BCBP, BDN, CIO, CLX, CRM, CZNC, DEA, EDOC, EMAPRC:CA, ERIC, FSK, IOO, ORRF

Economy:  

U.S. GDP growth in fourth quarter raised slightly to 4.3% – and all signs point to economy speeding up - MarketWatch This is the third estimate. Gross Domestic Product, (Third Estimate), GDP by Industry, and Corporate Profits, Fourth Quarter and Year 2020 | U.S. Bureau of Economic Analysis (BEA)

Biden Team Preparing Up to $3 Trillion in New Spending for the Economy - The New York Times, republished at MSN: Biden Team Preparing Up to $3 Trillion in New Spending for the Economy The plan reportedly includes a huge infrastructure spending program. The massive new spending "may" be funded in part by tax increases. 

Existing-Home Sales Descend 6.6% in February I would not read too much into that decline given the pandemic. 

US durable goods orders February 2021 (-1.1% vs. +.8 consensus)

GM forced to cut production of midsize pickups due to chip shortage

The Fed has embraced the 'punchbowl' and has no intention of taking it away

Ship blocking Suez Canal is beginning to affect the global economy

++++

Markets and Market Commentary: 

S & P P/E Ratios: 

TTM GAAP  = 44.66

Estimated 12 Month Forward Non-GAAP = 22.62

Dividend Yield = 1.48%

Sourced: P/E & Yields

Shiller PE Ratio = 35.75

Shiller PE Ratio - 150 Year Chart | Longtermtrends

Market Cap to GDP-The Buffett Indicator-Updated Historical Chart | Longtermtrends

Crestmont Market Valuation Update: February 2020 - dshort - Advisor Perspectives

The Q Ratio and Market Valuation: February Update - dshort - Advisor Perspectives

Value Could Outpace Growth for Years. Here’s How. | Barron's The primary reason is that value stocks tend to be more sensitive to economic cycles. Commodity stocks, particularly E & P companies, have been a drag on value ETFs but have contributed to those ETFs outperforming growth ETFs recently. Exxon, for example, closed at $31.87 on 10/23/20 and at $61.97 on 3/12/21 before retreating some to last Friday's close at $57.61. Crude oil rose late last week in response to the Suez Canal blockage.  

The Best Dividend Stocks to Build an Income Stream for Retirement | Barron's (of the 10 stocks recommended, I own T, ED, IBM, K, USB and VZ. 

Jim Cramer advises buying high-quality cyclicals on any weakness

Boost exposure to consumer stocks as Covid vaccinations grow: Wells Fargo

New York Reaches a Deal to Legalize Recreational Marijuana - The New York Times

The FDA Is Clamping Down. Expect ‘Choppy Waters’ for Biotech Stocks. | Barron's

Earnings from Owned Stocks: 

Great Ajax Corp. (AJX) Announces Results for the Quarter Ended December 31, 2020 (Net income at $10.8M; E.P.S. at $.47; consensus at $.228 according to Fidelity; book value at $15.59) 

OFS Capital Corporation (OFS) Announces Fourth Quarter and Full Year 2020 Financial Results (4th Q net income per share = $.22; consensus at $.205 per share according to Fidelity; net asset value per share at $11.85, up from $11.18 as of 9/30/2020; weighted average yield on debt investments = 9.15%; Board declared a quarterly dividend of $.20 per share; in 2/2021, "issued $100.0 million aggregate principal amount of 4.75% notes due 2026") 

Stellus Capital Investment Corporation (SCM) Reports Results for its Fourth Fiscal Quarter and Year Ended December 31, 2020 (NII per share = $.26; core NII per share = $.28; net asset value per share = $14; SCM has reverted back to monthly dividend payments.)

