ABB, CMCSA, CTRA, D, DGX, DNNGY, FPF, FTS, HBI, JRI, NJR, ORAN, PHG, SJIJ, VYGR

Economy: 

Jobs report February 2022 +678K with the consensus at 440K; unemployment declined to 3.8%; wages up 5.1% for the 12 months ending in 2/22; work week rose .1% to 34.7 hours. Employment Situation Summary; Table A-15. Alternative measures of labor underutilization 

CPI rose 7.9% in the 12 month period ending in February. The consensus estimate was +7.8%. Core inflation was up 6.4%. Consumer Price Index Summary 

War fallout: U.S. economy to slow, Europe risks recession and Russia to suffer double-digit decline

Russia warns of $300 oil if ban goes ahead, threatens to cut off European gas These threats emphasize the urgency of rapidly developing alternative energy sources, including renewable generation facilities. How the EU plans to cut dependence on Russian gas by 67% this year One long term impact of Russia's military aggression will be the loss of Europe as an energy customer. 

Crude Oil Prices: West Texas Intermediate (WTI) - Cushing, Oklahoma-St. Louis Fed   

++++

Markets and Market Commentary:  

Fitch slashes Russian debt further into junk, says 'default imminent' - MarketWatch (six notch downgrade to "C") Just another Putin gift to Mother Russia. 

Ukraine: Angry dock workers in the UK are refusing to unload Russian oil

Expel Russia from the WTO  

Shell to stop operations in Russia over Ukraine war, apologizes for buying Russian oil - The Washington Post

The Russian Ruble continues its Putin forced march to a worthless currency. 1 RUB to USD - Russian Rubles to US Dollars Exchange Rate The Russian stock market remains closed. 

Companies pulling back from Russia over the war in Ukraine | CNN Business

Nickel trading suspended in London after prices hit $100,000

Wheat Prices Trade 'Limit up' for the 5th Day in a Row After Russia Attack (3/7/22) Up 50% since Russia invaded Ukraine. 

++++

Earnings Reports-Owned Stocks: 

Algonquin Power & Utilities (AQN) SEC Filed Press Release (AQN is a Canadian based company that reports in USDs; Adjusted E.P.S. of $.21; consensus at $.207 per Fidelity; revenues at $594.8M in the 4th quarter and $2.2855B for 2021; 2001 adjusted E.P.S. at $.71;  estimates 2022 adjusted E.P.S. of $.72-$.77; AQN is in the process of acquiring Kentucky Power from AEP; "AQN has been successfully executing on its financing plan for the Kentucky Power Acquisition, having raised approximately $1.7 billion in aggregate to date. In connection with the announcement of the Kentucky Power Acquisition, the Company completed a C$800 million bought deal common equity offering, and on January 18, 2022, the Company completed concurrent public offerings of junior subordinated notes in the United States and Canada in an aggregate principal amount of $750 million and C$400 million, respectively."  

Chemours (CC) SEC Filed Press Release (GAAP net income of $233M or $1.40 per share, adjusted to $.81 with the consensus on that basis at $.923 per Fidelity; guides 2022 to adjusted E.P.S. of $4.07 to $4.7 with free cash greater than $500M; revenues at $1.6B, up 18%; completed sale of its mining solution business for $521M, with the gain from that transaction being the largest adjustment to GAAP net income; free cash flow for 2021 was reported at $543M, up from $540 in 2020)

Easterly Government Properties (DEA) SEC Filed Press Release (Adjusted FFO of $31.3M or $.32 per share; CAD at $26.3M or $.30 per share; quarterly dividend at $.265 per share; "Announced the formation of a joint venture (the “JV”), which serves as the investment vehicle for the acquisition of the 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. During the quarter ended December 31, 2021, the JV acquired four of the 10 assets in the VA Portfolio"; guides 2022 FFO per share guidance at $1.34 to $1.36)

Fidelity National Financial (FNF) SEC Filed Press Release (GAAP E.P.S. of $1.87, adjusted to $2.16 with the consensus at $1.632 per Fidelity; adjusted net income of $616M; FNF is not a bank but sells title insurance and annuities)

Fidus Investment (FDUS) SEC Filed Press Release (NII per share of $.10, adjusted to $.49; the adjusted NII includes a reversal of an incentive fee payable to the external manager; net asset value per share = $19.96, up  $16.81 as of 12/31/20; "On February 15, 2022, our board of directors declared a base dividend of $0.36 per share and a supplemental dividend of $0.17 per share for the fourth quarter. The dividends will be payable on March 25, 2022, to stockholders of record as of March 11, 2022": "For the year ended December 31, 2021, the total net realized gain on investments, net of income tax provision on realized gains, was $53.8 million, as compared to total net realized loss on investments, net of income tax provision on realized gains, of $(1.5) million for the same period in 2020"; subsequent to 12/31/21, FDUS received a distribution on its "equity investment in SpendMend LLC, resulting in a realized gain of approximately $6.1 million.")

FS KKR Capital (FSK) SEC Filed Press Release (net investment income of $.66 per share with the consensus at $.608 per Fidelity; net asset value per share reported at $27.17, up from $27.14 as of 9/30/21 and $25.02 as of 12/31/20; "As of December 31, 2021, investments on non-accrual status represented 1.9% and 3.9% of the total investment portfolio at fair value and amortized cost, respectively, compared to 3.7% and 5.1% as of September 30, 2021"; eliminating the impact of merger accounting conventions,  the "weighted average annual yield on all debt investments was 7.9%, compared to 7.5% as of September 30, 2021")

Horizon Technology Finance (HRZN) SEC Filed Press Release (NII per share = $.39, with the consensus at $.358 per Fidelity; net asset value per share at $11.56, up from $11.02 as of 12/31/20; "Undistributed spillover income of $0.51 per share as of December 31, 2021": "Annualized portfolio yield on debt investments of 16.2% for the quarter"; "Held portfolio of warrant and equity positions in 76 companies as of December 31, 2021"; "For the quarter ended December 31, 2021, net unrealized depreciation on investments was $4.9 million, or $0.24 per share, compared to net unrealized appreciation on investments of $17.1 million, or $0.91 per share"; "On February 25, 2022, the Company’s board of directors declared monthly distributions of $0.10 per share payable in each of April, May and June 2022.") 

