AMKBY, BWG, CARA, CPB, D, FIDI, HTA, IIVI, KPTI, MAXN, NETL, QCOM, SRPT

Economy: 

CPI rose 6.2% over the 12 month period ending in October 2021. Core CPI was up 4.6%. 

Consumer Price Index Summary 

The consensus estimate was for 5.9%. Consumer price index October Voters will blame Biden but the forces that are driving inflation up would exist irrespective of whether Trump or Biden was President now. 

House approves infrastructure bill, sending it to Biden to be signed into law - MarketWatch; America has an infrastructure bill. What happens next? 200 House Republicans voted against this needed legislation to improve the nation's highways, water facilities, bridges, ports, rail lines, and other physical infrastructure. The bill included $550B in new spending over the next decade, though republicans are constantly and deliberately misleading the public on this item. The bulk of the funding comes from repurposing unspent Covid relief money, unused federal unemployment aid, spectrum sales, and tightening the rules on reporting cryptocurrency transactions. Mark Zandi, chief economist for Moody's Analytics, estimates that the legislation could create about 660,000 jobs by 2025. 

Fed says China's real estate troubles could spill over to the U.S.

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Markets and Market Commentary: 

The most interesting issue about the current problematic inflation numbers is whether inflation and inflation expectations even matter that much for stock market multiples when the FED is suppressing interest rates far below the current and anticipated inflation rates. 

Currently, the stock market is sending a signal IMO that inflation does not matter to major stock index level; provided interest rates remain suppressed by the FED below the inflation rate. 

Significant inflationary pressures on a particular firm's profit margins can restrain price appreciation or have a negative impact on the price.  

As a bond investor, I still have no alternatives to stocks, even after a 6.2% annual rate of inflation. 

If I had bought a 1 year treasury bill on Friday 10/30/20, the negative real rate of return before taxes would have been -6.07% using the 6.2% one year CPI rate. 2020 Daily Treasury Yield Curve Rates 

The ten year treasury yield was lower on 11/10/21 than it was on 11/3/21: 

The only conclusion that can be drawn from the preceding table is that interest rates are set by FED manipulation throughout the maturity spectrum. The FED is setting rates without any regard to current inflation or the average annual average inflation rates predicted in TIP prices (5 to 30 year maturities). Inflation is just  irrelevant.  

I visited my Treasury Direct account today to purchase some inflation protected savings bonds. I was surprised to see that I owned 3 times what I thought I owned. I discussed this security in my last post. And some gremlin had purchased 3 year treasury notes in that account that mature in 2022. When I receive the proceeds next year, I will redirect the dollars into IBond purchases. 

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Earnings Reports-Owned Stocks: 

Amcor (AMCR) SEC Filed Press Release (AMCR is an Australian company that reports in USDs; this report is for its first fiscal quarter with the F/Y year ending in June 2022; GAAP E.P.S. = $.131 based on net income of $202M; non-GAAP E.P.S. = $.177 with the consensus at $.176; "adjusted EBIT of $381 million, up 7% on a comparable constant currency basis"; revenues = $3.42B up 10% on a reported basis, reflecting a 9% price increase that passes through increased input costs to Amcor's customers; fiscal 2022 guidance unchanged: "Adjusted EPS growth of approximately 7% to 11% on a comparable constant currency basis, or approximately 79.0 to 81.0 cents per share on a reported basis assuming current exchange rates prevail through fiscal 2022" and "adjusted Free Cash Flow of approximately $1.1 to $1.2 billion.", of which about $400M will be devoted to share repurchases)

Berkshire Hathaway (BRK/B) SEC Filed Press Release and 10-Q (operating income up 1% to $6.47B; cash at $149.2B; bought back $7.6B in stock; up from $6B in the 2nd quarter and $6.6B in the 2021 first quarter; another $1.8B was bought between 9/30/21 and 10/27/21 based on BRK's 10-Q filing; the earnings report is discussed at Berkshire Hathaway BRK earnings Q3 2021)

Black Hills (BKH) SEC Filed Press Release (E.P.S. = $.70, based on $44.1M in net income, with the consensus E.P.S. at $.643 per Fidelity; "quarterly dividend increased by 5.3%, achieving 51 consecutive years of annual dividend increases"; reaffirmed "guidance for 2022 earnings per share available for common stock in a range of $3.95 to $4.15, based on" several future assumptions; revenues = $1.7821B) 

Chemours (CC) SEC Filed Press Release (E.P.S. = $1.21 with the consensus at $1.022 per Fidelity; net income = $214M; revenues = 1.68B, up $1.233B in the 2020 third quarter or $.46 per share; 2021 guidance: adjusted E.P.S. between $3.93 to $413 with adjusted free cash flow revised to greater than $500M from the prior estimate of greater than $450M; repurchased $67M in stock and repaid $108M in debt)

Dropbox (DBX) SEC Filed Earnings Press Release (GAAP E.P.S. = $.19; non-GAAP E.P.S. = $.37 with the consensus at $.354 per Fidelity; "revenue was $550.2 million, an increase of 12.9% from the same period last year. On a constant currency basis, year-over-year growth would have been 10.7%; "paying users ended at 16.49 million, as compared to 15.25 million for the same period last year. Average revenue per paying user was $133.79, as compared to $128.03 for the same period last year."; "Cash, cash equivalents and short-term investments ended at $1.929 billion")

Easterly Government Properties (DEA) SEC Filed Press Release (FFO and FFO adjusted per share at $.33 and $31 respectively; CAD per share will be significantly lower since DEA is an Office REIT that will have substantial maintenance expenses; Adjusted FFO reported at $29.2M with CAD at $26.1M; "As of September 30, 2021, the Company wholly owned 83 operating properties in the United States encompassing approximately 7.5 million leased square feet, including 82 operating properties that were leased primarily to U.S. Government tenant agencies and one operating property that is entirely leased to a private tenant"; "On October 13, 2021, the Company announced the formation of a joint venture (the “JV”), which will serve as the investment vehicle for the acquisition of an anticipated 1,214,165 leased square foot portfolio of 10 properties (the “VA Portfolio”) for an aggregate contractual purchase price of approximately $635.6 million.  The VA Portfolio is 100% leased to the Department of Veterans Affairs (VA) with a weighted average lease term of 19.6 years. Easterly’s JV partner will retain a 47.0% stake in the JV, subject to adjustment as set forth in the applicable JV documentation. Easterly will retain a 53.0% stake in the JV."; guides 2022 FFO per share to $1.34 to $1.36; Board declared regular quarterly dividend of $.265 per share)

