Economy:
The government estimated that real GDP fell 1.4% in the first quarter. That is the first estimate. U.S. Q1 GDP declined 1.4% The consensus was for +1%. Gross Domestic Product | U.S. Bureau of Economic Analysis (BEA)
Mortgage Applications Decrease in Latest MBA Weekly Survey | MBA For the week ending 4/22/22, mortgage application volume on a seasonally adjusted basis decreased by 8.3% compared to the prior week. The mortgage refinance index was down 71% from the same week in 2021.
Russia to Halt Gas Deliveries to Poland and Bulgaria - YouTube Economic sanctions need to be made permanent as a national security matter.
Russian ADRs quit trading in the U.S. on 2/15/22. (e.g. Mobile TeleSystems PJSC ADR (MBT). Trading in USD priced Russian ETFs was suspended on 3/4/22 with ERUS closing that day at $8.06, down from a 52 week high of $52.8. iShares MSCI Russia ETF (ERUS) Russia is uninvestable IMO, either through stock ownership or capital investments by companies located in western democracies. Putin chose that result rather than peaceful co-existence and mutually beneficial economic relationships.
+++
Markets:
ETF Year-to-Date Total Returns: As of 4/26/22
Total Return includes reinvestments of dividends.
Not Working:
S&P 500 ETF Trust (SPY) = -11.88%
Invesco QQQ Trust (QQQ) = -20.28%
iShares Russell 2000 ETF (IWM) = -15.44%
Dow Jones Industrial ETF (DIA) = -7.89%
Dow Jones Internet ETF (FDN) = -31.16%
Technology Select Sector ETF (XLK) = -18.24%
Biotechnology ETF (IBB) = -21.7%
Health Care Select Sector ETF (XLV) = -6.08%
Consumer Discretionary Sector ETF (XLY) = -17.62%
Vanguard Real Estate ETF (VNQ) = -7.28%
iShares 20+ Year Treasury Bond ETF (TLT) = -18.11%
Invesco Taxable Municipal Bond ETF (BAB) = -13.86%
Investment Grade Corporate Bond ETF (LQD) = -13.82%
7-10 Year Treasury Bond ETF (IEF) = -9.22%
National Municipal Bond ETF (MUB) = -7.21%
Working:
Energy Select Sector ETF (XLE) = +36.12%
Barely Positive:
Consumer Staples Select Sector ETF (XLP) = +2.46%
Utilities Select Sector ETF (XLU) = +3.17%
+++
Earnings Reports - Owned Stocks:
AT&T (T) SEC Filed Press Release (Non-GAAP E.P.S. = $.77 with consensus at $.587 per Fidelity; 965,000 postpaid wireless net adds; 691,000 postpaid net phone adds; postpaid = monthly billing)
BCB Bancorp (BCBP) (E.P.S. at $.56 with consensus at $.498 per Fidelity; NIM = 3.46%, down from 3.48% in the 2021 first quarter; efficiency ratio = 53%; NPL Ratio = .38%; Coverage Ratio = 368.1%; ROA =1.33%; ROE = 14.7%; tangible book value per share = $14.41; noninterest expense = $12.959M, down from $13.583M in the 2021 first quarter; "Total loans receivable were $2.396 billion at March 31, 2022, up from $2.296 billion at March 31, 2021"; "Total deposits were $2.631 billion at March 31, 2022, up from $2.404 billion at March 31, 2021") The stock responded with a +7.65% gain last Friday, closing at $20.26.
Cathay General Bancorp (CATY) SEC Filed Press Release (Net income of $75M or $.99 per share; Non-GAAP E.P.S. = $1.03 with consensus at $.912 per Fidelity; NIM = 3.26%, up from 3.2% in the 2021 first quarter; Efficiency Ratio = 40.52%; Coverage Ratio = 168.28%; NPA Ratio = .4%; Charge Off Ratio: Net Recovery of $290K; ROA = 1.46%; ROE = 12.29%; Total Capital Ratio = 13.97% Non-interest expense increased $1.3 million, or 1.8%, to $72.7 million in the first quarter of 2022 compared to $71.4 million in the same quarter a year ago.)