New Mountain Finance (NMFC) SEC Filed Press Release (net investment income of $0.31 per weighted average share. At December 31, 2021, net asset value (“NAV”) per share was $13.49, compared to $13.26 at September 30, 2021 and $12.62 at December 31, 2020. The Company also announced that its board of directors declared a first quarter distribution of $0.30 per share, which will be payable on March 31, 2022 to holders of record as of March 17, 2022"; "As of December 31, 2021, the Company’s NAV was approximately $1,321.2 million and its portfolio had a fair value of approximately $3,195.8 million in 106 portfolio companies, with a weighted average YTM at Cost of approximately 9.1%. For the three months ended December 31, 2021, the Company generated approximately $251.6 million of originations in twelve new portfolio companies and approximately $103.7 million of originations, including commitments  for follow-on investments in sixteen portfolio companies held as of September 30, 2021. For the three months ended December 31, 2021, the Company had $102.5 million of asset sales and cash repayments of approximately $147.3 million.", footnote references omitted)

Oneok (OKE) SEC Filed Press Release (GAAP Net income of $379.4 or $.85 per share with consensus per Fidelity at $.888; 2021 E.P.S. at $3.35; adjusted EBITDA at $846.6M; depreciation expense at $153.1M; reduced debt by $600M in 2021; 2022 guidance: net income midpoint of $1.69B compared to the 2021 actual of $1.5B with GAAP E.P.S. at $3.46 to $4.07)

SLR Investment Corp. (SLRC) Announces Quarter and Fiscal Year Results (SLR Investment Corp.  (SLRC) is merging with SLR Senior Investment Corp. (SUNS), with SLRC being the surviving BDC. There is no reason for both BDCs to continue as separate companies; NII per share at $.35; net asset value per share at $19.93, down from $20.16 as of 12/31/20; first lien senior secured loans at 94.2%; this BDC is not earnings its quarterly dividend of $.41 per share and a cut is consequently possible IMO. I eliminated my position in SUNS, which will be discussed in a subsequent post, and am not currently looking favorably on SLRC)  

Starwood Property Trust (STWD) SEC Filed Press Release ("fourth quarter 2021 GAAP net income was $91.4 million, or $0.31 per diluted share, and Distributable Earnings (a non-GAAP financial measure) was $335.0 million, or $1.10 per diluted share. The Company's full year 2021 GAAP net income was $447.7 million, or $1.52 per diluted share, and Distributable Earnings was $794.1 million, or $2.63 per diluted share. Distributable Earnings in both periods includes a $191.3 million gain related to the sale of a 20.6% interest in the new affordable housing investment fund during the fourth quarter of 2021, or $0.62 and $0.63 per diluted share for the quarter and full year, respectively. For GAAP purposes, the establishment of the fund resulted in a $1.2 billion positive mark-to-market adjustment directly to equity which did not impact earnings; excluding the $.62 gain from selling its interest in a fund, distributable earnings per share in the 4th quarter was $.48)

Stellus Capital Investment Corporation (SCM) Reports Results for its Fourth Fiscal Quarter and Year Ended December 31, 2021 (Net investment income per share of $.26, adjusted to $.33 which excludes the impact of accrued, and not yet paid, incentive fees payable to the external manager, which is an adjustment that I tend to ignore; net asset value per share reported at $14.61, up from $14.01 as of 12/31/20; the BDC reported a net realized gain of $17.11M or $.88 per share during the 4th quarter and $23.71M for 2021 compared to a net realized loss of $10.13M in 2020)

TriplePoint Venture Growth BDC (TPVG)(NII per share of $.42, up from $.32 in the prior quarter; consensus at $.343 per Fidelity; net asset value per share = $14.01, up from $12.97 as of 12/31/20; reported a 14.9% weighted average annualized portfolio yield; "TPVG portfolio companies Enjoy Technology, Inc. and Bird Global, Inc. completed SPAC mergers, Rent the Runway, Inc. completed its initial public offering, and Grove Collaborative, Inc. announced plans to go public through a SPAC merger"; "Estimated undistributed taxable earnings from net investment income of $12.4 million, or $0.40 per share, as of December 31, 2021"; subsequent to 12/31/21, the "TPVG portfolio companies Inspirato LLC and Sonder Holdings Inc. completed SPAC mergers" and "TPVG raised $125 million in aggregate principal amount from the private issuance of 5.0% institutional notes due 2027, initially assigned a BBB rating by DBRS, Inc.")

Whitecap Resources (WCP:CA) Announces Record Production and Funds Flow and Increases Dividend by 33% (Diluted E.P.S. of C$.35; Funds Flow per share at C$.55; for 2021 E.P.S. at C$2.95; 2021 Funds Flow per share at C$1.82, up from C$1.06; "In 2021, free funds flow after capital totaled $670 million or $1.11 per share, an increase from the prior year of 182% and 92% respectively. This allowed us to increase our dividend by 58% in 2021 and repurchase over 24 million common shares for total capital returned to shareholders of $290 million compared to $98 million in the prior year, an increase of 196%.", footnote references omitted; the new monthly dividend will be C$.03 per share, up from C$.025) 

++++

No progress was made in a meeting between foreign ministers earlier today. The Foreign Minister Sergey V. Lavrov of Russia stated that a cease-fire was not even on the table.  The Ukraine FM said Russia wanted Ukraine to surrender. Lavrov dismissed reports of Russian attacks on civilians as "pathetic shrieks" from Russia's enemies. Russia intends to conquer Ukraine and decapitate the democratically elected government. Putin is all in even if that approach results in the destruction of Russia's economy and turning Russia into a European version of North Korea. 

If the stock market rally yesterday was due to hope that Russia would be reasonable in this meeting, it was based on delusionary thinking. 