TransAlta Renewables (CA:RNW) Reports Fourth Quarter and Full Year 2020 Results and Provides Outlook for 2021 (4th quarter cash available for distribution = C$72M; 2020 cash available for distribution = C$304M or C$1.14 per share)

TriplePoint Venture Growth BDC Corp. (TPVG) Announces Fourth Quarter and Fiscal Year 2020 Financial Results (NII per share of $.39 with consensus at $.378 according to Fidelity; "recorded $4.2 million from the realization of gains from the sale of CrowdStrike, Inc. shares, the sale of Medallia, Inc. shares and the acquisition of Freshly Inc. by Nestle USA"; "portfolio company View, Inc. announced plans to go public through a SPAC merger and subsequent to the fourth quarter, Hims, Inc. closed its SPAC merger and listed on the NYSE and GROOP Internet Platform, Inc. (d/b/a Talkspace) announced plans to go public through a SPAC merger"; "a 15.2% weighted average annualized portfolio yield on total debt investments for the quarter"; declared a first quarter distribution of $0.36 per share, payable on March 31, 2021; net asset value per share = $12.97, a decline from $13.28 as of 9/30/20 due to negative fair value adjustments)

++++

This is a screwup: Novo Nordisk (NVO ADR) receives Refusal to File letter for once-weekly semaglutide 2.0 mg for the treatment of type 2 diabetes I discussed buying 4 shares in my last post. 

MSG Entertainment to Acquire MSG Networks (MSGN)("MSG Networks stockholders would receive 0.172 shares of MSG Entertainment Class A or Class B common stock for each share of MSG Networks Class A or Class B common stock they own"). In my opinion, the offer is ridiculously inadequate and clearly favors the shareholders of the acquirer. I would chalk it up to home cooking. (see page 17 of MSGN's Annual Report starting with "We Are Controlled by the Dolan Family. As a Result of Their Control, the Dolan Family Has the Ability to Prevent or Cause a Change in Control or Approve, Prevent or Influence Certain Actions by the Company, " emphasis supplied) Market's response on 3/26/21: MSGN $16.06 -$1.32 -7.59% 

South Jersey Industries (SJI) Announces Common Stock and Equity Unit Offering This development resulted in a significant stock price decline. I do not blame the company for raising capital after the stock price surged from $20 to over $28. The price closed at $27.82 on 3/16 and then plummeted to $22.50 the next day after the announcement.  (for more information on these securities, see Form 8-K filing) The common stock was sold to the public at $22.25. Prospectus My most recent action was to pare my position. Item #1.D. Pared SJI-Sold 5 at $23.91 in Schwab Taxable Account and Item #1.E. Sold 5 SJI at $25.63 in Fidelity Taxable (2/25/21 Post) 

GlaxoSmithKline  (GSK) requests emergency authorization from FDA for antibody drug I added a few shares to my GSK positions when the share price broke below $35, but did not discuss those adds here. Closing Price 3/26/21: GSK $36.67 +$0.60 +1.66% 

+++

Portfolio Management: 

VIX Close on 3/26/21: 18.86 -.95% (-4.8%)

VIX Historical Data 

With the VIX piercing 20, I am back into a net selling mode after buying during the VIX spikes last year. 

CBOE Volatility Index: VIX-St. Louis Fed

The movement back to 20 kept me close to the increased stock allocation built up during the 2020 VIX spikes shown in the chart above. I was a net seller near the close last Friday. 

I view most stocks as overpriced, but will continue to selectively buy dividend stocks using the small ball trading strategy. For the most part, I am buying stocks that have yields at least 2 times greater than the S & P 500, currently at 1.48%. A recent exception, Clorox, is discussed in Item # 2.A. below.  

My main portfolio management problem is the run off in my bond portfolio, either through maturities or early issuer redemptions. 

I mentioned in a comment that Viacom had just called a 3.125% SU bond maturing on 6/15/22, even though it had to pay a premium to par value and could have avoided that penalty by simply waiting to call on or after 12/15/21. I have received the proceeds and the accrued and unpaid interest: 

Viacom paid a higher premium to redeem early its 3.25% SU bonds maturing on 3/15/23 ($56.63 per bond or close the $65 in interest payable over the next two years, paid in advance). This bond was redeemed on the same day as the 2022 SU mentioned above. 

I was also notified last week that my 5 Knoxville Gas 3% municipal bonds will be called in early April. 

There are no acceptable to me bond alternatives for the proceeds and that is one explanation for the elevated valuations in stocks. 