Enbridge (ENB) SEC Filed Press Release (All amounts are in Canadian Dollars; Adjusted earnings of $1.2B or $.509 per share with the consensus at $.579 per Fidelity; Distributable Cash Flow (DCF) of $2.3 billion or $1.13 per common share, compared with $2.1 billion or $1.03 per common share in 2020; Reaffirmed 2021 full year guidance range for EBITDA of $13.9 billion to $14.3 billion and DCF per share of $4.70 to $5.00; "Completed and placed into service the U.S. Line 3 Replacement Project ensuring safe, reliable supply of Western Canadian crude"; "Company expects full year 2021 EBITDA and DCF to remain within its previously provided guidance range of $13.9 billion to $14.3 billion and $4.70 to $5.00 per share, respectively.")

Entergy (ETR) SEC Filed Press Release (GAAP E.P.S. = $2.63; non-GAAP E.P.S. = $2.45 with the consensus at $2.456 per Fidelity; adjusted net income = $494M; "narrowed its 2021 adjusted EPS guidance range to $5.90 to $6.10."; increased quarterly dividend by 6% to $1.01 per share) I own several first mortgage bonds issued by wholly owned Entergy subsidiaries. Those subsidiaries are Entergy Arkansas, Entergy Louisiana, Entergy Mississippi and Entergy Texas. 

Evergy (EVRG) SEC Filed Earnings Press Release (GAAP E.P.S. = $1.95; non-GAAP E.P.S. = $1.98 with the consensus at $1.751 per Fidelity; adjusted net income = $455M; raised and narrowed "2021 GAAP EPS Guidance to $3.71 to $3.81; Adjusted EPS Guidance to $3.50 to $3.60"; reaffirmed annual adjusted E.P.S. growth of 6% to 8% through 2025 starting at the $3.30 midpoint in the original 2021 guidance; increased quarterly dividend by 7% to $.5725 per share)

Fidus Investment (FDUS) SEC Filed Press Release (net investment income = $.21, adjusted to $.40 by pretending the incentive fee of $.19 per share will not be paid to the external manager; net asset value per share of  $18.31, up from $16.81 as of 12/30/21; "estimated spillover income (or taxable income in excess of distributions) as of September 30, 2021 of $22.2 million, or $0.91 per share") I have been paring my positions. In my taxable accounts, my current average cost per share numbers are as follows: $8.47 in my Schwab account; $8.01 in my Vanguard account; and $7.98 in my Fidelity Account: Item # 1.K. (10/15/21 Post) 

General Dynamics (GD) SEC Filed Earnings Press Release (E.P.S. = $3.07 based on $860M in net income and revenue of $9.6B; consensus E.P.S. at $2.979;  "backlog at the end of the quarter was $88.1 billion, up 8.1% from the year-ago quarter. Estimated potential contract value, representing management’s estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $41.5 billion. Total estimated contract value, the sum of all backlog components, was $129.6 billion at the end of the quarter.")

Gladstone Commercial (GOOD) SEC Filed Press Release (FFO per share = $.44; Core FFO lower at $.39; dividends paid monthly with the quarterly total at $.37545 per share; the largest deduction from FFO is a $1.773M settlement with tenant; leased space at 97.7%; collected 100% of October rent; properties = 127). GOOD is one of the REITs where I made a number of small ball purchases during the 2020 meltdown and have subsequently sold my highest cost shares. The average cost per share in taxable accounts is currently as follows: Schwab account at $9.91 (21 shares); Fidelity account at $13.19, Item # 3.F. (shares); Vanguard account at $10.28 (16 shares). I have not discussed purchasing several lots that I still own. Most of the shares currently owned were small lot purchases made in March 2020, as shown in this snapshot: 

Vanguard Taxable 

 

Schwab Taxable/ Quit Reinvesting the Dividend after April 2021 payment

Prices as of the 11/10/21 close. 

Lockheed Martin (LMT) SEC Filed Earnings Press Release (GAAP E.P.S. = $2.21 with the consensus at $1.974; in this case, the GAAP estimate included an anticipated non-cash pension settlement charge of $1.7B "or $4.72 per share, after-tax) related to the purchase of group annuity contracts to transfer $4.9 billion of gross pension obligations and related plan assets to an insurance company, and unrealized gains of $98 million ($74 million, or $0.27 per share, after-tax) due to increases in the fair value of investments held in the Lockheed Martin Ventures Fund."; normally publicly available consensus E.P.S. numbers are non-GAAP; the E.P.S. without those extraordinary items was $6.66; net sales = $16B, down from $16.5 in the 2020 third quarter; the stock reacted negatively to the forward guidance: "The company expects 2022 net sales to decline from expected 2021 levels to approximately $66 billion and 2022 total business segment operating margin to be approximately 11.0%. Cash from operations in 2022 is expected to be greater than or equal to $8.4 billion, which excludes a potential decrease in 2022 cash from operations of up to $2.0 billion if the provisions in the Tax Cuts and Jobs Act of 2017 that eliminate the option to immediately deduct research and development expenditures in the period incurred and requires companies to amortize such expenditures over five years is not modified or repealed by Congress before it takes effect on Jan. 1, 2022.") 

