ARI, COWZ, CRM, CTRA, ENBPRP:CA; FDN, FNB, IRM, OHI, QQQJ, SEM, SKYY, TECB

Economy: 

Over the past 12 months through November, CPI increased by 6.8% on a non-seasonally adjusted basis. Core CPI rose 4.9%. Consumer Price Index Summary 

Labor productivity rate falls at the fastest pace since 1960 Labor productivity fell 5.2% in the third quarter compared to the 2nd quarter. Y-O-Y productivity declined by .6%, the largest decrease since 1993.  

Jobless claims sink to 184,000, hitting lowest level since 1969-MarketWatch; DOL News Release.pdf; U.S. weekly jobless claims-CNBC

Omicron reduces Covid antibody protection in small study of Pfizer vaccine; First lab results show omicron has ‘much more extensive escape’ from antibodies than previous variants - The Washington Post 

Omicron Covid variant may have picked up a piece of the common-cold virus; Omicron coronavirus variant possibly more infectious due to sharing genetic code with common cold, study says - The Washington Post

Omicron variant has "robust ability" to evade COVID vaccines, but Pfizer says booster shots "neutralized" it - CBS News The results were from a lab test only. 

Omicron’s Rapid Case Growth Is a Warning - The Atlantic

The U.K. currently expects that the Omicron variant will account for most Covid infections within 2 to 3 weeks. The U.K. has a first rate genomic sequence system in place and that system has detected the omicron doubling every 3 days in a county where 70% of the population is fully vaccinated and 32% have received booster shots. Omicron Wave Heads for U.K., but It’s Not Clear How Bad It’ll Be - The New York Times 

Overall, I have seen enough to engage in more net selling of stocks and stock ETFs, particularly those that pay almost no dividends. In this post, I discuss eliminating the following small ball stock ETF positions: FDN, QQQJ, SKYY, and TECB.

It is too early to draw any firm conclusions IMO about the transmissibility of Omicron compared to past variants and the effectiveness of existing vaccines in neutralizing Omicron or preventing serious illness and death. My best guess, based on what I read so far, is that Omicron will be the most contagious variant to date and will cause more breaththrough infections in fully vaccinated people. The jury is still out on whether Omicron will result in more hospitalizations and deaths.   

Federal Reserve Release 11/9/21:  Financial Accounts of the United States - Z.1

Household debt increased at a 6.2% annualized rate in the third quarter. 

Household Debt: Now over $15T

Sourced: Household Debt and Credit Report - FEDERAL RESERVE BANK of NEW YORK

++ 

Markets and Market Commentary: 

Buy These Stocks to Play the Housing Boom That Could Last for a Decade | Barron's I own only 5 shares of Beazer Homes USA Inc. (BZH) which is not mentioned in the article. Item #1.E. Bought 5 BZH at $17.52 (8/20/21 Post) The author of that article recommends the usual list including D.R. Horton Inc. (DHI); Toll Brothers Inc.  (TOL): Lennar Corp. Cl A (LEN) and PulteGroup Inc. (PHM). Home builders have historically experienced repetitive boom and bust cycles. The crashes can be devastating for the stock prices. Between 2000 to January 2006, a boom period, Beazer's stock went from a reverse split adjusted price of around $31 to $387 and then crashed to about $2 in early March 2009. The reverse split was 1 for 5 in 2012. 

All of the stocks in Cathie Wood's Ark Innovation fund are in a bear market except for 2

Apple hit by supply crunch, saw iPhone 13 production drop 20% in recent months: report - MarketWatch

+++

Earnings Reports Owned Stocks: 

In this section, I briefly discuss earnings reports for some individual stocks that I own. The following summaries include companies that report using fiscal quarters. 

