BMY, D, DPG, FSMEX, IIVI, NVS, PBA, PBCT, SAIC, STWD, TRST, TY, VTRS

Economy: 

Consumer price index April 2021: 

12 month CPI non-seasonally adjusted: +4.2%

12-month core CPI =  +3% (more worrisome than the 4.2% number IMO) 

Consumer Price Index Summary

This report caused a Stock Jock anxiety attack lasting for 1 day last week. 

Upon reflection, the Stock Jocks decided to ignore the report and even to spin it positively. The Bond Ghouls were unperturbed knowing that nothing had really changed. 

The ten-year treasury yield was at 1.63% last Monday before the CPI report and finished the week at 1.63%. 

The headline CPI was in large part illusory. Energy prices crashed a year ago during the early stages of the pandemic. A return to more or less normal prices in April 2021 resulted in a huge spike in energy-related inflation. 

I have been discussing for years now that interest rates have been decoupled from inflation and inflation expectations which are not factored into setting U.S. treasury yields or government bond yields from most other developed countries. I reiterated those points in comments to my last post, which mainly be found here, here, and here.  

The reason is simple. For over 2000 years until recently, a borrower had to pay interest on debt, and inflation was a factor in setting the debt's yield. 

Now, lenders pay borrowers to take the money. 

This is not normal, though it may seem normal to many since it has been normal for over a decade now. 

Higher quality government debt is sold either at negative nominal yields or positive nominal yields that produce negative real returns. 

According to Bloomberg, there was at least $18 trillion in debt with negative nominal yields last December. World’s Negative-Yielding Debt Pile Hits $18 Trillion Record - Bloomberg That is a new phenomenon in world history and did not even occur during the Great Depression. 

Central banks have suppressed interest rates below the inflation rate through a variety of extremely abnormal monetary policies including the FED's ZIRP, negative benchmark rates by the ECB, BOJ, and other European CBs, and massive QE programs by several CBs. 

The end result is that inflation is basically irrelevant in fixing U.S. treasury yields and will remain so until the FED abandons its extremely abnormal monetary policies which include ZIRP and a $120B in monthly purchases of treasuries and mortgage-backed securities with money that it creates (or proceeds from maturing bonds purchased with money that it created).      

Household debt climbs to $14.64 trillion

Sourced: NY FED at page 3.PDF. 

WHO classifies triple-mutant Covid variant from India as a global health risk

Tax refund delayed? IRS still has millions of 2019 returns to process (5/7/21). I am one of those taxpayers. Oddly, the IRS has processed my 2020 return filed in March 2021 but has not processed my 2019 return filed in April 2020. I accessed my IRS account last Friday and found no transcript for the 2019 return, though the 2020 transcript was available for download.  

The U.S. has entered unprecedented climate territory, EPA warns - The Washington Post. The EPA report was buried by Trump.  

+++

Markets and Market Commentary: 

Stanley Druckenmiller: Fed endangering dollar's global reserve status My Day of Reckoning scenario includes a massive USD devaluation accompanied by a series of failed treasury auctions, with the FED having to step directly into the auction process to buy treasuries that the treasury has to sell to pay off maturing debt and to finance new deficit spending. When that happens, I do not want to own any U.S. stocks but I probably will not live to see it (close to 70 years old now). IMO, the U.S. will hit that point with the pedal to the metal.   

Government - The Debt to the Penny and Who Holds It

M2 Money Stock (M2SL)-St. Louis Fed Turning the USD gradually into confetti. 

Copper is ‘the new oil’ and could hit $20,000 per ton, analysts say

Colonial Pipeline shuts pipeline operations after a cyberattack

Opinion: The U.S. market’s Shiller CAPE is now the world’s highest and this gives stock investors little cover - MarketWatch (5/8/21) 

Tech Giants Apple, Amazon Face Higher Rates, and Tax Hikes, Regulation | Barron's

Investors are ignoring a ticking-time-bomb stock market, says this money manager - MarketWatch

Bitcoin's price falls after Tesla stops car purchases with crypto (possibly as much as $350B wiped out in the entire cryptocurrency market on 3/12/21. Musk gave a bogus reason for refusing to accept Bitcoin for Tesla purchases. The cryptocurrencies have no intrinsic value)  

Earnings Reports Owned Stocks: 

AbbVie (ABBV) Reports First-Quarter 2021 Financial Results (GAAP E.P.S. at $1.99 with non-GAAP at $2.95, consensus on that basis at $2.829 according to Fidelity; revenues = $13.01B; raised 2021 GAAP diluted E.P.S. guidance to $7.27 to $7.47, up from $6.69 to $6.89 and non-GAAP to $12.32 to $12.52; worldwide Humira revenues =$4.867B; Neuroscience (Botox Therapeutic at $532M, Vraylar at $346M and others) = $1.248B;  Aesthetics (Botox Cosmetics, Juvederm Collection, Other Asthetics) = $1.141B; Imbruvica = $1.268B; Skyrizi = $574M; Venclexta at $405M; Rinvoq = $303M; Eye care = $817M includes Restasis = $280M, Lumigan/Ganfor at $143M; Alphagan/Combigan = $118M; Women's Health = $180M; "Other Key Products" = $1.315B, which includes Mavyret at $415M; Creon at $274M; Lupron at $213M, Linzess/Constella at $222M, Synthroid at $191M)  

