Saturday, September 26, 2020

AGROPRA, AIQ, AMCX, BAC, CXP, CZNC, FBNC, FCPVX, FNLC,MGC, PPT, PNNT, THGA, UBSI, VFH, VONV,

Economy

There were 870,000 new claims for unemployment for the week ending 9/19/20: News Release That number does not include the 630,000 who filed new claims under the Pandemic Unemployment Assistance program. 

Economy doesn't need more stimulus for V-shaped recovery, Trump advisor Kudlow says The media personality Larry Kudlow is Donald's chief economic advisor. Kudlow graduated from the University of Rochester with a B.A. and majored in history. He recovered from a cocaine and alcohol addictions back in the mid-1990s. A Wall St. Star's Agonizing Confession - The New York Times





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Markets and Market Commentary


Biden's capital gains tax hike may big sell-off in stocks The proposal, applicable to high income taxpayers, is to increase the rate to 39.6% from the current 20%. There is also currently a separate net investment income levy of 3.8% for high income taxpayers. 2020 Long-Term Capital Gains Tax Rates-Bankrate If Biden wins and the Democrats keep control over the House and gain a majority in the Senate, this raise will be a done deal IMO. It is will not impact most taxpayers who are capped at 15%. 

FinCEN Files Explainer: How BuzzFeed News And ICIJ Did It (This is the article that set off a bank stock rout last Monday)




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Trump

What GOP senators said about replacing a justice in 2016 - YouTube Hypocrisy knows no boundaries among republican senators. They will always trade principles (assuming they have any to sacrifice) for power without a moment's hesitation. 

The republican senators are simply engaged in a Machiavellian power play. 

When Justice Scalia died about nine months prior to the 2016 election, McConnell had the votes to prevent President Obama from selecting any replacement. 

He now has the votes with less than 2 months before the 2020 election to push through a reactionary to replace Justice Ginsberg.  

Donald has expressly stated that he wants another republican justice ready to vote for him in an election dispute: 

Dictator Don's Comments Last Week (note: When Donald refers to ballots, he is lying. Some states are sending out applications for a mail-in ballot to the address of registered voters)  

"Well, we’re going to have to see what happens. You know that I’ve been complaining very strongly about the ballots and the ballots are a disaster. We’ll want to have — get rid of the ballots and you’ll have a very — we’ll have a very peaceful — there won’t be a transfer frankly, there’ll be a continuation." (emphasis added) 

"We need nine justices. You need that. With the unsolicited millions of ballots that they’re sending, it’s a scam, it’s a hoax, everybody knows that. And the Democrats know it better than anybody else. So you’re going to need nine justices up there, I think it’s going to be very important. Because what they’re doing is a hoax, with the ballots." 

"I think this will end up in the Supreme Court. And I think it’s very important that we have nine justices. It’s better if you go before the election, because I think this, this scam that the Democrats are pulling, it’s a scam, the scam will be before the United States Supreme Court. And I think having a 4/4 situation is not a good situation." Trump predicts Supreme Court needs a ninth justice to decide November election - CBS NewsTrump won't commit to peaceful transfer of power if he loses the election




What is Donald saying?  

Donald believes the 6 republican Justices will invalidate the election results, based on what Trump is already calling a "scam" and "hoax" relating to mail-in ballots, in the event he loses to Biden. 

Donald has  repeatedly made it crystal clear that he will claim fraud when and if he loses and will attempt to invalidate the results by appealing to republican judges.  

I would again emphasize that it is imperative that Biden voters in swing states vote in person. There are more swing states this election. I would say Biden is competitive and may win the following states carried by Trump in 2016: Arizona, Florida, Georgia, Iowa, North Carolina, Ohio, Michigan, Pennsylvania and Wisconsin.  

Lindsey Graham says Republicans "got the votes to confirm" SCOTUS nominee before election - CBS News I do not see how that would energize republican voters since they would have already achieved their objective, a rock solid reactionary majority on the Supreme Court that could last for 2 decades or more. Graham is a political whore and the most prominent slithering hypocrite among republican senators. 




I have to hand it to the republicans though. 

Unlike the voters who opposed Trump in 2016 and refused to vote or threw their vote away by voting for Jill Stein, the Trumpsters recognized that elections do matter, particularly when it comes to the Supreme Court. 

Many commentators have argued that the fight over the next Supreme Court nominee may negatively impact the markets. 

A reactionary court, which is a done deal now and is the traditional leaning of the Supreme Court through most of U.S. history, is a positive for businesses in a variety of ways; and that has always been the case. 

{e.g. Corporate speech and the First Amendment: History, data and implications - Journalist's ResourceThe Corporate “Free Speech” Racket | Washington Monthly, and see some historical examples Adkins v. Children's Hospital, 261 U.S. 525 (1923)(holding law granting minimum wages to women as an unconstitutional interference in the "liberty to contract"); Lochner v. New York, 198 U.S. 45 (SupCt 1905)Hammer v. Dagenhart, 247 U.S. 251 (1918)(Struck down child labor laws} 

It was for example the Supreme Court who took the 14th Amendment, intended to protect the civil rights of newly freed slaves and turned it into a  grant of rights to corporations while overturning congressional laws designed to implement and protect civil rights for the ex-slaves. The History of Corporate Personhood | Brennan Center for Justice; Review: How Corporate America Won Its Civil Rights - The New York Times 


Relevant Section from the 14th Amendment: 


I would add that the so called "conservative" Justices, who claim that they are interpreting the Constitution as written, using the plain meaning of the words contained therein, came to a conclusion that a "person", as used in the 14th Amendment, includes corporations. 

Turning back to what is happening now, it would not be accurate to call what is about to happen a "battle". One side has gone nuclear and the other is throwing spit balls. The republicans have the votes.  

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Trump claims election results ‘may never be accurately determined’ due to mail-in voting - MarketWatch Donald is doing everything that he can to undermine the institutions that are fundamental to a properly functioning democracy. In so doing, he has the full support of the republican party.  

Trump Claims That Amazon Costs the USPS Billion; internal documents show otherwise Amazon generated $1.6B in profit for the USPS last year. Trump's rage is really directed against the Washington Post, owned by Jeff Bezos, that regularly pierces his false narratives and statements. Truth can not be allowed to exist in Trump's America.  

Last Monday, Don the Authoritarian designated NYC as an "anarchist jurisdiction." Donald and Barr believe that designation gives them the self-designated authority to withhold billions in federal funds. Andrew Cuomo Tells Trump to Piss All the Way Off With His “Anarchist Jurisdiction” Bullshit | Vanity FairWe Live in a Potemkin Autocracy Now - The Atlantic  

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The republicans are already openly discussing having republican state legislatures appoint an alternative slate of electors in the even Biden is certified the winner. What If Trump Refuses to Concede? - The Atlantic ("According to sources in the Republican Party at the state and national levels, the Trump campaign is discussing contingency plans to bypass election results and appoint loyal electors in battleground states where Republicans hold the legislative majority. With a justification based on claims of rampant fraud, Trump would ask state legislators to set aside the popular vote and exercise their power to choose a slate of electors directly.") 

{I have not looked into the mechanics of how the republicans would accomplish that objective in a particular state when there is a state law granting the voters the power to select the electors once the winner is declared by the state's election commission and certified by its Secretary of State. If the law has to be changed to accomplish that result, and requires the governor's signature who has veto power over that law change, republican control over the state legislature may be insufficient to take away the voter's power to select the electors when the governor is a Democrat. A reader, Land of Milk and Honey, referenced this article: If Trump lost the popular vote, it would be hard for him to 'rig' the Electoral College to stay in office. | USAPP; see also Red State Legislatures Cannot Cancel The Upcoming Presidential Election | Take Care;  Preparing for a Disputed Presidential Election: An Exercise in Election Risk Assessment and Management by Edward B. Foley :: SSRN

The  BUSH v. GORE 5 to 4 Supreme Court decision, where republican Justices awarded the Presidency to George Bush (and are consequently arguably responsible for the Iraq Invasion that Gore would not have initiated) held that the Constitution allows the states to take away from the voters "the power to appoint electors". 

This is the pertinent part of the republican Justices' decision: 

 

Justice Ginsberg wrote the main dissenting opinion. 

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Trump Supporters Disrupt Early Voting in Virginia | NowThis - YouTube The republican voter intimidation was reportedly organized by the  Fairfax County Republican Committee Vice-Chair Sean Rastatter. 


Eric Trump ordered to testify before election in probe of Trump Organization Eric may end up in free NY housing within 2 years. Maybe he will be sharing  a room with his dad.  








Federal judge rules against Trump admin, says 2020 census must continue for another month Trump wanted to rig the census to help republican states. 

Judge Removes Trump's Top Public Lands Chief William Perry Pendley : NPR At the "law and order" President, Pendley was serving illegally as the head of that federal agency without ever receiving the Senate's confirmation. 

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Donald's Attorney General William Barr

Barr claimed that the coronavirus restrictions were the worst assault on civil liberties since slavery, greater than the denial of civil rights based on national origin, race and sex that last for a lifetime. In Barr's view, the nation is powerless to implement quarantines and other measures designed to protect the public's health during a pandemic capable of killing millions. 

Barr: “You know, putting a national lockdown, stay-at-home orders, is like house arrest. It’s — you know, other than slavery, which was a different kind of restraint, this is the greatest intrusion on civil liberties in American history.”  

In TrumpWorld, temporary restrictions and mask wearing requirements are a far greater infringement of liberties than what Black Americans endured for 100 years after slavery was abolished by the 13th Amendment to the Constitution.  


Barr demanded that U.S. attorneys consider criminal charges against  the Democrat Mayor of Seattle based on his displeasure with the manner in which that city handled the George Floyd protests. Barr Told the DOJ to Consider Criminal Charges Against the Democrat Mayor of Seattle Jenny Durkam -The New York Times Durkam is critical of Trump and Barr so the general idea among the Trumpsters is to "Lock Her Up.".   

