prosecutors doing their jobs or to help a friend in a criminal case.
More than 2,000 former DOJ officials call on Attorney General William Barr to resign
Donald is using Barr to rewrite history about Russia's interference in the 2016 election. Trump is seeking to rewrite history of Russia probe after impeachment acquittal - The Washington Post Last week, Trump referred to the Russia investigation in these words: “tainted,” “dirty,” “rotten,” “illegal,” “phony,” a “disgrace,” a “shakedown,” a “scam,” “a fixed hoax” and “the biggest political crime in American History, by far.”
Analysis: Another case Trump meddled in. Another unorthodox intervention from Barr.
'No One' at the State Department Believed Trump's Ukraine Conspiracy Theory: Taylor
Trump administration greenlights drilling, logging at Bears Ears, Grand Staircase-Escalante - The Washington Post
+++++
All trades are commission free unless otherwise noted.
I am going to be repeating this statement in every blog:
The reasons for selling the highest cost lots first are (1) to reduce my income tax obligation resulting from a sell; (2) to generate a total return in excess of the dividend payments; (3) to increase my dividend yield on the remaining shares; (4) to take advantage of normal up and down volatility by selling the highest cost lots profitably and then by buying when the price falls below the lowest price paid in the chain; (5) to make it more likely that I will buy during a meltdown after selling higher cost shares (psychological); and (6) to mitigate risk through less at risk monetary exposure.
Risk is also controlled through small odd lot trades made economically feasible now with zero brokerage commissions.
I am not concerned about the dollar value of the profit provided I am in achieving the objectives set out above.
I am barely able to keep myself from selling all stocks currently owned.
Trailing 12 Month GAAP P/E Ratios as of 2/14:
DJIA: 22.89
Dow Utilities: 27.34
Nasdaq 100: 29.15
S & P 500: 25.74
Russell 2000: 55.45
S & P 500 Dividend Yield: 1.79%
Sourced: P/E & Yields
Shiller P/E Ratio: 32.23
S&P 500 Price to Sales Ratio: 2.42
S&P 500 Price to Book Value: 3.73
Total market cap to GDP 158.1%
The Q Ratio: 1.96 as of 1/31/20 (previous all time high at 2.17 since 1900)
I am using a variety of risk reduction strategies as an alternative to selling all stocks now.
The general goal is to profitably sell shares into the current stock parabola. Those shares will generally be the highest cost lots or all shares bought with dividends that can be sold profitably now, or some combination of the two. Trading small lots has become more intense.
I have also adopted a risk limit for any new net purchases during a month. The net monthly dollar additions can not exceed the monthly cash flow from dividends and interest payments. The same restriction was in effect between October 2008 and February 2009 when it was lifted.
The primary reasons for maintaining a meaningful stock allocation are (1) lack of alternatives for total returns in excess of the inflation rate after taxes; (2) income generation through dividend paying stocks that is considerably higher than the current money market rates and (3) the stock market's parabola is not yet showing any signs of collapsing upon itself.
1. Small Ball Trades:
A. Sold 10 SRET at $15.56:
Quote: SRET | Global X SuperDividend REIT ETF Overview
In this trade, I eliminated all of my shares bought with dividends at a profit.
Profit Snapshot: +$4.73
To reach 10 shares, I had to sell 2.878 shares of the 10 share lot that was recently bought. Item # 1.C. Added 10 SRET at $15.11 (12/18/19 Post) My average cost per share was only reduced to $14.84 from $14.86.
Sponsor's Website: SuperDividend® REIT ETF
Dividends: Monthly
Last Ex Dividend: 2/5/20
Last Sell Discussions: Item # 1.D. Eliminated SRET in Vanguard Taxable Account: Sold 112 at $15.28 (10/30/19 Post); Item # 1. B. Sold 50 SRET at $14.79-In A Roth IRA Account-Commission Free for Vanguard customers (4/3/19 Post)
Other Buy Discussions: Item # 2. Bought 100 SRET at $14.81 and 10 at $14.35 (8/7/19 Post); Item # 3.C. Bought 50 SRET at $13.88-In a Roth IRA Account-Commission Free (1/27/19 Post)
Goal: Total return in excess of the dividend. By profitably selling the shares bought with dividends, I at least achieve this objective for those shares. So far, I have a realized gain of $109 in SRET trades. Any gain is viewed as satisfactory given the dividend yield.