Brookline Bancorp (BRKL) Announces First Quarter Results (E.P.S. at $.34 with consensus at $.278 according to Fidelity; net income of $26.5M; efficiency ratio = 55.22%; NIM = 3.39%; NPA Ratio = .44%; Charge off ratio = .10%;  ROA = 1.21%; ROE = 11.18%; ROTE = 13.51%; tangible book value per share = $10.01) 

Dime Community Bancshares, Inc. (DCOM) Reports First Quarter 2021 (GAAP E.P.S. = $.66; non-GAAP E.P.S. at $.94 with the consensus at $.586 according to Fidelity; quarter included a number of unusual items explained in the press release related to balance sheet restructuring, losses related to marks on acquired loans, and acquisitions costs)

Gilead Sciences (GILD) Announces First Quarter 2021 Financial Results (GAAP E.P.S. at $1.37; non-GAAP increased 24% to $2.08 with the consensus at $2.089; revenues increased 16% to $6.42B with the consensus at $6.74B;  "As of March 31, 2021, Gilead had $6.2 billion of cash, cash equivalents and marketable debt securities compared to $7.9 billion as of December 31, 2020."; "HIV product sales decreased 12% to $3.7 billion for the first quarter 2021 compared to the same period in 2020, reflecting the expected loss of exclusivity of Truvada and Atripla in the United States, in addition to channel inventory dynamics including COVID-19 pandemic-related stocking in the first quarter 2020"; 2021 adjusted E.P.S. between $6.75 and $7.45)

Gladstone Commercial Corporation (GOOD) Reports Results for the First Quarter Ended March 31, 2021 (FFO per share = $.40; core FFO per share at $.42; quarterly dividend per share = $.37545 paid in monthly installments; properties = 120; leased = 95.5%; collected 98% of rents in the first quarter; sold 610,383 shares of common stock for $11.3M under ATM program) 

Investors Bancorp, Inc. (ISBC) Announces First Quarter Financial Results and Cash Dividend (E.P.S. = $.31 with consensus at $.284 per Fidelity; net income = $72.3M; NIM = 2.9%; efficiency ratio = 51.99%; NPL Ratio = .44%; NPA Ratio = .38%; Coverage Ratio =340.6%; ROA = 1.11%; ROE = 10.56%; tangible book value per share = $11.23; number of full service branches = 156)

LyondellBasell (LYB) Reports First Quarter 2021 Earnings (E.P.S. = $3.18  with the consensus at $2.591 per Fidelity; net income $1.1B; repaid $500M in debt; EBITDA = $1.585B) 

Office Properties Income Trust OPI) Announces First Quarter 2021 Results (Normalized FFO per share = $1.28; CAD per share = $.99) 

Primis Financial Corp. (FRST) Reports Diluted Earnings per Share of $0.38 for the First Quarter of 2021 -formerly known as Southern National Bank of Virginia (SONA)(Diluted E.P.S. = $.38 with the consensus at $.29 according to Fidelity; net income = $9.4M; NIM = 3.41%, up from 3.32% in the 2020 1st Q.; efficiency ratio = 63.2%; ROA = 1.19%; ROE = 9.63%; ROTE = 13.45%;  charge off ratio = .01%; NPA Ratio = .41%; Total risk based capital ratio = 18.16%; tangible book value per share = $11.84)  

Shore Bancshares (SHBI) Reports First Quarter 2021 Financial Results (E.P.S. = $.34 with consensus at $.33 according to Fidelity; net income $3.998M; NIM =3%; GAAP efficiency ratio = 64.19%; ROA = .82%; ROE = 8.28%; "As of March 31, 2021, the Company's outstanding COVID related loan deferral balance amounted to $16.1 million, or 1.10% of the total loan portfolio"; NPA Ratio = .31%; NPL ratio = .24%; no charge offs; tangible book value per share = $15.06)

Southern Company (SO) Reports First-Quarter 2021 Earnings (GAAP E.P.S. at $1.07; Non-GAAP E.P.S. at  $.98 with the consensus at $.833 per Fidelity; non-GAAP net income =  $824M; revenues at $5.9B, up from $5B in the 2020 first quarter)

Suncor Energy (SU) reports first-quarter 2021 results (FFO at C$2.11B or $1.39; operating E.P.S. at C$.49; GAAP E.P.S. at C$.54 which includes "a $181 million unrealized after-tax foreign exchange gain on the revaluation of U.S. dollar-denominated debt, an after-tax restructuring charge of $126 million and a $20 million after-tax unrealized gain on risk management activities"; "Cash flow provided by operating activities, which includes changes in non-cash working capital, was $2.345 billion ($1.54 per common share) for the first quarter of 2021") 

Valley National Bancorp (VLY) Reports a 33 Percent Increase in First Quarter Net Income (E.P.S. at $.28 with consensus at $.287 according to Fidelity; net income at $112.623M; NIM = 3.14%; efficiency ratio = 49.46%; ROA 1.14%; ROE 9.96%; ROTE at 14.49%; Charge off ratio .07%; NPL Ratio = .62%; Covreage Ratio = 168.07%)