Barr demanded that the U.S. attorneys consider charging anyone committing a violent act during the protests with an attempt to overthrow the U.S. government. William Barr suggests charging violent protesters with sedition  

Barr is best known for furthering Donald's belief that a U.S. President has more powers than a King during the middle ages. The Barr Memo and the Imperial Presidency-ACSWilliam Barr’s chilling defense of virtually unlimited presidential power-The Washington Post Barr rejects checks and balances on Presidential power. 

Barr is just another patently authoritarian leaning republican who represent a clear and present danger to fundamental constitutional principles including separation of powers and the checks and balances flowing therefrom. 

The reason for those checks and balances is to prevent one branch of government from usurping the freedoms guaranteed in the Bill of Rights. 

Most republicans are not conservatives but the polar opposite. True conservatives have already left Trump's party.  

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Breonna Taylor


Martin Luther King recognized that violent responses to an injustice will not solved anything and is only likely to produce more violence and deaths. 

Donald and his Trumpsters are never going to be a sympathetic audience for racial injustice and their positions will only harden when protests turn violent.  

Breonna Taylor, a innocent, was shot 6 times by two Louisville police officers, Jon Mattingly and Myles Cosgrove, executing a no knock warrant to search her apartment. Another officer, Brett Hankison, fired wildly into the apartment with the bullets entering a neighboring white families apartment. 
 
The multiple shots fired by the police were in response to a single shot by Breonna's boyfriend Kenneth Walker who feared an intruder in the late night raid. Walker obviously had no idea that several police officers had barged into Breonna's apartment shortly after midnight (12:43 A.M.). I read a report that the paramedics took 20 minutes to arrive. 

As it turns out, the bullet that struck officer Mattingly was fired by Brett Hankison, not by Mr. Walker.. Ballistics don't support AG claim that Kenneth Walker shot cop

The police officers claimed that they were not wearing body cameras. A photo showed one was wearing a camera, but no video footage is known to exist. New Photos Show at Least One Cop in Deadly Breonna Taylor Raid Was Wearing a Body Camera One of the officers involved in the killing was wearing a mount for a body camera.  

As I see it, the killing of Breonna Taylor would not have happened but two predicates that set everything in motion. 

The white police officer, Joshua Jayneswho requested the no knock search warrant for Breonna's apartment did not have sufficient evidence for that request IMO and, more importantly, the white judge Mary M. Shaw had no legitimate basis IMO for issuing the warrant as written. Ms. Shaw at a minimum needs to be voted out of office when she comes up for reelection. Breonna Taylor: Louisville detective with no-knock warrant reassignedOpinion | Breonna Taylor’s death was the result of Louisville police’s illegal no-knock warrant - The Washington Post

Based on what the police had, a search warrant could have been conducted a reasonable hour soon after Breonna returned from work, with the police simply knocking on the door, announcing their presence, and waiting for her to answer the door. That is what they would have done for a white woman under the same circumstances.  

There was no evidence that Ms. Taylor or her current boyfriend, Kenneth Walker, who was sleeping with her that night, were engaged in drug dealing. 

Ms. Taylor was once allegedly seen living her ex boyfriend's house, Jamarcus Glover, who was allegedly involved in drug dealing, with a package of unknown contents. The police claimed that the package may have contained drugs but had no proof. No drugs were found in her apartment after she was killed. 

The warrant to search Breonna's apartment was based on nothing more than conjecture and over active imaginations IMO.   

Glover was arrested that night at a different location. Breonna Taylor shooting fact check: 8 things people often get wrong

No warrant would have been sought or granted IMO for a white woman's apartment with that flimsy connection.  

Once the raid was conducted shortly after midnight, with the police barging into the apartment, everything that had been unjustifiably set in motion by the police and the judge ended in disaster.

Walker legitimately believed there was a home invasion; and he fired 1 shot that triggered a barrage of shots fired into Breonna who was innocently standing in a hallway and none into Walker who fired the shot, indicating negligence on the use of force. Walker and Breonna had been awakened by the police breaking down the door. 

The evidence is disputed on whether the officers announced themselves before forcing entry into the home.  One neighbor claims that she heard the officers say "police" while other neighbors and Mr. Walker say they heard nothing.  

Glover was   offered a plea deal if he signed a statement that Breonna was involved in trafficking  drugs which he refused to do.  Plea Deal Required Drug Suspect To Name Breonna Taylor A 'Co-Defendant' : NPRBreonna Taylor's ex-boyfriend was offered a deal to say she was involved in organized crime | TheHill 

The Louisville Police arrested the only black female state legislator, Atticia Scott, last week for walking peacefully before curfew to seek sanctuary at a nearby church. Kentucky's only Black female legislator arrested in Breonna Taylor protest The police then blocked entry to the church and arrested her on felony rioting charges after noticing that she was recording the event on her phone which she later posted to her Instagram account. The white police chief Robert Schroeder defended the arrest. Kentucky state Rep. Attica Scott, who proposed ‘Breonna’s Law’ to end no-knock search warrants statewide, arrested at protest - The Washington Post

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Bob Woodward's Book "Rage"

I am listening to the audiobook version on Scribd. 

Woodward quotes Dan Coats, Donald's former Director of National Security and a retired republican senator from Indiana, saying Donald is "impervious" to facts. That is not news. And, Coates could not shake a belief that Putin had something on the Duck. Woodward book: Former intel chief Dan Coats believed "Putin had something on Trump" - AxiosBob Woodward Has Another Scoop: It Is NOT Good for the President – BillMoyers.com


Rage is an apt description of Donald's normal state of being. 


Unlike the Cohen book, Woodward may cause a few fence sitters to vote for Biden based on the disclosures relating to Trump's grossly negligent handling of the pandemic and constant lying on all matters relating to it. 

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The Trumpster Tucker Carlson

Carlson has an hour long program on Fox "news" which I am unable to watch since I find the anchor exceedingly repulsive and almost as much a jerk as his soulmate Donald Trump. 

To be fair to Tucker, he does not generate as much Fake News as Donald who pours forth false and misleading statements throughout the day. 

I do read about some of Carlson's Fake News reports. A recent one involving my hometown caught my eye. 

This particular Fake News segment  originated from a Fox "news" station in Nashville (WZTV) that invented a story that Nashville's Major John Cooper, a bland, non-ideological democrat, had suppressed low virus transmission figures at local bars and restaurants. This data was released and the Fox "news" story was  pure fiction.  

This did not prevent Carlson from haranguing Nashville's Mayor in his opening statement, asserting the "remarkable" story aired by the Fox "news" Nashville affiliate WZTV offered "conclusive proof" that political leaders were lying about the virus. 

Carlson added that the policy was to "hide all good news" so that the fear will not end and the politicians power will not subside. This is all typical fact free demagoguery and hyperbole that passes for journalism in Trump's America. 
 

Debunked COVID-19 story on Fox News, but Tucker Carlson doubles down - Chicago Tribune When Carlson was confronted with the facts, he doubled down saying we "will never the truth". Yes, the truth is known outside of TrumpWorld. The data was released to the public a s the local Fox station acknowledged before Carlson doubled down on his false story.  Nashville restaurants and bars account for few confirmed COVID-19 cases – Tennessee Lookout It is not possible to shame Carlson, Trump, Hannity, Limbaugh or Ingraham with the truth. 





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Covid-19 updates


As of 9/25/20 



CDC says it erroneously posted guidance that said coronavirus spreads through air and travels beyond 6 feet The CDC can not be believed on matters relating to Covid-19 since it changes its recommendations and guidance based on political pressure from the Trump Administration.  


Lying Don repeated his false claim last Monday that coronavirus affects "virtually no young people" below the age of 18. Trump falsely claims that for young people COVID-19 'affects virtually nobody,' though in March he told Bob Woodward 'plenty of young people' are impacted by the virus | Business Insider Donald is incapable of being honest about all matters relating to the pandemic. 





NIH official William Crews  to 'retire' after report ID'd him as author of anti-Fauci posts on right-wing blog - CNN While working for NIH, Crews posted disparaging comments about Fauci on a right wing blog called RedState. Crews called Fauci a "mask Nazi" and claimed that wearing masks was just a political statement. RedState COVID Troll Streiff is Actually Bill Crews, and He Actually Works for Dr. Anthony Fauci, citing one of Crews' Posts that contains the usual Trumpster reality creations: Can't We Just Say It? This Wuhan Panic Was a Fraud Driven by Politics and for the Aggrandizement of Power

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1. Small Ball

The emphasis  remains on using small ball "wave buying" programs to buy beaten up dividend paying stocks. I am more actively including 5 year charts to highlight the beaten up status which is also shown the "stock information" snapshot that has the 52 week return. 

As previously discussed, small regional banks are dicey at present, given NIM suppression through extremely abnormal federal reserve monetary policy and the pandemic induced recession that has increased loan losses and accelerated buildup of loan loss reserves. 

However, they certainly fit the criteria of being beaten up badly, which has increased their dividend yields and lowered their GAAP P/E ratios using 12 month trailing earnings. 

While it is not reasonable, or even rational, now to predict an end to interest rate suppression in the near term (within 2 years), the jury is still out on whether there is a V shaped recovery that will accelerate in 2021 that will alleviate the loan loss issue and possibly lead to a reversal of loan loss reserves. 

When discussing AMCX in Item 1.I. below, I mention that it is 1 of 30 stocks selected by Joel Greenblatt's Magic Formula to beat the market.  

A. Added to CZNC-Bought 10 at $17.2; 5 at $16.65; 5 at $15.55:




Quote: 
Citizens & Northern Corp. (CZNC) 

"Citizens & Northern Corporation is the bank holding company for Citizens & Northern Bank, headquartered in Wellsboro, Pennsylvania which operates 29 banking offices located in Bradford, Bucks, Cameron, Chester, Lycoming, McKean, Potter, Sullivan and Tioga Counties in Pennsylvania and Steuben County in New York, as well as loan production offices in Elmira, New York and Warminster and York, Pennsylvania."

Stock Information as of 9/25:


Last DiscussedItem # 1.B. Restarted CZNC- Bought 10 at $17.7; 5 at $17.07 (6/13/20 Post) I discussed the first quarter report in that post. 