++++

Rudy Giuliani Tried To Sic Cops On 'Borat' Crew After Humiliating Scene, Says Producer 

Federal judge Laurence Silberman pens dissent slamming decades-old press protections - POLITICO Judge Silberman is of course a member of America's anti-democracy party. The goal is to suppress free speech through frivolous libel suits so that republican reality creations and false narratives will go unchallenged by a cowed media. That is what Trump has attempted to do his entire adult life but was stymied by the Supreme Court's unanimous 1964 decision in New York Times Co. v. Sullivan: 376 U.S. 254 (1964) 

Donald remains displeased with Georgia's republican Secretary of State, Brad Raffensperger, who was unwilling to "find" Don the Authoritarian enough votes to win that state. Putin would not have had that problem.   

Trump endorses challenger to Ga. Secretary of State Raffensperger; 

Trump begs Georgia secretary of state to overturn election results in remarkable hourlong phone call 

Donald has endorsed instead Jody Hice, a pure Trumpster and a far better reflection of Trumpian anti-democratic values. Jody Hice, who tried to overturn the election, wants to be in charge of Georgia’s elections - Vox  Hice does not believe Muslims are entitled to First Amendment rights regarding religious beliefs and practices. 

GOP House Candidate: Islam Not A Religion, Not Protected By Constitution | Talking Points Memo; 

Jody Hice is likely headed to Congress. He also thinks the First Amendment should not cover Islam. - The Washington Post (Hice also "likened being born gay with being born violent and said it is okay for women to hold positions of power in politics, so long they are within their husband's authority.")

GOP Sen. Cornyn (R-TX) laments that Biden treats immigrants humanely

Lauren Boebert (R-Colorado) Sent a Pro-gun Fundraising Email Hours After Colorado Shooting | Vanity Fair

Republicans Aim to Seize More Power Over How Elections Are Run - The New York Times  

Worth a read: After Trump tried to intervene in the 2020 vote, state Republicans are moving to take more control of elections, republished by MSN from After Trump tried to intervene in the 2020 vote, state Republicans are moving to take more control of elections - The Washington Post I am now a one issue voter since I strongly favor democracy. It has become obvious where Trump and his party stand on that issue.  

Fox News hit with $1.6 billion lawsuit over election fraud claims; Dominion v. Fox News Complaint - DocumentCloud (139 page complaint + exhibits = 443 pages) 

Georgia G.O.P. Passes Major Law to Limit Voting - The New York Times

GOP voter suppression mania threatens US democracy 

+++++

1. Canadian Reset Equity Preferred Stocks: 

A. Eliminated EMAPRC-Sold 150 at C$22.03: 

Quote: EMA-PC.TO 

Profit Snapshot: +C$747

The reportable tax profit will be calculated later by IB using the USD currency values when this security was bought and sold. 

Security: Canadian Reset Equity Preferred Stocks

Par Value: C$25

Coupon: 2.65% spread to the 5 year Canadian government bond. 

Canada 5 Year Government Bond Overview | MarketWatch

Current Coupon: 4.721%

Next Reset: August 2023

Issuer: Canadian utility Emera (EMA.TO) 

Last Discussions: Item # 4.A. Bought 50 EMAPRC at C$14.5 (6/6/20 Post); Item #1.A. Added 50 EMPRC at C$17.85 (10/26/19 Post); Item # 1.A. Bought 50 EMAPRC at C$18.7 (7/7/19 Post) 

Prior Round-Trip Trade: South Gent's Comment Blog # 8: Sold 100 EMAPRC at C$21.96 (profit C$429); Item # 2 Bought 50 EMAPRC at C$17.44 and 50 at C$17.84 Update For Exchange Traded Bond And Preferred Stock Basket Strategy As Of 7/13/16 - South Gent | Seeking Alpha

EMAPRC Realized Gains = C$1,176

I have owned Emera debt as well. 

I group the Canadian reset equity preferreds with the U.S. resets. Advantages and Disadvantages of Equity Preferred Floating Rate Securities 

2. Small Ball: 

A. Small Dollar Purchases of CLX:  

Price as of 3/26/21 Close

Quote: Clorox Co. 

CLX Analyst Estimates | MarketWatch

CLX SEC Filings 

10-Q for the Q/E 12/31/20 

Clorox reports using a fiscal year ending on 6/30. 

Products: 

SEC Filing at pp. 1-2 

or see: Brands | The Clorox Company

Average Cost Per Share: $178.52 (2+ shares)

Dividend: Quarterly at $1.11 per share ($4.44 annually); last raised from $1.06 effective for the 2020 third quarter. 