West Bancorporation, Inc. (WTBA) Announces Record Net Income for the First Quarter, Increases Quarterly Dividend to $.24 per share from $.22 (E.P.S. at $.70 with consensus at $.63; net income = 11.8M; efficiency ratio = 39.75%; NIM = 3.17%, up from 3.10% in the 2020 first quarter; ROA = 1.53%; ROE = 20.77%; Texas Ratio = 9.38%) 

++++

House Republicans Purge Liz Cheney from leadership post - The Washington Post Prior to the vote, the House Minority leader Kevin McCarthy made the following Orwellian statement: “We are a big tent party. We represent Americans of all backgrounds and continue to grow our movement by the day. And unlike the left, we embrace free thought and debate.” House Republicans remove Rep. Liz Cheney from her leadership post. Cheney lost her leadership role for exercising "free thought and debate". The problem was that she decided to challenge the Republican anti-democratic Big Lie about the 2020 Presidential election. 

House GOP expels Trump critic Liz Cheney from leadership who vows to continue challenging Trump's Big Lie She might as well bang her head into the wall. Her effort to use facts to convince Republicans that the election was not stolen from Lying Don is a waste of time and entirely futile.  

House Republican Leader McCarthy: No one 'questioning the legitimacy' of 2020 election I listened to McCarthy in his ad hoc press conference with McConnell. Every statement that he made about past and present economic conditions were either false or misleading. His claim that the Republicans were not questioning the legitimacy of the election is just more Orwellian doublespeak from him. Doublespeak is the only way republican politicians can talk to voters now. 

Opinion | The Trump G.O.P.’s Plot Against Liz Cheney — and Our Democracy - The New York Times (Thomas Friedman: We’re witnessing a daylight mugging of our democracy — and I am not talking only about the voter-suppression measures being passed by Republican-controlled legislatures in swing states. There are also the new laws to enable Republican legislatures to legally manipulate the administration and counting of the votes in their states.")  It is important to remember that over 77+M people voted to give Trump another 4 years as President even though he was obviously a lying, sociopathic demagogue and the most powerful enemy of America's democracy since the nation's founding. 

The House republicans elected the recently converted  100% pure Trumpster Elsie Stefanik to take Cheney's place as chair of the House Republican conference. Ms. Stefanik thanked Donald for her triumph and claimed fealty to him as the unchallengeable leader of the Republican Party.  

As previously noted, America's authoritarian-leaning party is engaged in a brazenly bogus "audit" of the presidential results in Maricopa County, Arizona. 

To put this effort in context, the Republicans launched the "audit" only after that county conducted a hand audit and found no discrepancies and then performed a forensic audit that came to the same conclusion. The forensic audit was conducted by a CPA firm and 2 accredited voting system labs. The Unfolding Disaster in Arizona - The Atlantic 

Unsatisfied with those real audits, the Republicans hired a firm headed by a Trump partisan, noted for propagating election fraud claims and who has no known background in auditing election results. 

Among the people hired to perform the grunt work is a person who attended the 1/6/21 Trump Stop the Steal rally in D.C. that led to the storming of the nation's capital. 

QAnon conspiracy theories are a focus of this Republican "audit". Fact check: QAnon watermarked ballot conspiracy theory is still false: USA Today; Arizona Republican election audit is a national embarrassment; Arizona election audit is now searching for bamboo in our ballots It is no more embarrassing than the fact that over 80% of republicans view Donald as honest and almost as many consider him a role model for their children. Trump’s false or misleading claims total 30,573 over 4 years - The Washington Post

The "audit" is being financed largely by an array of Trumpster billionaires. 

The Republicans want voter Social Security numbers and to interview voters. So much for secret ballots in Trump's America. The Arizona Republicans deny that they will intimidate voters interviewed by them. 

How the election-fraud myth was spread by Russell Ramsland and the Texas security company ASOG - Washington Post Ramsland is best known as a purveyor of Tex Mex foods and a claimed wellness technology that beams light into the bloodstream. He is a  frequent donor to Republican politicians including Ted Cruz. Ramsland claimed that the voting software originated in Venezuela and that American ballots were being stored in a server located in Frankfurt, Germany. The persons in Ramsland's network included Giuliani and Sydney Powell who spread the fact-free claims worldwide through the more than willing Fake News networks that routinely spread Republican anti-democratic talking points designed to undermine faith in elections and institutions necessary for a properly functioning democracy.  

Trump Still Has Iron Grip on Republicans - The New York Times

Liz Cheney plans a lengthy fight over Trump's dominance of Republicans. - The Washington Post The outcome will probably be that she will lose her reelection bid to a Trumpster and will then become an unread footnote in modern Republican political history. There is a zero chance IMO that she will convince Republicans to reject fact-free conspiracy theories or to form opinions based on reliable information rather than reality creations.  

MyPillow CEO Mike Lindell has taken more jabs at Dominion, accusing it of a voting 'cover-up' and suggesting its workers turn themselves in; Mike Lindell Claims Dominion Voting 'Cover-Up' Is 'Coming Apart at the Seams' Lindell's most recent comments were made during a Steve Bannon podcast on 5/8 and will probably be added as libel claims in Dominion's lawsuit. 

Trump's GOP is not a conservative party but the antithesis of one.     