Manulife (MFC) SEC Filed Press Release (all amounts in Canadian dollars; net income = $1.6B; core net income of $1.5B; diluted core E.P.S. = $.76; core ROE  =12.6%; efficiency ratio  51.3%). My largest position is a 100 share lot held in my Schwab taxable account.  Item # 2.D. Bought 100 MFC at $11.41 (5/9/2020 Post) Originally, I bought that lot intending to perform just a dividend harvest but decided to keep it as well as the shares bought in my Fidelity account and discussed in Item #2.C. {I have a larger position in Power Corporation of Canada. Several purchases of the USD priced shares, PWCDF, are discussed in Item # 1 of that 5/9/20 post. Item # 1. Restarted PWCDF-Bought 100 at US$15.65; 10 at $14.37 10 at $14.98 and Sold 10 at $16.31 (5/9/2020 Post) and in Item # 1.I. Added 10 PWCDF at US$14.11; 10 at US$13.85 (5/16/20 Post) After some paring I currently own 200 shares, with 100 shares bought on the Toronto exchange. Item # 1. Bought 100 POW:CA at C$21.37 (5/30/20 Post)

OFS Capital (OFS) SEC Filed Press Release (NII per share = $.24; paid a $.24 quarterly dividend; net asset value per share = $14.16, up from $13.42 as of 6/30/21; weighted average yield on debt investments = 8.87% and at 9.64% on performing debt; "Net gains for the quarter include realized gains of $3.3 primarily on the sale of our preferred equity in Neosystems Corp. and our common equity in Chemical Resources Holdings, Inc."; realized gains are not included in NII which includes interest income, dividends and fee income received by the BDC) After several pares, my AC per share in my taxable accounts are as follows: Fidelity at $6.78, Item # 1.H. (134+ shares); Vanguard at $4 Item # 2.M.; Schwab at $7.71 (115+ shares)  

Oneok (OKE) SEC Filed Press Release (E.P.S. = $.88 based on 26% increase in net income, with the consensus at $.821 per Fidelity; adjusted EBITDA of $865.2M, up 16%; increased 2021 net income guidance to $1.43B to $1.55B compared to previous range of $1.2B to $1.5B) I also own 2 OKE Partners 3.375% SU bonds that mature 0n 10/22. I own 9+ OKE shares in my Schwab account with an average cost of $26.76, and 5+ shares in my Fidelity account with a $27.47 AC. Item # 3.F. 

Schwab OKE/Price as of 11/10 close/Dividend Reinvestment Turned off

Closing Price 11/11: OKE $63.35 +$0.49 +0.78% A Gremlin bought 1 share in my Vanguard taxable account at $26.91 (11/6/2020). I will sell that share before year end.  

Orkla (ORKLY) Third quarter results 2021.pdf (Adjusted E.P.S. = NOK1.37 on revenues of NOK13.139B, up 10.3%)

Vertex Pharmaceuticals (VRTX) SEC Filed Press Release (Non-GAAP E.P.S. = $3.56 with the consensus at $3.081 per Fidelity; non-GAAP net income = $926M; GAAP E.P.S. = $3.28; product revenues = $1.98B, up 29% from the 2020 third quarter; raised full year product revenue guidance to $7.4-$7.5B; main product TRIKAFTA/KAFTRIO generated $1.556B in revenue). There was a positive reaction to this report. Closing Price 11/3/21: VRTX $189.07 +$7.67 +4.23% with volume at 3.916M+ shares compared to an average volume of 1.626+M. 

WEC Energy Group (WEC) SEC Filed Press Release (E.P.S. of $.92 based on net income of $290M, with the consensus at $.791; operating revenue at $1.7465B, up from $1.651B in the 2020 third quarter;  raised  "its earnings guidance again for 2021, to a range of $4.05 to $4.07 per share, with an expectation of reaching the top end of the range. This assumes normal weather for the remainder of the year. The company previously raised its annual guidance to a range of $4.02 to $4.05 per share, from its original guidance of $3.99 to $4.03 per share.")

Williams (WMB) SEC Filed Earnings Press Release {Adjusted E.P.S. = $.34, up 26% from the 2020 2nd quarter; consensus at $.282 per Fidelity; Funds available from operations = $1.08B; Dividend coverage at 2.17x; "adjusted EBITDA of $1.420 billion – up $153 million or 12% from 3Q 2020"; increased estimate for "Available Funds from Operations guidance to a range of $4.025 billion to $4.075 billion. The leverage ratio midpoint has been updated to ~4.0x versus ~4.25x prior for year-end 2021 and growth capex is reaffirmed at between $1 billion to $1.2 billion. Importantly, Williams expects to generate excess cash flow (available funds from operations less capital expenditures and dividends")}

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House GOP members who voted for infrastructure bill face backlash Several GOP House representatives called the physical infrastructure bill either socialism or communism. Bizarre does not even begin to describe them. Republicans erupt over infrastructure defections - The Washington Post Use of those descriptions is proof that they have a very low regard for the intelligence of their supporters. 

Voters will probably give them control over both the Senate and House in 2022 which is not surprising since 74+ million voters wanted an obvious psychopath and the most powerful enemy of America's Democracy in our history to have another 4 years as President. Psychologist: Trump More of a Psychopath Than Hitler | National News | US News 

Trump wants Americans to boycott private companies who do not endorse his "conservative" principles. Trump Tells GOP They Should Boycott Companies Trump is not a conservative, nor are his cult members.  

For the 200 GOP House members who voted against the bipartisan physical infrastructure bill, many will no doubt want to be photographed with shovels in hand when a project financed by the legislation is started in their district.  

Trump's false claim that only 11 percent of the infrastructure bill goes to ‘real infrastructure’ - The Washington Post  Demagogue Don is compelled by his psychological disorders to lie about everything. What is frightening for America's future is that 81% of republicans view him as honest. 