B. Pared ENB-Sold 8 at $42.46:
This is another pare where I profitably sold all remaining shares bought with dividend.
Quotes:
ENB Priced in CADs: Enbridge Inc. (Canada: Toronto)
ENB Priced in USDs: Enbridge Inc. (U.S.: NYSE)
SEC Filings
2019 Annual Report (risk factor summary starts at page 40
Profit Snapshot: +$68.36 (2/10/20 sell only)
To sell 8 shares, I included 4+ shares of the highest cost lot as well.
Average Cost Before Pare: $33.02
Average Cost After Pare: $32.72
Last Ex Dividend: 2/14/20
The dividend yield will depend on the CAD/USD conversion rate when the payments are made and on the recoverability of Canada's 15% withholding tax as a credit. For a U.S. citizen, Canada will not withhold a tax when the shares are held in a retirement account.
I own ENB shares in a Fidelity taxable account and have been able to recover the taxes paid to Canada as a credit off my federal income tax obligation. See, generally, Claiming Foreign Taxes: Credit or Deduction? | Charles Schwab
Filling out the required form, which is necessary when the foreign dividend taxes exceed a certain threshold, is a major hassle and is difficult.
Last Earnings Report (Q/E 12/31/19, released after this pare)
"Distributable Cash Flow (DCF) of $9,224 million in 2019 compared with $7,618 million for 2018"
"Reaffirmed 2020 DCF per share guidance range of $4.50 to $4.80, and longer term 5 to 7% DCF per share growth outlook, within an equity self-funding model."
Enbridge Inc. Reports Strong Fourth Quarter & Full Year 2019 Results
Discussed at Enbridge misses Q4 estimates; Mainline core earnings slip-Seeking Alpha
Last Sell Discussions: Item # 3.B. Sold 17 ENB at $40.21 (1/18/20 Post); Item # 1.B Pared ENB Sold 15 at $37.61 (2/20/19 Post); Item # 3 Sold 50 ENB at $39.03 (12/21/17 Post); Sold 10 ENB at $40.14 (1/5/18 Post)
Last Buy Discussions: Item # 3 Bought 2 ENB at $29.95 and 2 at $30.89-Used Commission Free Trades (3/29/18 Post); Item # 2 Added 5 ENB at $32.28 2 at $31.92 and 2 at $31.45-Used Commission Free Trades (3/15/18 Post); Item # 2 Added 9 ENB at an Average Total Cost Per Share of $32.18 (3/15/18 POST)
C. Sold 9 IGR at $8.33:
This is another example of profitably selling shares bought with dividend payments, which enhances each dividend payments effective yield.
I do give up the compounding effect.
The compounding effect is through dividends paid on shares bought with dividends.
That is negligible and viewed as unimportant given my strong capital preservation objective compared to selling all shares purchased with dividends profitably.
This pare lowered my average cost per share to $7.57 from $7.59.
Quote: IGR | CBRE Clarion Global Real Estate Income Fund Overview
Sponsor's Website: CBRE Clarion
SEC Filings
Profit Snapshot: +$4.99
Last Buy Discussions: Item # 1 Bought 200 IGR at $7.58 (6/29/19 Post); Item # 1 Bought 100 IGR at $7.65 (8/3/19 Post)
Last Sell Discussions: Item # 2.A. Sold 100 IGR at $8.01 (12/28/19 Post)
Data Date of Trade (2/11/20)
Closing Net Asset Value Per Share: $9.19
Closing Market Price: $8.34
Discount: -9.25%
IGR CBRE Clarion Global Real Estate- CEF Connect
Dividend: Monthly at $.05, significantly supported by ROC (click "Distributions" tab at CEF Connect linked above)
Expense Ratio: .97% excluding interest expense associated with leverage (click Fund Basics tab at CEF Connect link above)
I also currently own 100 IGR shares in my IB account with a $7.65 cost basis.