+++

1. Eliminated DPG in Schwab Taxable-Sold 390+ at $14.57: 

Quote:  Duff & Phelps Utility & Infrastructure Fund Inc. Overview - a leveraged CEF

This CEF owns mostly energy infrastructure, railroad, and utility stocks. Starting in 2014, the energy infrastructure stocks have been a drag on overall performance until recently. Duff & Phelps Global Utility Income Fund Inc. (SEC Filed Annual Report for the F/Y ending 10/31/20).

DPG Morningstar: Rated 1 Star 

I do not focus that much attention on the utility and energy infrastructure stock sectors but nonetheless have had no difficulty outperforming this fund with my individual stock selections. The 1-star rating is deserved IMO, and that says a lot about the managers of this fund. 

DPG SEC Filings

Portfolio Holdings as of 1/30/21: SEC Filing 

Sponsor's Website: Duff & Phelps Utility and Infrastructure Fund Inc.

Profit Snapshot: +$132.63 (net with some shares sold at a loss)

Dividend: Quarterly at $.35, heavy ROC support. 

Last Ex-Dividend: I received this dividend in cash. 

Data Date of 5/5/21 Trade: 

Closing Net Asset Value Per share = $14.23

Closing Market Price = $14.56

Premium: + 2.32%

5 Year Average Discount = -10.37%

Source: DPG CEF Connect (click "Pricing Information" tab) 

Last Sell Discussions: Item # 1.F. Eliminated DPG in Fidelity taxable account-Sold 21+ at $13.03(3/20/21 Post); Item # 1.K. Pared DPG-Sold 5 at $11.82 (1/16/21 Post); Item # 2.D. Sold 15 DPG at $11.62 (12/12/20 Post)(contains snapshots of prior DPG trades = +$887.88) 

Going forward, I am just going to avoid this one until the discount widens to more than 15% and the market price falls below $12.  

I had to do some averaging down to escape with a profit and the profit was mostly, if not entirely due to ROC adjustments to the tax cost basis: 

Average down prices: 

Another reason for eliminating the position now is related to premium price to net asset value per share. Normally, this CEF sells at a significant discount. When a CEF's discount narrows significantly below the 3 and 5-year historical averages, and especially when the discount disappears and is replaced with a premium price, I will consider paring or eliminating the position, provided, generally speaking, those conditions occur during an uptrend in net asset value per share and I can sell the shares profitably.  

2. PEMBINA PIPELINE (PBA): 

A. Eliminated PBA in Schwab Taxable-Sold 100 at $32.31: 

Quotes: 

USD Priced: Pembina Pipeline Corp. (PBA)

CAD Priced: Pembina Pipeline Corp. (Canada: Toronto)

CAD / USD Currency Chart. Canadian Dollar to US Dollar Rates

Pembina - Home

Pembina - Our Operations

Investment Category: Bond Substitute/Contrarian Value up to a price point

Profit Snapshot: +$1,044.26

Part of the gain is attributable to the CAD rising in value against the USD since my 100 share purchase on 10/14/20. 

I drew a 6-month chart to illustrate how the CAD's rise impacted the relative performance of the CAD priced shares (PPL:CA) and the USD priced shares (PBA): 

 

6-month Comparison Chart: PBA +41.16%-Green Line/PPL:CA +30.07%

PBA and PPL:CA are equivalent except one is priced in USDs and the other in CADs. 

Last Buy Discussion: Item # 1. Bought 107 PBA-100 at $21.84; 5 at $20.89 and 2 at $20.66-Sold 7 at $23.18 (11/13/20 Post) I bought the USD priced shares. 

Dividend: Monthly at C$.21 per share 

The USD amount will depend on the currency exchange rates. 

Last Ex-Dividend: 3/24/21

Last Earnings Report (Q/E 3/31/21): Released after this elimination. 

Pembina Pipeline Corporation Reports Results for the First Quarter 2021 and Provides Business Update or SEC Filed Press Release 

All Amounts are in Canadian Dollars: 

E.P.S. at C$.51 

The consensus at C$.695 per Fidelity

Earnings: C$320M, up from C$319 in the 2020 1st quarter 

In response to this report, CIBC cut its rating to neutral from outperform. I do not have access to that report. 

Prior PBA Round-trips: Item # 2 Sold 100 PBA at $38.69 (1/18/20)(profit snapshot = $435.78)= Item # 1 Bought 100 PBA at $34.34 (12/11/19 Post); Item # 5 Sold 100 PBA at 33.19 (10/3/13 Post)(profit snapshot = $383.72)-Item # 3 Bought 100 PBA at $29.22 (2/20/13 Post)

I currently own 300 PPLPRC shares, a Canadian reset equity preferred stock issued by Pembina that pays cumulative dividends. PPL-PC.TO The current coupon is 4.478% paid on a C$25 par value to but excluding 3/1/2024. If not redeemed then, the coupon resets at a 2.6% spread to the 5-year Canadian government bond. 

Item # 2.B. Bought 100 PPLPRC at C$15.88 (3/7/20 Post); Item # 1. Bought 50 PPLPRC at C$15.8  (7/3/19 Post); Item # 1.B. Bought 50 PPLPRC at C$ 17.23 (5/25/19 Post); Item # 1.A. Bought 100 PPL.PR.C. at C$17.7 (3/23/19 Post) 

One Round-Trip: Item # 2.B. Sold 100 PPLPRC:CA (6/1/17 Post)(profit snapshot = C$496) 

B. Pared PBA in Fidelity Taxable Account-Sold 1.165 shares at $41.92 (all of the fractional shares purchased with dividends):  

See Item 2.A. above.  