GOP Rep. Fred Upton receives death threats after voting for bipartisan infrastructure deal - The Washington Post

Reuters has exposed the Trump supporters who are threatening election officials. Reuters unmasks Trump supporters terrifying U.S. election officials

Republicans float punishing 13 members who voted for Biden infrastructure bill - The Washington Post, republished at MSN: GOP floats punishment for its 13 apostates 

Rep. Paul Gosar (R-AZ) tweets photoshopped anime video showing him killing Rep. Ocasio-Cortez and attacking President Biden - The Washington Post Gosar will be reelected with about 70% of the vote in Arizona's 4th congressional district. After Capitol Riot, Republican Ties to Extremist Groups Are Under Scrutiny - The New York Times

Nicole Malliotakis (R-NY) 'Visibly Shaken' After Trump Attacked Her  Trump attacked her for voting for the infrastructure bill. Ms. Malliotakis beat a Democrat incumbent in the last election. Maybe Donald can cause a servile Trumpster to beat her in the primary so that the Democrats can regain that seat.  

Don the Authoritarian is supporting a challenger to the incumbent governor of Idaho. Trump endorses Idaho lt. gov. against sitting GOP leader | TheHill The challenger, a servile Trumpster, was in favor of prohibiting private businesses from having a mask mandate or any vaccination requirement, which are policies favored by Trump.  

Marjorie Taylor Greene (R-GA) Bonkers Interview With Tucker Carlson

Republicans have been blaming Biden for the supply chain problems. Just don't ask them for a rational and fact based justification for that argument. And when republican politicians go on Fox "news" to cast that blame, they are assured that no Fox anchor will ever ask penetrating questions on the factual basis for that asinine claim. We do know that republican House Senate members making those claims voted against the infrastructure bill that addressed that very issue in part.  

False narratives are easy to manufacture and republican politicians understand how effectively they work on the intended audience. When someone starts to rebut a false narratives with facts, the Trumpster reaction falls generally into at least one of 3 categories: (1) Fake News; (2) I am bored and quit paying attention after the first word; (3) Reality creations expressed in a few words with no more than two syllables per word are easy to understand while facts make my brain hurt and causes confusion and anxiety.  

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1. Small Ball: 

I am continuing to unload small ball stock ETF positions. 

A. Eliminated FIDI-Sold 20 at $20.36: 

Quote: Fidelity International High Dividend ETF Overview

Sponsor's website: FIDI | ETF Snapshot - Fidelity

Expense Ratio  = .39%

Profit Snapshot = +$88.16 

Buy Discussions: Item # 1.I. Started FIDI-Bought 10 at $16.56; 5 at $16.11; 5 at $15.91 (8/2/20 Post); Item #1.O. Added 2 FIDI at $15.46 (10/24/20 Post)

Dividends: Quarterly and Variable

Last 4 Dividends: $.742 per share

Yield at $20.36 = 3.64%

Last Ex Dividend date: 9/17/21

Some Holdings as of 10/29/21 

Of the stocks included in the above snapshot, I currently have positions in BP, ENB, VOD, EMA (discussed in my last post), POW (the largest dollar position in this grouping), and MFC.  

Fidelity® International High Div ETF (FIDI)-Morningstar: Rated 1 star. This asset class is not working. 

B. Added to AMKBY-Bought 5 at $13.54; 5 at $12.88: 

Quote: A.P. Moeller-Maersk A/S ADR 

Closing Price 11/11: AMKBY $15.43 +$0.38 +2.52% 

Investor Relations - A.P. Møller - Mærsk A/S

Danish Krone: MAERSK.B (Denmark)

1 ADR = .005 ordinary 

1 DKK to USD - Danish Kroner to US Dollars Exchange Rate

Last Discussed: Item # 1.C. Bought 10 AMKBY at $14.25; 5 at $13.95 (9/17/21 Post) I discussed the second quarter earnings report in that post. 

New AC per share = $13.77 (25 shares)

Last Earnings Report (Q/E 9/30/21): Interim Report.pdf 

Revenue: Up 68% to US$1.66B

Profit = US$5.438B

Free cash flow = US$5.3B

2021 guidance: Free cash flow at a minimum of $14.5B, up from the previous minimum of $11.5B, see page 10. 

C. Bought 5 NETL at $29.75: 

Quote NET Lease Corporate Real Estate ETF Overview 

Closing Price 11/11: NETL $31.57 +$0.20 +0.63% 

Sponsor's website:  Net Lease ETF

Expense Ratio: .6%

Why to Get Caught in a Net Lease REIT | ETF Trends

In a net lease, the tenant is required to pay for insurance, property taxes and routing maintenance. The FFO cash flow number will consequently be close to, or identical with the CAD number. Triple Net Lease Definition 

Dividend: Monthly at $.09 per share 

NETLease Corporate Real Estate ETF (NETL) Dividend History | Nasdaq

Holdings as of 11/4/21: 

My largest dollar holding is in GNL which is highly disfavored by investors who count. I also have current positions in STAG, WPC, GOOD, and GTY. Of those 5 stocks, only STAG and WPC are blue chips. GNL is easily the highest yielding one at close to 10%. Global Net Lease Inc. 

Monmouth (MNR) has agreed to be acquired by Industrial Logistics Properties Trust (ILPT). Monmouth to be Acquired by ILPT for Approximately $4B in cash Both of those REITs are currently owned by this ETF. I own ILPT in a Roth IRA account and have not discussed it here.  

MNR does have outstanding a 6.125% equity preferred stock, MNRPRC, that I own. No mention is made in the press release whether this issue will be redeemed prior to or after the acquisition is completed. It can be redeemed now at its $25 par value plus accrued and unpaid dividends. I last discussed this preferred stock here: Item # 4.B. Added to MNRPRC-Bought  10 at $20.46; 10 at $15.31; 10 at $18 (5/9/20 Post); Item # 3.B. Bought 50 MNRPRC at $23.12 (12/16/18 Post)

Fundamental Income Net Lease Real Estate ETF (NETL)-Morningstar (not rated)

D. Bought 2 CPB at $41.65; 1 at $40.4, 2 at $40.15: 

Quote: Campbell Soup Co. 