BOM Financial Group (BMO) SEC Filed Press Release (4th fiscal quarter; all amounts in Canadian dollars; Net income  = $2.159B; reported E.P.S. = $3.23; adjusted E.P.S. = $3.33 with the consensus at $3.237 per Fidelity; ROE = 16%, adjusted to 16.5%; adjusted ROTE = 18.5; adjusted efficiency ratio = 57.4%; total capital ratio  =17.6%; adjusted dividend payout ratio = 31.7% with unadjusted at 32.7%; dividend increased by 25% to $1.33 per share; Dividend Information) 

Campbell Soup (CPB) SEC Filed Press Release (first F/Q Ending 10/31/21; GAAP E.P.S. = $.86; non-GAAP E.P.S.  $.89 with the consensus at $.811 per Fidelity; revenues and organic revenues decreased by 4% Y-O-Y reflecting decreased demand relating to the pandemic)

Scientific Applications International (SAIC) SEC Filed Press Release (3rd fiscal quarter ending on 10/29/21; GAAP E.P.S. = $1.22; adjusted to $1.85 per share with the consensus at $1.502; revenues up 4% to $1.898B; free cash flow = $124M; guides 2022 Fiscal year adjusted E.P.S. to $6.75- $6.95, up from $6.5-6.7; guides 2022 FY free cash flow to $450-$470M; "Net bookings for the quarter were approximately $1.4 billion, which reflects a book-to-bill ratio of 0.7 and a trailing twelve months book-to-bill ratio of 1.1. SAIC’s estimated backlog at the end of the quarter was approximately $24 billion. Of the total backlog amount, approximately $3.4 billion was funded.")

Toronto Dominion (TD) SEC Filed Press Release (Q/E 10/31/21; all amounts are in CADs; adjusted net income of $3.866B or $2.09 per share with the consensus at $1.984 per Fidelity; adjustments of $.05 per share, of which $.04 consisted of amortization of intangibles and $.01 for acquisition related expenses adjusted ROE = 16.1%; adjusted ROTE = 21.4%; adjusted efficiency ratio = 53.9%; dividend payout ratio = 38.7%; declared a $.89 per share dividend for the 2022 first quarter, increased from $.79, TD Bank Financial Group - Investor Relations - Dividends) After several pares, I am down to owning 38 TD shares with an average cost of US$51.33 per share. I have sold all shares purchased with dividends and have turned off dividend reinvestment. 

+++

Attorneys Jeffrey Clark and John Eastman are pleading the Fifth. Congress can still make them talk. - The Washington Post; Eastman takes the Fifth with Jan. 6 committee - POLITICO; Trump-allied lawyer says he'll take the Fifth with Jan. 6 committee

‘If you’re innocent, why are you taking the Fifth?’ Trump said — years after invoking it himself - The Washington Post (5/23/17)

Tucker Carlson, a prime time Fox anchor, is defending Alex Jones, which is not surprising of course. Carlson:  “Jones is often mocked for his flamboyance, but the truth is he has been a far better guide to reality in recent years—in other words, a far better journalist—than, say, NBC News national-security correspondent Ken Dilanian or Margaret Brennan of CBS.” Why Tucker Carlson Is Defending Alex Jones - The Atlantic Recently, Jones was found liable for claiming that Sandy Hook, where 20 children were murdered, was a false flag operation carried out by crisis actors. Alex Jones, Infowars found liable by default in Connecticut defamation case : NPR In Trump's America, the children did not die and the entire event was part of a liberal conspiracy to take away people's guns. 

Tucker Carlson and the right’s embrace of Alex Jones-style politics - The Washington Post

Congressman Massie (R-KY) Posts Gun-Laden Christmas Photo 4 Days After School Shooting 

With deaths from Covid approaching 800,000 in the U.S. and over 5 million worldwide, Senator Ron Johnson (R-WIS) said that Dr. Fauci over hyped this virus. Anthony Fauci Rips GOP Sen. Ron Johnson's 'Preposterous' Accusation He's 'Overhyped' COVID Senator Johnson's most recent Covid remedy is to gargle Listerine. Listerine says no to Sen. Ron Johnson: Mouthwash won't prevent COVID Johnson is just one of the many prominent Republicans who has made significant contributions IMO to Covid infections, hospitalization and deaths.  Their actions and words are consistent with what I would expect from psychopaths and those who believe in freedom from responsibility. 7 Characteristics of the Modern Psychopath | Psychology Today To call the GOP a party of individual responsibility is a canard.  