Profit snapshot = +$6.8

Average cost per share in this account: US$14.85: 

Snapshot Intraday 5/14/21 after pare

Item # 2.E. Restarted PBA in Fidelity Taxable-Bought 10 at $15.72; 5 at $14.7; 1 at $13.3; 1 at $11.9 (5/9/20 Post)

Dividend Yield: The yield will depend on the CAD/USD conversion rates when the dividend is converted into USDs. Based on the current monthly dividend of C$.21 and assuming a constant .8 CAD/USD, the yield would be about 13.58% (C$.21 per share x. 12 months = C$2.52 annual dividend per share x. .80 CAD/USD = US$2.02 rounded ÷ by USD average cost per share of $14.85 = 13.58% rounded)  

PBA Realized Gains to Date: $1,870.56

3. Small Ball: 

A. Bought 1 IIVI at $75.17; 1 at $69.80; 1 at  $67.9; 1 at $66.9; 1 at $66.7; 1  at $65.43; 1 at $62; 1 at $59.5: 

Current Position: 12 shares 

Average Cost per share = $68.57

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

The entry points were less than optimally timed in retrospect.   

Quote: II-VI Inc. 

IIVI develops, manufactures, and markets "engineered materials, optoelectronic components, and devices for use in optical communications, industrial materials processing, aerospace and defense, consumer electronics, semiconductor capital equipment, life sciences, and automotive applications and markets. We use advanced engineered materials growth technologies and proprietary high-precision fabrication, microassembly, optical thin-film coating, and electronic integration to manufacture complex optoelectronic devices and modules. Our products are deployed in a variety of applications, including (i) optical, data, and wireless communications products; (ii) laser cutting, welding, and marking operations; (iii) 3D sensing consumer applications; (iv) aerospace and defense applications including intelligence, surveillance, and reconnaissance; (v) semiconductor processing tools; and (vi) thermoelectric cooling and power-generation solutions."

Website: II-VI Incorporated | Materials That Matter

II-VI, Inc. Profile | Reuters

IIVI Analyst Estimates | MarketWatch

IIVI SEC Filings 

Annual Report for the F/Y Ending 6/30/20 The general description of businesses starts on page 6.

II-VI Incorporated to Acquire Coherent, Creating Global Leader in Photonic Solutions, Compound Semiconductors, and Laser Technology and Systems  Coherent shareholders will receive $220 per share in cash and .91 IIVI of an IIVI share for each Coherent share. IIVI is financing with cash on hand, $5.4B in debt financing from JPM, and an equity investment from Bain Capital. The transaction is expected to close by year-end.  

IIVI is a new name for me.  

5 Year Chart: Possible bottoming action near $60 (downside chart risk to $40)

Last Earnings Report (Q/E 3/31/21): The market was disappointed with the guidance for the fiscal 4th quarter. 

6 shares were purchased before the release.   

II-VI Incorporated Reports Fiscal 2021 Third Quarter

GAAP E.P.S. at $.66

Consensus non-GAAP E.P.S. = $.878 per Fidelity with consensus at $.91 per share according to Fidelity. 

Revenues $783M

Cash from operations = $446.9M

Free Cash Flow = $341.6M

Backlog: $1.13B

Non-GAAP Operating Margin: 18%

Outlook Fiscal 4th quarter: "revenue of $752 million to $802 million and earnings per diluted share on a non-GAAP basis of $0.63 to $0.83." Prior to this announcement, the consensus was at $.92. 

II-VI (IIVI) Q3 2021 Earnings Call Transcript | The Motley Fool

Maximum Position: 100 shares 

B. Pared BMY in Vanguard Taxable-Sold 2 at $65.63: 

Quote: Bristol Myers Squibb Co.

BMY Analyst Estimates | MarketWatch

BMY SEC Filings

2020 Annual Report

Bristol Myers Squibb: Investor Relations

Products and Medicines - Bristol Myers Squibb

10-Q for the Q/E 3/31/21 

Last Buy Discussions: Item # 1.M. Added to BMY in Fidelity Taxable Account-Bought 1 at $59.9; 3 at $59.7 (2/21/21 Post); Item # 3.A. Started BMY in Schwab Taxable account-Bought 5 at $63; 1 at $61.5; 1 at $61.24; 2 at $61 and 2 at $60.4 (12/19/20 Post); Item #3.M. Added to BMY in Fidelity Taxable- Bought 2 at $61.05 (1/1/21 Post)

History this Account: 

Profit Snapshot:  +$6.33

New Average cost per share this account: $61.15

Dividend: Quarterly at $.49, last raised from $.45 effective for the 2020 4th quarter payment. 

Yield at New AC this account: 3.21%

Last Ex-Dividend: 3/31/21

First Quarter Product Revenues: 

Bristol-Myers settles Revlimid patent suit with India's Cipla | S&P Global Market Intelligence 

Ongoing Litigation-Plavix: 

Sourced: Page 29 Form 10-Q for the Q/E 3/31/21 

IMO, the award made against BMY and SNY by a liberal judge in Hawaii is absurd, but the amount if upheld on appeal is significant.   

