ARCC, BP, CAG, CRSP, FCBP, FDUS, GNOM, HRZN, IRM, NVS, RYAM, TECTP, VRTX, WMB

Economy: 

First Quarter Real GDP Growth = 6.4% annual rate (1st estimate)

Gross Domestic Product, First Quarter 2021 (Advance Estimate) | U.S. Bureau of Economic Analysis (BEA)(personal consumption expenditures increased at a 10.7% annual rate; current-dollar personal income increased $2.4T or 59%. "The increase primarily reflected government social benefits related to pandemic relief programs, notably direct economic impact payments to households established by the Coronavirus Response and Relief Supplemental Appropriations Act and the American Rescue Plan Act."; personal savings rate = 21%; the PCE price index increased 3.5% and at 2.3% excluding food and energy; consumer spending on durable goods rose at a 41.4% annual rate )

Weekly Initial Unemployment Claims for the W/E  4/24 = 553K

Home prices surge 12% in February, the biggest jump since 2006 — a $35,000 gain for median-priced homes - MarketWatch; February home prices see the biggest gain in 15 years, S&P Case-Shiller says

Democrat Manchin praises GOP infrastructure proposal Biden has to have Manchin's vote to pass his costly "infrastructure" bill. 

Consumer confidence jumps to 14-month high thanks to coronavirus vaccines and resurgent economy - MarketWatch

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Markets and Market Commentary: 

Biden capital gains tax hike would only hit 0.3% of households, advisor says

Leon Cooperman sees the stock market lower a year from now due to tax, rate, inflation pressures

Exxon (XOM) earnings Q1 2021: Exxon posts a profit for the first quarter.

Selected Earnings Reports Owned Stocks: 

American Electric Power (AEP) Reports Strong First-Quarter 2021 Earnings (GAAP E.P.S. at $1.16; operating E.P.S. at $1.15; consensus at $1.178 according to Fidelity; revenues at 4.3B; operating net income at $570.5M; affirmed 2021 operating earnings (non-GAAP) guidance range of $4.55 to $4.75 per share and 5% to 7% long-term growth rate; plans to add nearly 16,600 megawatts of new renewables by 2030)

Amgen (AMGN) Reports First Quarter 2021 Financial Results (GAAP E.P.S. down 8% to $2.83; Non-GAAP E.P.S. at $3.7, down 12% with consensus at $4.046 according to Fidelity; "revenues decreased 4% to $5.9 billion in comparison to the first quarter of 2020, driven by lower net selling prices, partially offset by volume growth. These results reflect the cumulative, continuing negative effect of COVID-19 on patient visits and new patient diagnoses"; $1.9B in free cash flow; "2021 total revenues guidance reaffirmed at $25.8-$26.6 billion; EPS guidance revised to $9.11-$10.71 on a GAAP basis, and reaffirmed at $16.00-$17.00 on a non-GAAP basis.")

Associated Banc-Corp Reports (ASB) First Quarter 2021 Net Income Available to Common Equity of $89 million, or $0.58 Per Common Share (consensus at $.446 per Fidelity)

Cathay General Bancorp (CATY) Announces First Quarter 2021 Results (E.P.S. at $.92, with consensus at $.772 according to Fidelity; net income = $73.4M; efficiency ration =47.03% (excellent); NIM = 3.2%, up 9 basis points from the 2020 4th Q; ROA  -1.57%; ROE = 12.23%; NPA Ratio = .5%; Coverage ratio = 166.26%; total risk based capital ratio = 15.84%)

Comcast (CMCSA) Reports 1st Quarter 2021 Results (GAAP E.P.S. at $.71; Adjusted E.P.S. at $.76 with the consensus at $.585 according to Fidelity; free cash flow at $5.28B; "Cable Communications Total Customer Relationship Net Additions Were 380,000, the Best First Quarter Result on Record; Total Broadband Customer Net Additions Were 461,000")

Enterprise Bancorp, Inc. (EBTC) Announces First Quarter Financial Results (E.P.S. of $.86, no analyst estimates; net income of $10.4M; adjusted NIM = 3.68% with unadjusted at 3.62%; ROA = 1.01%; ROE = core NPL Ratio = 1.36%;  ROE = 12.78%; total capital ratio = 14.27%) 

Financial Institutions, Inc. (FISI) Announces First Quarter Results (Diluted E.P.S. = $1.27 with consensus at $.51 per Fidelity; efficiency ratio = 52.51%; NIM = 3.29%, up from 3.13% in the 2020 4th quarter; ROA = 1,66%; ROE = 18.28%; ROTE = 21.88%; NPL Ratio = .27%; NPA Raio = .24%; Coverage Ratio = 514%; tangible book value per share = $23.66; Tangible equity to tangible assets= 7.13%; total risk based capital ratio = 13.53%)