'SNL' kicks off with a Fox News 'Ukrainian Invasion Celebration Spectacular' 

Fox News Ukraine Cold Open - SNL - YouTube

After reading excerpts from Putin's speeches spanning decades, it is clear to me that he is delusional. How to Read Vladimir Putin - The Washington Post  

War crimes committed by Russian soldiers in Ukraine are now routine. 'They shoot at anyone who tries to leave.' Ukrainians describe terror of living under Russian occupation - CNN 

Russians shelled civilians who were attempting to escape from Kiev murdering a mother and her two children. A NYT photojournalist captured the scene. 3 People Killed in Shelling by Russian Forces in Ukraine - The New York Times; 'She was like a big sister to all of us' --- Tech worker killed with her children attempting to flee Ukraine should be remembered as more than a statistic, colleague says - MarketWatch; Ukrainian mom lying dead in brutal photo was Silicon Valley tech worker; Ukraine mom killed by Russians identified 

The mother's name was Tatiana Perebeinis, who was murdered by Russia along with her children, Alise (9 years old) and her older brother Nikita. Tatianna was the chief accountant for the Silicon Valley firm SE Ranking. 

I heard a commentator summarize Russia's military strategy. Bomb cities into rubble and then bomb the rubble. Ukraine war crimes evidence sought amid rubble - The Washington Post There are an abundance of Russian war criminals. I doubt that a single one will receive the justice they so richly deserve after a war crimes trial and conviction, though some may receive the death penalty on the battlefield.   

Yesterday, Russia bombed a maternity and children's hospital in Mariupol burying women and children under the rubble. Russia bombs maternity and children's hospital Among the people murdered by Russia in this attack was a 6 year old child. 

In a recent independent, non-government poll, a majority of Russians support the invasions of Ukraine. Russian public opinion: Poll shows 58 percent of Russians support Ukraine invasion, 23 percent oppose it - The Washington Post This is not surprising. 

The Russian Ambassador to the U.N. represented that it was Ukraine that was bombing Ukrainian civilians, hospitals, schools, apartment buildings and Ukrainian civilians trying to flee Russia's efforts to murder them. The fact that Russia is intentionally murdering civilians should surprise no one. 

Putin is wreaking carnage in Ukraine and no one can stop him-CNN 

So far, Russia has created over 2 million refugees. How many refugees have fled Ukraine and where are they going? - BBC News; 'They were shooting civilians': Ukraine refugees saw abuses - ABC News

The largest genocide operation committed by Russia against Ukraine's civilian population is called Holodomor, where Russia killed millions of Ukrainians during the early 1930s. The Ukrainian Famine: How Joseph Stalin Starved Millions - HISTORY, and see Anne Applebaum's book Red Famine: Stalin's War on Ukraine 

While Putin denied that conscripts were fighting in Ukraine, the Russian Defense Ministry acknowledge earlier this week that some had been "found" in Ukraine and were returned to Russia. Russia admits conscripts have been fighting in Ukraine, despite Putin's previous denials Maybe the Russians are referring to those returned in body bags. 

Putin offered Ukraine peace terms last week. If Ukraine surrenders, abandons their weapons, recognizes the separatist regions of Eastern Ukraine as independent countries controlled by Russia, and recognizes Crimea as part of Russia rather than Ukraine, Russia may quit bombing apartment buildings, single family residences, churches, schools, nuclear power plants,  hospitals including children's hospitals,  and civilians trying to flee with small children. 

Putin says Ukraine may lose its sovereignty if its citizens continue resisting Russian occupation. Putin: “The current leadership needs to understand that if they continue doing what they are doing, they risk the future of Ukrainian statehood. If that happens, they will have to be blamed for that.” 

In other words, Putin was going to allow Ukraine to remain a sovereign country with free elections and a free press until Ukraine decided to resist Russia's invasion of their country.  And it is clear now in Russia's Alternate Reality that its military buildup along Ukraine's border was, as Russia claimed many times, just a military exercise. 

As to why Russian military forces were targeting civilians in Mariupol, Putin said it was because Ukrainian officials were using the civilians as "human shields". Putin: "They just really, directly cover themselves using the people as a human shield This situation is now unfolding in Mariupol.” Those murdered by Russia in Mariupol are being buried in mass graves. Mariupol buries its dead as civilian toll in the besieged port city passes 1,200  | Daily Mail Online; After a Week of Siege, Bloodied Mariupol Plans Mass Graves - The New York Times

FSB Officer Caught Lamenting Death of Vitaly Gerasimov in Intercepted Call

A new iron curtain descends on Russia amid its invasion of Ukraine Perhaps the country needs to change its name to "Putin's Gulag". Putin makes Hugo Chávez look good. 

White House eyes new sanctions on lawmakers in Russian parliament as part of financial attack on Moscow; EU extends the scope of sanctions on Russia and Belarus  

U.S. warns Russia could use chemical weapons in false-flag operation in Ukraine

China Touts "Rock Solid" Ties to Russia -The Washington Post I believe that China gave a green light to Putin for his invasion and is now offering to be a "neutral" mediator. Putin visited China shortly before launching the invasion. China's totalitarian leader would have asked Putin about his intentions, and I doubt that Putin would have lied in response. Putin's Olympic trip signals warmer Russia-China ties - BBC News; Putin and Xi Frame a New China-Russia Partnership – The Diplomat In their joint statement, the two totalitarian states said that they want to bring true democracy to the world. China calls Russia its 'most important' partner as it refrains from condemning Ukraine invasion - MarketWatch (3/7/22) If China wanted to end the war, it could start that process along by simply imposing the same sanctions as the U.S. and Europe which of course it will never do.  

Russia passes law mandating jail time for ‘fake’ news reports The vote was unanimous in Russia's "parliament". Calling Russia's invasion of Ukraine an invasion, rather than a "special military operation" by liberators who are fighting Nazis according to Putin's flagrantly evil propaganda, may be punished by up to 15 years in prison. The Speaker of Russia's lower house, Vyacheslav Volodin, said the law was necessary "to protect the truth."  