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

GAAP E.P.S. at $.89 

Non-GAAP = $1.74

Non-GAAP E.P.S. Consensus at $1.817 

"first quarter revenues of $11.1 billion, an increase of 3%, or 1% when adjusted for foreign exchange."

BMY updated  "its 2021 GAAP EPS guidance range of $3.12-$3.32 to $3.18-$3.38 and affirming its non-GAAP EPS guidance range of $7.35 - $7.55.:

C. Bought 1 SAIC at $88.17-Placeholder: 

Quote: Science Applications International Corp. 

This is a new name for me. 

SAIC SEC Filings 

SAIC Analyst Estimates | MarketWatch

SAIC Annual Report F/Y ending 1/29/21 SAIC  "is a leading provider of technical, engineering and enterprise information technology (IT) services primarily to the U.S. government. As a technology integrator, we provide engineering, systems integration and information technology offerings for large, complex government projects and offer a broad range of services with a targeted emphasis on higher-end, differentiated technology services. Our end-to-end enterprise IT offerings span the entire spectrum of our customers' IT infrastructure." (page 1)

Dividends: Quarterly at $.37 per share ($1.48 annually)

Yield at $88.17 = 1.68% 

I will not be reinvesting the dividend which is my now standard option.   

Last Ex-Dividend: 4/15/21

5 Year Chart: 

Last Earnings Report (F/Q ending 1/29/21):

GAAP Diluted E.P.S.  = $1.05

Non-GAAP Diluted E.P.S. = $1.67

Free Cash Flow: $39M

Revenues = $1.717B, up 11% 

Book to Bill Ratio = .04

GAAP to Non-GAAP E.P.S.: 

Fiscal Year 2022 Guidance: 

Using the $6.125 midpoint in the adjusted E.P.S. range, the P/E at $88.17 is 14.4 rounded.  

Purchase Restriction: 1 share buys only, with each purchase having to be at the lowest price in the chain. 

D. Pared EVRG in Fidelity Taxable-Sold 2 at $64.77:  

Quote: Evergy Inc.  (EVRG)- a utility holding company

Investment Category: Bond Substitute

Investor Overview | Evergy, Inc.

EVRG Analyst Estimates | MarketWatch

EVRG SEC Filings

EVRG 2020 SEC Filed Annual Report

Last Buy Discussion: Item # 1. F. Added to EVRG-Bought 1 at $49.9; 1 at $49.7; 1 at $49.16; 1 at $48.9 (10/17/20 Post)

Profit Snapshot: $26.17 (4/20 sell only)

New Average Cost per share this account = $49.88   (8 shares)

Snapshot Intraday 4/20/21 after pare

Dividend: Quarterly at $.535 per share ($2.14 annually), last raised from $.505 effective for the 2020 4th quarter payment. 

Yield at new AC this account: 4.29%

Next Ex-Dividend: 5/20/21

Last Earnings Report (Q/E 3/31/20): Evergy Announces 2021 First Quarter Results 

GAAP E.P.S. = $.84

Non-GAAP E.P.S. = $.55/$125.4M

Consensus at $.481 per Fidelity

GAAP to Non-GAAP: 

Guidance:

"Evergy has raised its 2021 GAAP EPS guidance range to $3.43 to $3.63, from $3.14 to $3.34 primarily due to the impact of favorable power marketing margins gained during the February winter weather event, which the Company has excluded from its adjusted earnings. The Company has affirmed its 2021 adjusted EPS guidance range of $3.20 to $3.40 and long-term adjusted EPS annual growth target of 6% to 8% from 2019 through 2024."

2020 4th Q. Report: Evergy (EVRG) Announces 2020 Results at Top End of Guidance Range, Declares Quarterly Dividend, and Issues 2021 Outlook   

E. Pared D-Sold 2 at $80.23 and 2 at $80.24: 

Quote: Dominion Energy Inc

SEC Filings 

2020 Annual Report 

Investor Relations | Dominion Energy

Profit Snapshot: +$41.52

Last Buy Discussion: Item # 1.E. Restarted D-Bought 4 at an AC of $71.64 (4/1/2021 Post) I discussed the 2020 4th quarter earnings report in that post.  I still own those shares, but will not buy more unless the purchase lowers my average cost per share. 

Previous Trades 2020 Trades: Item # 1.D. Eliminated D-Sold 3 at $74.04 (8/8/20 Post); Item #1.D. Sold 13 D at $78.17 (6/20/20 Post); Item # 1.D. Added 1 D at $73.8, 1 at $71.96; 1 at $71; 1 at $68.53; 1 at $68 and 1 at $60.6 (4/18/20 Post)

Dividend: Quarterly at $.63 per share ($2.52 annually), reduced from $.95 effective for the quarter. There were two primary causes for this dividend slash. First, Dominion sold a significant part of its assets: Dominion Energy Agrees to Sell Gas Transmission, Storage Assets to Berkshire Hathaway Energy-- Strategic Repositioning Toward 'Pure-Play'; Dominion Energy Closes on Sale of Majority of Gas Transmission & Storage Assets - Nov 2, 2020 Second, Dominion had to take a big hit on canceling a pipeline project due to long delays caused by environmental groups. Dominion Energy and Duke Energy Cancel the Atlantic Coast Pipeline - Jul 5, 2020  

Last Earnings Report (3/31/21): Dominion Energy Announces First-Quarter 2021 Earnings

GAAP E.P.S. at $1.23; net income at $1B

Non-GAAP E.P.S. at $1.09 with consensus at $1.075 per Fidelity 

Revenues at $3.87B

2nd Q earnings range $.7 to $.8

Affirmed full-year guidance non-GAAP E.P.S. guidance between $3.7 to $4. 