US Sen. Ron Johnson continues to push republican state lawmakers to take over federal elections in Wisconsin Johnson, a prominent leader in Trump's growing anti-democracy movement who is up for reelection in 2022, wants to replace Wisconsin's  bipartisan election commission with partisan republicans who will do what they are told to do when it comes to counting votes. 

After Donald tested positive for Covid, and one week before his near death experience, he had close contact with other 500 people without mentioning the positive test. Seven days: Following Trump?s reckless coronavirus trail - The Washington Post ("Trump and Meadows hid Trump’s positive test not just from the public, but also from his inner circle and from his top public health officials. He took part in a debate with Democratic rival Joe Biden three days later, never revealing the test result to Biden or event organizers.") That behavior is consistent with what I would expect a psychopath to do.  

Congressman Gaetz (R-FL) Slammed for Saying Getting COVID Is Best Protection Against It

The GOP’s disregard for doctors on the coronavirus - The Washington Post This is not surprising of course. Reality creations, lies and fact free conspiracy theories are what passes for facts and science in Trump's America. Pro-Trump counties now have far higher COVID death rates- NPR; Republicans Less Trusting of Doctor's Advice Than in the Past-Gallup  

Companies Linked to Russian Ransomware Hide in Plain Sight - The New York Times The criminal gains operate with impunity in Russia's Kleptocracy. Putin's Kleptocracy: Who Owns Russia? Amazon.com; "Putin's Kleptocracy - Who Owns Russia?" - YouTube

Putin blamed the U.S. and NATO for Russia's massive military buildup along the Ukrainian border, asserting that Ukraine was threatening Russia's security and would use the weapons provided by western countries to launch an offensive against Moscow.  This argument makes a lot of sense to Fox "news". Tucker Carlson Sides With Putin Over Ukraine, Right to Defend Borders; Ukraine Commanders Say a Russian Invasion Would Overwhelm Them - The New York Times

Historian Doris Kearns Goodwin On The Future Of U.S. Democracy - YouTube  

As I have said many times here, I am now a one issue voter.  

++++

1. Canadian Reset Equity Preferred Stocks: 

A. Sold 100 out of 400 ENBPRP at C$20.20 (IB C$1 commission): 

Quote: ENB-PP.TO

Investment Category:  I include the Canadian reset equity preferred stocks with my U.S. floating rate equity preferred stocks. 

Last Discussed: Item # 1.A. Added 100 ENBPRA:CA at C$17.14 (4/24/21 Post) I still own that lot. 

I sold my second highest cost lot that was bought first. Item # 4.A. Bought 100 ENBPRP:CA at C$16.5 (3/20/19 Post)

Profit Snapshot: +$C368

5 year chart: Points to patience and waiting for the bottom to fall out. 

As of 11/19 Intraday

Remaining Shares: 300 with an average cost per share of C$15.04

Snapshot as of close on 11/19 after pare

This pare reduced my AC per share from C$15.41. 

Remaining Lots Buy Discussions: Item # 3.A. Added to ENBPRP:CA Bought 50 at C$11.98 and 50 at C$11.76 (6/13/20 Post);Item # 3.A. Added to ENBPRP:CA-Bought 50 at C$16.47 (2/16/20 Post): Item # 2.A. Bought 50 ENBPRP at C$15.68 (11/27/19 Post)

Current Yield at C$15.04 = 7.23%

This pare increased my dividend yield for the remaining shares from 7.06%.  

Last Ex Dividend: 11/12/21 (owned 400 shares as of)

Security Description: 

Par Value: C$25

Current Coupon: 4.35% to but excluding 3/1/24 when the coupon resets unless redeemed at that time by the issuer

Dividends: Quarterly and Cumulative 

Reset: 2.5% Spread to the 5 year Canadian government bond. 