D. Sold 5 NRZ at $17.52:
Profit Snapshot: $8.9 (only 2/6/20 sell)
This lot was purchased on 2/8/18 at $16.88 (commission free). The tax cost basis was subsequently reduced by ROC. The important points for me are that I realized a (1) profit using my unadjusted cost (2) after collecting several quarterly dividends (3) reduced my cost basis for the remaining shares which (4) increased my dividend yield based on the lower average cost per share.
Quote: New Residential Investment Corp. (NRZ)
Website: New Residential Investment Corp.
SEC Filings
Excess MSRs | New Residential Investment Corp.
Servicer Advances | New Residential Investment Corp.
Non Agency RMBS & Associated Call Rights | New Residential Investment Corp.
Other Investments | New Residential Investment Corp.
Average Cost Per Share Before Pare: $14.96
Average Cost After Pare: $14.88
Dividend: Quarterly at $.5 per share
Last Ex Dividend date: 12/30/2019
Dividend Yield at Average Cost = 13.44%
Last Buy Discussion: Item # 1.C. Bought 10 NRZ at $13.95 (9/4/19 Post)Item # 1.A. Bought 10 NRZ at $15.81, 10 at $15 and 10 at $14.2-Used Commission Free Trades (1/13/19 Post)
NRZ 5 Year Chart: Roller Coaster, mostly in a $14 to $18 channel
Goal: Harvest dividends and sell shares at whatever profit may be available, with the profit calculated before ROC adjustments to the cost basis.
Last Earnings Report (Q/E 12/30/19):
New Residential Investment Corp. Announces Fourth Quarter and Full Year 2019 Results
Discussed at Seeking Alpha
Earnings Call Transcript | Seeking Alpha
E. Pared GNL-Sold 10 at $21.51:
Quote: Global Net Lease (GNL)
Website: Global Net Lease
SEC Filings
Property Type Diversification | GNL
Management: External
Profit Snapshot: +$22.78
Average Cost Per Share Before Pare = $18.36
Average Cost Per Share After Pare = $18.26
Dividend: Quarterly at $.5325 or $2.13 annually (not currently covered by cash flow)
Dividend Yield at $18.26 = 11.66%
Last Ex Dividend Date: 1/10/20
Global Net Lease, Inc. Announces Common Stock Dividend for First Quarter 2020
Last Sell Discussion: Item # 2.B. Pared GNL-Sold Highest Cost 50 Shares at $20.05 (12/11/19 Post) I discussed the third quarter earnings report in that post. Global Net Lease Reports Third Quarter 2019 Results NAREIT defined FFO was reported at $.44.
Last Buy Discussions: Item # 1.C. Added 30 GNL at $19.31 and 10 at $18.84 (10/19/19 Post); Item # 1.C. Added 10 GNL at $17.28 (1/20/19 Post)
Purchase Restriction: None, previously removed from small ball restriction.
Next Earnings Report: The next earnings report is scheduled for release on 2/26 before the market opens. I do not anticipate that cash flow for the 4th quarter will cover the dividend.
Equity Preferred Stock: I also currently own 50 shares of GNLPRB: Item # 2.A. Bought 50 GNLPRB at $24.88 (12/18/19 Post)
Global Net Lease Prices Public Offering of 3,000,000 Shares of 6.875% Series B Cumulative Redeemable Perpetual Preferred Stock
Other Recent News: Global Net Lease Provides 2019 Transactions Update
2. Eliminated DPG in Roth IRA Account-Sold 123+ at $15.76:
Profit Snapshot: +$65.81
Quote: DPG | Duff & Phelps Utility & Infrastructure Fund Inc.