Ukrainians Find That Relatives in Russia Don’t Believe It’s a War - The New York Times It is not surprising that so many Russians readily accept Putin's false propaganda rather than what they are told by their relatives, including their sons and daughters, who are actually experiencing the war first hand in Ukraine. 

Putin’s information war got key assist from Trump and right-wing media - The Washington Post; Never forget. Tucker Carlson, November 2019: “Why shouldn’t I root for Russia? which by the way I am.”-Twitter

 

Last Vestiges of Russia’s Free Press Fall Under Kremlin Pressure - The New York Times Russia is a totalitarian state controlled by 1 person who will not tolerate any criticism or dissent, nor will he allow the population access to accurate information. 

I view authoritarian rule, mass murder of civilians, and military aggression as the natural state of affairs for Russia which is why NATO exists. 

Russia sends a message to all of Ukraine by hitting these civilian areas in this city - CNN Russia is targeting schools, churches, health care facilities, and apartment complexes, destroying those structures with far away missile attacks. 

Russia-Ukraine: Bill Ackman says World War III likely already started I believe that Ackman is talking up his short positions. 

Alex Jones and Donald Trump: A Fateful Alliance Draws Scrutiny - The New York Times Alex and Donald are two peas from the pod. 

Arizona Republican state Senator Wendy Rogers speaks to White Nationalists, sets fundraising records while making violent threats - The Washington Post The threats include executing political opponents. 

As previously mentioned, the Netherlands has charged Russians with responsibility for shooting down Malaysia Airlines flight MH17 over the separatist controlled area in Eastern Ukraine, murdering 298 passengers and crew in July 2014. MH17: 3 Russians charged with shooting down plane over Ukraine-BBC News (pictures and names of the accused are contained in that article, noting that Russia provided the missile launcher; needless to say, Russia will not turn them over for trial)  Putin TV tried to blame Ukraine for that slaughter too even though the missile launch, using  Russian made BUK missile and a missile launcher controlled by a Russian brigade, was traced to the Russian controlled Donbass area. MH17: The Netherlands and Australia hold Russia responsible).

+++++++

1. Bought 5 FPF at $21.26 and 85 at $21.29: 

History this Account: 

Quote: First Trust Intermediate Duration Preferred & Income Fund Overview

FPF SEC Filings

FPF - CEF Connect

Sponsor's Website: First Trust Intermediate Duration Preferred & Income Fund (FPF)

Credit Quality: 

Investment Category: Monthly Income Generation

I have been increasing my allocation to this category. Payments are being sourced from brokerage money market accounts that currently pay .01%. 

Leveraged: Yes, substantial at 31.26% as of 3/1/22. 

Last Discussed: Item # 2.A. Restarted FPF- Bought 10 at $21.64 (11/13/20 Post) 

Average cost per share:  $21.33 (100+ shares)

Dividend: Monthly at $.1275 ($1.53 annually if paid for 12 months, but 2021 had only 11 monthly payments or $1.40 per share, two payments were made in January 2022)

I am currently taking the dividend payments in cash. 

Yield at AC of $21.33 per share =  7.17%, rounded down (using $1.53 annual penny rate)

Last Ex Dividend: 3/1/22 (owned all as of) 

Last Sell Discussion: Item # 2 Sold 103 FBF at $22.03-Update For CEF Basket Strategy As Of 3/21/16 - South Gent | Seeking Alpha

Goal: Harvest the dividend and sell the shares for any profit before ROC adjustments to the tax cost basis. 

My concerns are the fund's substantial leverage, the likely increase in borrowing costs tied to short term rates, credit and interest rate risk issues, a decline in net asset value per share resulting from issuer redemptions at par value, and the inherent price volatility of owned securities particularly during periods of market stress. I will not be buying more shares.     

For 2021, this CEF reported ROC support of $.049332 with 76.77% of the total classified as "qualified" dividends. As with other "preferred" stock funds, this fund will own some exchange traded bonds that pay interest and REIT preferred stocks whose distributions are entirely, or almost so, classified as non-qualified dividends. The allocation to exchange traded bonds has been reduced over time due to issuer redemptions and a paucity of new offerings. 

Purchase Restriction and Maximum Position: I will add to this position in 10 share lots, with each subsequent purchase being at the lowest price in the chain, until I hit 200 shares. 

2. Small Ball: 

A. Sold 20 of 120 ORAN at $12.43: 

Quotes: 

USDs: Orange ADR

Euros: Orange Stock Quote (France: Euronext Paris)

Euro to US Dollar Exchange Rate Chart | Xe

ADR Ratio: 1 to 1  

Website: Orange

ORAN.PA - Orange SA Profile | Reuters

ORAN.PA - Orange SA Key Metrics | Reuters (in Euros)

ORAN SEC Filings (foreign company SEC Forms) 

Last Buy Discussions: Item # 1.I. Added 10 ORAN at $10.48 (12/31/21 Post)(discussed third quarter report in that post); Item # 2.D. Added to ORAN-Bought 10 at $11.11 (8/12/21) 

Investment Category: Bond Substitute

Profit Snapshot: +$16 

Average cost per share: $11.47

Dividend: Semi-annually. The dividends are paid in Euros and converted into USDs for owners of ORAN. In 2021, ORAN paid out $.9345 per share. France took out a 12.8% tax from my last dividend. Claiming Foreign Taxes: Credit or Deduction? | Charles Schwab

The next semi-annual payment will be in June at €.40 per share. 

Last Earnings Report (Q/E 12/31/21): SEC Filed Press Release; 

SEC Filed Slide Presentation of 2021 Results :

Analyst Reports: 

Morningstar (2/17/22): 4 stars with a FV of $15.5

S & P (10/28/21): 5 stars with a 12 month PT of $14 

Goal: Any total return in excess of the dividend payments. 

B. Bought 10 HBI at $15.87; 10 at $15.42; 5 at $14.98-Schwab Taxable:

Quote Hanesbrands Inc. 