First Commonwealth (FCF) Announces First Quarter 2021 Earnings; Increases Quarterly Dividend (E.P.S. = $.41 with consensus at $.294 according to Fidelity; net income of $39.8M; NIM = 3.4%, up from 3.26% in the 2020 4th quarter; core efficiency ratio = 53.18%; ROA = 1.77%; ROE = 14.98%; core ROTE = 21.63%; Charge off ratio = .21%; coverage ratio = 192.06%; NPL Ratio = .8% excluding PPP loans; tangible book value per share = $8.01)

First Financial Bancorp (FFBC) Announces First Quarter 2021 Financial Results (Adjusted E.P.S. at $.50 with consensus at $.476 per Fidelity; GAAP E.P.S. at $.48; ROA at 1.2%; ROTE = 15.8%; NIM = 3.4%; efficiency ratio at 60%, 58.4% adjusted; total capital ratio at 15.41%; charge off ratio = .38%; coverage ratio = 175.44%; NPL ratio at .97%) 

First Hawaiian, Inc. (FHB) Reports First Quarter 2021 Financial Results and Declares Dividend (E.P.S. at $.44 with consensus at $.443 according to Fidelity; net income at $57.7M; NIM at 2.55% compared to 2.71% in the 2020 4th quarter; efficiency ratio at 55.5%; charge off ratio = .14%; NPL Ratio = .07%; NPA Ratio = .07%; ROA = 1.02%; ROE= 8.58%;  ROTE = 13.51%; tangible book value per share = $13.01; total capital ratio = 14.07%) 

Franklin Financial (FRAF) Reports 2021 Q1 Earnings; Declares Dividend (E.P.S. = $1.09, no analyst estimates; NIM = 3.03%; ROA = 1.23%;  ROE = 13.47%;  Charge off ratio = Net recovery of .06%; NPL Ratio = .88%; tangible book value per share = $29.87 up from $27.66 as of 3/31/20)

Horizon Technology (HRZN) Finance Announces First Quarter 2021 Financial Results (NII per share of $.31 with consensus at $.28 according to Fidelity; net asset value per share = $11.07; "undistributed spillover income of $0.33 per share as of March 31, 2021"; board declared a regular monthly dividend of $.10 per share; "$57.5 million of 4.875% 2026 Notes on March 30, 2021, and redeemed $37.4 million of 6.250% 2022 Notes on April 24, 2021"; redeemed a higher coupon SU in April as discussed in Item #1.O below) 

Kimberly-Clark (KMB) Announces First Quarter 2021 Results (This was the worst report so far among stocks that I own. Adjusted E.P.S. at $1.8 with the consensus at $1.929 according to Fidelity; "net sales of $4.7 billion decreased 5 percent compared to the year-ago period, including an organic sales decline of 8 percent"; "now targeting full-year 2021 organic sales growth of 0 to 1 percent and adjusted earnings per share of $7.30 to $7.55. The prior outlook was for organic sales growth of 1 to 2 percent and adjusted earnings per share of $7.75 to $8.00. The updated earnings outlook reflects significantly higher input cost inflation and lower sales volumes, partially offset by higher net selling prices and additional cost savings.") 

KKR Real Estate Finance Trust Inc. (KREF) Reports First Quarter 2021 Results (Distributable E.P.S. of $.55 vs consensus at $.506 according to Fidelity) 

3M  (MMM) Reports First-Quarter 2021 Results (E.P.S. = $2.77 with consensus estimate at $2.295 according to Fidelity; operating cash flow of $1.7 billion; revenues = $8.9B up 9.6% Y-O-Y; adjusted free cash flow of $1.4 billion, up 49 percent year-on-year; "3M's full-year 2021 guidance remains unchanged with earnings expected to be in the range of $9.20 to $9.70 per share. The company expects its full-year total sales growth in the range of 5 to 8 percent with organic local-currency growth between 3 to 6 percent. 3M also expects its full-year free cash flow conversion to be in the range of 95 to 105 percent")

New York Community Bancorp, Inc. (NYCB) Reports First Quarter 2021 Diluted EPS Of $0.29 Driven By Ongoing NIM Expansion, Good Loan Growth, Lower Operating Expenses, Strong Deposit Growth, And Strong Asset Quality Trends (consensus at $.274 according to Fidelity, more importantly, NYCB announced the acquisition of Flagstar Bancorp, which " is expected to be 16% accretive to NYCB's earnings per share in 2022 assuming fully phased-in cost savings" and will give NYCB a larger geographic footprint through Flagstar's 158 banking offices in Michigan, Indiana, California, Wisconsin and Ohio. New York Community Bancorp, Inc. To Acquire Flagstar Bancorp, Inc. In An All Stock Strategic Merger)

Northrim Bancorp (NRIM) Earnings Increase to $12.2M or $1.94 per share (Consensus at $1.4 per share; NIM = 3.92%; efficiency ratio = 60.2%;  ROA = 2.25%; ROE = 21.4%; coverage ratio = 113%; NPL Ratio = 1.19%; Charge off ratio= 0% tangible book value per share = $34.71; mortgage banking income continues to be on fire with $13.622M in income, up from $4.665M in the 2020 1st quarter and down from $14.811M in the 2020 4th Q.) 