Canada 5 Year Government Bond Overview | MarketWatch

The prospectus can be found here: Preferred Shares and Hybrid Securities - Enbridge Inc.

Prior ENBPRP:CA Round Trips: Item # 4.A. Sold 200 ENBPRP at C$19.91 (3/25/17 Post)(realized gain snapshot= C$963). The IB reportable profit in 2017 was US$606.07. That post also contains a snapshot of a 300 share round-trip that netted U.S.$1,458.25 which is after Fidelity converted the CAD profit into USDs for tax reporting purposes. That 300 share lot was bought at C$12.39. Update For Exchange Traded Bond And Preferred Stock Basket Strategy As Of 2/29/16 - South Gent | Seeking Alpha  

ENBPRP:CA Realized Gains to Date: 

USDs: $2,064.32

CADs: $368 (USD reportable profit calculation will be made in my 2021 1099)    

2. Small Ball: 

A. Eliminated CRM-Sold 1.879 Shares at $310.73: 

Quote: Salesforce.com Inc.  (CRM)

CRM Profile | Reuters

CRM Analyst Estimates | MarketWatch

CRM SEC Filings

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

I had all of the fun that I could stand with this one. I mentioned eliminating my CRM position in a 11/30/21 comment. 

Profit Snapshot: +$184.45

Buy Discussions: Item # 2.L Multiple Small Dollar Buys of CRM (3/27/21 Post); Item # 1.J.  (1/9/21 Post) As I mentioned in those posts, I viewed the stock as overvalued at my purchase prices. 

Dividend: None and none expected 

Last Earnings Report (Q/E 10/31/21): SEC Filed Press Release 

Diluted GAAP E.P.S. = $.47 

Non-GAAP E.P.S. = $1.27

Consensus at $.92

Revenues = $6.863B

Guidance: 

GAAP to Non-GAAP: 

I am not willing to ignore stock based compensation when it amounts to $.81 per share-just for one quarter. Even if I was willing to base a multiple on the non-GAAP E.P.S. number, the multiple at $310.73, using the $4.68 guidance for fiscal 2022, is about 66.4; and at 431.57 using the GAAP fiscal year E.P.S. guidance of $.72. 

The earnings report is discussed at Salesforce earnings beat in first full quarter with Slack, but forecast slaps stock - MarketWatch

B. Bought 5 SEM at $34.8; 5 at $34.4, 5 at $34.08; 5 at $33.25; 5 at $32.5; 5 at $30.89; 5 at $29.95; 5 at $29.6: 

Quote: Select Medical Holdings Corp. 

"Select Medical is one of the largest operators of critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers in the United States based on number of facilities. Select Medical’s reportable segments include the critical illness recovery hospital segment, the rehabilitation hospital segment, the outpatient rehabilitation segment, and the Concentra segment. As of September 30, 2021, Select Medical operated 100 critical illness recovery hospitals in 28 states, 30 rehabilitation hospitals in 12 states, and 1,850 outpatient rehabilitation clinics in 39 states and the District of Columbia. Select Medical’s joint venture subsidiary Concentra operated 519 occupational health centers in 41 states. At September 30, 2021, Select Medical had operations in 46 states and the District of Columbia." 

SEM Analyst Estimates-MarketWatch (As of 12/8/21, the consensus estimates are as follows: $3.05 in 2021; $2.93 in 2022; $3.55 in 2023). Earnings in 2020 were adversely impacted by the pandemic. With the new omicron variant, the trend is to sell this stock without regard to valuation IMO. There is also omnipresent concerns about changes in Medicare reimbursements. 

If this stock keeps falling, I will keep buying in 5 share increments until I hit 100 shares. If and when the stock recovers, and I am able to sell the highest cost lots profitably, I will likely do so. 

Chart: Bear Market Trend started in June 2021 with no indication yet IMO of bottoming. 

10-Q for the Q/E 9/30/21 

Last Discussed: 

Current Average Cost per share: $32.40 (40 shares)

Dividend: Quarterly at $.125, recently instituted

I would prefer that SEM use those funds to pay down debt. 