This is a new name for me. I decided to start nibbling a bit here and there after reviewing the last earnings report discussed below. 

Website: Comfortable Clothing Since 1901 | Hanes

Hanesbrands, Inc.  Investor Relations Home 

HBI SEC Filings 

Annual Report 

HBI Analyst Estimates-MarketWatch

Investment Categories: Bond Substitute/Contrarian Value

Average Cost per share this account: $15.51 (25 shares)

Dividend: Quarterly at $.15 per share

Yield at AC = 3.87%, rounded up

Last Ex Dividend: 2/14/22 (owned 20 as of)

Last Earnings Report (Q/E 1/1/22):  SEC Filed Press Release 

GAAP E.P.S. from continuing operations: $.19

GAAP E.P.S. at $.44 which includes a $.02 impact from a higher than expected tax rate.  

Consensus at $.44 per Fidelity. 

Revenues at $1.75B from continuing operations, up 4% compared to the 2020 4th quarter. The Champion brand sales increased by 10%. "Excluding $28 million in sales of personal protective equipment (“PPE”) and $45 million of sales from a 53rd week in the prior period, and a $9 million headwind from exchange rates in the current period, net sales increased $146 million, or 9%, over prior year."

For the fiscal quarter ending 4/4/22, company guides to adjusted E.P.S. of $.24 to $.31 and $1.64 to $1.81 for the fiscal year. 

Adjusted E.P.S. was reported at $.53 in the 2021 third quarter beating the consensus estimate by 6 cents. 

Adjusted E.P.S. was reported at $.47 in the 2021 second quarter beating the consensus estimate by 8 cents. 

GAAP to Non-GAAP: 

HBI received a significant boost from PPE sold during the pandemic. PPE revenues in 2020 were reported at $820M. 

The company suffered in 2020 from Target's decision to discontinue the C9 Champion brands after 15 years Champion is ending a popular line at Target HBI moved that brand to Amazon as the exclusive seller. HanesBrands Launches Popular C9 Champion Brand With Amazon in Multiyear Exclusive Agreement; Amazon.com : C9 by Champion

The company has also been negatively impacted by the pandemic which hurt sales through retail outlets and the ongoing supply chain problems related thereto. 

Purchase Restriction: Each subsequent purchase must be at the lowest price in the chain. 

C. Pared CTRA in Fidelity Account: Sold Highest Cost 5 shares at $23.83: 

Quote: Coterra Energy Inc.

CTRA SEC Filings

Website: Coterra Energy

Coterra Energy - Investor Relations

This company was recently formed through the merger of Cimarex and Cabot Oil, both publicly traded companies. Cabot Oil & Gas and Cimarex Energy Complete Combination, Forming Coterra Energy (10/1/21) I have a faint memory of owning Cimarex in the distant past. 

This stock was favorably mentioned in this recent Barron's article. 7 Stocks to Play the Rally in Natural Gas | Barron's (3/4/22). 

Last Discussed: Item # 2.J. Started CTRA in Fidelity Taxable Account - Bought 5 at $21.53; 2 at $21.1; 2 at $20.75;  2 at $20.4; 2 at $20 and 1 at $19.56 (12/10/21 Post) 

Profit Snapshot: +$10.15

New Average Cost per share this account: 19.79 (20 shares)

The AC per share was reduced from $20.19. 

I own this stock in other taxable accounts and in 2 Roth IRA accounts. 

Dividend: The last quarterly dividend was $.56 per share that went ex dividend on 3/4/22. Coterra Energy - Dividend History

CTRA is one of the energy producers that pay both a regular and variable dividend. The regular quarterly dividend is $.15 per share. The variable dividend is based on free cash flow. The general policy is to pay out 50%+ of free cash flow through the base and variable dividend framework. 

"Based on fourth-quarter 2021 free cash flow (non-GAAP), Coterra's Board today declared a quarterly base plus variable dividend of $0.56 per share. The base plus variable dividend reflects a $0.15 per share base component and a variable component of $0.41 per share, on the Company's common stock. The combined base plus variable dividend represents 48 percent of cash flow from operating activities in fourth-quarter 2021, or 60 percent of free cash flow (non-GAAP)" Coterra Energy - Coterra Energy Reports Fourth-Quarter and Full-Year 2021 Results, Provides 2022 Outlook and Updates Shareholder Return Strategy

In Millions

I can not compute a yield given the variable dividend. Using the $.15 quarterly base dividend only, the yield would be 3.03% at $19.79. If I assumed an average annual variable dividend of $1.64 per share (the last variable of $.41 x. 4), a totally unreasonable assumption that will not actually happen, the yield would be 11.32%.  

Last Earnings Report (Q/E 12/31/21):

GAAP E.P.S. at $1.16

Non-GAAP E.P.S. at $.83

GAAP to Non-GAAP: 

The main deduction from GAAP is a $451M non-cash change mark-to-market change in commodity derivative instruments. The details of the outstanding contracts as of 2/23/22 are summarized in the press release. 

Average Realized Prices in 4th Q. including hedges: 

2022 Guidance: 

D. Added to DGX - Bought $50 at $132.85; $50 at $129.96: 

Quote: Quest Diagnostics Inc.

Quest Diagnostics - Investor Relations

DGX Analyst Estimates | MarketWatch

DGX SEC Filings 

2021 SEC Filed Annual Report 

Last Discussed: Item # 2.G. Bought 1 DGX at $141.45  (11/26/21 Post) 

Average Cost per share: $137.33 (1.76 shares) 

Dividend: Quarterly at $.66 ($2.64 annually), increased from $.62 effective for the 2022 second quarter payment. 

DGX Dividend History | Nasdaq

The quarterly dividend was $.30 per share in 2014. A reasonable forecast IMO is that it will double again within 7 years. 

Yield: 1.92%

Next Ex Dividend: 4/5/22

Last Earnings Report (Q/E 12/31/21): 

Earnings and revenues were down compared to the 2020 4th quarter due to lower Covid testing revenues. 