Old Republic (ORI) Reports Results For The First Quarter 2021 (E.P.S. of $1.68, excluding investment gains = $.69; consensus non-GAAP at $.463 which excludes investment gains; the investment gain is primarily an accounting entry for unrealized appreciation in investment securities during the quarter; revenues reported at $1.9796B, up 16.9% Y-O-Y)

ONEOK (OKE) Announces Higher First Quarter 2021 Earnings; Increases 2021 Financial Guidance (E.P.S. = $.86 with consensus at $.771 according to Fidelity; net income $386.2M; DCF = $661.9M; DCF in excess of dividends paid = $245.6M; increased 2021 guidance to net income midpoint of $1.35B; diluted E.P.S. midpoint to $3.02; adjusted EBITDA midpoint to $3.2B)

Regions Financial (RF) reports first quarter 2021 earnings of $614 million, earnings per share of $0.63 (consensus at $.477 according to Fidelity)

Seagate Technology (STX) Reports Fiscal Third Quarter 2021 Financial Results (GAAP E.P.S. at $1.39; non-GAAP at $1.49 with consensus at $1.324 according to Fidelity; net income at $329M GAAP; revenues $2.731B; operating margin at 14.1%; declared a quarterly dividend of $.67 per share)

Southside Bancshares, Inc. (SBSI) Announces Financial Results for the First Quarter Ended March 31, 2021 (E.P.S. at $1.04 with consensus at $.685 according to Fidelity; NIM = 3.2% compared to 3.03% in the 2020 first quarter; Efficiency ratio at 50.44%; ROA = 1.99%; ROE = 15.82%; ROTE = 21.22; NPL Ratio = .14%; NPA Ratio = .41%; Coverage Ratio = 780.09%; Charge off ratio = .02%; total risk based capital ratio 21.52%; all of those numbers are excellent even if there was no pandemic)

+++

Republican election official responds to GOP state lawmaker's voter fraud revelation, noting that the only fraud committed in PA was committed by republicans The most brazen effort to steal the election was committed when most House republicans and 19 republican state attorney generals petitioned the Supreme Court to throw out the certified election results in states that Biden won and to empower the republican controlled legislatures in those states to pick the electors. Rallying Behind Trump, Most House Republicans Joined Failed Lawsuit-The New York Times The purpose of that effort was to protect democracy from the republican point of view.  

The Republican Controlled Florida Senate advances bill that includes limits on voting by mail, drop boxes  

Republicans Target Voter Access in Texas Cities, but Not Rural Areas - The New York Times

This article summarizes the anti-democracy efforts being made by Arizona's republicans, including their brazenly bogus efforts to recount the 2020 votes again and to find something wrong with Dominion's voting machines. Half a Year After Trump’s Defeat, Arizona Republicans Are Recounting the Vote - The New York Times; ‘Never heard of them’: Arizona GOP audit firm unknown even in home state-POLITICO; Arizona Republicans deploy Cyber Ninjas in pro-Trump election audit 

The GOP Is a Grave Threat to American Democracy - The Atlantic

Tucker Carlson tells viewers to confront mask-wearing people - New York Daily News

In an interview with Tucker Carlson, Showboat Rudy blamed Hunter Biden for his legal troubles. Rudy Giuliani's First Interview About FBI Raid Goes Just As You'd Expect 

Rudy Giuliani: FBI warned Giuliani, Sen. Ron Johnson of Russian disinformation campaign targeting Biden - The Washington Post  

Joel Greenberg Letter Written for Roger Stone Says Matt Gaetz Paid for Sex With Minor

 

++++

1. Small Ball: 

A. Bought 1 VRTX at $213.65; $50 at $211.32; $50 at $210.33: 

Quote: Vertex Pharmaceuticals Inc. 

VRTX Analyst Estimates | MarketWatch

VRTX SEC Filings 

Pipeline | Vertex Pharmaceuticals

I briefly discussed a purchase in a 4/8/21 comment. 

My primary interest in this company relates to its gene-editing collaboration with CRISPR Therapeutics (CRSP). 