Closing Price 11/11: CPB $40.93 -$0.48 -1.16% 

I have not played much with CPB over the years. While CPB has a major market share in soups, I do not view that as an attractive food sector. CPB is slightly more interesting now with its acquisition of Snyder's-Lance that significantly increased its snack business, though I view that acquisition as expensive and was financed with debt. Many view snacks as a struggling business line. I did buy 2 of CPB's SU bonds issued to finance that acquisition. Item # 2.C. Bought 2 CPB 3.95% SU Maturing on 3/14/25 at a TC of 98.302 (6/4/18 Post); Bond Detail

Website: Quality Soups, Sauces, Food & Recipes - Campbell Soup Company

Products 

CPB acquired a number of snack brands through its 2018 acquisition of Snyder-Lance. Campbell Completes Acquisition of Snyder's-Lance (brands included Snyders of Hanover (mostly pretzels), Lance sandwich crackers, Kettle and Cape Cod branded potato chips, and Emerald nuts). Those brands were consolidated with CPB's existing snack brands, mostly those sold under the Pepperidge Farm name (the most iconic being Goldfish crackers), to form Campbell Snacks.   

I personally regard General Mill's Progresso soups to be better.  

Investment Categories: Bond Substitute with a flavor of Contrarian Value and Slow Dividend Growth

CPB Analyst Estimates | MarketWatch

Average Cost per share: $40.80 (5 shares)

Dividend: Quarterly at $.37, last raised from $.35 effective for the 2021 first quarter payment. 

Dividends and Splits

Yield at AC  = 3.63% rounded

Last Ex Dividend: 10/6/21

Last Earnings Report (Fiscal 4th Q. ending 8/1/21): 

GAAP E.P.S. = $.95

Non-GAAP E.P.S. = $.55

Consensus at $.476

Revenues: $1.873B

GAAP to Non-GAAP: 

The largest takeaway from GAAP was a $.41 per share gain associated from divestitures. CPB sold its Plum Organic baby food and kid snacks division to Sun-Maid Growers of California. Terms of the transaction were not disclosed by the parties. 

SEC Filed Press Release 

Prior Round-Trips: Item 3.B. Sold 5 CPB at $41.07 (8/26/18 Post)(profit snapshot $38.97)-Item # 1.E. Bought 5 CPB at $33.28-Used Commission Free Trade (6/4/18 Post); Item # 3 Sold 50 CPB at $41 (8/5/18 Post)(profit snapshot = $117.18); Item # 3 Sold 50+ CPB at $49.73+(11/20/17 Post)(profit snapshot = $43.21); Item # 3 Sold 70 CPB at $35.79 (9/8/2010 Post)(profit snapshot = $714.84) 

CPB Realized Gains to Date: $870.99

E. Added to D in Fidelity Account-Bought 1 at $72.79: 

Quote: Dominion Energy Inc

Dominion Energy Inc Profile | Reuters

I own 12 senior unsecured bonds issued by Dominion's major subsidiary Virginia Electric. 

SEC Filings

Investor Relations | Dominion Energy

2020 Annual Report

Credit Rating Summary | Dominion Energy

10-Q for the Q/E 9/30/21 

Last Substantive Discussion: Item # 3.H. Bought 2 D at $75.65; 1 at $75.19; 2 at 74.75-Vanguard Taxable (8/20/21 Post) I discussed the second quarter report in that post. 

Investment Category: Bond Substitute

Average cost per share this account: $74.63 (3 shares)

Dividend: Quarterly at $.63 per share 

Dividends & Splits | Dominion Energy 

Note the dividend slash from $.94 effective for the 2020 4th quarter.  Two events precipitated the slash. 

The first was Dominion's sale of its natural gas transmission and storage business to Berkshire Energy, excluding the Questar Pipeline Group. Berkshire Hathaway Energy Completes Acquisition of Majority of Dominion Energy Gas Transmission and Storage Business : Berkshire Hathaway Energy  ($2.7B in cash + the assumption of $5.3B in debt) The Questar Pipeline was originally included in the Berkshire deal but was shelved due to concerns about receiving regulatory approval. Last month, Dominion reached an agreement to sell these assets to Southwest Gas for $1.5B in cash + the assumption of about $500M in debt. "Based on the recorded balances at September 30, 2021, Dominion Energy expects to recognize a gain of approximately $685 million ($500 million after-tax) upon closing, including the write-off of $191 million of goodwill, but excluding the effects of any closing adjustments." Page 26 10-Q 

The second excuse was the huge loss taken when Dominion and others gave up on building the Atlantic Coast pipeline due to delays caused by litigation. Dominion Energy and Duke Energy Cancel the Atlantic Coast Pipeline - Jul 5, 2020; Atlantic Coast Pipeline Canceled as Delays and Costs Mount - The New York Times (7/5/21) 

Yield at AC this account: 3.38%

Given the dividend slash and relatively low yield, I am reluctant to buy the common stock. However, the last of my Virginia Electric SU bonds will mature in 2022, and the proceeds will end up in a brokerage money market account paying .01%, which provides some motivation for venturing into the common stock.   

I will soon lose 2 Virginia Electric 2.95% SU bonds to an early redemption.

Next Ex Dividend: 12/2/21

Last Earnings Report (Q/E 9/30/21): 

Non-GAAP E.P.S. = $1.11 

Consensus at $1.062 per Fidelity

Operating Revenue: $3.18B

Dominion is seeking approval to build a 2.6 gigawatt coastal offshore wind project. That capacity is sufficient to power about 660,000 homes. Dominion Energy Submits Application for Coastal Virginia Offshore Wind with Virginia State Corporation Commission - Nov 5, 2021;  Dominion Energy | Coastal Virginia Offshore Wind

Other Buy Discussions: Item # 1.E. Restarted D-Bought 4 at an AC of $71.64 (4/1/2021 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) 

Last Sell Discussions: 

Item # 3.E. Pared D-Sold 2 at $80.23, 2 at $80.24 (5/14/21 Post) I discussed the 2021 first quarter report in that post. 

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)

F. Added to IIVI-Bought 1  at $56.10:

Quote: II-VI Inc.