GAAP to Non-GAAP: 

Guidance for 2022: Adjusted E.P.S. range of $8.65 to $9.35, compared to $14.24 actual for 2021 and $11.18 in 2020 but up from $6.56 in 2019 

The bonanza from Covid testing is expected to fade this year. As with HOLX, the stock is being priced in my opinion as if the cash and earnings generated by Covid testing never existed.  

Investment Restriction: Purchases will be in $50 to 1 share lots. Each subsequent purchase will have to lower my average cost per share. 

E. Bought 5 SJIJ at $24.07: 

Quote: South Jersey Industries Inc. 5.625% Junior Subordinated Notes due 2079 

I do not plan to buy more shares based on a development occurring after this purchase which I discussed in a 2/24/22 comment. The problem is South Jersey agreed to be acquired for $36 in cash. SEC Filing That is good news for me as a common shareholder. 

Since the acquiring company is not publicly traded, SJIJ may be delisted from NYSE trading provided the company no longer files reports with the SEC. 

Trading could continue with those filings, and some privately owned firms have NYSE traded securities. I own two of them. Healthcare Trust of America Inc. 7.375% Cumulative Preferred Series A Stock (HTIA); Tectonic Financial Inc. 9% Fixed-to-Floating Rate Perp. Pfd. Series B Stock Quote (TECTP) 

However, in those limited cases where a private company is filing SEC reports, the privately owned firms wanted to sell publicly traded securities and consequently agreed to file those reports, rather than a situation where a publicly traded company that has already issued preferred stock or exchange traded bonds and then goes private. In the later case, there are only costs associated with preparing those reports. 

In the event that SEC filings cease and the security is delisted from NYSE trading, SJIJ may be picked up for trading on the U.S. Grey Market but, if that does not happen, there would be no way to sell the shares. 

There is also a potential issue that the private company may not pay common share dividends and would consequently be legally entitled to defer interest payments on the junior bond for up to 10 years, though the deferred interest would earn interest at the coupon rate which lessens the appeal of that approach.  

I am in a wait and see what happens with SJIJ. If it looks like the security may be delisted, I will sell this 5 share lot while I can without any trouble. 

Issuer:  South Jersey Industries Inc. (SJI) I own the common shares. SJI is a natural gas utility. 

SJI SEC Filings 

Category: Exchange Traded Baby Bonds

Prospectus 

Par Value: $25

Maturity Date: 9/16/2079

Optional Redemption: On or after 9/16/24 at par value, plus any accrued and unpaid interest. 

Interest Payments: Quarterly and Trades Flat 

Yield at $24.07: 5.84%

Last Ex Interest Date: 2/28/22 (owned as of)

Place in Capital Structure: Senior only to common and any equity preferred stock and junior to all senior debt. 

Right of Deferral: The issuer may defer interest payments for up to 40 consecutive quarters, but deferral is allowed only after cash dividend payments are eliminated on junior securities. Deferred interest will accrued interest at the coupon rate of 5.625%. 

Stopper clause at page S-24: 

A "stopper clause" is the legal mechanism that enforces a superior claim to cash.  

I also own a few common shares. 

F. Added to DNNGY-Bought 2 at $32.97: 

Quotes: 

USD: Oersted A/S ADR

DKK: Oersted A/S  (Denmark: OMX)

DKK to USD -Danish Krone to US Dollars

Investors | Ørsted

Website: Renewable Energy Solutions to Fight Climate Change | Ørsted

Green Energy Solutions | Ørsted

Europe has now recognized that relying on Russia for natural gas and crude oil is contrary to their national security interests and a clear threat to their democracies. Oersted will benefit from decisions to substitute renewable energy generation for current reliance on Russia's natural gas. 

Last Buy Discussions: Item # 1.M. Added to DNNGY-Bought 1 at $35.4 (1/27/22 Post); Item # 1.H. Added to DNNGY-Bought 1 at $40.37; 2 at $38.65; 1 at $37.28 (1/20/22 Post). I discussed the third quarter financial report in this post:  Item # 2.J. Bought Back 5 DNNGY at US$45.16 (11/5/21 Post)

Last Shareholder Report: Annual report for 2021: Ørsted achieved significant results, both strategically, operationally, and financially, despite an extraordinary year with various external factors significantly impacting the markets where we operate

Ørsted - Q4 2021 - Investor presentation.pdf:

G. Added to CMCSA-Bought 1 at $47.32; 1 at $45.2: 

Quote: Comcast Corp. Cl A

Investment Categories: Large Cap Valuation/Dividend Growth 

CMCSA Analyst Estimates | MarketWatch (as of 3/8/22, consensus E.P.S for 2022 at $3.56; at $4 in 2023 and at $4.76 in 2024). 

CMCSA SEC Filings

2021 Annual Report 

Summary of Businesses at page 1 

Last Buy Discussions: Item # 1.B. Added to CMCSA- Bought 1 at $49.55; 1 at $48.92; 2 at $47.75 (12/31/21 Post); Item # 2.J. Added to CMCSA-Bought 2 at $51.91 (12/3/21 Post)

Average Cost per share: $49.91 (13+ shares) 

Dividend: Quarterly at $.27 per share ($1.08 annually), last raised from $.25 effective for the 2022 second quarter payment.  