Yield at AC = 1.54%

Last Ex Dividend: 11/15/21

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

Adjusted Net Income = $72.38M

Adjusted E.P.S. = $.57

Consensus at $.52 per Fidelity 

Revenues = $1.534+B

Adjusted E.P.S. Nine Months 2021 = $2.61 

SEM also provides income numbers that include comprehensive income from non-controlling interests.  The total from that source was $23.289M in the 2021 third quarter.  

"During the quarter ended September 30, 2021, Select Medical repurchased 1,383,508 shares at a cost of approximately $47.5 million, or $34.34 per share, which includes transaction costs. Since the inception of the common stock repurchase program through September 30, 2021, Select Medical has repurchased 39,964,416 shares at a cost of approximately $404.1 million, or $10.11 per share, which includes transaction costs."

Debt was at $3.4B as of 9/30/21. I am not comfortable with this debt load. 

Cash was at $748M as of 9/30/21. 

Operating expenses as a percentage of revenue rose to 84.6% from 82.9%. "The increase in our operating expenses as a percent of revenue was primarily driven by increased staffing costs in our critical illness recovery hospitals and rehabilitation hospital segments."

SEM revised up its guidance for 2021 adjusted E.P.S. to $2.98-$3.09 from $2.91-$3.08. 

Select Medical Holdings (SEM) Q3 2021 Earnings Call Transcript | The Motley Fool

Earnings discussed at Select Medical (SEM) Q3 Earnings Beat, Hikes '21 EPS View - November 5, 2021 - Zacks.com

After this earnings report was released, RBC raised its PT to $50 from $48 and maintained its outperform rating. I do not have access to that report or any other on SEM. 

C. Bought 10 ARI at $15.04; 5 at $14.43; 5 at $14.15; 10 at $13.7: 

Quote: Apollo Commercial Real Estate Finance Inc.

I would classify ARI as an externally managed mortgage REIT that invests in commercial real estate loans. 

After my first purchase, this stock has continued to decline due to concerns about omicron variant's impact on commercial real estate. 

I view mortgage REITs with disfavor, but the 13 year FED Jihad Against the Savings class has made me less picky. Trading is subject to the small ball rules, and positions will be immaterial.  

ARI SEC Filings 

10-Q for the Q/E 9/30/21 

2020 Annual Report

5 year financials: Note the poor results in 2020 that would be pandemic related

Page 35 Annual Report

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

Average cost per share:  $14.34 (30 shares)

Yield at AC = 9.76%

Last Ex Dividend: 9/29/21

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

Diluted E.P.S. = $.38

Distributable E.P.S.  $.35 

Property Type: 

D. Added to OHI-Bought 2 at $28.57; 2 at $28.10: 

Quote: Omega Healthcare Investors Inc. (OHI)

With news about the omicron variant disseminated after my OHI purchases, I have decided to wait until the price breaks below $25 before adding more shares.  

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

OHI SEC Filings

2020 Annual Report

Average Cost per share =  $30.58 (15+  shares) 

Dividend: Quarterly at $.67 per share ($2.68 annually)

Dividends – Omega Healthcare Investors, Inc.

Yield at AC  = 8.76%

Last Ex Dividend:   (owned 11 shares as of)

Last Discussed: Item # 2.C. Added to OHI-Bought 1 at $30.92; 1 at $30.49, 1 at $29.86; 2 at $29.81 (11/5/21 Post) I discussed the third quarter earnings report in that post and have nothing further to add here. 

OHI Trading Profits to Date =  $1,503.51

E. Eliminated TECB in Vanguard Taxable-Sold 5 at $42.8:

Quote: iShares U.S. Tech Breakthrough Multisector ETF Overview

Sponsor's Website: iShares U.S. Tech Breakthrough Multisector ETF

Expense Ratio = .4%

Profit Snapshot: $58.67

Last Buy Discussions: Item # 4.E. Started TECB in Schwab Account-Bought 10 shares at an Average Cost per share of  $31.45 (8/20/20 Post); Item # 1.E. Started TECB in Fidelity Account-Bought 5 at $29.76 (8/1/20 Post)

Some Top Holdings as of 12/2/21: 

Dividends: Quarterly in insignificant amounts

Last 4 Dividends = $.18 per share rounded up

Yield at $42.8 = .4%

I have been selling for weeks now small ball ETF positions that have no meaningful dividend support. 