SEC Filings
Last Shareholder Report (period ending 10/31/19): Duff & Phelps Global Utility Income Fund Inc.
Data Date of Trade (2/7/20):
Closing Net Asset Value Per Share: $16.78
Closing Market Price: $15.72
Discount: -6.32%
Sourced: DPG-CEF Connect
Dividend: Quarterly at $.35 per share
Last Ex Dividend Date: 12/13/19
Leveraged: Yes at close to 29%
Dividends have been heavily supported by ROC. The cost basis was not adjusted for these shares since they were held in a Roth IRA account.
I still own over 300 shares in a Schwab taxable account. I may eliminate that position at over $16.25 and then consider starting over when and if there is at least a 20% price decline.
Last Round Trip Discussion: Item 1.C. Sold 100 DPG at $15.71 (10/30/19 Post-Item # 6 Bought 100 DPG at $15.29 (9/1/19 Post)
Other Discussions:
Disclaimer: I am not a financial advisor but simply an individual investor who has been managing my own money since I was a teenager. In this post, I am acting solely as a financial journalist focusing on my own investments. The information contained in this post is not intended to be a complete description or summary of all available data relevant to making an investment decision. Instead, I am merely expressing some of the reasons underlying the purchase or sell of securities. Nothing in this post is intended to constitute investment or legal advice or a recommendation to buy or to sell. All investors need to perform their own due diligence before making any financial decision which requires at a minimum reading original source material available at the SEC and elsewhere. A failure to perform due diligence only increases what I call "error creep". Stocks, Bonds & Politics: ERROR CREEP and the INVESTING PROCESS Each investor needs to assess a potential investment taking into account their personal risk tolerances, goals and situational risks. I can only make that kind of assessment for myself and family members.
A. Sold 10 SRET at $15.56:
Quote: SRET | Global X SuperDividend REIT ETF Overview
In this trade, I eliminated all of my shares bought with dividends at a profit.
Profit Snapshot: +$4.73
To reach 10 shares, I had to sell 2.878 shares of the 10 share lot that was recently bought. Item # 1.C. Added 10 SRET at $15.11 (12/18/19 Post) My average cost per share was only reduced to $14.84 from $14.86.
Sponsor's Website: SuperDividend® REIT ETF
Dividends: Monthly
Last Sell Discussions: Item # 1.D. Eliminated SRET in Vanguard Taxable Account: Sold 112 at $15.28 (10/30/19 Post); Item # 1. B. Sold 50 SRET at $14.79-In A Roth IRA Account-Commission Free for Vanguard customers (4/3/19 Post)
Other Buy Discussions: Item # 2. Bought 100 SRET at $14.81 and 10 at $14.35 (8/7/19 Post); Item # 3.C. Bought 50 SRET at $13.88-In a Roth IRA Account-Commission Free (1/27/19 Post)
Goal: Total return in excess of the dividend. By profitably selling the shares bought with dividends, I at least achieve this objective for those shares. So far, I have a realized gain of $109 in SRET trades. Any gain is viewed as satisfactory given the dividend yield.
B. Pared ENB-Sold 8 at $42.46:
Quotes:
ENB Priced in CADs: Enbridge Inc. (Canada: Toronto)
ENB Priced in USDs: Enbridge Inc. (U.S.: NYSE)
SEC Filings
2019 Annual Report (risk factor summary starts at page 40
Profit Snapshot: +$68.36 (2/10/20 sell only)
 |
| 2020 Pares Only |
Average Cost Before Pare: $33.02
Average Cost After Pare: $32.72
 |
| Snapshot Intraday 2/10/20 |
The dividend yield will depend on the CAD/USD conversion rate when the payments are made and on the recoverability of Canada's 15% withholding tax as a credit. For a U.S. citizen, Canada will not withhold a tax when the shares are held in a retirement account.