CZNC Analyst Estimates 

Regional Bank Basket Strategy

CZNC SEC Filings

Current Position: 30 Shares 


Average Cost Per share: $ 17.01


Dividend: Quarterly at $.27 per share ($1.08 annually)

Last Ex Dividend: 7/24/20

Dividend Yield at $17.01  = 6.35 %

Owned Properties as of 12/31/2019: 10-K at page 7  


Last Earnings Report (Q/E 6/30/20): 
SEC Filed Press Release 

"Net income was $0.39 per diluted share in the second quarter 2020, up from $0.30 in the first quarter 2020 and $0.27 in the second quarter 2019. Excluding the effects of merger-related expenses, adjusted (non-U.S. GAAP) earnings per share were $0.45 per share for the second quarter 2020, up from a similarly adjusted $0.31 per share for the first quarter 2020." 


Acquisition related expenses lowered net income:

NPA and NPL ratios are currently well above average and the coverage ratio below average. Those ratios are major negative currently.  

NIM: 3.65%
Efficiency Ratio: 63.28% (too high IMO)
NPL Ratio: 1.74%
NPA Ratio: 1.33%
Coverage Ratio: 51.11% 
ROA: 1.15%
ROE: 7.71%
Tangible Book Value Per Share: $16.39 SEC Filing 

Capital Ratios: Excellent IMO as of 6/30/20:


Sourced Page 77 of 10-Q for the Q/E 6/30/20 

Available for Sale Securities

CZNC Trading Profits to Date: $788.82

The largest gain was in 2011: Item # 1 Sold 100 CZNC at $16.53 (9/2/11 Post)(profit snapshot = $517.61); Item # 1 Bought 50 CZNC at $11.77 (8/12/2010 Post) and Item # 1 Added 50 CZNC at $10.46 (8/17/10 Post) 

Purchase Restriction: Each subsequent purchase, other than through dividend reinvestment, must reduce my average cost per share.  

Maximum Position: 50 Shares given elevated NPL ratio. 

B. Added to CXP-Bought 10 at $12.12; 10 at $11.57; 5 at $11.27; 5 at $10.9; 5 at $10.5







 


Quote: Columbia Property Trust Inc-An Office REIT

Dividend: Quarterly at $.21 per share, raised from $.2 effective for the June 2020 payment. 


Last Ex Dividend Date: 8/31/20

Average Cost Per Share: $11.99

Yield at Average Cost: 7.01%


2019 Annual Report

Last DiscussedItem # 1.D.  (8/1/2020 Post) I discussed the second quarter earnings report in that post and have nothing further to add here. 

Stock Information as of 9/25/20: 


5 Year Chart as of 9/25/20


Trading Strategy: Office REITs are struggling due to Covid. My buying will be in small lots, slowly building up to a 100 share position. Each subsequent purchase must reduce my average cost per share. Dividends will reinvested. Will consider selling highest cost lots when and if I can do so profitably. 

C. Added to PPT-Bought 10 at $4.59; 20 at $4.53; 10 at $4.43; 10 at $4.4




Quote: 
Putnam Premier Income Trust Overview- a bond CEF

As of 8/31/20, the bond weightings were 45.27% in AAA; 7.82% in AA; 1.82% in A; 6.3% in BBB; and the remainder in junk. (click portfolio characteristics tab at PPT - CEF Connect

Sponsor's Website: Putnam Premier Income Trust



Last SEC Filed Shareholder Report (period ending 1/31/20) 

Last Discussed: Item # 1.F. (6/6/20 Post)Item # 2.A. (4/4/20 Post)

Data Date of 8/27/20 Trade
Closing Net Asset Value Per Share: $4.8
Closing Market Price: $4.59
Discount: -4.38%

Data Date of 9/23/20 Trade: 
Closing Net Asset Value Per Share: $4.76
Closing Market Price: $4.4
Discount: -7.56%

Average Discounts as of 9/25/20: 

1 Year: -1.41%
3 Years: -4.27%
5 Years: -5.82%

PPT Putnam Premier Income CEF Connect

Position This Account: 489+ shares

Average Cost Per Share: $4.8 

Dividend: Monthly at $.035 per share ($.42 annually)
 
Yield at AC =  8.75%

Last Ex Dividend: 9/23/20 (bought a 10 share lot at $4.43 on the ex dividend date and 10 at $4.4 the day after, all other shares owned as of) 

Goal: Harvest the dividend and eventually escape at whatever profit may be had. 

D. Started PPT in Schwab Account-Bought 100 at $4.53



See Item 1.C. above. 

E. Started FCPVX-Bought $100 at $13.37; $150 at $12.91; $50 at $12.35





Expense Ratio: .66%


F. Started VONV as a Placeholder-Bought 1 at $106.19; 1 at $102.82




Quote: VONV | Vanguard Russell 1000 Value ETF Overview 


Sponsor's Website: VONV - Vanguard Russell 1000 Value ETF 

Expense Ratio: .08%

Dividends: Quarterly


Last Ex Dividend Date:  9/11/20

Some Top Holdings

Prior Trades: None 

G. Restarted VFH-Bought 2 at $60.79; 1 at $57.93





Sponsor's Website: VFH-Vanguard Financials ETF 

Expense Ratio: .1%

Dividends: Quarterly


Last Ex Dividend Date: 9/11/20 

Some Top Holdings as of 8/31/20 :


Prior Sell Item # 1 Sold 50 VFH at $33.56 (10/18/12 Post)(profit snapshot = $119.97); Item # 2 Sold 50 VFH at $31.05 (2/14/12)(+$92.47); Item # 2 Sold 100 of the ETF VFH at 34.88 (2/27/11 Post)(profit snapshot = $403.28)

Other Trades: +$143.84


VFH Realized Gains to Date: $759.56

H. Restarted UBSI-Bought 1 at $26.6; 1 at $26.34; 3 at $25.95; 5 at $25.54; 2 at $24.6; 1 at $24.32; 2 at $24.04;  1 at $23.68; 1 at $22.21; 1 at $21.81; 1 at $21.3; 2 at $20.9 










 







That is a lot of orders to reach 21 shares. 

Quote: 
United Bankshares Inc. 

"As of June 30, 2020, United had consolidated assets of approximately $26.2 billion. United is the parent company of United Bank, the largest community bank headquartered in the D.C. Metro region. United Bank has 226 offices in West Virginia, Virginia, Ohio, Pennsylvania, Maryland, North Carolina, South Carolina, Georgia, and the nation’s capital."


Investment CategoryRegional Bank Basket Strategy


UBSI SEC Filings

Dividend: Quarterly at $.35 per share ($1.4 annually)

United Bankshares Declares Third Quarter Dividend

Last Ex Dividend: 9/10/20  (owned 10 as of)

Average Cost Per Share: $24.33  (21 shares)

Dividend Yield at AC:  5.75%

Stock Information as of 9/25/20:


5 Year Financial History 10-K

5 Year Chart


Last Earnings Report (6/30/20): SEC Filed Press Release 

"Earnings for the second quarter of 2020 were $52.7 million as compared to earnings of $67.2 million for the second quarter of 2019. Earnings for the first half of 2020 were $92.9 million as compared to earnings of $130.8 million for the first half of 2019. The lower amount of net income in 2020 was driven primarily by significant merger-related expenses from the Carolina Financial Corporation (“Carolina Financial”) acquisition and a higher provision for loan losses resulting from an adverse future macroeconomic forecast as a result of the coronavirus ("COVID-19") pandemic under the the new Current Expected Credit Loss (“CECL”) accounting standard."

NIM: 3.18%
ROA: .87%
Charge Off Ratio: .10%
NPA Ratio: .71%
Efficiency Ratio: 57.68%
Loan to Deposit ratio: 90.44%

Tangible Book Value Per Share: $18.28 

Capital: 


Maximum Position: 100 shares

Purchase restriction: Each subsequent purchase, other than through dividend reinvestment, has to lower my average cost per share. If the price breaks below $20, I will probably increase my purchase lot size to 5 shares. 

I. Started AMCX-BOUGHT 1 at $25.02; 1 at $23.75; 1 at $23.39; 1 at $23.15; 1 at $23;  1 at $21.99; 2 at $21.9; 3 at $21.4; 2 at $21.17; 2 at $20.9; 1 at $20.32 and Sold 1 at $25.12


Purchases: 











Sell: 


Yes, I know that this is ridiculous, but these small buys and sells are the only way that I will participate in the stock market now. The 1 share sold was the highest cost lot which reduced my average cost per share from $22.05 to $21.85. 

After Pare Snapshot Intraday on 9/16/20  

This is a slow build up to a maximum 50 share position. 

Purchase Restriction: Each subsequent purchase has to be at the lowest price in the chain. 

Quote:  AMC Networks Inc. Cl A (AMCX) 

"AMC Networks is a global entertainment company known for delivering high-quality content to audiences and a valuable platform to distributors and advertisers.  The Company, which operates several of the most recognizable brands in entertainment, manages its business through two operating segments: (i) National Networks, which principally includes AMC, BBC AMERICA, IFC, SundanceTV and WE tv; and AMC Studios, the Company’s television production business; and (ii) International and Other, which principally includes AMC Networks International, the Company’s international programming business; AMC Networks SVOD, the Company's targeted subscription streaming services, Acorn TV, Shudder, Sundance Now and UMC (Urban Movie Channel); Levity Entertainment Group, the Company’s production services and comedy venues business; and IFC Films, the Company's independent film distribution business."

I subscribe to AMC's streaming, ad-free premium service. 

I discussed purchasing this stock in a comment published on 9/16

Stock Information as of 9/25/20




After my purchases, the shares popped in response to a modified Dutch tender offer to acquire up to $250M in stock. SEC Filed Press Release ("AMC Networks Inc. (NASDAQ: AMCX) today announced that on September 16, 2020 it plans to commence a “modified Dutch auction” tender offer to purchase up to $250 million in value of its outstanding Class A common stock, par value $0.01 per share (the “Class A Shares”), at a price per Class A Share of not less than $22.50 and not greater than $26.50.")