VRTX is a somewhat safer play than CRSP since it has revenues and earnings from approved drugs that it markets or licenses to major pharmaceutical companies. Vertex reported 2020 GAAP produce revenues of $6.2B. Non-GAAP revenue was up 55% compared to 2019. SEC Filed Press Release 

Approved Drugs: 

Cystic Fibrosis: 

TRIKAFTA®, 

KALYDECO® (ivacaftor), 

ORKAMBI® (lumacaftor/ivacaftor), 

SYMDEKO® (tezacaftor/ivacaftor and ivacaftor)

VRTX is involved in ex vivo gene editing through its partnership with CRISPR Therapeutics AG. The collaboration is described in VRTX's 2020 annual report at pages 6-7, 9-10; 12. 2020 Annual Report 

Among the diseases being targeted are cystic fibrosis, sickle cell disease (SCD) and beta-thalassemia (TRD). CRISPR Therapeutics and Vertex Present New Data for Investigational CRISPR/Cas9 Gene-Editing Therapy, CTX001™ at American Society of Hematology Annual Meeting and Exposition, Together With Publication in the New England Journal of Medicine 

CRISPR Gene Editing Delivers Promise for Sickle-Cell Disease, Beta Thalassemia

Here's the Holy Grail of Gene Editing | The Motley Fool

Vertex Buys Majority Rights to Gene-Editing Therapy From CRISPR | Barron's (4/20/21)) VRTX is paying CRISPR $900M for an additional 10% of the profits from CTX001, up from 50%. Another $200M will be paid to CRISPR when and if the treatment is approved by regulators. Vertex Pharmaceuticals and CRISPR Therapeutics Amend Collaboration for Development, Manufacturing and Commercialization of CTX001™ in Sickle Cell Disease and Beta Thalassemia VRTX will also now be required to front 60% of the development costs. 

Vertex and CRISPR Therapeutics Announce Priority Medicines (PRIME) Designation Granted by the European Medicines Agency to CTX001™ for Transfusion-Dependent Beta Thalassemia (4/26/21)

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

4th Quarter Product Revenues: 

2021 Guidance as of 2/1/21: 

Earnings Report (3/31/21): Vertex Reports First-Quarter 2021 Financial Results 

Released after my purchases. 

GAAP E.P.S. = $2.49

Non-GAAP E.P.S. = $2.98

The consensus at $2.689 according to Fidelity.

New 2021 Guidance: 

 

B. Bought 1 CRSP at $126: 

Quote: CRISPR Therapeutics AG 

CRS Analyst Estimates | MarketWatch

CRSP SEC Filings 

CRSP 2020 Annual Report There is nothing worth reading that I can add to this report.  

Pipeline (see pages 5- 26 Annual Report)

Crispr Therapeutics Is Upgraded After $900 Million Deal | Barron's

Last Report (Q/E 3/31/21) SEC Filed Press Release 

E.P.S. =  -$1.51

The consensus at -$1.473

Losses are expected for some time. 

Cash: $1.8062B as of 3/31/21 which would not include the $900M received from VRTX in April.

C.  Bought 2 GNOM at $22.3; 3 at $21.95: 

Quote: Global X Genomics & Biotechnology ETF Overview 

Sponsor's Website: Genomics & Biotechnology ETF

Expense Ratio: .5% 

Top Ten Holdings: 

D. Added to TECTP in Schwab Taxable-Bought 10 at $9.42: 

Quote: Tectonic Financial Inc. 9% Fixed-to-Floating Rate Preferred Series B Stock

This purchase raised my average cost per share in this account to $8.75: 

Snapshot Intraday on 4/6/21 after add

Prior Purchases this Account: Item # 1.N. Added to TECTP-Bought 10 at $8.24 (1/1/21 Post); Item # 3.A. Bought 10 TECTP at $8.59 (12/25/20 Post)

Prospectus

Issuer SEC Filings

The issuer is Tectonic Financial, a private bank holding company based in Texas that has filed its financial results starting with the issuance of this publicly-traded preferred stock. SEC Filings; Investor Relations | T Bank

Par Value: $10

Dividends: Non-Cumulative, Qualified,  and Paid Quarterly 

Placement in Capital Structure: Equity Preferred, senior only to common stock.

Maturity: None, potentially perpetual

Issuer Optional Redemption: At par value on or after 5/15/24

Current Coupon: 9% paid on a $10 par value or $.90 annually per share

Floating Rate: If not redeemed, the coupon will transition from the 9% fixed coupon rate to a floating rate based on a 6.72% spread to the 3-month Libor rate. 

Since the Libor rate is not likely to be around in 2024, there is a provision in the prospectus for using an alternative short-term rate (pages 168-169).

Yield at New $8.75 AC this Account = 10.29%

I decided to average up, as discussed in a previous comment, after reviewing the 2020 Annual Report:

"net income available to common shareholders totaled $9.4 million, or $1.42 per diluted common share for the year ended December 31, 2020, compared to $6.5 million, or $0.98 per diluted common share for the year ended December 31, 2019, an increase of $2.9 million or 44.6%. . . .  annual return on average assets was 2.31%, compared to 2.33% for the prior year, and annual return on average tangible common equity was 37.68%, compared to 34.80% for the prior year."