Dividend Growth: 

Yield at AC = 2.49%

Last Ex Dividend Date: 1/26/21

5 Year Chart: Note the spike higher in March 202o that peaked in August 2020. A far shorter spike resurgence in the price occurred earlier this year when the pandemic accelerated.   

Last Earnings Report (Q/E 12/31/20): SEC Filed Press Release

Fiscal second quarter

E.P.S. = $2.03 ($.28 above consensus), up from $1.46

Revenues = $1.84B, up 27%

Cash = $732M

Debt = $5.5B, rated at Baa1 by Moody's. 

YTD net cash provided by operating activities = $629M, up 26%

For F/Y ending 6/30/20, free cash flow per share was $10.27 according to S & P. 

Broker Reports (available to Schwab customers): 

Morningstar  (2/4/21): 1 star with a FV of $163, wide moat

Argus (2/5/21): Buy with a PT of $230, down from $245

S & P (2/4/21): 3 stars with a 12 month PT of $210, lowered from $234. Lifted F/Y 2021 E.P.S. estimate to $8.42 from $7.79. Notes investors may be concerned about margin pressure due to rising commodity costs and supply chain inefficiencies due to increased demand for cleaning products.

Credit Suisse (2/5/21): Neutral with a PT of $205. Valuation based on 27 times fiscal 2024 E.P.S. estimate of $9.29. Notes that margins will be pressured by rise in commodity prices and more promotional spending. 

Purchase Restriction: Given the current valuation and likely demand falloff for cleaning products, I will buy no more than 1 share at a time until the price falls below $150, with each subsequent purchase being at the lowest price in the chain. This is a risk mitigation strategy for stocks that have limited appeal based on current valuations. 

B. Added to EDOC-Bought 2 at $19.47; 2 at $18.7; 5 at $18.3: 

Quote: Global X Telemedicine & Digital Health ETF Overview

Closing Price 3/26/21: EDOC $18.94 +$0.23 +1.23% 

Last Discussed: Item # 1.C. Started EDOC-Bought 5 at $20.56 (2/6/21 Post) 

Sponsor's Website: Telemedicine & Digital Health ETF

Expense Ratio: .68%

Maximum Position: 100 Shares

Purchase Restriction: Each subsequent purchase must reduce my average cost per share. 

Current AC Per Share: $19.29

This one has been running with the high multiple growth stocks. 

C. Eliminated CIO-Sold 20 at $10.92: 

Quote: City Office REIT Inc. (CIO)

Closing Price 3/26/21: CIO $10.50 +$0.18 +1.74% 

As of 12/31/20, CIO "owned 65 office buildings with a total of approximately 5.8 million square feet of net rentable area (“NRA”) in the metropolitan areas of Dallas, Denver, Orlando, Phoenix, Portland, San Diego, Seattle and Tampa" that was 90% leased. 2020 Annual Report

Website: City Office REIT

CIO SEC Filings

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

Profit Snapshot: $92.42

Last Buy Discussion: Item # 1.G. Restarted CIO-Bought 20 at $6.3(11/28/20 Post); Restarted CIO-Bought 10 at $7.3; 5 at $7 (3/28/20 Post); Item # 4.D. Added 5 CIO at $6.8 (4/4/20 Post)

Dividend: Quarterly at $.15 per share, reduced from $.23 effective for the 2020 2nd quarter payment. 

City Office REIT, Inc. Common Stock (CIO) Dividend History | Nasdaq 

Last Ex Dividend: 1/8/21 (owned as of )

I still own CIO's equity preferred stock CIOPRA. 

Last Earnings Report (Q/E 12/31/20): SEC Filed Press Release 

AFFO as used by CIO is a cash available for distribution number. To arrive at AFFO, CIO deducts from FFO the non-cash revenue created by the straight line accounting convention and several cash expense items including tenant improvements, maintenance, and lease commissions.  The $.17 AFFO per share  number explains why CIO had to slash its common stock dividend from $.23. 