5 Year Chart as of 9/25/20

5 Year Financials10-K at page 33  


Last Earnings Report (Q/E 6/30/20): AMC Networks Inc. Reports Second Quarter 2020 Results 


"National Networks revenues for the second quarter 2020 decreased 18.0% to $496 million, operating income decreased 12.4% to $188 million, and adjusted operating income decreased 11.2% to $210 million, all compared to the prior year period. . . Second quarter revenues reflected a 14.6% decrease in advertising revenues to $187 million. The decrease in advertising revenues was primarily related to the impact of the COVID-19 pandemic, which resulted in lower demand, as well as the timing of the airing of original programming. Distribution revenues decreased 19.9% to $308 million. The decrease in distribution revenues was attributable to a decrease in both subscription revenues and content licensing revenues." (emphasis added)


A recent SA article discusses AMCX and is not yet behind the SA paywall. AMC Networks: The Magic Formula-Seeking Alpha The Magic Formula refers to Joel Greenblatt's selection criteria for stocks. Magic Formula Investing (registration required to run screens) AMCX is currently among the top 30 companies with at least a $50M market cap. I have not run a screen at that site for several years, but do currently own 3 of the 30 companies that were selected using other criteria. Greenblatt's criteria are discussed in his book The Little Book That Still Beats the Market which I have read.   

Broker Reports (available to Schwab customers): 

Morningstar (8/4/20): 5 stars with a FV of $46

S & P (8/19/20): 4 stars with a twelve month PT of $28

J. Started BAC-Bought 2 at $25.61; 1 at $25.28; 1 at $23.97; 2 at $23.7; 1 at $23.31:










Berkshire Hathaway has a larger position. 


Stock Information as of 9/25/20: 


Dividend: Quarterly at $.18 per share, last raised from $.15 effective for the 2019 second quarter payment ($.72 annually)

I would describe BAC's dividend history as poor, indicating a high decree of unreliability. Dividend/Split History | Bank of America Corporation The quarterly rate was at $.64 per share in 2008 and was slashed in stages to $.01 effective for the 2009 first quarter payment. The quarterly penny rate remained at 1 cent until BAC raised it to 5 cents effective for the 2015 first quarter payment.  

Last Ex Dividend: 9/3/20 

Average Cost per share = $24.45 (8 shares) 

Dividend Yield at AC = 2.94%

5 Year Financials


5 Year Chart

Last Earnings Report (6/30/20): Ugly due to the pandemic-recession. 

E.P.S. of $.37 or $3.5B in net income.  

The provision for credit losses during quarter, including a $4B reserve buildup, was $5.1B.  
 

Broker Reports (available to Schwab customers)

Morningstar (9/16/20): 3 stars with a FV of $28 (basically, I am comfortable with that rating and PT) The first sentence describes the historically poor acquisitions that led to a decade of trouble of trouble for shareholders, referring to Merrill Lynch as "shaky", Countrywide Financial as "shady"; and MBNA as "dysfunctional". 

S & P (7/16/20): 3 stars with a 12 month of $27 PT

Argus (7/16/20): Buy with a $30 PT

Credit Suisse (9/13/20): Outperform with a $31 PT. 

Maximum Position: 50 Shares

Purchase Restriction: Each subsequent purchase, other than through dividend reinvestment, must lower my average cost per share. I will consider reinvesting the dividends when and if I own 20 or more shares. 

K. Restarted FBNC-Bought 5 at $21; 5 at $20.45; 1 at $20.08






Quote: First Bancorp (North Carolina) 

Stock Information as of 9/25/20




Investment CategoryRegional Bank Basket Strategy 


FBNC  Analyst Estimates | MarketWatch

FBNC SEC Filings

Dividend: Quarterly at $.18 per share ($.72 annually)


Next Ex Dividend: 9/29/20

Average Cost Per Share: $20.73 (10 shares)

Dividend Yield at AC = 3.47%

5 Year Financials:


5 Year Chart

Properties


Last Earnings Report (6/30/20): SEC Filed Press Release 

"First Bancorp (NASDAQ - FBNC), the parent company of First Bank, announced today net income of $16.4 million, or $0.56 per diluted common share, for the three months ended June 30, 2020 compared to $23.9 million, or $0.80 per diluted common share, recorded in the second quarter of 2019. . . The decrease in earnings for both periods in 2020 was primarily due to increases in the provisions for loan losses recorded, which were largely related to estimated losses arising from the economic impact of COVID-19. For the three months ended June 30, 2020, the Company recorded a provision for loan losses of $19.3 million compared to a negative provision of $0.3 million in the second quarter of 2019." (emphasis added) 




Loan Deferral Information as of 6/30/20: The commercial real estate deferrals are worrisome IMO. 


Trading Profits to Date: $194

Item # 7 Sold 50 FBNC at $13.25 (9/28/2010)

L. Started AIQ (Vanguard taxable account)-Bought 5 at $24.13; 2 at $23.34; 2 at $22.8





Quote: Global X Artificial Intelligence & Technology ETF 


Sponsor's Website: Artificial Intelligence & Technology ETF

Expense Ratio: .68%

Top 10 Holdings as of 9/24/20: 


M. Started AIQ (Schwab taxable account)-Bought 2 at $22.9 AND 3  at $22.55


See Item #1.L. above. 

Expense Ratio: .07%


MGC includes both mega cap growth and value stocks. 

The Vanguard Mega Cap Growth ETF  (MGK) contains the "growth" mega cap stocks that have largely fueled the parabolic rise in the S & P 500 since March.  

The  Vanguard Mega Cap Value ETF  (MGV) has been the laggard. I have redeployed the proceeds from MGC into MGV. 

O. Restarted PNNT-Bought 10 at $3.27

Quote: 
PennantPark Investment Corp. (PNNT) 

Stock Information as of 9/25/20



Management: External, compensation undeserved IMO 

Investment Category: Deservedly Hated BDC

The five year total return through 8/26/20, the day of this 10 share purchase, was -11.28%. Total return includes dividend reinvestment. DRIP Returns Calculator | Dividend Channel 

The after tax return, when the shares are held in a taxable account, would be lower than -11.28%, possibly significantly lower, due to taxes owed on the dividend payments.   

When buying a BDC, I will have an exit strategy in place and will keep my total investment exposure extremely light using a small ball purchase strategy.  

The goal is always to escape at whatever profit is available after collecting a few dividend payments. That goal will frequently be difficult to achieve. 

5 Year Chart

Dividend: Quarterly at $.12

The penny rate was cut from $.18 to $.12 effective for the 2020 second quarter payment

Last Ex Dividend: 9/16/20 (owned as of) 

Current Position: 10 Shares

Yield at $3.27: 14.68%  

Net Asset Value Per Share History: Highly Unfavorable 

06/30/20   $7.82
12/31/19     $8.79
06/30/19   $8.74 
12/31/18     $9.05
12/31/17     $ 9.1
12/31/16     $ 9.11
12/31/15     $ 9.02
9/30/15      $ 9.82
12/31/14     $10.43
9/20/14      $11.03
12/31/13     $10.8
12/31/12     $10.38
12/31/10     $11.14
9/30/10      $10.69
12/31/09    $11.86
12/31/08    $10.24
12//31/07   $12.07
9/30/07      $12.83

IPO at $15 Prospectus April 2007

Using the $7.82 NAV per share, my purchase at $3.27 was at a 58.18% discount. The fact that this stock can be purchased at that huge discount reflects poorly on management. 

The Stock Jocks are anticipating that the external managers will continue to incinerate assets at a significant pace and consequently want a 50%+ cushion from the the last reported net asset value per share.      

Given this net asset value per share history, a 58.18% discount may prove to be an insufficient cushion.  

Sourced 10-Qs

Last Earnings Report (Q/E 6/30/20): SEC Filed Press Release 

NII Per Share: $.16
Net Asset Value Per Share: $7.82 (GAAP; adjusted non-GAAP at $7.46) 

"As of June 30, 2020, our portfolio totaled $1,333.3 million and consisted of $789.4 million of first lien secured debt, $237.5 million of second lien secured debt, $65.8 million of subordinated debt and $240.7 million of preferred and common equity. Our debt portfolio consisted of 94% variable-rate investments. As of June 30, 2020, we had one portfolio company on non-accrual, representing 2.5% and 2.3% of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized depreciation of $105.2 million as of June 30, 2020. Our overall portfolio consisted of 86 companies with an average investment size of $15.5 million, had a weighted average yield on interest bearing debt investments of 8.7% and was invested 59% in first lien secured debt, 18% in second lien secured debt, 5% in subordinated debt and 18% in preferred and common equity."

P. Added 5 FNLC at $19.4



Stock Information as of 9/25/20


I discussed this small regional bank based in Maine in my last post. Item # 1.I. Restarted FNLC-Bought 5 at $20.2 (9/19/20 Post) 

Investment Category: Regional Bank Basket Strategy

Current Position: 10 shares 
 
Average Cost Per Share: $19.8

Dividend: Quarterly at $.31 per share


Next Ex Dividend: 10/5/20

Yield at $19.8 = 6.23%

FNLC Realized Gains to Date: $1,143.16

2. Equity Preferred Stocks

A. Added to AGROPRA-Bought 5 at $24.99:


Quote: 
Argo Group International Holdings Ltd. Series A Non-Cumulative Preferred Stock This is a fixed -to-floating rate preferred stock that currently pays a 7% coupon on a $25 par value. 


Last Ex Dividend: 8/28/20 (owned 10 as of)


I have nothing to add to that recent discussion.  

Current Position: 15 shares 

Average Cost per share = $25.2

Current Yield at AC = 6.944%


3. Issuer Redemption THGA Junior Exchange Traded Bond

Hanover Insurance exercised its right to redeem its 6.35% exchange traded junior bond at its $25 par value plus accrued and unpaid interest. 

Investment CategoryExchange Traded Baby Bonds, a subcategory of  Exchange Traded Bond


Profit Snapshots: 3 Accounts +$354.98 (85 Shares)

2020 THGA 65 Shares +$268.21


Last Purchase DiscussionItem # 3.A. Bought 50 THGA at $22.51; 5 at $19.25 and 10 at $13.51 (3/21/20 Post) Exchange traded bonds will plummet in price during major volatility spikes for common stocks. Those purchases were all made in March 2020. 