TECB Portfolio-Morningstar (note the P/E ratios provided on this page) Of the top 25 holdings, I have small ball positions in GILD, QCOM, REGN, and TXN.  The P/E ratios for most of the other stocks remind me of 1999. 

F. Eliminated TECB in Schwab Account-Sold 10 at $43.57:  

See Item # 1.F. above

Profit Snapshot: $121.17

G. Eliminated SKYY in Schwab Account-Sold 2 at $114.96: 

Quote: SKYY | First Trust Cloud Computing ETF Overview

Sponsor's Website: First Trust Cloud Computing ETF (SKYY)

Expense Ratio: .6%

Number of Holdings: 66

Holdings Weighted at 1+% as of 12/3/21: 

First Trust Cloud Computing ETF (SKYY)-Morningstar (currently rated 3 stars)

Profit Snapshot: +$89.86

Last Buy Discussion: Item # 1.N. Bought 1 SKYY at $71.88; 1 at $71.31, 1 at $70.83, 1 at $68 (6/20/21 Post)

Last Sell Discussion: Item # 1.C. Eliminated SKYY in Fidelity Account-Sold 4 at $109.89 (10/22/21 Post)(profit snapshot = $157.53).  

Dividends: Quarterly and insignificant 

Last 4 Dividends: $.14 per share rounded

Yield at $114.96 = .1%

SKYY Portfolio-Morningstar (look at the P/E ratios for the top 25 holdings)

When a lot more air is taken out of this sector, I will start a position in the Fidelity Cloud Computing ETF (FCRD) that has a lower expense ratio at .39%.  

I have also eliminated my positions Global X Cloud Computing ETF (CLOU). Item #1.K.Eliminated CLOU in Fidelity Account-Sold 10 at $31.4 (10/1/21 Post) 

H. Pared IRM Again in Fidelity Account-Sold 1 at $47.58: 

Quote: Iron Mountain Inc (IRM)

Iron Mountain - Investor Relations

SEC Filings

2020 IRM Annual Report

10-Q for the Q/E 9/30/21 

Investment Category: Equity REIT Common and Preferred Stock Basket Strategy

Profit Snapshot: $21.6 (11/3 sale only)

Remaining Shares AC this account: $23.44 (16 shares)

Snapshot Intraday on 11/3/21 after pare

Dividend: Quarterly at $.6185

Iron Mountain - Stock - Dividend History and Tax Treatment

Yield at new AC = 10.55% rounded

Next Ex Dividend: 12/14/21

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

AFFO = $263M or $.90 per share; 

revenue = $1.13B, up 9% Y-O-Y; 

guides 2021 AFFO to $3.33-$3.45

GAAP to FFO and AFFO Calculations: 

I own IRM in 2  other taxable accounts.  

The average cost per share in my Schwab account is $25.7 (19+ shares). Item # 2.M. The AC is my Vanguard account is at $21.75 (3 shares). Item # 2.L 

Most Recent 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 discussion); 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)

Other Sell Discussions: Item #1.A. Sold 3 IRM in Fidelity Taxable-Sold 3 at $49.12 (10/1/21 Post); Item # 2.K. Pared IRM in Fidelity Taxable Account-Sold 5 at $44.18; Item #2.L. Pared IRM in Vanguard Taxable-Sold 1 at $46.19; and Item # 2.M. Pared IRM in Schwab Taxable-Sold 1 at $46.93  (6/19/21 Post); Item # 1.K. Sold 5 IRM at $37.69 (4/30/21 Post); Item #1.B. Sold 2 IRM at $35.63; 5 at $36.8 (2/27/21 Post); 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

IRM Realized Gains to Date: $915.31

The goal in all accounts for this stock is a total return in excess of the dividend payments before the ROC adjustments to the tax cost basis.