NIM = 3.5% average down from 3.9% average in 2019

NPA Ratio = .35% (page 75)

2020 Charge Offs: $176,000 net or .05% of average loans. 

Total Risk Based Capital Ratio = 18.22% (page 79)

E. Sold 7 FDUS shares bought with dividends at $16.44-Schwab Taxable

Quote: Fidus Investment Corp.- Externally managed BDC 

Website: Fidus

This pare reduced my average cost per share from $9.91 to $8.84 in this account: 

Profit Snapshot: +$10.05

Last Buy Discussion: Item # 3.C. Bought Back FDUS in Fidelity Account Bought 20 at $13.7; 5 at $11.99; 5 at $11.5; 5 at $9, 2 at $8.56, 2 at $5.98, 1 at  $4.65 (3/28/20 Post)

Last Discussed: Item # 1.G. Pared FDUS in Fidelity Taxable Account-Sold 10 at $15.01(3/20/21 Post) I discussed the 2020 4th quarter report in that post and provided the historical net asset value per share numbers as well. 

Dividend: Quarterly at $.31 per share (regular only)

Dividend History | Fidus Investment Corporation

Yield at New AC this account of $8.84 = 14.03%

Last Ex-Dividend: 3/11/21

Goal: Any total return above the dividend payments. 

Realized Gains to Date: $208.14  ($198.09 in prior trades)

F. Bought 2 BP at $24.14 and 8 at $24.85: 

I averaged up in response to the earnings report discussed below.  This is probably my first purchase of BP's common stock. I have owned the senior unsecured debt, but do not have a position now given the unattractive yields. For example, the  3.7% SU maturing in 2024 is currently trading at over an 8% premium to par value which results in a YTM of .58+% unadjusted for any tax obligation. Note that the BLS estimated that PCE inflation rose 3.5% in its GDP report discussed above.   

Quote: BP PLC ADR 

BP Analyst Estimates | MarketWatch

Website: Home

Dividend: Quarterly, currently at US$.315 per share ($1.26 annually)

Recent Dividend History:

Note the slash in the 2020 third quarter

Yield at $24.61 AC: 5.12%

Last Ex-Dividend: 2/18/21

Last Earnings Report (Q/E 3/31/21): SEC Filed Press Release 

Discussed at BP Q1 2021 earnings: Energy giant beats first-quarter estimates

USD E.P.S per ADR = $.78 with the consensus at $.38 according to Fidelity

2021 Guidance: 

G. Bought 2 NVS at $86.74: 

Quote: Novartis AG ADR 

NVS Analyst Estimates | MarketWatch

Sell Discussions: Item # 1 Eliminated NVS-Sold 29 at $86.35 (10/24/18 Post)(profit snapshot $298.77); Item # 3.D Sold 10 NVS at $85.96 and 5 at $86.5-Used Commission Free Trades (10/10/18 Post)(profit snapshot = $32.98); Item # 3 Sold 108+ NVS at $83.66 (9/12/18 Post)(profit snapshot = $968.85-largest gain); Item 2.A. Sold 30 NVS at $93.85 (2/3/18 Post)(profit snapshot = $184.26); Item # 3 Sold 50 NVS at $41.86 (6/17/2009 Post)(profit snapshot +$230.94) 

A flip in 2010 was not discussed: 

2010 NVS 100 Shares +$97.41 

Realized Gains: +$1,813.21 starting in 2009

Last Buy Discussion: Item # 1.B. Added 2 NVS at $77.91, 2 at $76.9, and 18 at $77.34-Used Commission Free trades (4/30/18 Post). My earliest discussions in this blog can probably be found here: Item # 2. Bought 100 NVS at $49.08 (6/22/2010 Post); BOUGHT 50 NVS at $36.9 (April 9. 2009 Post)

Dividends: Annually

Last Earnings Report (3/31/2021): I have not been impressed with NVS as of late. 

Adjusted E.P.S. $1.52

The consensus at $1.59 according to Fidelity

2020 1st Q at $1.56

Net Sales at $12.41B vs. consensus at $12.46B

The Sandoz generic unit experienced a 9% revenue decline to $2.3B. The unit is facing increased competition and lower retail sales due to the pandemic. 

Net sales of innovative medicines rose 4% to $10.1B. 

The key drugs are Entresto for heart failure and the immunology drug Cosentyx. 