Central Pacific Financial (CPF) SEC Filed Press Release (Net income of $19.4M or $.70 per share with the consensus at $.557 per Fidelity; Recorded a $3.8M credit to the provision for credit losses; NIM = 2.97%, down from 3.19% in the 2021 first quarter; efficiency ratio = 63.16%; NPA Ratio = .07%; Coverage Ratio = 1,213.53%; ROA = 1.06%; ROE = 14.44%; Total Risk Based Capital Ratio = 14.2%; Board declared regular quarterly dividend of $.26 per share)
Dow (DOW) SEC Filed Press Release (GAAP E.P.S. =$2.11; Non-GAAP E.P.S. at $2.34 with the consensus at $2,055 per Fidelity; "Net sales were $15.3 billion, up 28% versus the year-ago period, reflecting gains in all operating segments, businesses and regions. Sequentially, net sales were up 6%, driven by gains in Performance Materials & Coatings and Packaging & Specialty Plastics."; "Local price increased 28% versus the year-ago period"; "Volume increased 3% versus the year-ago period"; free cash flow = $1.3B)
First Hawaiian (FHB) SEC Filed Press Release (Net income of $57.7M or $.45 per share with the consensus at $.443 per Fidelity; NIM = 2.42%, down from 2.55% in the 2021 first quarter; Efficiency ratio = 59.04%; NPL ratio = .07%; ROA = .93%; ROE = 9.19%; ROTE = 15.08%; Total capital ratio = 13.48%; Dividend payout ratio = 57.78%, meaning not likely to increase quarterly dividend rate of $.26 per share; Tangible book value per share. = $10.1)
General Dynamics (GD) SEC Filed Press Release (Net income of $730M or $2.61 per share with consensus at $2.506 per Fidelity; revenues up 5% Y-O-Y to $9.392B)
++++
Putin is an autocratic psychopath who will murder people on a vast scale. In that respect, he is no different from Stalin or Hitler.
Earlier this week, Russia raised again the prospect of nuclear war unless the western democracies quit helping Ukraine resist the Russian invasion, Russia's attempted overthrow of a democratically elected government, its intentional slaughter of Ukrainian civilians and the massive intentional destruction of civilian structures including apartments, homes, small businesses, industrial plants, hospitals, and schools. Russia’s Sergey Lavrov Warns of ‘Real’ Nuclear War Risk Over Ukraine - Bloomberg; Pentagon chief: ‘Irresponsible’ for Russia to talk about potential nuclear escalation | The Hill
Russian State TV: Vladimir Putin May Start a Nuclear War but We Are Ready to Die
Putin vows 'lightning-fast' retaliation against other nations in Ukraine war This speech was made to Russia's "parliament". The Russians applauded Putin's threat to murder everyone on the planet. So that is a clear sign that Russia's invasion of Ukraine is not going well. Putin's threats of nuclear annihilation are a strong indication of Russia's glaring conventional military weakness that has resulted in out-of-control craziness to use nuclear weapons.
In response to recent setbacks against the Ukrainian military, Russia targeted an apartment complex in Odessa with two cruise missiles, murdering several civilians including an infant. Russian missiles hit Odessa apartment blocks, killing at least 8; Odesa missile attack: 'My world was destroyed by a Russian missile' - BBC News
Clarissa Ward found that Russia was intentionally targeting apartment buildings in Kharkiv, which has a large Russian speaking population, and then doing a "double tap" targeting paramedics and other first responders. Those attacks occur nowhere near the current fighting. See the moment CNN crew gets caught in Russian shelling - YouTube (see "double tap" coverage at 2:08); Clarissa Ward reports from city pulverized by Russian strikes - YouTube
Who Is Olga Skabeyeva, Russian Propagandist Who Made WWIII Remark After reading her comments, I concluded that she is in dire need of a brain transplant.
Russians accused of burying 9,000 civilians in mass grave near Mariupol: April 21 recap. republished by MSN.com from Mariupol mayor says Russians buried 9,000 civilians in mass grave: USA Today And how many of those murdered civilians were Russian speakers?
Russia aims to take "full control" of southern Ukraine, Major General Rustam Minnekayev says - CBS News Russia wants to absorb all of Ukraine. As made clear by Minnekayev, Russia's first bite is to conquer all of Eastern and Southern Ukraine, creating a land bridge to Crimea, previously seized from Ukraine in 2014, and then through Odessa to the Russian created separatist region in Moldova which is probably next on Russia's conquest list. The ostensible reason given by Minnekayev for Russia's military aggression and crimes against humanity is to protect Ukrainians who speak Russian from discrimination, assuming they survive Russia's effort to help them.
U.S., Ukrainian officials weigh ‘high possibility’ of Putin invading Moldova - POLITICO
Mystery over FOUR 'suspicious suicides' of Russian gas executives 'linked to Putin' | Daily Mail Online; Two Russian gas executives and their families found dead within 24 hours - YouTube
Russian journalist gives update on what Russians are hearing about war - YouTube
Russia's tanks in Ukraine have a 'jack-in-the-box' design flaw. And the West has known about it since the Gulf war Even without the design flaw, tanks are largely an outmoded weapon given the prevalence an anti-tank weapons capable of being transported by one person.
+++
1. Eliminated CU:CA - Sold 100 at C$38.6:
Quote: Canadian Utilities Limited (CU-TO)
CU.TO - Canadian Utilities Limited Profile | Reuters
Canadian Dollar to US Dollar Exchange Rate Chart | Xe
CANADIAN UTILITIES REPORTS 2021 EARNINGS
This elimination is part of my ongoing elimination of utility stocks.
Profit Snapshot: +C$433
Buy Discussion: Item # 1. Bought 100 CU:CA at C$34.25 (5/8/21)
Consider to Repurchase: <C$32
If the total cost was s at C$31, for example, the dividend yield would be 5.7% using the current dividend rate.