CMCSA Dividend History | Nasdaq

Yield at AC = 2.16%

Next Ex Dividend: 4/5/22

Last Earnings Report (Q/E 12/31/21):  Comcast (CMCSA) SEC Filed Press Release 

Non-GAAP E.P.S. of $.77 per share with the consensus at $.734; 

Revenues up 9.5% to $30.336B; 

Free cash flow of $3.784B, up 122.6% from the 2020 4th quarter; 

For 2021, adjusted E.P.S. at $3.23 with GAAP at $3.04 and free cash flow at $17.1B; 

The adjustment to GAAP is for amortization of acquisition related intangible assets   

H. Added to JRI in Vanguard Taxable-Bought 9 at $14.76: 

Quote: Nuveen Real Asset Income & Growth Fund Overview

Sponsor's website: JRI - Nuveen Real Asset Income and Growth Fund

JRI SEC Filings

Investment Category: Monthly Income Generation 

Leveraged: Yes at 30.33% as of 3/3/22

My last transaction in this account was to sell 9 shares at $16.11: 

Average cost per share this account: $11.32 (58+ shares)

Dividend: Monthly at $.0965, with some ROC support

Yield at AC this account: 10.23%

Data Date of 2/15/22 Trade: 

Closing Net Asset Value Per Share: $16.41

Closing Market Price: $14.78

Discount: -9.93%

Sourced:  JRI-CEF Connect (click "Pricing Information" tab)

Other Recent Buy Discussions: Item #2.A. Bought 13 JRI in Fidelity Account- Averaged Up (1/7/22 Post)(120 shares with an AC at $10.93 per share);  Item # 1.G. Added to JRI-Bought 10 at $11.8; 10 at $11.66 (8/1/20 Post); Item # 1.C. Added 5 JRI at $8.95; 10 at $8.09; 10 at $10.16; 10 at $10.66 (5/16/20 Post)

Sell Discussions: Item # 1.I. Pared JRI Again-Sold 12.661 shares at $16.31-Remaining Shares Bought With Dividends in Fidelity Taxable Account (10/1/21 Post)(profit snapshot = $53.03); Item # 2.C. Pared JRI-Sold 22.235 at $16.11(8/6/21 Post)(profit snapshot = $42.31); Item # 2.A. Pared JRI-Sold 30 at $15.9-highest cost shares (6/19/21 Post)(profit snapshot = $14.73); Item # 1.K Eliminated JRI in Schwab Taxable Account-Sold 100 at $11.48  (6/6/20 Post)(profit snapshot = $69.35); Item # 2.A. Sold 102+ JRI at $17.98 (12/22/19 Post)(profit snapshot = $140.67); Item # 1.A. Sold 100 JRI at $17.51(10/30/19 Post )(profit snapshot = $100.41); Item # 4 Sold 100 JRI at $17.23 (10/2/19 Post)(profit snapshot = $40.45)   

JRI Realized Gains to Date = $480.92

I. Eliminated NJR-Sold 10 at $40.18: 

History: 

Quote: New Jersey Resources Corp. (NJR)

NJR Analyst Estimates | MarketWatch

NJR SEC Filings

10-Q for the Q/E 12/31/21 

Last Discussed: Item # 1.A. Bought 10 NJR at $29.08 (11/21/20 Post) 

Profit Snapshot: +$111.01

NJR is a natural gas utility operating in New Jersey. Subsequent to selling NJR, another NJ natural gas utility South Jersey Industries Inc.  (SJI) , which I still own, agreed to be bought out at a premium price (see discussion in Item # 2.E. above). That development caused NJR's stock price to rise into the mid 40s range. 

Dividend: Quarterly at  $.363 per share 

NJR Dividend History | Nasdaq

Next Ex Dividend: 3/15/22

Last Earnings Report (Q/E 12/31/21): SEC Filed Press Release Earnings will be substantially impacted by the weather. 

"Re-affirmed fiscal 2022 net financial earnings per share (NFEPS) guidance range of $2.20 to $2.30"

J. Eliminated FTS- Sold 10 at $45.16:  

Quotes: 

USDs: Fortis Inc.

CADs: Fortis Inc.  (Canada: Toronto) 

Canadian Dollar to US Dollar Exchange Rate Chart | Xe

Website: Fortis

FTS SEC Filings (SEC Forms for foreign company)

Last Buy Discussions: Item # 1.K. Added to FTS-Bought 5 at $39.25; 5 at $38.71 (3/13/21 Post); Item # 3.A. Started FTS-Bought 5 at $40.25 (1/30/21 Post)

Profit Snapshot: +$61.85

Last Sell Discussion: Item # 1.A. Pared FTS - Sold 5 at $46.25 (7/2/21 Post) 

Dividend: Quarterly at C$.535

Next Ex Dividend: 5/16/22

Last Earnings Report (Q/E 12/31/21): SEC Filed Press Release 

All amounts in Canadian Dollars: 

GAAP E.P.S. at $.69

Non-GAAP at $.63

"For the fourth quarter of 2021, Net Earnings were $328 million, or $0.69 per common share, compared to $331 million or $0.71 per common share for the same period in 2020. Results for the quarter reflected a reduction in sales due to milder weather and lower investment gains in Arizona, the timing of earnings at FortisAlberta, and higher non-recoverable costs at Central Hudson and ITC. Lower hydroelectric production in Belize and the impact of foreign exchange also unfavourably impacted Net Earnings for the quarter. These factors were partially offset by growth in rate base, the finalization of Central Hudson's rate application, with retroactive application to July 1, 2021, and the favourable impact of mark-to-market accounting at Aitken Creek. The increase in the weighted average number of common shares also unfavourably impacted net earnings per common share in comparison to the fourth quarter of 2020."

GAAP to Non-GAAP: 

2021 Non-GAAP E.P.S. at C$2.59, up from $2.57. 

Using a current CAD/USD exchange rate of about .78, the C$2.59 E.P.S. would convert into U.S.$2.20. Using that TTM E.P.S. number, the P/E at a US$45.16 price is about 22.36 with no meaningful Y-O-Y E.P.S. growth. 

Consider to Buy: My consider to buy price is currently below $40, partially due to concerns about interest rates rising faster than currently expected, thereby reducing the bond substitute appeal of this stock. I also view the P/E ratio at my sale price as high given the low earnings growth prospects.  

K. Eliminated Dominion Energy (D)- Sold 5 at $80.92 (Vanguard Taxable) and 5 at $81.95 (Fidelity Taxable): 

Quote: Dominion Energy Inc

SEC Filings

Dominion Energy Inc Profile | Reuters

Investor Relations | Dominion Energy

2021 Annual Report 

Profit Snapshots:  +$72.41

+$43.79 

+$28.62

I mentioned in my last post that $80+ was my marker for considering sells. Item # 2.D. Eliminated D in Schwab Account- Sold 4 at $80.59 (3/3/22 Post) I have nothing substantive to add to that discussion. 