Closing Price 11/11: IIVI $65.38 +$1.38 +2.16% 

Website: II-VI Incorporated | Materials That Matter

IIVI SEC Filings

II-VI, Inc. Profile | Reuters

IIVI Analyst Estimates | MarketWatch

Annual Report for the F/Y ending 6/30/21 

Business Units (page 12 Annual Report): 

Last Substantive Buy Discussion: Item # 2.L. Bought 1 IIVI at $59.34 (9/10/21 Post) I discussed the second quarter earnings report in that post. 

Average Cost per share = $67.01 (14 shares)

Dividend: None and none expected 

Last Earnings Report (Q/E 9/30/21): SEC Filed Press Release 

Non-GAAP E.P.S. = $.87

Consensus at $.831 per Fidelity 

Non-GAAP Operating Margin = 18.9% 

Revenues: $795M, up 9% Y-O-Y

Record backlog of $1.4B. 

GAAP E.P.S.  = $.50  

The two largest add backs to GAAP earnings are share based compensation and amortization of acquired intangibles: 

Major pending Acquisition: II-VI Incorporated to Acquire Coherent, Creating Global Leader in Photonic Solutions, Compound Semiconductors, and Laser Technology and Systems

G. Added to BWG-Bought 5 at $12.33; 5 at $12.22: 

Quote: Brandywine GLOBAL Global Income Opportunities Fund Inc. Overview - A Leveraged CEF

Website: Brandywine Global Income Opportunities Fund Inc.

Last Discussed: Item # 2.E. Bought 10 BWG at $12.45 (9/17/21 Post) 

Last Shareholder Report: Legg Mason BW Global Income Opportunities Fund Inc. (BWG) for the 6 month period ending 4/30/21. 

Average Cost after adds = $12.43 (25 shares)

Dividend: Monthly at $.08 per share (supported by ROC)

Yield at $12.43: 7.72%

Data as of 11/1/21 (last trade date): 

Closing Net Asset Value Per Share: $13.12

Closing Market Price: $12.25

Discount: -6.63%

Sourced: BWG CEF Connect

Brandywine Global Opportunity Fund-Morningstar (currently rated 4 stars)

H. Sold 5 of 80 HTA at $31.63; 5 at $32.49: 

Closing Price 11/11: HTA $34.14 +$0.15 +0.44% 

Quote: Healthcare Trust of America Inc. (HTA)

Website: HTA – Healthcare Trust of America, Inc.

HTA SEC Filings

Portfolio Overview - HTA (471 Medical Office Buildings; 25.6M sq.ft.)

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

Last Buy Discussion: Item # 1 Bought 100 HTA at $22.8; 2 at $22 and Sold 2 at $26.7 (5/2/20 Post)

Last Sell Discussion: Item # 3.B. Sold 10 HTA at $28.17; and 10 at $29.27 (7/18/20 Post)(profit snapshot = $118. 

I discussed why I elected to pare this position in a comment. 

There was a pop in the share price after Elliott Management announced that it had acquired a meaningful stake and wanted the Board to consider selling the company. Elliott Sends Letter to Board of Healthcare Trust of America, Inc. 

Profit Snapshot: +$96.87

AC per share after pares: $22.35 (70 shares)

Snapshot Intraday 10/12 after second pare

 

Dividend: Quarterly at $.325 per share ($1.3 annually)

HTA Dividend History | Nasdaq

I am not reinvesting the dividend. 

As a practical matter, meaningful dividend growth is not possible under current management since acquisitions are not increasing CAD per share. The meaningless increases to date have only narrowed the the difference between the dividend rate and the CAD per share numbers.  The quarterly dividend rate was $.30 per share in 2016. 

Yield at AC = 5.82%

Last Ex Dividend: 10/1/21

Next Ex Dividend: 1/3/22

Last Earnings Report (9/30/21): SEC Filed Press Release

FFO per share $.44

Normalized FAD = $77.8 million, a decrease of 5.7% compared to Q3 2020. the more important number is FAD per share. It is easy to grow FAD by simply selling stock and using the proceeds to overapy for MOBs. In this example, FAD decreased Y-O-Y. Before doing the calculation, I would anticipate that FAD per share decreased at a greater than 5.7%

FAD per share: $.349. HTA does not do this calculation. I simply divided the $77.8M FAD number by the weighted average diluted share number of 222.811M provided by the company.  

In the 2020 third quarter, the total FAD was $82.419 with a share count at 218.529M, generating a FAD per share number of $.377. The Y-O-Y percentage decline in FAD per share was 7.42%.  

So let's see how the last quarter compared to the 2016 third quarter. SEC Filed Press Release (FAD = $49.2M; diluted shares. = 143.138M ; FAD per share = .344 in the 2016 third quarter vs. $.349 in the 2021 third quarter)  

HTA Realized Gains to date: $655.04 (prior sales = $558.17) 

Other Trades: Item # 2.D. Eliminated HTA-Sold 30 at $32.51 (2/8/2020 Post)(profit snapshot =$178.02) That 30 share lot was part of a 50 share purchase: Item # 4 Bought 50 HTA at $26.88 (7/13/19 Post) The other 20 shares were sold in 2 ten share lots: Item # 1.A. Sold 10 HTA at $31.31 (1/29/20)(profit snapshot = $44.34) and Item # 2.B. Sold 10 HTA at $30.81 (11/28/19 Post)(substantive discussion)(profit snapshot = $39.2); Item # 1.A. Sold 15 HTA at $28.57-Used Commission Free Trade(9/12/18 Post)(profit snapshot = $46.12); Item # 2 Sold 50 HTA at $26.25 Update For REIT Basket Strategy As Of 10/28/15 - South Gent | Seeking Alpha (profit snapshot = $124.1)-Item # 5 Bought 50 HTA at $23.45 Update For REIT Basket Strategy As Of 9/8/15 - South Gent | Seeking Alpha

I. Bought 2 QCOM at $126.49; 1 at $123.2 in Vanguard Account; 2 at $129.11 in Schwab Account; Sold 1 at $166.5 in Fidelity Account:

Buys: Vanguard and Schwab Accounts: 

                                        

1 Share Sold Fidelity Account: 

Profit 1 Share = $43.61

Quote: Qualcomm Inc. 