I own ENB shares in a Fidelity taxable account and have been able to recover the taxes paid to Canada as a credit off my federal income tax obligation. See, generally, Claiming Foreign Taxes: Credit or Deduction? | Charles Schwab
Filling out the required form, which is necessary when the foreign dividend taxes exceed a certain threshold, is a major hassle and is difficult.
Last Earnings Report (Q/E 12/31/19, released after this pare)
"Increased the quarterly dividend by 9.8% for 2020 to 81 cents per share, reflecting strong operating and financial performance and the Company’s outlook."
Discussed at Enbridge misses Q4 estimates; Mainline core earnings slip-Seeking Alpha
Last Sell Discussions: Item # 3.B. Sold 17 ENB at $40.21 (1/18/20 Post); Item # 1.B Pared ENB Sold 15 at $37.61 (2/20/19 Post); Item # 3 Sold 50 ENB at $39.03 (12/21/17 Post); Sold 10 ENB at $40.14 (1/5/18 Post)
Last Buy Discussions: Item # 3 Bought 2 ENB at $29.95 and 2 at $30.89-Used Commission Free Trades (3/29/18 Post); Item # 2 Added 5 ENB at $32.28 2 at $31.92 and 2 at $31.45-Used Commission Free Trades (3/15/18 Post); Item # 2 Added 9 ENB at an Average Total Cost Per Share of $32.18 (3/15/18 POST)
C. Sold 9 IGR at $8.33:
I do give up the compounding effect.
The compounding effect is through dividends paid on shares bought with dividends.
That is negligible and viewed as unimportant given my strong capital preservation objective compared to selling all shares purchased with dividends profitably.
This pare lowered my average cost per share to $7.57 from $7.59.
Quote: IGR | CBRE Clarion Global Real Estate Income Fund Overview
Sponsor's Website: CBRE Clarion
SEC Filings
Profit Snapshot: +$4.99
Last Sell Discussions: Item # 2.A. Sold 100 IGR at $8.01 (12/28/19 Post)
Data Date of Trade (2/11/20)
Closing Net Asset Value Per Share: $9.19
Closing Market Price: $8.34
Discount: -9.25%
IGR CBRE Clarion Global Real Estate- CEF Connect
Dividend: Monthly at $.05, significantly supported by ROC (click "Distributions" tab at CEF Connect linked above)
Expense Ratio: .97% excluding interest expense associated with leverage (click Fund Basics tab at CEF Connect link above)
I also currently own 100 IGR shares in my IB account with a $7.65 cost basis.
D. Sold 5 NRZ at $17.52:
Profit Snapshot: $8.9 (only 2/6/20 sell)
Quote: New Residential Investment Corp. (NRZ)
Website: New Residential Investment Corp.
SEC Filings
Excess MSRs | New Residential Investment Corp.
Servicer Advances | New Residential Investment Corp.
Non Agency RMBS & Associated Call Rights | New Residential Investment Corp.
Other Investments | New Residential Investment Corp.
Average Cost Per Share Before Pare: $14.96
Average Cost After Pare: $14.88
 |
| Snapshot Intra-Day 2/6/20: Held in a taxable account |
Last Ex Dividend date: 12/30/2019
Dividend Yield at Average Cost = 13.44%
Last Buy Discussion: Item # 1.C. Bought 10 NRZ at $13.95 (9/4/19 Post)Item # 1.A. Bought 10 NRZ at $15.81, 10 at $15 and 10 at $14.2-Used Commission Free Trades (1/13/19 Post)
NRZ 5 Year Chart: Roller Coaster, mostly in a $14 to $18 channel
Goal: Harvest dividends and sell shares at whatever profit may be available, with the profit calculated before ROC adjustments to the cost basis.