Dividend: Quarterly at $.63 per share 

Dividends & Splits | Dominion Energy

Last Ex Dividend:  3/3/22

I sold the 5 share lot held in my Vanguard account on the 3/3/22 ex dividend date and the second lot on 3/4/22.  

Other Sell Discussions: Item # 3.E. Pared D-Sold 2 at $80.23, 2 at $80.24 (5/14/21 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)

My consider to buy range is now below $70. There are two reasons: the recent substantial dividend cut (previously discussed) and a potential rise in interest rates that make the current dividend yield far less attractive. 

Last Buy Discussions: Item # 2.M. Added 2 D at $71.02 - Fidelity Taxable (12/22/21 Post); Item # 1.E. Added to D in Fidelity Account - Bought 1 at $72.79 (11/11/21 Post); Item # 3.H. Bought 2 D at $75.65; 1 at $75.19; 2 at 74.75-Vanguard Taxable (8/20/21 Post); 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)

Current Common Stock Position: None.  

Bond Position:  

Virginia Electric is a wholly owned subsidiary 

L. Added 1 PHG at $31.12; 1 at $30.41; 1 at $29.55: 

Quotes: 

USDs: Koninklijke Philips N.V. ADR

Euros: Koninklijke Philips N.V. (Euronext Amsterdam)

Euro to US Dollar Exchange Rate Chart | Xe

The Euro has declined against the USD in response to Russia's invasion of Ukraine which has pressured the USD ADR to the downside. 

New AC per share: $31.20 (5 shares)

I recently discussed this stock and have nothing further to add here: Item # 4.J. Bought 1 PHG at $33.03; 1 at $31.7 (2/24/22 Post) I discussed the last earnings report in that post. SEC Filed Press Release

I am just averaging down in 1 share lots until I reach 10 shares.  

M. Added 5 ABB at $31.5: 

Quotes: 

USDs: ABB Ltd. ADR

Swiss Francs: ABB Ltd.   (Switzerland: SWX )

Swiss Franc to US Dollar Exchange Rate Chart | Xe

New Average Cost per share: $33.68  (15 shares)

I recently discussed this stock and have nothing further to add here: Item # 2.A. Bought 10 ABB at $34.78 (3/3/22 Post) I discussed the last earnings report in that post. Q4 2021 results | ABB

I am just averaging down in 5 share lots until I reach 100 shares. 

N. Pared VYGR in Fidelity Account-Sold 15 of 25 at $5.39 and Eliminated VYGR in Vanguard Account-Sold 20 at $5.42: 

Quote: 

Investment category: Lottery Ticket Basket

Website: Voyager Therapeutics

SEC Filings 

2021 SEC Filed Annual Report ("Our scientists have developed TRACER, a proprietary AAV capsid discovery platform to facilitate the selection of TRACER capsids with BBB crossing and cell-specific transduction properties for particular therapeutic applications. In May 2021, we presented new data demonstrating that we have developed a series of novel AAV capsids which, following intravenous administration, achieve up to 1000-fold higher RNA expression in the brain and 100-fold higher expression in the spinal cord of nonhuman primates than AAV9, the current natural AAV serotype with the best ability to ability to cross the BBB. We also identified a capsid which displayed strong cardiac transduction and significant dorsal root ganglia detargeting in nonhuman primates, which may avoid toxicities associated with AAV9 delivery. We believe these capsids may allow for significantly enhanced gene delivery to specific types of cells in the brain at lower doses. These capsids are now in advanced stages of characterization for deployment in our gene therapy development programs. We are also applying the TRACER discovery platform towards further capsid variant libraries and selection for tropism and transduction in additional cell and tissue types, such as cardiac and other tissues." There is nothing worthwhile that I can add to that summary and the other material in the Annual Report other than to note that it remains to be seen whether the drug discovery platform will lead to marketable drugs.  

Pipeline | Voyager Therapeutics (none of the compounds listed are in trials)

Profit Snapshots: +$41.97

15 shares +$13.57

20 Shares +$28.4

Remaining Shares Fidelity Account: 10 with an AC of $3.41: 

Snapshot Intraday on 3/8/22 after pare

I also still own 15 shares in my Schwab taxable account with an AC at $3.71: 

The shares popped on 3/8/22 (+33.33%) in response to this news: Voyager Therapeutics Announces License Option Agreement with Novartis ("Voyager will receive $54 million upfront and is entitled to receive up to $37.5 million in exercise fees for options for three initial CNS targets, exercisable by Novartis within 12 months of signing. In addition, Novartis may elect to evaluate capsids for up to two additional targets to be agreed on in the future, subject to their availability, for $18 million upon selection of each target, and a $12.5 million exercise fee for selection of a capsid for each target. Voyager is also eligible to earn up to $1.5 billion in potential development, regulatory, and commercial milestones for products utilizing Voyager licensed capsids, as well as mid- to high-single-digit tiered royalties based on net sales of Novartis products incorporating the licensed capsids.")

The shares popped last October in response to a license agreement with Pfizer but faded quickly thereafter. Voyager Therapeutics Announces License Option Agreement with Pfizer (10/6/21) The shares closed at $2.47 on 10/5/21 and at $3.87 the next day with volume at 203+M shares. The intraday high was hit a few days later at $5.73, closing that day at $5.55. The stock had drifted down to a $2.77 close on 12/14/21. I started to buy during that price drift down after the Pfizer license was announced.  

Last Report (Q/E 12/31/21): Voyager Therapeutics Reports Fourth Quarter and Full Year 2021 Financial and Operating Results | Voyager Therapeutics Inc. The company reported a GAAP profit of $.15 per share based on the Pfizer upfront license payment noted above. 

Cash, cash equivalents and marketable securities: $132+M 

The company expects to have enough cash to fund operations into 2024. 

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.