Closing Price 11/11: QCOM $164.42  +$4.62 +2.89% 

QCOM is a "global leader in the development and commercialization of foundational technologies for the wireless industry. Our technologies and products are used in mobile devices and other wireless products, and are sold across industries and applications beyond mobile handsets, including automotive and the internet of things (IoT) (which includes the industries and applications of consumer, industrial and edge networking), among others. Our inventions have helped power the growth in smartphones, which have connected billions of people. We are a leader in 3G (third generation), 4G (fourth generation) and 5G (fifth generation) wireless technologies. We derive revenues principally from sales of integrated circuit products, including our Snapdragon® family of highly-integrated, system-based solutions, and licensing of our intellectual property, including patents and other rights." Page 7 Annual Report

QCOM  Analyst Estimates | MarketWatch

QCOM SEC Filings

2021 Fiscal Year Annual Report

QCOM Profile | Reuters

QCOM Key Metrics | Reuters

Website: Wireless Technology & Innovation | Mobile Technology | Qualcomm

Investor Relations 

Investment Category: Dividend Growth based on earnings growth

When starting a position in this category, I would prefer to have a starting yield in excess of 3%. 

QCOM exploded higher after reporting results for its 4th fiscal quarter ending 9/26/21.   

Average Cost per share Vanguard Account = $125.39 (3 shares)

Dividend: Quarterly at $.68 per share, last raised from $.65 effective for the 2021 second quarter payment. 

Dividend/Split History 

The quarterly rate was at $.215 per share in 2011. 

Yield at AC = 2.17%

Last Earnings Report (Q/E 9/30/21): SEC Filed Press Release

Revenues = $9.336B, up from $8.346B in the year ago Q. 

Non-GAAP E.P.S. at $2.55, up from $1.45 in the 2020 fiscal 4th quarter

Consensus at $2.261 per Fidelity

Business Outlook: 

2021 F/Y Non-GAAP E.P.S. = $7.87, up from $4.52 in fiscal 2020. 

Broker Reports (available to Schwab customers)

Morningstar (11/4/21): 3 stars with a fair value estimate of $144. 

Argus (11/4/21): Buy with a $175 PT

S  & P (11/3/21): 3 stars with a 12 month PT of $160. 

I still own 19 shares of Defiance Next Gen Connectivity ETF (FIVG) that currently has QCOM has the number 2 weighted stock behind AMD:

Item # 3 Pared FIVG in Fidelity Taxable-Sold 3 of 9 shares at $38.08 (10/15/21 Post); Item #3.D. Started FIVG in Vanguard Account-Bought 8 shares at an average cost of $29.44  (7/29/20 Post); Item # 1.D. Added to FIVG in Vanguard Taxable-Bought 2 at $28.16; 2 at $27.78 (10/3/2020 Post); Item # 1.J. Added to FIVG in Vanguard Taxable-Bought 1 at $27.78 (10/17/20 Post)   

J. Restarted KPTI -Bought 20 in Schwab Taxable at $5.31 and Sold 10 out of 15 at $7.94 in Fidelity Account:

Quote: Karyopharm Therapeutics Inc. (KPTI)

Closing Price 11/11: KPTI $8.37 +$0.27 +3.33% 

I mentioned these transactions in an 11/3 comment. 

Sold 10 Fidelity Account at $7.94: 

Profit Snapshot: $22.59 (10 shares)

AC per share in Fidelity Account after pare: $5.29 (5 shares)

Investor Relations | Karyopharm Therapeutics - Corporate Profile

Drug Pipeline-Karyopharm’s pipeline of investigational medicines

KPTI has one drug, Xpovio, that has been approved by the FDA. Xpovio (selinexor) FDA Approval History - Drugs.com U.S. product revenues rose to $26.7M in the 2021 third quarter, an increase of 32% from the prior quarter. 

Investment Category: Lottery Ticket Basket Strategy

Last Loss Report (Q/E 9/30/21): SEC Filed Press Release 

The shares popped in response to this loss report, probably due to the increase in Xpovio revenues. 

Closing Price 10/3/21: KPTI $7.94 +$2.16 +37.37%  

Net loss of $51.812M or ($.69)  per share

"The Company expects that its existing cash, cash equivalents and investments, together with growing XPOVIO sales and revenues from existing collaborators, provide it with a cash runway that extends into mid-2023."

Karyopharm Therapeutics inc (KPTI) Q3 2021 Earnings Call Transcript | The Motley Fool

KPTI Realized Gains to Date: $338.72

If I had held onto my earlier purchases, I would be sitting on an unrealized loss. 

Prior Transactions: 

Item # 1.A. Sold 30 KPTI at $11.36 (12/4/2017 Post)(profit snapshot = $54.99)-Item # 3.A. Bought 30 KPTI at $9.46 (7/25/17 Post) 

Observations and Sample of Recent Trades:Item # 3.C. Sold 30 KPTI at $12.04 (3/13/17 Post)(profit snapshot = $145.89)- Item # 2 Bought 30 KPTI at $7.11 Update For Healthcare Basket Strategy As Of 8/12/16 - South Gent | Seeking Alpha

Another trade generated a profit of $115.25, buying 30 shares at $6.82 and selling at $10.67: South Gent's Comment Blog # 8

Snapshots Prior Round-Trips-All in 2017:

K. Eliminated CARA-Sold 5 at $17.33: 

I decided to quit playing with this one while I was ahead. I may come back to it when and if the price collapses again, and future developments indicate that the FDA will likely approve KORSUVA for other indications.  