F. Eliminated PBCT in Vanguard Taxable-Sold 20 at $18.39: 

Quote: People's United Financial Inc (PBCT)

Investment Category: Regional Bank Basket Strategy

PBCT SEC Filings

Profit Snapshot: +$156.73

M&T Bank Corporation Announces Agreement to Acquire People's United Financial, Inc. - Feb 22, 2021 "Under the terms of the agreement, People's United shareholders will receive 0.118 of a share of M&T common stock for each People's United share they own." 

If I keep any PBCT shares, I am likely to do so only in my Schwab taxable account. I discussed that option here: Item # 1.G. Pared PBCT in Schwab Account-Sold 30 at $17.77 (3/13/21 Post) This pare reduced my position in that account to 62 shares with an $11.17  average per share. If those shares are owned through the acquisition date, I will receive 7 MTB shares plus cash for the fractional MTB share (.118 MTB for 62 PBCT= 7.316 MTB). I have bought so far 2 MTB shares in that account as a welcoming committee for the PBCT shares: Item # 1.C. Bought 1 MTB at $152.4; 1 at $150 (4/24/21 Post) While I view MTB as a quality regional bank, both the P/E multiple and its current NPL ratio are higher, and its dividend yield lower compared to my average regional bank stock.  

I do not foresee any roadblock to the merger. 

Last PBCT Purchase Discussions: Item # 1.H. Multiple Small Ball PBCT Purchases (Fidelity Account with an Average Cost Per share of $10.42 and 1.I. Started PBCT in Vanguard Taxable-Multiple Buys with an Average Cost per share of $10.56  (10/24/20 Post; Item # 1.K. Added to PBCT-Bought 10 at $11.27; 10 at $10.87 (5/23/20 Post); Item # 1.B. Added to PBCT-Bought 3 at $10.58; 5 at $10.41 (9/5/20 Post); Item # 2.C. Added to PBCT - Bought 5 at $12; 5 at $10.72; 5 at $9.72  (4/25/20 Post)   

In addition to my Schwab account position, I own a few PBCT shares in my Fidelity taxable account: 

20+ shares at an AC of $10.4

Closing Price 5/14/21: PBCT $19.35 $0.32 +1.68% 

MTB $166.82 +$2.14  +1.30%: M&T Bank Corporation 

PBCT Realized Gains to Date: $834.4

G. Eliminated TRST-Sold 15+ in Schwab Taxable at $7.45 and 40+ in Fidelity Taxable at $7.44: 

Quote: Trustco Bank Corp.  (TRST)

TRST SEC Filings

Trustco Bank - Corporate Profile

Investment Category: Regional Bank Basket Strategy

Profit Snapshots:  +$111

Fidelity 40+  at +$80.78

Schwab 15+  at +$30.22 

Last Buy Discussions: Item # 1.E. Added to TRST-Bought 5 at $5.69; 10 at $5.6; 5 at $5.15; 15 at $5.23(10/3/20 Post); Item # 4.B. Item # 4.B. Restarted TRST- Bought 10 at $5.95; 5 at $5.83 (8/29/20 Post)

Dividend History: The quarterly dividend was at $.0656 in 2011 and is currently at $.0681, an increase of 3.81% over the past decade.   

5-year chart as of 5/10/21: The poor dividend growth history which reflects anemic profit growth is also reflected in this choppy going nowhere chart. 

Based on this recent, the chart flashes either a trading or an avoid altogether strategy. The trading strategy would involve buying at less than $6 and increasing purchase amounts below $5, provided economic conditions are favorable and selling in the $7 to $9 range. 

Looking at a long-term chart, TRST was trading at a higher price than now in 1997.  

The total annual average total return starting on 12/1/1997 through 5/10/21 was 4.09%. DRIP Returns Calculator | Dividend Channel That return is being generated, not by the price change but by reinvesting the dividend frequently at lower prices than the ones prevailing in December 1997 and now.  

Total Return with dividend reinvestment: 

$10K invested in TRST on 12/1/1997: $26,185.28 at a 4.09% annual average growth rate

$10 invested in SPY on 12/1/1997: $63,764.96 at an 8.22% annual average growth rate 

The stock has some appeal as a possible takeover target given its banking locations in NY. 

Last Earnings Report (Q/E 3/31/21): 

NIM is trending down through the March quarter. 

The next earnings report is scheduled for release on 7/21.  