Sell Discussions: 

Item # 1.H. Eliminated CIO-Sold 20 at $8.3 and 10 at $8.52 (6/6/20 Post)(profit snapshot $34.64)

Item # 1.C. Sold 10 CIO at $11.58 (5/17/2018 Post)(profit snapshot = $13.94) 

Item # 8 Sold 100 CIO at $13.5: Update For Equity REIT Basket Strategy As Of 7/28/16 - South Gent | Seeking Alpha (profit snapshot= $207.97);

Item # 1. Sold 50 CIO at $12.38: Update For Equity REIT Basket Strategy As Of 3/7/16 - South Gent | Seeking Alpha (profit snapshot $61.04 plus one dividend

CIO Trading Profits to Date: $410.01 ($317.59 in prior trades)

I view CIO as a lower quality Office REIT. I am more comfortable owning its equity preferred stock CIOPRA. City Office REIT, Inc. 6.625% Series A Cumulative Preferred Stock; last buy discussion at Item # 1.A. Bought 20 CIOPRA at $20.6; 5 at $19.14; 5 at  $18.6; 5 at $18.35; 5 at $17.5; 5 at $15.15; 5 at $13.56; 10 at $16.5 (3/28/20 Post); Item # 4.A. Sold 10 CIOPRA at $24.97-highest cost lot (8/22/20 Post)(noting realized gains to date in CIOPRA = $401.21 after selling 10 at  $24.97)

Current CIOPRA Positions in Taxable Accounts: 

Schwab: 10 shares at a $12.95 cost-Yield at 12.79%

Fidelity: 30 Shares at a $16.26 cost-Yield at 10.19%

 

D. Pared BDN in Schwab Taxable-Sold 50 at $12.9: 

Quote: Brandywine Realt (BDN)

Closing Price 3/26/21: BDN $13.29  +$0.43  +3.34% 

Company Website: Brandywine Realty Trust

SEC Filings

2020 Annual Report 

Profit Snapshot: +$7.72

This lot was bought at $12.75: 

New Average Cost Per share this account =  $9.74 (15+ shares)

Snapshot Intraday on 3/3/21 after pare

Dividend: Quarterly at $.19 per share ($.76 annually)

Yield at New AC = 7.8%

Next Ex Dividend: 4/6/21 

Last Earnings Report (Q/E 12/31/20): SEC Filed Press Release 

FFO $.36 per share (BDN does not provide a CAD number)

Core Portfolio 93% leased

"98.3% of total cash-based rent due has been received from our tenants during the fourth quarter 2020, which represents a 98.5% collection rate from our office tenants."

I also own 20+ shares in my Fidelity taxable account with an AC of $8.86 per share. Item # 3.A. Restarted BDN in Fidelity Taxable Account-Bought  10 at $9.27; 5 at $8.7; 5 at $7.79(4/11/20 Post) 

Prior Round-Trip: Item # 2.B. Sold 101+ BDN at $15.33 (11/9/19 Post)-Item # 2.A. Bought 100 BDN at $14.34-Commission free trade (7/17/19 Post)

E. Started ERIC in Fidelity Taxable-Bought 10 at $12.05: 

Quote: Telefon AB L.M. Ericsson ADR

Stock Information as of 3/26/21: 

ERIC Analyst Estimates | MarketWatch

Company Website: Ericsson - Helping to shape a world of communication

Results are reported in Swedish Krona: 

Swedish Krona to US Dollar Rates

Ordinary Shares: Telefon AB L.M. Ericsson Series B (Sweden: Stockholm)

1 ADR = 1 Ordinary Share

Before I had an opportunity to discuss a previous small ball purchase in this account, I sold 10 ERIC at $13.18: 

2021 ERIC 10 Shares +$7.46

Just a form of entertainment to keep myself occupied during my golden years.  

I also started a position in my Schwab account. Item # 1.F. Started ERIC in Schwab Taxable-Bought 10 at $12.25 (2/27/21 Post) 

I have nothing further to add here to that recent discussion. 

F. Added to DEA-Bought 5 at $20.94: 

Quote: Easterly Government Properties Inc.

Stock Information as of 3/26/21: 

DEA SEC Filings 

Website: Easterly Government Properties, Inc.