Last Earnings Report (Q/E 12/30/19):
Discussed at Seeking Alpha
Earnings Call Transcript | Seeking Alpha
E. Pared GNL-Sold 10 at $21.51:
Quote: Global Net Lease (GNL)
Website: Global Net Lease
SEC Filings
Property Type Diversification | GNL
Management: External
Profit Snapshot: +$22.78
Average Cost Per Share Before Pare = $18.36
Average Cost Per Share After Pare = $18.26
 |
| Snapshot IntraDay 2/6/20 |
Dividend Yield at $18.26 = 11.66%
Last Ex Dividend Date: 1/10/20
Global Net Lease, Inc. Announces Common Stock Dividend for First Quarter 2020
Last Sell Discussion: Item # 2.B. Pared GNL-Sold Highest Cost 50 Shares at $20.05 (12/11/19 Post) I discussed the third quarter earnings report in that post. Global Net Lease Reports Third Quarter 2019 Results NAREIT defined FFO was reported at $.44.
Last Buy Discussions: Item # 1.C. Added 30 GNL at $19.31 and 10 at $18.84 (10/19/19 Post); Item # 1.C. Added 10 GNL at $17.28 (1/20/19 Post)
Purchase Restriction: None, previously removed from small ball restriction.
Next Earnings Report: The next earnings report is scheduled for release on 2/26 before the market opens. I do not anticipate that cash flow for the 4th quarter will cover the dividend.
Equity Preferred Stock: I also currently own 50 shares of GNLPRB: Item # 2.A. Bought 50 GNLPRB at $24.88 (12/18/19 Post)
Global Net Lease Prices Public Offering of 3,000,000 Shares of 6.875% Series B Cumulative Redeemable Perpetual Preferred Stock
Other Recent News: Global Net Lease Provides 2019 Transactions Update
2. Eliminated DPG in Roth IRA Account-Sold 123+ at $15.76:
SEC Filings
Last Shareholder Report (period ending 10/31/19): Duff & Phelps Global Utility Income Fund Inc.
Data Date of Trade (2/7/20):
Closing Net Asset Value Per Share: $16.78
Closing Market Price: $15.72
Discount: -6.32%
Sourced: DPG-CEF Connect
Dividend: Quarterly at $.35 per share
Last Ex Dividend Date: 12/13/19
Leveraged: Yes at close to 29%
Dividends have been heavily supported by ROC. The cost basis was not adjusted for these shares since they were held in a Roth IRA account.
I still own over 300 shares in a Schwab taxable account. I may eliminate that position at over $16.25 and then consider starting over when and if there is at least a 20% price decline.
Last Round Trip Discussion: Item 1.C. Sold 100 DPG at $15.71 (10/30/19 Post-Item # 6 Bought 100 DPG at $15.29 (9/1/19 Post)
Other Discussions:
Item # 1 Sold 100 of 200 DPG at $20.74 (2/17/15 Post); Item # 1 SOLD 50 DPG at $22.42-Roth IRA (11/2914 Post)(snapshot profit $124.99)-Item # 2 Bought Roth IRA: 50 DPG at $19.64 (10/20/14 Post); Item # 8 Sold 113+ DPG at $21.19-Roth IRA (8/19/14 Post)(snapshot of profit=$403.07; total return $662.61 or 38.15%)-Item # 3 Swap Trade Roth IRA: Sold 100 of 150 GYB at $18.03 & Bought 100 DPG at $17.31 (12/12/14 Post)
Closing Price Yesterday: DPG $15.86 +$0.01 +0.06%
Closing Price Yesterday: DPG $15.86 +$0.01 +0.06%
Disclaimer: I am not a financial advisor but simply an individual investor who has been managing my own money since I was a teenager. In this post, I am acting solely as a financial journalist focusing on my own investments. The information contained in this post is not intended to be a complete description or summary of all available data relevant to making an investment decision. Instead, I am merely expressing some of the reasons underlying the purchase or sell of securities. Nothing in this post is intended to constitute investment or legal advice or a recommendation to buy or to sell. All investors need to perform their own due diligence before making any financial decision which requires at a minimum reading original source material available at the SEC and elsewhere. A failure to perform due diligence only increases what I call "error creep". Stocks, Bonds & Politics: ERROR CREEP and the INVESTING PROCESS Each investor needs to assess a potential investment taking into account their personal risk tolerances, goals and situational risks. I can only make that kind of assessment for myself and family members.