I. Pared FNB Again in Schwab Account-Sold Highest Cost 12 Shares at $12.41: 

Quote: F.N.B. Corp.

FNB SEC Filings

FNB 2020 Annual Report

FNB Analyst Estimates | MarketWatch

Investment Category: Regional Bank Basket Strategy

Profit Snapshot = $32.89

Average cost per share this account after pare = $7.47  (65+ Shares) 

Remaining Lots: 

Price as of 11/15/21

Dividend: Quarterly at $.12 per share 

FNB slashed its dividend from $.24 effective for the 2009 second quarter and has not raised the penny rate since that slash. FNB Dividend Channel This is easily the most unfavorable dividend history of regional bank stocks that I own. 

The dividend history is extremely negative IMO. 

Yield at $7.47 AC = 6.43%

Last Ex Dividend: 12/2/21 

Last Buy Discussions: Item # 1.C. Added to FNB-Bought 3 at $7; 5 at $6.47; 10 at $6.81 (6/20/20 Post); Item # 4.B. Added 5 FNB at 8.8; 5 at $8.43; 5 at $7.62; 5 at $6.6 (4/30/20 Post)

Last Earnings Report (Q/E 9/30/21): F.N.B. Corporation (FNB) SEC Filed Earnings Press Release

E.P.S. = $.34 with the consensus at $.299 per Fidelity; 

net income of $109.5M; 

NIM = 2.99%, down from 3.34% in the 2020 third quarter; 

efficiency ratio = 55.43%; 

Charge off ratio = .03%; 

NPL ratio = .72%; 

ROA = 1.14%; 

ROTE = 16.77%; 

tangible book value per share = $8.42; 

dividend payout ratio = 35.43%

Some Sell Discussions: 

Item # 2.C Sold 31 FNB at $12.17 and Item # 2.D Sold 100 FNB at $12.17 (11/2/19 Post); Item # 5.A Sold 20 FNB at $11.42 (9/28/19 Post); Item # 3.A. Sold 30 FNB at $11.95-Used Fidelity Commission Free Trade (5/18/19 Post); Item # 1.A. Sold 50 FNB at $13.65-Used Commission Free Trade (9/5/18 Post); Item # 1.D. Sold 50 FNB at $13.9-Used Commission Free Trade (6/18/18 Post); Item 2.A. Sold 60 FNB at $14.59  (3/5/2018); Item # 4.A. Sold 100 FNB at $13.94-Satellite Taxable Account (10/23/17 Post)

I do not view FNB to be a quality bank or managed for the benefit of shareholders. 

To date, the growth through acquisition strategy has not resulted in any meaningful benefit to shareholders IMO. 

I also own shares in my Fidelity and Vanguard taxable accounts:

Fidelity Taxable 15+ shares; average cost p.s. = $6.75/ Price as of 12/9/21 

Vanguard Taxable/ AC at $7.7/ Price as of close on 12/9/21

The next pare will probably come from the Vanguard account and would be the highest cost 13 shares that can be sold profitably.  The last fractional share bought with a dividend, and paid in the 2021 first quarter, can not be sold profitably now.  

Dividend reinvestment has been turned off in my taxable accounts and in 1 Roth IRA account.  

I will generally own many of the same stocks in my Roth IRA accounts. I own 5+ FNB in 1 Roth with an AC of $6.04 (dividends reinvested and assigned by Fidelity with a zero cost basis). I own 10 shares in another Roth IRA account with an AC at $7.32. 

FNB Realized Gains to Date: $1,620.85  

J. Started CTRA-Bought 5 at $21.53; 2 at $21.1; 2 at $20.75 and 2 at $20.4; 2 at $20; 1 at $19.56: 

Quote: Coterra Energy Inc. 

CTRA SEC Filings 

10-Q for the Q/E 9/30/21 

CTRA Analyst Estimates-MarketWatch (as of 12/8/21, consensus E.P.S. is at $3.59 for 2022, falling to $2.81 in 2023).  