2020 Annual Report 

As of 12/31/20, DEA "wholly owned 79 operating properties, including 77 operating properties with approximately 7.1 million leased square feet that were leased primarily to U.S. Government tenants and two operating properties with approximately 0.2 million leased square feet that were entirely leased to private tenants. . . " Property list can be found starting at page 29 of the Annual Report)  

Investment Categories: Equity REIT Common and Preferred Stock Basket Strategy/ Bond Substitute 

New AC this Account: $21.67 (35+ shares)

Dividend: Quarterly at $.26 per share ($1.04 annually)

Easterly Government Properties Announces Quarterly Dividend 

Yield at AC = 4.8%

Last Ex Dividend: 3/4/21

Last Substantive Buy Discussions: Item # 1.A. Restarted DEA-Bought 10 at $22.66; 5 at $22.37; 5 at $21.9; 5 at $21.4; 5 at $20.5 (10/31/20 Post) Item # 4.A. Bought 10 DEA at $17.4 and 10 at $15.74-Used Commission Free Trades (1/9/19 Post)  

Last Earnings Report (Q/E 12/31/20): SEC Filed Press Release 

Cash available for distribution ("CAD") and CAD per share were meaningfully lower compared to the 2019 4th quarter due to an increased share count and higher cash expense adjustments to adjusted FFO. 

There will be a lag between stock offerings and deploying the cash into income producing properties and cash expenses for tenant improvement and maintenance will vary significantly from quarter to quarter. Last December, the company closed on 3 acquisitions: 

However, as I discussed in prior posts including the last referenced above, meaningful CAD per share growth is not present over longer periods of time; and that is a reason why I lack any enthusiasm in the stock. 

My approach is to trade the stock, hopefully capturing profits over time while harvesting the dividend payments. The minimum goal is a total return in excess of the dividend payments.  Satisfaction with this stock is achieved with a total return 2% higher than the dividend payments.   

Last Elimination: Item # 1.A. Sold 21+ DEA at $28.81 (6/6/20 Post)

Other Sell Discussions: 

Item # 3.A. Sold 10 DEA at $22.39 (11/20/19 Post)(profit snapshot = $47.24); Items 1.A. and 1.B. Sold 10 DEA at $19.81 and Eliminated DEA in Schwab Account at $19.81 (8/24/19 Post)(profit snapshots $74.38); Sold 10 DEA at $21.44-Used Commission Free Trade (5/17/18 Post)(profit snapshot = $22.59); Item 5. A. Sold 50 DEA at $21.59-Used Commission Free Trade (12/11/17 Post)(profit snapshot = $97.85)

DEA Realized Gains to Date:  $543.52

Other Recent News: Easterly Government Properties Acquires 176,550 SF Mission Critical LEED Certified Portfolio (3/19/21)

G. Added to FSK in Fidelity Taxable Account-Bought 5 at $19.5: 

Quote: FS KKR Capital Corp. - A BDC  

2020 Annual Report (risk factor discussion starts at page 18 and ends at page 46)

FSK SEC Filings 

Management: External

New Average Cost Per Share = $21.81

I have been digging myself out of a hole. 

Dividend: Quarterly at $.60 per share 

Yield at AC = 11%

Last Ex Dividend: 3/16/21 (owned all as of)

Dividend Reinvestment: Yes given the current discount to net asset value per share. 

12/31/20 Net Asset Value Per Share = $25.02 (according to FSK)

Reverse Stock Split: 1 for 4 last year. FS KKR Capital Stock Split History

Discount to NAV Per Share at $21.81 AC = -12.83%

The 22.06% discount using last Friday's closing price of $19.5 and the 12/31/20 NAV per share indicates some investor concern about the quality of the external managers. I view this concern as justified. The externally managed TPVG and ARCC sell at premiums to net asset values per share.    

2 Year Chart: After going kamikaze in March 2020, FSK has been trending higher. 

Last Earnings Report (Q/E 12/31/20):  SEC Filed Press Release

NII per share = $.63

Adjusted NII per share = $.72 

Net Asset Value Per share = $25.02

% of Investments on Non-Accrual = 2.5% (based on fair value)

Number of Portfolio Companies: 164

"fair value of investments was $6.8 billion of which 65% was invested in senior secured securities."

H. Started FSK in Vanguard Taxable-Bought 10 at $19.5: 

See Item # 1.G. above.  