Sell Discussions: Item # 1.D. Pared TRST-Sold 10 at $6.72 (1/9/21 Post); Item # 2.B. Sold 125 TRST at $8.6  (11/2/19 Post); Item # 2 Sold 100 TRST at $6.69 Update For Regional Bank Basket Strategy As Of 7/26/16-South Gent | Seeking Alpha; Item # 1 Sold 315+ TRST at $6.92 (1/11/15 Post); Sold 50 TRST at $7.29 (11/25/13 Post); Sold 308 TRST at $6.64 (10/28/13 Post)(largest gain to date = $549.47)

TRST Realized Gains to Date:  $1,194.22 ($1,083.22 in prior trades) 

H. Eliminated TY-Sold 10 at $33.5:

History this Account: 

Quote: TY | Tri-Continental Corp. Overview- a CEF

Sponsor's Website:  Tri-Continental Corporation-Columbia Threadneedle Investments

2020 Annual Report 

Profit Snapshot: +$106.15

Last Discussed: Item # 2.D. Bought 10 TY at  (5/30/20 Post) 

Tri-Continental-CEF Connect

Tri-Continental Distribution Policy and History 

I. Pared STWD Again-Sold 5.105 at $25.43:

Quote: Starwood Property Trust Inc.  (STWD)

SEC Filings

Starwood Property Trust, Inc. Profile | Reuters

Starwood Property Trust, Inc. Key Developments | Reuters

2020 Annual Report (risk factor summary starts at page 19 and ends on page 60)

Starwood Property Trust, Inc. - Home

Profit Snapshot: +$32.18 (4/21/21 sell only)

Last Buy Discussions: Item # 1.H. Added STWD in Fidelity Taxable Account-Bought 2 STWD at $17.18; 2 at $16.91; 1 at $15.24, 1 at $10.36; 1 at $9.3; 1 at $8.74; 1 at $12.45 ( 4/18/20 Post); Item # 1.C. Added to STWD in Fidelity Taxable Account-Bought 1 at $15.66, 1 at $15.12, 1 at $14.82; 1 at $13.74 (7/25/20 Post); Item # 2.D. Added to STWD in Fidelity Taxable-Bought 1 at $14.29 (12/5/20 Post)

Recent Pare Discussions: Item # 1.O. Sold 5 STWD at $25.22 (3/20/21 Post) Item #1.N. Pared 7 STWD at $23.74 (3/13/21 Post); Items 2.C. Pared STWD in Vanguard taxable-Sold 10 at $20.44 and 2.D. Pared STWD in Fidelity Taxable-Sold 10 at $20.95 (3/6/21 Post)(most recent substantive discussion); Item # 1.A. Sold 10 STWD at $25.96  (2/16/2020 Post)

Average Cost After Pare this account = $14.26 (29+ shares)

Remaining Shares this Account: 

Snapshot Intraday 4/22/21 after pare

Dividend: Quarterly at $.48 per share

Starwood Property Trust, Inc. - Stock - Dividend History

Yield at new AC this Account = 13.46%

Last Ex-Dividend: 3/30/21

Last Earnings Report (Q/E 3/30/21): SEC Filed Press Release 

GAAP E.P.S. = $.38/ $111.4M 

J. Added to VTRS- Bought 8 at $13.28: 

Quote: Viatris Inc. 

VTRS Analyst Estimates | MarketWatch

VTRS SEC Filings 

VTRS 2020 Annual Report

Closing Price 5/14/21: VTRS $16.00 +0.07 +0.44% 

As previously discussed, VTRS was recently created through the merger of Mylan with Pfizer's Upjohn unit. 

I mentioned this add in a recent comment 

Last Buy Discussion: 

Average Cost Per Share: $14.99

Dividend: Quarterly at $.11

Yield at AC:  2.94%

Next Ex-Dividend: 5/21/21 

Last Earnings Report (Q/E 3/31/21): Viatris Inc. Reports Strong First Quarter 2021 Financial Results, Reaffirms 2021 Guidance and Announces Inaugural Quarterly Dividend

Free cash flow: $799.3M

GAPP Loss per share: $.86

Adjusted Net Earnings: $1.1164B with 1.2075B diluted shares or $.92 per share

Consensus non-GAAP E.P.S. per Fidelity = $.799

K. Started VTRS in Vanguard Taxable Account-Bought 8 Shares at an AC of $13.34: 

See Item 1.J. above.   

I have a similar position in my Schwab account which I will eliminate when and if the price goes over $17. 

L. Added to NVS-Bought 1 at $85.5; 

Quote: Novartis AG ADR

NVS Analyst Estimates | MarketWatch

20-F (2020 Annual Report-foreign company form)

Last Discussed: Item # 1.G. Restarted NVS-Bought 2 at $86.74 (4/30/21 Post) I discussed the 2021 first-quarter report in that post and have nothing further to add here. 

Current Position: 3 shares

Maximum Position: 100 shares

Purchase Restriction: Small lots with the requirement that each subsequent purchase must reduce my average cost per share. 

My largest single position was 108+ shares. Item # 3 Sold 108+ NVS at $83.66 (9/12/18 Post)(profit snapshot = $968.85). 

Other 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 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) 

Last Buy Discussion (shares have been sold): 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). 

Dividend: Annually, the last ex-dividend date was on 3/4/21. 

M. Added $50 FSMEX at $71.24: 

Quote:   FSMEX | Fidelity Select Medical Technology and Devices Portfolio Overview

Fidelity® Select Medical Tech and Devices (FSMEX)-Morningstar-currently rated 5 stars

Expense ratio: .71%

Top Positions as of 3/31/21: 

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 my family members.