THGA Trading Profits$684.63 ($329.65 in prior sells)

If this exchange traded baby bond had a make whole provision, and none do, the issuer would not have exercised an optional redemption right and the price would be close to $30 since investors would be protected from an early redemption and consequently would continue to receive interest at a 6.35% for years to come.  While there may be a future time when that does not look so hot, it is now the Bond Ghoul equivalent of pure gold. The 20 year treasury closed at a 1.19% yield last Friday. Daily Treasury Yield Curve Rates

In a recent comment, I discussed how a make whole provision required a premium payment for an optional redemption of a $1K par value bond that would otherwise mature in 2023.  

DisclaimerI 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. 

45 comments:

  1. I was asked about the derivatives used by the bond CEF PPT discussed in Item # 1.C. above.

    I am a plain vanilla investor who uses only cash to buy bonds, stocks and funds (mutual, CEFs and ETFs) I know almost nothing about derivatives.

    PPT uses a wide variety of derivative contracts to hedge interest rate risk, credit risk and currency risk and apparently for other purposes as well.

    Personally, I think there are just too many moving parts which is one reason I will keep my exposure small.

    The listing of these contracts can be found in PPT's last SEC filed shareholder report at pages 50-51 and 57-93.

    https://www.sec.gov/Archives/edgar/data/827773/000092881620000418/a_premierinc.htm

    There is apparently some management of duration which is a measure of how the portfolio will respond in price due to fluctuations in interest rates The portfolio's duration is shown as .51 year at the sponsor's website. That low number given the weighted average maturity is probably only possible with interest rate hedging derivative contracts.

    The general rule of thumb is to multiply the duration number by the percentage change in interest rates which provides a rough estimate of how much the value will change. (e.g. a 1% rise at a bond fund's .51 duration would result in about a .51% loss in net asset value per share for the fund)

    https://www.finra.org/sites/default/files/InvestorDocument/p230297.pdf

    ReplyDelete
  2. Maybe the secret is using Kudlow as a contrarian indicator.

    If Biden's tax rate plan triggers some selling by big investors, it will trigger a panic reaction, I'd think. It won't matter to small investors tax-wise, but that won't matter if there's a continued dip in the market.

    I didn't realize housing is considered to be in a bubble right now. The end of leniency that's coming is a kind of bubble by itself. Bad loans not handled as they come due, can skew things. The part about subprimes seems somewhat irrelevant. The data is last from 2018.

    Now the advice is back to in person voting so there can't be Trump complains of mail in tampering?

    I've wondered if Trump and Russia had something set up with voting machines, and that's why he worked so hard to stop mail-in voting. This thought is not mentioned on the news.

    "Many commentators have argued that the fight over the next Supreme Court nominee may negatively impact the markets. "

    If a reactionary court has usually been the case, and is good for business, how will it now be bad for business?

    I am interested in watching #unfit when I have a chance. I came up for Mary Trump's book from the library. I'm delaying until after the election. While it'd be nice to know the info, it won't change my vote, and I'm trying to remove activities so I might run into more time to canvass.

    Were the caps and large print on Sean Rastatter, on purpose? Unreal that disruption is organized by a Party Committee Vice-Chair. One of my arguments lately with Trumpites is to point out that just because Trump is attacking, doesn't mean it's normal. They often go away after that.

    ""Maybe he will be sharing a room with his dad.""

    That's funny. I hope it's also true.

    My dad is sure there will be a vaccine by end of Nov. He watches FOX. I haven't tried to dissuade him. I pointed out that it will take time to disseminate. Also that I'm not getting it right away. If he has hope, even if false, it's good his sanity.

    I wonder how many other investors are feeling hope too...

    Big news tonight are the taxes. I haven't heard anything yet that will influence undecides.

    ReplyDelete
    Replies
    1. Land: We probably will know sometime in November whether one or more vaccines are safe and effective.

      Pfizer's CEO stated earlier this month that there may be enough data to know whether its vaccine works by late October:

      https://www.cnbc.com/2020/09/03/pfizer-ceo-confirms-coronavirus-vaccine-trial-may-have-results-in-october.html

      ++

      When I write the blog, I use the font Georgia and a normal size. That is how the entire post will look in edit form.

      For reasons that I can not explain, a few sentences or sections will have different fonts and size when published.

      Once Google's Blogger makes those changes that are not present in pre-published edit version, the change becomes permanent.

      The reference to Sean Rastatter was a change in font and size from my non-published edit version and does not appear the same way in that version. So I did not intend for it to look that way.

      http://www.fairfaxtimes.com/articles/trump-supporters-disrupt-early-voting-in-virginia/article_be07dda0-fc55-11ea-b8ab-4b39670e4fe8.html

      +++

      Before the election, Donald said that it would release his tax returns. Then he claimed that he could not release them since they were being audited by the IRS, a totally phony reason.

      The real reasons are based on his recognition that the release would have hurt him politically before the 2016 election and would likely lead to a lot of tax experts helping the IRS in its audit. Even if Donald manages to avoid criminal tax charges brought by NY or the U.S. after he leaves office, the civil penalties on top of his excessive debt load personally guaranteed by him could send him into a BK.

      There is probably nothing that would change a Trumpster vote.

      The information provided in the NYT article may cause some undecided voters to go with Biden. It certainly does not help Trump.

      Previously, I gave Donald the Chutzpah of the 20th Century award for creating his brand Trump based his reality creation of being a self-made multi-billionaire. That reality creation started with the publication of the self-promotion book "Art of the Deal" in November 1987 and continuing for years thereafter, a period where Donald managed to rack up nearly a billion dollars in losses.
      https://www.cnn.com/2019/05/07/politics/trump-tax-returns-losses/index.html

      The previous NYT article reference in that story already laid out several areas of potential tax fraud as does the most recent one.

      ++

      With 6 republican Justices, which is now a done deal, which includes 5 reactionary Justices and 1 Conservative, the Court will become even more pro-business which is a positive for stocks longer term IMO. More state or federal laws will be invalidated as unconstitutional in the years to come, many at the urging of corporations asserting their constitutional rights as persons. More federal laws will be invalidated due to a more restrictive application of the federal government's power to regulate under the Commerce Clause or through an expansion of the Tenth Amendment's "states rights".

      https://constitutioncenter.org/interactive-constitution/interpretation/amendment-x/interps/129

      https://constitutioncenter.org/interactive-constitution/interpretation/article-i/clauses/752

      Delete
    2. I won't be surprised if vaccine info comes out in Nov or Oct. But it's not going to be distributed and a solved problem with everyone able to get vaccinated by the beginning of Dec. before my parents take their trip. That's what my dad keeps saying. Sorry, I wasn't clear on that.

      Thanks for the font explanation!

      I will say that Trump is a genius at lying and conning.

      Some items being concluded from the taxes are confusing. Such as these were business taxes. Trump could have paid more with his personal forms.

      Having loans is not a problem if the properties make enough to cover them, or you can sell a few to cover others.

      But there are definitely problems revealed. Like illegally paying consulting fees to your daughter who's employed by the company paying her to consult.

      I suspect my style of reading is not what most voters care about. I'm looking forward to finding out what the next round of polls show. Will paying $750/year and $/0 tick off undecided voters the way one would expect?

      It seems to me that it's not his low tax payments and it's harm politically that are the prime reason for Trump's big fight to not have them go public. It was the reveal that he mislead either banks or the IRS.

      Nice that the court will be pro-business, while being so reactionary that it creates other problems...

      This article has a psychological description of how Trump's bullying works, that I haven't heard before. It seems very likely why Trump supporters support him.

      It also points out that for the most part electoral vote changes that require new laws to override current laws, can't because laws aren't applied retroactively.

      https://www.justsecurity.org/72609/dont-believe-trumps-latest-con-the-strongman/

      Delete
  3. I have 184 common stock, stock ETFs and stock CEFs in my Fidelity account. Earlier today, all of them were up, which is something that has never happened previously.

    Just before publishing this comment, 2 have turned fractionally lower, KR and EVRG. This is a very broad based rally this morning.

    ReplyDelete
    Replies
    1. At the close, I had 5 common stocks showing fractional losses and the remaining 179 individual stocks, stock CEFs and stock ETFs were gainers. That is a highly unusual day for me.

      The 5 losers were:

      TRP -$.37
      UNB -$.09
      SO -$.10
      REYN: -$.42
      ORCC -$.01

      Of those 5 stocks, TRP is the largest position at 14+ shares and goes ex dividend tomorrow. The smallest position is 1 share of SO that is a placeholder.

      I only increased by dividend income slightly today. For example, I sold 5 VNQI at $48.59 and bought 5 QYLD at $21.45 in the same account.

      Vanguard Global ex-U.S. Real Estate ETF (VNQ)
      $48.57 +$0.77 +1.61%
      https://www.marketwatch.com/investing/fund/vnqi

      Global X NASDAQ-100 Covered Call ETF (QYLD)
      $21.47 unchanged
      https://www.marketwatch.com/investing/fund/qyld

      Sponsor's website:
      https://www.globalxetfs.com/funds/qyld/

      Historical dividend payments are available at that website. Click "Distribution Calendar" on the right hand side.

      I have previously discussed both of those securities. I own QYLD in several taxable and Roth IRA accounts.

      I own another global REET ETF which has been making quarterly distributions, so I will go with that one rather than VNQI.

      iShares Global REIT ETF (REET)
      $21.18 +$0.47 +2.27%

      It has been a tough year for REITs. The office REITs are generally in a bear market. The hotel REITs have been smashed the most. Through last Friday, the YTD total return of the Vanguard REIT ETF (VNQ) was -14.16%. So I have been nibbling in that sector.

      Delete
    2. Interesting how broad it was!!

      While IWM was a big rally, 1.6% in SPX isn't huge compared to during the crisis rebound. I keep reminding myself of that.

      Today's giving a little glimmer into some market realism about .... everything.

      Delete
    3. Land: I am not doing much. I spent the morning researching House races and making campaign contributions.