I. Pared FFIC in Fidelity Taxable-Sold 2 at $22.3: 

Quote: Flushing Financial Corp. (FFIC)

Closing Price 3/26/21: FFIC $22.19 -0.06 -0.29% 

FFIC SEC Filings

FFIC Analyst Estimates | MarketWatch

Investment Category: Regional Bank Basket Strategy

Last Sell Discussion: Item # 1.H. Eliminated FFIC in Vanguard Taxable Account-Sold 10 at $18.85 (2/6/21 Post) I discussed the 2020 4th quarter report in that post and have nothing further to add here. Flushing Financial Corporation Reports 4Q20 GAAP EPS of $0.11 and 2020 GAAP EPS of $1.18 4Q20 Core EPS of $0.58 and 2020 Core EPS of $1.70 Third Consecutive Quarter of Record Net Interest Income

Profit Snapshot: $22.13

New Average Cost per share: $10.24 (13+ shares)

Snapshot Intraday on 3/5/21 after pare

Dividend:  Quarterly at $.21 per share 

Yield at New AC this account = 8.2%

Last Buy Discussion:  Item # 1.F. Restarted FFIC-Bought 10 at $12.25; 2 at $10.7; 5 at $10.6; 3 at $10.3; 10 at $10.2 (10/3/2020) 

FFIC Realized Gains to Date:  $483.99 

J. Pared ORRF-Sold 10 at $24.42:

Quote: Orrstown Financial Services Inc.

Closing Price 3/26/21: ORRF $22.57  +$0.33 +1.48% 

ORRF Analyst Estimates | MarketWatch

SEC Filings

Profit Snapshot =  $62.74

Item #1.F. Started ORRF-Bought 10 at $18.15; 5 at $17.5;  and  5 at $17.25 (2/27/21 Post) I discussed the 2020 4th quarter report and have nothing further to add here. SEC Filed Press Release

New Average Cost per share = $17.38 (10 Shares)

Dividend: Quarterly at $.18 per share 

Yield at New AC = 4.14%

Last Ex Dividend: 1/29/21 

K. Pared CZNC-Sold 5 at $24.16:

Quote: Citizens & Northern Corp. (CZNC)

CZNC Analyst Estimates

CZNC SEC Filings

Closing Price 3/26/21: CZNC $24.01 +$0.55 +2.34% 

Investment Category: Regional Bank Basket Strategy

Last Discussed: Item # 1.B. Pared CZNC-Sold 5 at  #21.85 (3/20/21 Post) I mentioned the 2020 4th quarter earnings report in that post and have nothing further to add here. SEC Filed Press Release

Profit Snapshot = +$32.29 (3/8 sell only)

Average Cost after pare =  $16.77 (25+ shares)

Snapshot Intraday 3/8/21 after pare

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

Yield at New AC = 6.44%

Last Ex Dividend: 1/29/21

Last Buy Discussions: Item # 1.A. Added to CZNC-Bought 10 at $17.2; 5 at $16.65; 5 at $15.55 (9/26/20 Post); Item # 1.B. Restarted CZNC- Bought 10 at $17.7; 5 at $17.07 (6/13/20 Post)

CZNC Realized Gains to Date: $839.52

The largest gain was in 2011: Item # 1 Sold 100 CZNC at $16.53 (9/2/11 Post)(profit snapshot = $517.61)

L. Small Dollar Buys of CRM: 

Microsoft, Coupa, Salesforce Added to Goldman Conviction List - TheStreet (3/8/21)

The Stock Jocks have recently turned against CRM as shown in a 1 year price chart starting last September after CRM cleared $280:

Part of the negative vibe is traceable to the expensive acquisition of Slack that was announced last December. Salesforce Signs Definitive Agreement to Acquire Slack

Over the past 52 weeks, CRM is still up 39.7%: 

Quote: Salesforce.com Inc.  (CRM)

CRM Profile | Reuters

CRM Analyst Estimates | MarketWatch (non-GAAP)

CRM SEC Filings

CRM Annual Report for the F/Y Ending 1/31/21

Last Discussed: Item # 1.G. (2/13/21 Post) 

I discussed the report for the fiscal quarter ending 10/31/20 in Item # 1.J.  (1/9/21 Post)

Current Position: Almost 2 shares

Average Cost Per Share: $212.15

I view the stock as overvalued based on traditional valuation measures.  