I mentioned in a comment to the last post that Liberty Property redeemed a 3.75% SU bond maturing in 2025 at a 9%+ premium to the $1K par value.
ReplyDeleteI am anticipating losing the 3.375% Liberty SU bond maturing in 2023. I own 3 of those bonds which quit trading on 2/5/20 indicating a likely call.
http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C585523&symbol=LRY3940722
I knew, but had forgotten that Prologis was going to acquire Liberty. That acquisition was just consummated a few days ago.
The operating subsidiary of Prologis (PLD) just sold the following SU bonds:
$500,000,000 2.125%
$1,000,000,000 2.250% Notes due 2030
$700,000,000 3.000% Notes due 2050
https://www.sec.gov/Archives/edgar/data/1045610/000104746920000706/a2240661z424b2.htm
Part of the proceeds will be used to pay off the higher coupon Liberty bonds.
Moody's rates those PLD bonds A3 which is pretty good for a REIT shelling out all or most of its cash flow to the common shareholders.
But the ease of selling $2.2B in bonds at those low coupon rates for this kind of issuer, including one maturing in 2050, speaks volumes about bonds vs. stocks now. I doubt that the 2.125% and 2.25% coupons will produce a real rate of return before taxes when held to maturity.
The dividend yield on PLD's common stock, based on today's closing price of $97.77, is 2.17%.
https://www.marketwatch.com/investing/stock/pld
ViacomCBS Inc. Cl B
ReplyDelete$29.16 -$6.495 -18.21%
VOLUME: 10.6M
65 Day Avg. 7.1M
Last Updated: Feb 20, 2020 at 9:58 a.m. EST
I take it that the Stock Jocks did not care for the earnings report released this morning which was well below consensus estimates.
Discussed at
https://www.marketwatch.com/story/viacomcbs-shares-slide-9-premarket-after-earnings-fall-short-of-estimates-2020-02-20?mod=mw_quote_news
I own 100 shares and am now a long term owner of those shares.
My first impression was the market is overreacting to the downside, but that happens when institutional investors decide to stampede for the exit at the same time.
One negative item was a decline in political advertising which is hard to explain given the upcoming 2020 election. Spending on that advertising will increase during 2020.
Ventas, Inc. (VTR)
ReplyDelete60.99+1.83 (+3.10%)
As of 10:23AM EST
https://finance.yahoo.com/quote/VTR?p=VTR
The Stock Jocks are reacting positively to the earnings report released prior to the opening.
https://www.businesswire.com/news/home/20200220005453/en/Ventas-Reports-2019-Fourth-Quarter-Full-Year
They must have expected something worse.
VTR's problem is concentrated in its senior living business.
I own a few shares.
Yesterday, several articles were published about Fidelity customers freaking out when their accounts showed a zero balance and no owned securities.
ReplyDeletehttps://www.marketwatch.com/story/some-fidelity-investors-are-finding-accounts-showing-no-401k-balances-or-retirement-plan-at-all-2020-02-19
That happened to me but that was not the first time. It has happened to me at least two times in the past with the last occurrence being last month.
Today's problems at Fidelity's website are more annoying. I am an active trader and am having trouble entering any orders. When I attempt to enter an order, Fidelity logs me out of the account. It appears that their system can not connect a particular customer with an order and consequently reacts as if the web link was broken.
It does make one wonder whether a problem could emerge where everything becomes muddled or lost, either through a hack or a massive computer problem that leaks into the backup system.
I have published a new post:
ReplyDeletehttps://tennesseeindependent.blogspot.com/2020/02/fdus-ffbc-icmb-irm-rmt-skt.html