      The consumer confidence number released earlier today was much better than the consensus estimate.

      https://www.prnewswire.com/news-releases/the-conference-board-consumer-confidence-index-increased-in-september-301139982.html

      Yesterday was a highly unusual day. It is extremely rare for me to see virtually every stock position in positive territory. There was a really bad day in October 2008, the worst percentage daily percentage decline during the Dark Period, when every stock that I owned was down.

      Capt. Chesley "Sully" Sullenberger is not fond of Donald:

      https://thehill.com/homenews/campaign/518717-capt-sully-sullenberger-urges-people-to-vote-against-trump-in-lincoln

      Delete
    4. Even if today ends in a rally, the market's given away that it's still quite worried.

      Praying that Biden can keep it together for the 2 or so hours. Not that I have any reason to think he can't. But so much is riding on it.

      Consumers are confident? I think bored is more like it. Everyone's stir crazy and thinking of projects to salve and sooth. That's good though that people are feeling some upbeat confidence.

      I'm not sure what to make of such wide breath with all the other market happenings around it. I'll be keeping an eye out on what the tech readers are saying like FG, and LTTF, and Caviacco (who's name I can never remember how to spell.)

      I'm not at all surprised that Sully isn't fond of Trump. Ignoring the rest, he's a NYer. He knows.



      Delete
    5. Land: A survey of consumer confidence is nowhere near as important as actual consumer spending. The more important release is the government's August personal income and outlays report that will be released on 10/1. The ADP employment report for September will be released tomorrow with the BLS jobs report scheduled for this Friday. The current estimate is for 850K job adds.

      The VIX movement was not buying into yesterday's rally. At times, the VIX was up and only finished down .19 for the day. The pattern remains unstable.

      Trumpsters believe that Donald is honest and a extremely successful businessman. Evidence can not convince them otherwise. One question is why would a real billionaire become involved in a scam like Trump University, just one of many including the long list of Donald's self promotion books.

      Donald is once again in financial trouble, which is a key revelation from the NYT investigation. The tax returns that the paper acquired include his personal 1040s.

      In today's article, the NYT goes into his past scams but the main focus in that he received $427+M from pretending to be a successful business person on the Apprentice TV show and related sponsorships and licensing deals.

      https://www.nytimes.com/interactive/2020/09/28/us/donald-trump-taxes-apprentice.html

      As he did with the fortune given to him by his father, he has blown most of that money with bad investments.

      Trump always lied about how much money he received from Daddy Trump. The reason was to make him look more successful on his own initiative. A prior NYT investigation found that Daddy Trump had given Donald $413M in today's dollars starting when he was a toddler.

      https://www.nytimes.com/interactive/2018/10/02/us/politics/donald-trump-tax-schemes-fred-trump.html

      The main takeaway is something that was already known by the non-brain dead. Trump was not a competent businessman. His "genius" is to sell a false image of himself as one. The tax records are just the latest dagger piercing that false image.

      While I view Donald's claim to be a Christian as farcical, millions believe he has become a born again Christian and even was chosen by God to lead America to the promised land.

      This is an article published in the Atlantic that highlights a point made by Cohen in his book. Trump mocks the evangelicals in private.

      https://www.theatlantic.com/politics/archive/2020/09/trump-secretly-mocks-his-christian-supporters/616522/

      Delete
    6. I meant to ask about the VIX. I'd noticed that yesterday's rally didn't bring a pullback in it. Another reason why the breath is hard to interpret.

      They have the 1040s? I haven't read the articles directly yet. I need to. Media's coverage is hard to decipher.

      I've wondered why the knowledge that he mocks evangelicals hasn't bothered them more. Probably because it's in Cohen's book, and the GOP Pence aid who left, saying it... as in people who aren't Trump. I don't think Woodward got it on tape in his own voice.

      He mocks everything else. Why would they be an exception?

      Delete
    7. Land: The Atlantic article does name Cohen as a source and a "former campaign adviser" who is not identified. That advisor quotes Trump as saying he is playing a game with the evangelicals.

      Mary Trump also discusses Donald's Christian charade in her book and is reference in the article as well as
      Barbara Res, a former Trump organization executive

      When asked once about his favorite Bible verse, the Duck could not name one.

      https://www.youtube.com/watch?v=ERUngQUCsyE

      The reason is he has not read it.

      Delete
    8. I remember Barbara Res's comments. I was surprised she felt no fear being negative about Trump on TV.

      Has Trump read any book? Besides that purported Hitler's on his bedstand?

      I don't have a favorite verse. I do have some insights from it that I like a lot. (The bible, not the other book.)

      Delete
    9. Land: Ivana Trump claimed that Donald kept in a bedside cabinet a book called My New Order, which is the collected speeches of Adolph Hitler:

      https://www.businessinsider.com/donald-trumps-ex-wife-once-said-he-kept-a-book-of-hitlers-speeches-by-his-bed-2015-8

      Donald may have learned a great deal from those speeches.

      Personally, I think he learned more from Joseph Goebbles including the use of the phrase “Lügenpresse” ("lying press")and Goebbles' reliance on repeating lies over and over again.

      Goebbels is reported to have said:“If you tell a lie big enough and keep repeating it, people will eventually come to believe it.”

      Donald's purpose in denigrating journalists and the free press is really simple to understand. He wants people to distrust any media organization that provides accurate information so that his followers will disregard facts and accept his reality creations. For republicans, 81% of whom view him as honest, that strategy has been successful.

      Millions of course will not believe Donald's lies and will only become dismayed and flabbergasted that millions actually believe demonstrably false statement repeated over and over by him.

      What makes it worse for the U.S. is that Donald (like his cult members) is impervious to accurate information, a point made by the former republican senator Dan Coats.

      Decisions are based on his "gut" and emotions rather than informed judgment which comes through loud and clear in Woodward's book "Rage", one of the top ten best words to describe the Duck, and other sources including Donald.

      Delete
  4. Dropbox (DBX) is another small ball purchase in the cloud computing space. I am up to 7 shares at an average cost per share of $19.01.

    Dropbox Inc.
    $19.28 +$0.13 +0.68%
    https://www.marketwatch.com/investing/stock/dbx

    I may discuss that stock but really have nothing to add to this SA article.

    https://seekingalpha.com/article/4376656-market-may-be-underestimating-dropbox

    The main concern is competition from the likes of Google and Microsoft.

    SEC Filings:
    https://www.sec.gov/cgi-bin/browse-edgar?CIK=1467623&owner=exclude

    Last Earnings Report:
    https://www.sec.gov/Archives/edgar/data/1467623/000146762320000031/exhibit991.htm

    ReplyDelete
    Replies
    1. I'll look into that. While working on some group activities, we've needed storage for files. We're using google drive right now. But it's shined light on the need for easy to use cloud storage for small groups and individuals.

      Delete
  5. Easterly Government Properties, Inc. (DEA)
    $22.57 -$0.58 (-2.51%)
    Dividend & Yield 4.60%
    https://finance.yahoo.com/quote/DEA?p=DEA

    I restarted this REIT today with two small lot purchases totalling 15 shares.

    I previously eliminated my position at $28.81:

    Item # 1.A.

    https://tennesseeindependent.blogspot.com/2020/06/cio-ciopra-dea-emaprcca-fisi-glw-gmre.html

    Since I am not even looking for $1K par value bonds, CDs, or treasuries to buy, my attention is now focused on replacing lost income from redeemed fixed coupon securities with stocks.

    About all that I can say about DEA is that the risk/reward balance is more in my favor now, but not so much that I am going to make a serious purchase.

    One thing that I like about DEA is its disclosures contained in its press releases. Many REITs do not really provide a true cash flow number that adjusts FFO down by all cash expenses and/or fail to remove phony revenues created by the straight line rent accounting convention. Both are necessary to arrive at an accurate cash available for distribution.

    You can see those adjustments being made by DEA in its last press release: Straight line rent is deducted from FFO to arrive at adjusted FFO. Cash expenses like routine maintenance, tenant improvements, and acquisition costs are deducted from adjusted FFO to arrive at CAD.

    https://www.sec.gov/Archives/edgar/data/1622194/000156459020035743/dea-ex991_7.htm

    Too many investors rely on the FFO number when there are significant cash expenses and phony revenues that are embedded in that number. This is less important for triple net lease REITs but are important when looking at apartment, hotel, office and many healthcare REITs that generally have significant routine maintenance and other cash expenses + the phony revenues created by straight line rent accounting. Pretend revenues are not available to support the dividend.

    ReplyDelete
  6. There is a famous phrase in U.S. legal history known as a "switch in time that saved nine".

    When FDR became President, there was a firmly entrenched reactionary majority in the Supreme Court. Prior to 1932, this majority had ruled, for example, that minimum wage laws were unconstitutional as interfering in the "liberty to contract". If an employee was willing to work for a dollar a day, and the employer was willing to pay it, then the legislative and executive branches could not alter that result.

    The numerous pro-business on steroids decisions were unfavorable to most Americans, and that was just too bad.

    FDR started to see his New Deal legislation being invalidated by the Supreme Court, so he threatened to increase the number of Justices.

    One of the reactionary judges, Owen Roberts, who had been in the majority stymying FDR's New Deal suddenly switched sides, creating a 5 to 4 majority to uphold the minimum wage law.

    West Coast Hotel Co. v. Parrish (1937), discussed in this Wikipedia article:

    https://en.wikipedia.org/wiki/West_Coast_Hotel_Co._v._Parrish

    There are factions among republican judges that want to return to what is known as the Lochner era.

    See discussion at
    https://en.wikipedia.org/wiki/Lochner_era

    There is some danger now that many Democrats will want to follow FDR's solution when the current reactionary court gets around to overruling decisions like Roe v. Wade and the 5 to 4 gay marriage decision Obergefell v. Hodges. Two of the Justices that were in Obergefell's 5 to 4 majority are no longer with the Court (Ginsberg and Kennedy). Amy Barrett will replace Ginsberg and Kavanaugh replaced Kennedy.

    For those who will be unhappy with what is to come, and did not vote in 2016 or threw away your vote by voting for a third party candidate, then blame yourself for that result if you live in Wisconsin, Michigan or Pennsylvania. It is not going to do any good now to howl in the wind about it.