Quote: Cara Therapeutics Inc.  (CARA)

Closing Price 11/11: CARA $16.17 -$0.39 -2.36% 

Investment Category: Lottery Ticket Basket

Profit Snapshot: +$17.75

Last Buy Discussion: Item # 1.F. Bought 2 CARA at $13.9; 3 at $13.7 (9/25/21 Post) 

As I mentioned in that post, the risk in owning CARA was reduced some after the FDA approved its drug KORSUVA "for the treatment of moderate-to-severe pruritus associated with chronic kidney disease in adults undergoing hemodialysis". That is a limited use and possibly other indications will be approved down the road. CARA delayed the launch of this treatment until the 2022 first quarter. Cara Therapeutics and Vifor Pharma announce U.S. FDA approval of KORSUVA™ (difelikefalin) injection for the treatment of moderate-to-severe pruritus in hemodialysis patients | Cara Therapeutics

The problem is that the current market capitalization, which is close to $900M, is too high IMO unless other indications are approved by the FDA. The company does not have anything else but this drug. Pipeline- Cara Therapeutics And profits are shared for the approved use with Vifor Pharma. (see pages 14-15 CARA 2020 Annual Report) 

And there are reasons to be concerned about additional approved indications. Cara Therapeutics Announces Topline Results From KARE Phase 2 Dose-Ranging Trial of Oral KORSUVA™ in Atopic Dermatitis Patients with Moderate-to-Severe Pruritus (4/29/21) ("primary efficacy endpoint was change from baseline in the weekly mean of the daily 24-hour Itch NRS score at week 12 of the treatment period. Although no dose group met this endpoint, a statistically significant improvement from baseline was evident as early as week 1 for the 1 mg dose group which was sustained through 75% of the treatment period.") On 4/28/21, the share price closed at $25.79 and at $14.07 the next day in response to this announcement. The Stock Jocks were anticipating approval for this broader treatment indication.  

CARA Realized gains to date: $511.21 (prior profit snapshot in the previously linked post discussing the 5 share purchase)

CARA is discussed in this recently published article: 3 Explosive Biotech Stocks -- Could They Shoot Even Higher? | The Motley Fool (11/3/21)

L. Multiple Small Dollar Buys of SRPT: 

Quote: Sarepta Therapeutics Inc. 

Closing Price 11/11: SRPT $86.10 -$0.02 -0.02% 

SEC Filings 

SRPT Analyst Estimates 

Our Disease Areas | Sarepta Therapeutics

Average Cost per share = $82.91 (1.988 share)

I have previously believed that the price was too high, though it was impossible to know with any degree of certainty since it is mostly about the future. Our Pipeline | Sarepta Therapeutics 

I noticed a significant price drop on 10/13, read a DJ news article that summarized the reasons, and decided to start my small ball "buying program" that day. Sarepta had announced yet another stock offering, hardly a surprises for a drug company busily devouring cash in clinical trials, and offered guidance that disappointed some investors. 

Sarepta Therapeutics Announces Pricing of $500 Million Public Offering of Common Stock (10/31/21)($81 public offering price); Prospectus

Some investors may have been disappointed with the trial results released on 10/11 involving its gene therapy treatment for Duchenne. Sarepta Therapeutics’ SRP-9001 Shows Sustained Functional Improvements in Multiple Studies of Patients with Duchenne Roche is partnering with Sarepta on this treatment. 

The earlier and more serious meltdown in January 2021, reflected in the chart, was precipitated by what investors viewed as disappointing trial results for Sarepta's gene therapy for Duchenne. Sarepta Therapeutics Announces Top-line Results for Part 1 of Study 102 Evaluating SRP-9001, its Investigational Gene Therapy for the Treatment of Duchenne Muscular Dystrophy (1/7/21) The stock closed a $168.95 on 1/7 and at $82.29 the next day. 

The company does have 3 approved products for treating Duchenne muscular dystrophy, all of which received accelerated approval.

Duchenne Muscular Dystrophy: The Basics | Duchenne.com I suspect that this genetic disease will be cured through gene editing within the next decade or so. 

Last Loss Report (Q/E 9/30/21): 10-Q and Sarepta Therapeutics Announces Third Quarter 2021 Results

Net Loss per share : ($.60)

Consensus at ($1.895) per Fidelity

Product Revenues: $166.91M

There was a mixed reaction among brokers to this report. 

JPM upgraded to overweight from neutral and raised its PT to $130 from $88, while Berenberg kept its hold rating and adjusted its PT to $94 from $90. 

RBC kept its buy rating and reduced its PT to $145 from $148. 

Needham maintained its buy rating and lowered its PT to $157 from $166.

Cantor Fitzgerald kept its overweight rating and increased its PT to $140 from $128. 

I do not have access to those reports, but my reaction is that everyone is making guesses about the future based on currently inadequate information and there is no way for an individual investor to know whether one guess is better than another. So, place your bets and take your chances like just about everything else. 

I have access to the Credit Suisse report. The analyst has a hold rating and a $95 PT, with the last report dated 11/3/21. That firm provides both a Blue Sky and Grey Sky PT targets. The Blue Sky PT is $240 while the Grey Sky is at $40.

M. Eliminated MAXN in Fidelity Account-Sold 8 at $22.75: 

Quote: Maxeon Solar Technologies Ltd.

Closing Price 11/11: MAXN $22.99 +$1.18 +5.41%

Website: Home | Maxeon Solar Technologies, Ltd.

MAXN Analyst Estimates | MarketWatch

Investment Category: Lottery Ticket Basket

Profit Snapshot:  $57.85 (11/11/21 sale only)

I am down to 11 shares held in my Vanguard Taxable. The AC per share is at $17.23. 

Last Buy Discussion: Item # 2.F. Bought 5 MAXN at $19.2; 5 at $18; 5 at $17.3; 5 at $15.73-Schwab Taxable Account (5/8/21 Post) I have eliminated my small ball MAXN position formerly owned in my Schwab taxable account. Item #1.F. 

I have nothing to add to my recent discussion Item # 1.E. Pared MAXN in Fidelity Account-Sold 7 at $18.6 and Pared MAXN in Vanguard Account-Sold 3 at $19.4 (10/21/21 Post) 

MAXN has not yet published its third quarter loss report. Maxeon Solar Technologies to Release Third Quarter 2021 Financial Results on November 17, 2021  

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.