In USDs 2021 1st Q and Y-O-Y % Increase in USDs

Cosentyx: $1.053B + 13%

Entresto: $789M +39%

Leqvio is a potential blockbuster according to analysts but the launch has been delayed in the U.S. due to third-party manufacturing issues. European approval occurred last December. Novartis receives EU approval for Leqvio® (inclisiran), a first-in-class siRNA to lower cholesterol with two doses a year;  Novartis set to answer inclisiran's FDA rebuff by Q3. But what about an approval timeline? | FiercePharma

Broker Reports (available to Schwab customers): 

S & P 4/28/21): 3 stars with a 12 month PT of $96

Morningstar (4/27/21): 4 stars with a FV of $91

Argus (3/9/21): Downgraded to hold based on slowing growth,  with the last report issued prior to the 1st quarter earnings report.  

Other Recent News: 

Novartis receives EU approval for Kesimpta® (ofatumumab), the first and only self-administered, targeted B-cell therapy for adult patients with relapsing multiple sclerosis (3/30/21)

Novartis Entresto® granted expanded indication in chronic heart failure by FDA (2/16/2021)

Novartis delivered sales growth and margin expansion. Continued to progress its next wave of medicines in 2020 (1/26/21)

H. Sold 5 FCBP in Vanguard Account at $24.7 and 10 in Fidelity Account at $30.62: 

Between these two sales, FCBP agreed to be acquired. 

Quote: First Choice Bancorp

Subsequent to the first sale, First Choice agreed to be acquired by Enterprise Financial Services (EFSC). Enterprise Financial Services Corp to Acquire First Choice Bancorp ("Under and subject to the terms of the definitive agreement, upon consummation of the transaction, each holder of FCBP common stock will receive 0.6603 shares of EFSC common stock for each FCBP common share held and cash in lieu of fractional shares. The transaction is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes and FCBP shareholders are not expected to recognize gain or loss to the extent of the stock consideration received..")

Enterprise Financial Services Corp. Stock Quote 

Investment Category: Regional Bank Basket Strategy

FCBP Average Analyst E.P.S. Estimates-MarketWatch

FCBP SEC Filings

2020 Annual Report 

Profit Snapshots: +$176.18

Last Discussed: Item #1.A. Bought 10 FCBP in Fidelity Taxable at $17 (1/16/21 Post) I still own those shares. 

Dividend: Quarterly at $.25 

Last Ex-Dividend: 2/17/21

Last Earnings Report (Q/E 3/31/21): SEC Filed Press Release 

E.P.S. of $.82 vs. consensus at $.66

I. Bought 10 RYAM at $9; 5 at $8.7:

This is my first purchase. 

Average Cost per share: $8.9 (15 shares)

Quote: Rayonier Advanced Materials Inc. 

RYAM Analyst Estimates | MarketWatch

Website: Rayonier Advanced Materials

Category: Lottery Ticket Basket

This purchase was made after a share price decline in response to RYAM's agreement to sell its newsprint and lumber business. Rayonier Advanced Materials Announces Strategic Sale of its Lumber and Newsprint Businesses to GreenFirst (GFP:CA) Forest Products for approximately US$214 million ("payable approximately 85% in cash, 15% common shares of the capital of GreenFirst. In addition, a chip offset credit note will be issued to RYAM by GreenFirst in the amount of CDN$7.9 million, which may be set off against amounts owing to GreenFirst for chip purchases, equally over the next 5 years. Notably, RYAM will retain all of the cash generated by the Purchased Assets plus all softwood lumber duties, including earned interest on the duties, paid to the U.S. Department of Commerce through the closing date. RYAM estimates the duties to be approximately $110 million at the time of closing.") 

I suspect the initial negative reaction to this announcement was due to including the lumber business. Lumber prices skyrocket, pushing up housing costs; Lumber Spot Price Chart | Live Price of Lumber per Ounce | Markets Insider

The largest business retained after those dispositions will be the High-Purity Cellulose.  

Last Earnings Report Prior to Purchase: SEC Filed Press Release 

The next report is scheduled for release on 5/4/21. 

I currently have a consider to sell range between $10-$12. The maximum position is 50 shares with each subsequent purchase having to be at the lowest price in the chain.  

RYAM quit paying a $.07 per share quarterly dividend in 2020. Rayonier Advanced Materials Inc. Common Stock (RYAM) Dividend History | Nasdaq

With the sale of its lumber and newsprint businesses, I would not anticipate that any dividend will be paid.  

J. Sold 1 ARCC at $19.27: 

I no longer have any fractional shares bought with dividends in this account. 

Quote: Ares Capital Corp.