    Democrats need to resist the FDR court packing threat. If carried through, we will end up with a multitude of Justices, as each side adds more Justices when in power. Americans will lose faith in the Court altogether. Many will rightfully view the Court then as merely a continuation of the political divide except the participating persons wear robes and sit high up in the air.

    However, if the reactionary Justices start to move back too far toward the Lochner era decisions, then the Democrats will have no choice. They are no going to tolerate the reversal of 100 years of progressive federal legislation by republican Supreme Court Justices.

    ReplyDelete
  7. Duke Energy closed up 6.76% in after hours trading today based on a WSJ story that NextEnergy (NEE) want to acquire it.

    Duke Energy Corp. (DUK)
    $87.98 +5.57 +6.76%
    After Hours Volume: 146.2K
    https://www.marketwatch.com/investing/stock/duk

    My general approach is to consider selling my highest cost lots at $90+.

    NEE's acquisition of Duke would be a huge one. DUK has a market cap of almost $61B and is down 9.65% YTD. NEE has a market cap of $139+B and is up 16.91% YTD.
    https://www.marketwatch.com/investing/stock/nee

    Last DUK discussion:
    Item # 1 A. Added 1 DUK at $81.69; 1 at $79.25:
    https://tennesseeindependent.blogspot.com/2020/09/caty-disca-duk-evrg-fncl-lark-nbgnx.html

    Average Cost Per Share: $83.63 (26+ shares)

    Current Yield at AC = 4.52%

    For a utility, DUK has a good dividend growth history as I previously noted.

    ReplyDelete
  8. When the debate started, futures were near 0. Then as it was going for a while, they turned green! Now they are red at 80-90%. That's a relief that that debate didn't cause a rally.

    ReplyDelete
    Replies
    1. Land: I did not watch the debate.

      I did peruse some factcheck articles this morning.

      E.G.
      https://www.factcheck.org/2020/09/factchecking-the-first-trump-biden-debate/

      The debate highlights the current sorry and extremely unsettling state of affairs in the U.S. and point to a chaotic period after the election unless Biden wins decisively in swing states. I am not sure what it will take to cause Donald to concede. My guesses are 200K+ margins in Florida Pennsylvania and Michigan; 100K in Wisconsin; and at least 50K in Nevada.

      An anxiety buildup linked to a possible chaotic and acrimonious period after the election may be the underlying cause for the small pre-market stock market dip. This type of anxiety attack about the future tends to dissipate.

      E-Mini S&P 500 Future Continuous Contract
      3,315.50 -18.20 -0.55%
      Last Updated: Sep 30, 2020 at 7:03 a.m. CDT

      I mentioned earlier NEE's reported interest in acquiring DUK. I doubt that anything will happen unless DUK agrees to be acquired. The current pre-market DUK stock price is $88.17, up +$5.79 from yesterday's close.

      https://www.marketwatch.com/investing/stock/duk

      That pop does not express optimism that an acquisition will occur, since the buyout price would have to be somewhere around $115-$125 IMO to cause Duke's board to consent. DUK's 52 week high was at $103.79.

      I currently own DUK shares in 3 taxable accounts and 2 Roth IRA accounts. I have only discussed the purchases and sells in my Fidelity account which has the largest position at 26+ shares. The other positions are in the single digits.

      Delete
  9. The market is very focused on that stimulus. Several days moves up and down are based on those expectations.

    It doesn't seem that important to me.

    And I find it hard to believe there'll be a deal now when it doesn't matter to either party.

    But I'll try to spot news on this topic and invest accordingly.

    ---

    The debate had to be watched for 5 mins to see what it was.

    That's enough to grab the mute button, some Tylenol, and whatever comfort stuffed animal you've hung onto from childhood.

    Nicole Wallace's comment immediately after was the best assessment. Maddow tried to let Chris Wallace off the hook, in unity with her profession.

    Had I been him, I would have called an unannounced break. Then arranged for someone to stand by the mic wall plug to pull it every time I held up a "mute" sign.

    "The debate highlights..." yep! That's the state of things.

    Biden has not had methods explained to him. He held up but there are hits to be had.

    1) Tell Trump that he is so dumb he can't even learn the debate process.

    2) Take a 2 mins space once he was granted one, and for 1 1/2 be silent. Counter the brain overwhelm that makes it impossible for others to hear calm talk. Then say, this is what normal feels like, and we need to go back to it.

    3) The laughing was a good idea by poorly executed. He needed to start formal and serious, then start laughing AT Trump while he was interrupting. While he switched sons. And when pointing out that Trump is so busy fighting like a crazy man at everything, he's still fighting Hillary Clinton. She's the one who said super predator, and it wasn't about black people, it was about criminals.

    It is possible to own a sociopath. Someone needs to help Biden figure out how.

    It irked and irked me that Wallace asked Biden to decide NOW on packing the court. But made no mention of the McConnell holdoff to ask Trump what he thinks of that.

    I've been writing GOTV letters. I had an old box of envelopes. I don't have much paper, but can buy. But ... I have to go buy pens! I keep running out of ink, or they are skippy and for this much writing it needs to flow solidly.

    ---

    I don't own DUK, I'm not sure where the market's going. Utilities are more expensive, but the rules on that may have changed with the low interest rates.




    ReplyDelete
    Replies
    1. Land: The gyrations today appeared to be linked to optimism and despair about a new stimulus package.

      The Stock Jocks were optimistic in the morning session since Pelosi and Mnuchin were talking. The reason does not have to be rational and fact based when hopium is in full bloom.

      Then the market gave up most of the gains when Pelosi said that the House would vote on the Democrats revised plan which would not happen unless there was no agreement.

      Then something was said about the negotiations continuing notwithstanding that House vote, so the market rallied into the close.

      Except for the new weekly unemployment claims, most of the recent economic news has been positive including the ADP employment report released before the market opened.

      The VP debate will probably be civil since Pence is not a loud mouth crazy person who is going to repeatedly talk over Harris and there will probably be no name calling.

      Trump's mic needs to be shut off when Biden is answering a question. Let his head explode with rage- spewing only his venom at the camera for all to see.

      Bob Woodward's response was that Trump is assassinating the U.S. Presidency which of course is true:

      https://www.youtube.com/watch?v=WXu9pLou07Q

      It is most troubling that over 62 million people will be voting to give Donald another 4 years. He is an obvious psychopath.

      ++

      Under my strict and disciplined rules for buying, I could not do much today since almost everything that I would consider buying was up. I mostly had unfilled limit buy orders. I probably invested less than $100.

      Delete
    2. I got the up this morning on stimulus (eventually) and then the down connection, but completely missed that there was reasoning to the rally at the close. I assumed it was buying into sell off, but more jawboning makes more sense since it was fast smooth moves.

      I don't expect the VP debate to be civil since there will be lying. But it won't have a giant child pulling everyone's hair in the middle of it.

      I'm not clear how much Trump is aware of the overall game he's playing. I suspect he is very much so. He's doing a combo of Putin's goal of taking down the USA democracy, and installing his family as a new familial dictatorship. I agree with Woodward.

      People talk themselves into him. And like a good sociopath he keeps things just fuzzy enough that you can talk yourself into an okay view of him on each item. Of course step back for a second and the patterns shine through glaringly.



      Delete
  10. Pelosi postponed the vote on the Democrats stimulus plan, previously scheduled for tonight, in order to give more time for negotiations with Mnuchin. Apparently, Mark Meadows has been sidelined.

    The unresolved issues appear to be liability protections for businesses and money for state and local governments whose revenues have plummeted due to the pandemic.

    https://www.cnbc.com/2020/09/30/coronavirus-stimulus-pelosi-mnuchin-fail-to-reach-relief-bill-deal.html

    Those sticking points have led to impasses in the past.

    Link to Sarah Cooper's latest:

    https://www.youtube.com/watch?v=W9R_U3pgxMI

    ReplyDelete
    Replies
    1. I wonder if we'll ever fully know what drugs Trump's been on.

      The Woodward tapes about covid indicate that he's declined look doesn't match completely with his actual abilities. He heard the info, and was able to repeat it back.

      Cooper is very talented!

      Delete
  11. I mentioned earlier that a NextEra takeover of Duke (DUK) would require Duke's cooperation which means the offer would have to be so good that it could not be turned down.

    The NextEra CEO ruled out a hostile takeover:

    https://www.reuters.com/article/us-duke-energy-m-a-nextera-energy/nextera-energy-ceo-rules-out-hostile-ma-after-offer-to-duke-energy-idUSKBN26L3KP

    ++

    I did restart NMFC in my Schwab account today with a ten share buy:

    New Mountain Finance Corp.
    $9.56 -0.01 -0.10%
    EX-DIVIDEND DATE Sep 15, 2020
    YIELD 12.55%

    Last Earnings Report:
    NAV Per share at $11.63 as of 6/30/20
    https://www.sec.gov/Archives/edgar/data/1496099/000115752320001134/a52261790ex99_1.htm

    I last eliminated a position in that account by selling 50 shares at $13.95 (1/7/20).

    Item # 2.A. https://tennesseeindependent.blogspot.com/2020/01/aple-nmfc-otcfx-peo-rlj.html

    I eliminated the position in my Fidelity account at about the same time:

    Item # 2.A. Eliminated NMFC-Sold 102+ at $14.2:
    https://tennesseeindependent.blogspot.com/2020/01/aht-bhb-ffbc-fitb-nmfc-rmt.html

    I then restarted a small ball "buying program" in my Fidelity account at a lower price, which seemed reasonable at the time:

    Item # 1 F. Restarted NMFC -Bought 10 at $11.45; 10 at $11.15; 10 at $9.85; 5 at $8.3; 2 at $7.36; 3 at $5.96; 1 at $5.94; 2 at $4.95

    https://tennesseeindependent.blogspot.com/2020/04/arcc-bif-cio-dirunca-brgpra-fnb-gnl.html

    The first lot was bought on 3/10/20 and the last lot on 3/23, which highlights how quickly a BDC stock can go south.

    I have apparently spent close to $200 today rather than $100. ENB was down as was TRST, with small adds to those positions.