Website: Coterra Energy 

Cotera was recently formed from the merger of Cimarex and Cabot Oil that was completed on 10/1/21. Cabot Oil & Gas and Cimarex Energy Complete Combination, Forming Coterra Energy Cabot was the surviving company. 

Discussed at A New Contender in Natural Gas | Barron's (11/20/21)

Average cost per share  = $20.92 (15 shares)

Dividend: Quarterly, currently at $.125 per share ($.50 annually)

CTRA paid a special dividend of $.50 per share in the current quarter. 

Yield at AC = 2.39%

Last Ex Dividend: 11/12/21

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

GAAP net income of $62.7M or $.16 per share

Non-GAAP net income of $207M or $.52 per share

Non-GAAP numbers excludes infrequent and non-cash items. Those include stock based compensation, merger related expenses and a unrealized loss on derivative instruments. 

GAAP to Non-GAAP: 

Free Cash Flow Combined = "$387.3 million (non-GAAP), and included $100.1 million of merger-related expenses."

3Q21 Earnings Presentation: 

Maximum Position: 100 shares

I have never owned Cabot Oil. I did own Cimarex at some point in the distant past. 

K. Bought 2 COWZ at $46.94: 

Quote:  Pacer U.S. Cash Cows 100 ETF Overview 

This ETF starts with the Russell 1000 and selects the 100 companies that have the highest, trailing 12 month free cash flow yields. The stocks are weighted by free cash flow yields with each stock's weighting capped at 2% when the fund is rebalanced. 

I like the methodology used by this ETF. The soundness of this approach, however, does not mean that the stocks are fairly valued now, however. 

Sponsor's website:  COWZ | Pacer ETFs

Expense Ratio: .49% 

Dividends: Quarterly at a variable rate

Last 4 dividends: $.66 per share (rounded up)

Yield at $46.94 = 1.42% rounded

Some Holdings as of 12/3/21: 

I have moved in and out of stocks owned by this fund and currently own the following: ABBV, BMY, CC, CTRA (discussed in this post), DGX, DISCA, FCX, GILD, HOLX, IP, LUMN, OGN, PFE, SAIC, and T.  

L. Eliminated QQQJ in Schwab Taxable-Sold 5 at $35.77: 

Quote: Invesco NASDAQ Next Gen 100 ETF Overview

Sponsor's Website: Invesco NASDAQ Next Gen 100 ETF

Expense ratio = .15%

In my last post, I mentioned eliminating QQQJ in another account and forgot to mention this elimination there. 

Profit Snapshot: $45.79

Last Sell Discussion: Item # 2.D. Eliminated QQQJ in Fidelity Account-Sold 10 at $35.05 (12/3/21 Post)(profit snapshot = $86.74) 

Last Buy Discussion: Item # 2.E. Bought 5 QQQJ at 26.50; 5 at $26.25  (11/13/20 Post)

QQQJ Portfolio -  Morningstar (contains P/E ratios for top 25 holdings)

M. Eliminated FDN in Schwab Account-Sold 1 at $247.59: 

Quote: First Trust Dow Jones Internet Index ETF Overview

Sponsor's website: First Trust Dow Jones Internet Index Fund (FDN)

Holdings Greater than a 2+% Weighting as of 12/3/21: 

Of those stocks, I currently have a position only in CSCO. 

Expense Ratio = .51% 

Profit Snapshot: +$82.68 

Last Buy Discussion: Item # 4.A. Started FDN-Bought 1 at $166; 1 at $163.3-Fidelity Taxable (6/7/20 Post)

Last Sell Discussion: Item # 1.F. Eliminated FDN in Fidelity Account-Sold 2 at $244.75 (10/15/21 Post)(profit snapshot  = $160.19) 

FDN Realized Gains to Date: $242.87 (3 shares)

Current Position: None

Dividends: None

FDN Portfolio-Morningstar (contains P/E ratios for top 25 holdings, rated 3 stars)

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.