SEC Filings

Website: Ares Capital Corporation

Profit Snapshot: +$6.84 (fractional shares sold 4/8 only)

Last Buy Discussion: Item # 4.C. Added 5 ARCC at $14.3; 5 at $14; 5 at $13.67; 5 at $12.5; 5 at $12.4; 5 at $12; 5 at $11.74; 5 at $10.44; 5 at $9.4 (4/4/20 Post)

Average Cost After Pare this Account = $11.08 (36 shares)

Snapshot Intraday 4/8/21 after pare

Dividend: Quarterly at $.40, regular only 

ARCC-Dividends

I have turned off dividend reinvestment due to premium price to net asset value per share. 

Yield at New AC = 14.44%

Net Asset Valuer Per Share history: Better than Most, if not all, Externally Managed BDCs

12/31/20:   $16.97 10-K

9/30/20:   $16.48  10-Q 

3/31/20:    $15.58  10-Q

12/31/19:   $17.32  10-K 

9/30/19:    $17.26  10-Q 
9/30/18:    $17.16
12/21/17:   $16.65
9/30/17:    $16.49  10-Q

6/30/17:    $16.54  10-Q 
12/30/16:  $16.45
9/30/16:    $16.59
6/30/16:    $16.62
3/31/16:     $16.5
12/31/14:   $16.82
9/30/13:    $16.35
3/31/12:     $15.47
6/30/10:    $14.11
12/31/09:  $11.44  10-K 
9/30/09:   $11.16  10-Q 
12/31/08:  $11.27
6/30/08:   $12.83 10-Q
12/31/07:  $15.47 10-K at page 57 
9/30/07:   $15.74
3/31/05:    $14.96

5 Year Financials: 

Sourced: 10-K at page 63 

Last Earnings Report (Q/E 3/31/21): SEC Filed Press Release 

Core E.P.S. $.43 with consensus at $.424 per Fidelity

Net Asset Value Per Share: $17.45, up from $16.97 2020 1st Q

Number of Portfolio Companies: 350

Weighted Average Yield on Debt Investments at FV  = 8%

Sell Discussions: Item # 3.C. Pared ARCC in Schwab Taxable Account-Sold 20 at $17,44 and Item #3.D. Pared ARCC in Fidelity Taxable-Sold 5 at $17.32 (1/1/21 Post)(profit snapshots = $39.52: post contains in Item # 3.D. prior profit snapshots); Item # 1.C. Sold 50 ARCC at $16.98 (6/18/18 Post); Item 2.A. Eliminated ARCC-Sold Remaining 50 Shares at $17.25  (2/15/17 Post); Item # 1, Sold 102+ ARCC at $15.32  and 50 at $15.26: Update For Portfolio Positioning And Management As Of 8/21/16 - South Gent | Seeking Alpha; Sold 100 ARCC at $17.195 (4/28/15 Post); Item # 3 Sold 100 ARCC Roth IRA at $17.05 (2/25/15 Post); Sold 100 ARCC at $17.54-IRAs in Two 50 Share Lots (9/13/12 Post)

ARCC Realized Gains to Date = $703.53 ($696.69 prior trades)

Goal: Total return in excess of dividend payments. 

K. Sold 5 IRM in Vanguard Account at $37.69: 

Quote: Iron Mountain Inc (IRM)-a REIT

SEC Filings

2020 IRM Annual Report (summary description of businesses starts at page 1)

Website: Iron Mountain Inc (IRM)

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

Profit Snapshot: $76.42 (includes 1 share sold earlier)

Dividend: Quarterly at $.6185 per share ($2.47 annually rounded)

Iron Mountain - Stock - Dividend History and Tax Treatment

4 Remaining Shares this Account with an average cost per share of $22.02: 

Yield at New AC this Account: 11.22%

Last Ex-Dividend: 3/12/21

Last Buy Discussions: Item # 2.E. Started IRM in Schwab Taxable Account-Bought 10 at $26.8; 5 at $25.8; 5 at $25.25; 5 at $24.9 (12/5/20 Post); Item # 1.B. Added 3 IRM at $22.99; 2 at $22.31 (6/20/20 Post); Item # 2.F. Added to IRM in Fidelity Taxable-Bought 1 at $26.88; 2 at $26.2; 1 at $25.7; 1 at $25.52; 1 at $24.96 (12/5/20 Post)(substantive); Item # 2.A. Added 1 IRM at $26.46; 1 at $26.07; 1 at $25; 2 at $23.95; 1 at $23.3; 1 at $23.76; 1 at $24.33; 1 at  $22.61; 1 at $24.33; 1 at $22.6 and 1 at $21.79 (5/2/20 Post)

I discussed the 2020 4th quarter report in this post. Item #1.B. Sold 2 IRM at $35.63; 5 at $36.8 (2/27/21 Post)

Last Earnings Report (12/31/21): I discussed this report in Item 1.B. (2/27/21 Post); Iron Mountain Reports Fourth Quarter and Full Year 2020 Results or SEC Filed Press Release