Last Earnings Report (4th Fiscal Quarter ending 1/31/21):

Current Fiscal Year Guidance: 

Note the huge disparity between GAAP and Non-GAAP earnings estimates. I am not inclined to ignore "stock based expense" when it is projected to be $2.88 per share. The Stock Jocks are willing to do so for extended periods.   

M. Pared BCBP-Sold 5 at $15.1: 

Quote: BCB Bancorp Inc.

Closing Price 3/25/21: BCBP $13.87 +$0.11 +0.80% 

BCBP Analyst Estimates | MarketWatch

BCBP SEC Filings

BCBP 2020 Annual Report (Loan deferral information at page 30)

5 Year Financials: 

There is one major negative trend in this data. Net interest margin has declined from 3.32% in 2016 to 2.83% last year. I am attributing the uptick in non-performing loans to the pandemic which hopefully will reverse some this year. NIM did, however, expand in the 2020 4th quarter to 3.35%. 

Investment Strategy: Regional Bank Basket Strategy

Profit Snapshot: +$29.5

Item # 1.H. Bought 10 BCBP at $9.2 (11/28/20 Post) I discussed the 2020 third quarter report in that post. 

Average Cost Per Share: $9.2 (5 shares)

Dividend: Quarterly at $.14 per share. 

The penny rate was last raised from $.12 effective for the second quarter of 2014, a major negative IMO. 

Yield at AC = 6.09%

Last Ex Dividend: 2/2/21 (owned as of)

Last Earnings Report (Q/E 12/31/20): SEC Filed Press Release

E.P.S. = $.41 up from $.29

E.P.S. includes $600K from the sale of loans; $658K from the sale of investment securities; $648K in bank life insurance income; and a  $970K  appreciation in equity securities that has not been realized yet. I do not regard those as core income items from banking operations. 

E.P.S. for 2020 = $1.14, down from $1.20 in 2019. 

NIM: 3.35%

Efficiency Ratio: 54.27%

Coverage Ratio: 205.2%

NPL Ratio: .7%

ROA = 1.03%

ROE = 11.93%

"During the fourth quarter of 2020, the Company recognized $464,000 in net recoveries, compared to $482,000 in net charge-offs for the fourth quarter of 2019."

"The Bank sold substantially all of its PPP loans in December 2020. In addition to recognizing $908,000 of net fee income in 2020 on these loans, the Company also recognized a net gain of $333,000 on the sale."

"The Company purchased $60.0 million of BOLI during the third quarter of 2020."

Bank-Owned Life Insurance (BOLI)

N. Started IOO as a Placeholder-Bought 1 at $65.02: 

Quote iShares Global 100 ETF Overview 

Closing Price 3/26/21: IOO $66.01 +$0.74  +1.13% 

Sponsor's website: iShares Global 100 ETF 

Expense Ratio: .4% (high for this kind of ETF) 

This ETF will own the 100 largest capitalization global equities. 

Top 10 Holdings as of 3/24/21: 

Dividends: Semi-annually in June and December

Last Ex Dividend: 12/14/20 for $.43+ per share

Morningstar (rated 4 stars)

5 Year Chart: 

Another ETF, which I have owned in the past, tracks the S & P 100 index and has a lower expense ratio. Item # 4.B. Bought 5 OEF at $127.88 (4/14/19 Post)(contains prior trade snapshots = $1,654.95); last sold Item # 3.A. Sold 7 OEF at $138.95 (11/30/19)(realized gain =$86.39, bringing total OEF profit to $1,741.24).  

Annual Average Total Returns through 3/24/21 

3 years: 

OEF = 18%

IOO =  15.88%

5 years: 

OEF =  16.49%

IOO =   15.49%

10 years: 

OEF = 13.9%

IOO = 10.03%

15 years: 

OEF = 9.8%

IOO =  7.35%

Sourced:

iShares S&P 100 ETF (OEF) Performance-Morningstar

iShares Global 100 ETF (IOO) Performance - Morningstar

IOO's foreign stock holdings have caused it to underperform the U.S. centric OEF. The past may not be prologue for the future. 

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.