    ReplyDelete
  12. Market is still moving on stimulus news and not much else.

    I haven't read articles on the chances. At this point, someone has to have told Pelosi that it will specifically rally the market. She's not going to be anxious to make a deal. She'll keep teasing the idea to avoid being labeled an obstacle.

    It appears... the vaccine news no longer matters short of if one is authorized and proven safe....

    VIX is up today, even while the market is up. +1.25% $26.70

    From Borowitz:
    "Headline: Rule Change for Second Debate Forbids Trump from Attending

    “We took a look at the first debate and decided that we needed to tweak the format,” an organizer said.
    By Andy Borowitz

    Bolton on CNN is making a good point. Trump is not giving clear condemnation. He's doing enough words around the lack of it, for his team can say he did. By end of a week he'll condemn but by then he'll have gotten the benefit of not doing so."

    I'm not sure who Trump's militia is going to be told to target. It wouldn't change public opinion into Trump's favor and win him an election. This must be aimed at driving down voter turn out now.

    I bought cute smile stickers at the dollar store for my GOTV letters. This is my reaction to it all. (I had to go the store. I was out of all pens that write without gaps in the ink. Hard to load up on free pens accidentally when you're never out of the house.)

    Stores Tues and yesterday, Wed, were busy. Must closer to or at normal flow. Made me nervous. People are out of patience?

    ReplyDelete
  13. Land: Haven't you heard. Donald won the debate "big". I wonder what would happen to an advisor who told Donald what undecided voters told a republican pollster, Frank Luntz, about his performance:

    https://www.youtube.com/watch?v=LM3dMJNOFiA



    I suspect Mnuchin is not going to go much higher than a $1.6T package which was Trump's last offer. The Democrats are at $2.2B. I would be somewhat surprised that a deal is finalized before the election. Some democrats may be asking why bail out Trump and the Senate republicans with a fiscal stimulus bill just prior to the election? In late January, assuming the Democrats win the trifecta which is probably around 60%, and abolish the Senate's filibuster rule, they can take full credit for doing whatever they want. Trump will take credit for whatever happens now including the provisions that the Democrats forced him to accept (e.g. extra unemployment benefits)

    Apparently the House will go into recess after tomorrow, as members head home to campaign. So if an agreement does not occur tomorrow, it is unlikely to happen.

    Today was another $200 day for me, mostly regional bank small ball. I was in mourning for a 2.75% treasury that matured yesterday that I had bought below par value. It is peculiar that I will pine over a 2.75% "safe" short term debt, considering that I started to invest in the late 1960s when the ten year treasury was almost 7% and on its way to 16%:

    https://www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart

    ReplyDelete
    Replies
    1. 2.75% is an emaciated amount. But even emaciated patients should be mourned.

      Yah, that assessment matches mine that there's no deal before the election. Will GOP do any deal after if they've lost? Or Dems accept a limited deal knowing they can do more two months later?

      It's human nature to do mourning of losses from bad experiences after that ends. So I'm wondering if the market will pullback after a win (if one happens). I don't have any prior examples to judge by and human emotions don't always translate. So I'm not counting on it.

      I heard of a Luntz's group in quick mention in passing... Ah, so it's a video of thesaurus words for sociopath. All of them are accurate. And a few others I'm sure they couldn't put into the ad.

      I have heard that even Trump's family who wanted to tell them the truth about the debate, decided it wasn't worth the bother and fight. That's bad, because several of them may face jail less so if he's still in office.

      Curiously neither yours nor my posts made it to my email. I'm missing my elderly aunt's too, but I think she texted to my landline so that goes to empty air. Hopefully it's just google's that are going missing.

      My friend who's coordinating so much of the canvassing in our local little area tells me she finished putting stamps on the 4000 letters we've collectively written. If it increases turnout by 1-3%, that's at least 40 more votes.

      Delete
    2. Nope, emails not arriving. There were outages in Florida. Maybe it's comcast email, not google.

      Delete
    3. Land: I check the box to receive published comments by email. I am not receiving all of your comments, but will receive a notification when I post. That suggests that the problem lies with Google.

      Delete
  14. This doesn't comport with inflation.

    https://www.cnbc.com/amp/2020/10/01/san-francisco-one-bedroom-rent-dropped-20percent-from-sept-2019-to-2020.html

    I don't know what that means for the economy and market if the inflation isn't growing.

    ReplyDelete
  15. It might be a good time to short twitter.

    - President may change and discover full sentences on stationery.

    - Tweeter in chief has an illness. A fake one, but none the less.

    - A lot of people I interact with are using twitter less, run out of steam with the programming problems, lack of removal of hateful people... I don't know if it's widespread but I post less too, even if on, I write a post realize it's going to be an argument and don't post it; why bother.

    ReplyDelete
    Replies
    1. Oops, I mean the person who holds the office may change.. and become someone who uses full sentences (i.e Biden).

      Looks like it's probably not faked. I'm not sure what I was thinking - but it's Trump so the word fake couldn't have been too far from some truth about him.

      Delete
    2. Land: It looks like the most likely Mass Infection Event was the gathering where Donald announced his nomination of Amy Barrett. Most people attending this ceremony, being republicans, were not wearing masks or socially distancing.

      Senator Mike Lee, who announced he was infected today, was seen with a mask in his hand and was videotaped hugging other republicans who were not wearing masks.
      The President of Notre Dame, John I. Jenkins, who went maskless at this event, also reported that he has contracted the coronavirus. The incubation period can be 4 or 5 days so it all fits. Hope Hicks probably become infected then as well.
      Senator Tom Tillis (R-NC) also announced today that he was infected but he may not have been there. That may indicate that the others present may have spread the disease to others.

      https://www.politico.com/news/2020/10/02/trump-timeline-activities-425041

      That article has photos of those in attendance. I see my Senator, Marsha Blackburn, who of course is not socially distancing or wearing a mask, being a 150% pure Trumpster. The republican John Roberts, the Chief Justice, is not wearing one or socially distancing.

      It was reported that Amy Barrett was infected sometime during the summer. These people are just reckless.

      Donald was apparently given an experimental drug REGN-COV2 which has not been approved for emergency treatment and is in an early trial. Regeneron did report on 9/29 the results of a Phase 1 2/3 trial
      that had 235 confirmed Covid patients, 1/3rd of whom received a placebo.


      +++

      Today was another strange day for my portfolio. I was up over $5K in my exchange traded securities. I could not find much to buy so I initiated a new small ball position in a mutual fund that closed down 1.74%.

      Delete
    3. September 29, 2020 at 4:01 PM EDT

      REGENERON'S REGN-COV2 ANTIBODY COCKTAIL REDUCED VIRAL LEVELS AND IMPROVED SYMPTOMS IN NON-HOSPITALIZED COVID-19 PATIENTS

      https://investor.regeneron.com/news-releases/news-release-details/regenerons-regn-cov2-antibody-cocktail-reduced-viral-levels-and

      Delete
  16. The Stock Jocks are having another anxiety attack after Donald confirmed that he tested positive for the coronavirus.

    E-Mini S&P 500 Future Continuous Contract
    3,316.00 -51.70 -1.54%
    Last Updated: Oct 2, 2020 at 6:57 a.m. CDT

    Everyone who comes in contact with Donald is tested and no one in the U.S. is protected more from contracting an infection.

    On a positive note, this may cause a few Trumpsters to start wearing masks since Donald refused to do so; and we can all be thankful that there may not be another "debate". The next two debates are currently scheduled for 10/15 and 10/22.

    If the pre-market declines hold up into the regular session, I will increase my buying from the $200 per day which is about what I did yesterday and Wednesday. A major decline (roughly 800+ points for the DJIA) will generally cause me to move into the $1k to $2K range.

    When the decline is steep shortly after the market opens, I will generally enter several small ball buy orders at limit prices below the existing bid prices. Mostly, I am hoping for an acceleration of the decline in the last 30 minutes when I am more likely to hit ask prices.

    I view declines in dividend paying stocks as an opportunity to increase my dividend yield which is important now since I have nowhere else to go for meaningful income. Bonds, CDs, and treasuries are not even being considered as income generating securities given their current yields.

    ReplyDelete
    Replies
    1. They waited till afterhours and moved Donald to the Walter Reed.

      He's being given Regeneron, which isn't approved for Covid.

      They don't experiment on the POTUS. So he must be in need, or demanding it.

      Delete
  17. The stock market today is rotating to what I own, which are mostly "contrarian value" dividend paying stocks. So far, I am having a good day.

    E.G.
    SPDR S&P Regional Banking ETF (KRE)
    $36.95 +$1.03 +2.87%
    Last Updated: Oct 2, 2020 at 1:20 p.m. EDT
    https://www.marketwatch.com/investing/fund/kre

    The QQQ is currently down 2.28%.

    "Value" stocks have not been able to extend rallies YTD for an extended period.

    Through yesterday's close, the Vanguard Value ETF (VTV) had a YTD total return of -10.1%:

    https://www.morningstar.com/etfs/arcx/vtv/quote

    FDN was up +37.92 YTD:
    https://www.morningstar.com/etfs/arcx/fdn/quote

    I have noticed that several brokerage companies, including Fidelity, now permit orders in a dollar amount. So, if you were so inclined to invest only $50 in FDN, you could buy that much in a fractional lot. That has to be done at the main order page rather than the pop up box. Click "account and trade" tab, click "simplified ticket" bottom left, and then click "dollars" rather than "shares".

    ReplyDelete
    Replies
    1. It was strange to watch the value shift, while worry was going up.

      I suppose the trend of buying by dollar not share will continue. It's a nice feature. Amazon will benefit. I may buy myself a 3/5s share one of these days.

      Delete
    2. Dow did the best today. Small caps where in the green. It seems like an odd rotation in the middle of worry.

      But it is what it is :)

      Delete
  18. There's too much news to comment on. I can't keep track. Sticking with phone banking, and letter writing.

    I can't guess what happens to the market by Monday.

    ReplyDelete
  19. I have published a new post:

    https://tennesseeindependent.blogspot.com/2020/10/ffic-ffnw-fivg-mgv-trst-ucbi.html

    ReplyDelete