Sell Discussions: Item # 1.L. Sold 5 IRM in Schwab Account at $36.42  and Item #1.M. Sold 2.731 in Fidelity Account at $36.86 (4/1/21 Post); Item #1.B. Sold 2 IRM at $35.63; 5 at $36.8 in Fidelity Taxable (2/27/21 Post); Item # 1.B. Pared IRM-Sold 15 at $33.04 (2/22/20 Post); Item # 1.C. Sold 10 IRM at $33.91-Used Commission Free Trade (12/26/18 Post); Item # 3 Sold 50 IRM at $33.82 Update For Equity REIT Basket Strategy As Of 4/6/16 - South Gent | Seeking Alpha  

Goal: Any total return prior to ROC adjustments to the tax cost basis in excess of the dividend payments. 

IRM Realized Gains to Date:  $679  ($602.58 in prior trades)

L. Bought 5 WMB at $23.58: 

This is my first purchase, as I expand the universe of stocks that I will consider buying in search of yield. 

Quote: Williams Cos. -an energy infrastructure company. 

WMB Profile | Reuters

WMB Analyst Estimates | MarketWatch

WMB SEC Filings 

2020 Annual Report:

WMB consolidated Williams Partners in 2018. Williams Completes Acquisition of Williams Partners (10/10/18)

Dividends: Quarterly at $.41 per share

Dividend History: Note the dividend slash in 2016. 

Yield at $23.58 = 6.96%

Last Earnings Report: The 1st quarter report is scheduled for release after the market closes on 5/3/21. 

Analyst Reports (available to Schwab customers): 

Morningstar (3/24/21): 4 stars with a FV of US$27 (notes that about 1/2 of earnings and cash flow comes from regulated natural gas pipelines; views Transco pipeline as a wide moat asset) 

Argus (2/25/21): Hold 

Credit Suisse (3/5/21): Reiterates outperform with a $28 PT, lifted from $27 (views the stock as a low risk 9% FCF yield)

S & P (3/11/21): 3 stars with a 12 month PT of $22 

M. Bought 5 CAG at $36.19: 

Quote: Conagra Brands Inc. 

CAG Analyst Estimates | MarketWatch

Brands | Conagra Brands

CAG was favorably mentioned in a recent Barron's article published after my 5 share purchase: Packaged Foods Boomed During the Pandemic. Why Their Stocks Still Have Room to Run. | Barron's (4/23/21). The author argues that CAG has an underappreciated brand portfolio, naming the frozen foods brands Birds Eye and Healthy Choice. This article did not convince me to buy more at a price over $36.19. 

CAG SEC Filings 

10-Q for the Q/E 2/28/21 

Dividend: Quarterly at $.275 per share ($1.1 annually) 

Conagra Brands Announces Quarterly Dividend Payment

Dividend Information | Conagra Brands

Yield at $36.19 = 3.04%

Last Ex-Dividend: 4/29/21 (owned as of)

Last Earnings Report (F/Q ending 2/28/21): Conagra Brands Reports Strong Third Quarter Results

Net Income = $281.4M

E.P.S. = $.58, up 38.1% Y-O-Y

Organic Net Sales: +9.7%

Net Sales = $2.771B

"Operating margin increased 193 basis points to 16.2%; adjusted operating margin increased 31 basis points to 16.0%."

Broker Reports (available to Schwab customers): 

Morningstar (4/9/21): 4 stars with a FV of $42

S & P (4/9/21): 4 stars with a 12 month PT of $41, downgraded from 5 stars based on the analyst view regarding the last earnings report discussed above.  

Purchase Restriction: Each subsequent purchase has to be at the lowest price in the chain. I will not be reinvesting the dividend until I own at least 50 shares and the price is much lower than now.  

N. Started BP in Fidelity Taxable-Bought 5 at $24.8: 

See Item # 1.F. above. 

O. HTFA - Issuer Early Redemption of $25 SU Exchange Traded Bond: 

HTFA was a senior unsecured exchange-traded bond issued by the BDC Horizon Technology Finance Corp. Overview. The coupon was 6.625% paid on a $25 par value. The maturity date was 9/15/22. 

The issuer had the optional right to redeem at par value on or after 9/15/19. Exchange-traded bonds are not sold with "make whole" provisions. The issuer generally reserves the right to redeem at par plus accrued and unpaid interest 5 years after the IPO.   

Investment Category: Exchange Traded Baby Bonds, a subcategory of Exchange Traded Bonds. 

I owned 47 shares.

Profit Snapshots: +$25.31

Last Discussed: Item # 4 Added to HTFA- Bought 10 at $24.9; 5 at $24.75; 5 at $24.5 (10/31/20 Post); Item # 4.A. Bought 10 HTFA at $24.14 (6/20/20 Post) 

I still own the common stock. 

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 sale 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 my family members.