Dividend: Quarterly at C$.442 per share (C$1.768 annually)
Canadian Utilities | Dividends & Stock Splits
Last Ex Dividend: 2/2/22 (owned as of)
Last Earnings Report (Q/E 3/31/22): This report was released yesterday evening.
"Canadian Utilities Limited (Canadian Utilities or the Company) today announced first quarter 2022 adjusted earnings of $219 million ($0.81 per share), $28 million ($0.11 per share) higher compared to $191 million ($0.70 per share) in the first quarter of 2021."
"First quarter earnings attributable to equity owners of the Company reported in accordance with International Financial Reporting Standards (IFRS earnings) were $227 million ($0.78 per Class A and Class B share), $86 million ($0.32 per Class A and Class B share) higher compared to $141 million ($0.46 per Class A and Class B share) in the first quarter of 2021."
CANADIAN UTILITIES REPORTS FIRST QUARTER 2022 EARNINGS
2. Corporate Bonds and Treasuries:
I am very slowly building a bond ladder. The weighted average maturity is currently close to 2.5 years. Most of the ten year treasury yield can be picked up with a two year treasury note.
These purchases are best described as a return of my money investments rather than a return on my money, though I do view the income generation as satisfactory given my financial situation and objectives.
A. Bought 2 Ares Capital 2.15% SU Bonds Maturing on 7/15/26 at a Total Cost of 91.07:
Issuer: Ares Capital Corp. (ARCC) - An Externally Managed BDC
I own the common shares and have been selling my highest cost shares.
Credit Ratings: Baa3/BBB-
Bought at 90.97
Total Cost at 91.07 includes $1 per bond commission
YTM at Total Cost = 4.46%
Current Yield at Total Cost = 2.36%
B. Bought 2 Entergy 2.95% SU Bonds Maturing on 8/1/2026 at a Total Cost of 98.368:
%202.95%25%209:1:26.png)
FINRA Page: Bond Detail
Issuer: Entergy Corp. (ETR)
Credit Ratings: Baa2/BBB
Bought at 98.268
Total Cost at 98.368 (includes $1 per bond commission)
YTM at TC = 3.351%
Current Yield at TC = 3%
I recently eliminated my common stock positions.
The ETR dividend yield at yesterday's closing price of $120.68 is about 3.35%, the same as the this bond's YTM. When that occurs for a utility company stock, I will generally go with the bond and give up the dividend increases in exchange for the safer security. The reason involves my capital preservation investment objective. I know what my total return will be when this bond matures but it is unknowable whether or not the ETR stock price will add to or subtract from the dividend yield on 8/1/26.
C. Bought 1 Treasury 2.125% Coupon Maturing on 3/31/24:
%202.125%25%203:31:24.png)
YTM = 2.44%
Current Yield: 2.14%
D. Bought 1 Treasury 2.25% Coupon Maturing on 10/31/24:
%202.25%25%2010:31:24%20.png)
YTM = 2.474%
Current Yield = 2.26%
E. Bought 1 Treasury 2.25% Coupon Maturing on 11/15/24:
%202.25%25%2011:15:24.png){kind=small}
YTM = 2.44%
Current Yield: 2.26%
F. Bought 1 Treasury 2.125% Coupon Maturing on 11/30/24:
%2011:30:24%20.png)
YTM = 2.48%
Current Yield = 2.14%
Fidelity Order Book at Time of Purchase:
%202.5%25%201:31:25.png)
%201.75%25%206:30:24%20.png){kind=small}
3. Bought 100 NYCB at $10.52-Vanguard Taxable Account:
Quote: New York Community Bancorp Inc. (NYCB)
Investment Category: Regional Bank Basket Strategy
Dividend: Quarterly at $.17 per share ($.68 annually)
NYCB Dividend History | Nasdaq
The $.17 rate was initiated effective for the 2016 first quarter payment and was then reduced from the previous $.25 per share.
Yield at $10.52: 6.46%
Last Ex dividend: 2/4/22
Last Earnings Report (Q/E 3/31/22): This report was released yesterday after the market's close. SEC Filed Press Release
GAAP Net Income of $147M or $.31 per share.
Non-GAAP at $.32, which excludes acquisition related expenses. NYCB is in the process of acquiring Flagstar Bancorp.
Consensus at $.314 per Fidelity
NIM = 2.43%, steady.
Efficiency Ratio: 38.65% (excellent)
NPA Ratio = .11% (excellent)
Coverage Ratio = 313.18%
Charge off ratio = Net recovery of $2M.
ROTE 14.76%
Earnings Report (Q/E 12/31/21): New York Community Bank (NYCB) SEC Filed Press Release
Non-GAAP E.P.S. = $.31 with the consensus at $.31;
GAAP E.P.S. at $.30;
"2021 GAAP diluted EPS was up 18% to $1.20 compared to $1.02 in full-year 2020;
NIM = 2.43%
Non-GAAP diluted EPS for full-year 2021 were $1.24, up 43% compared to non-GAAP diluted EPS in full-year 2020.";
NIM = 2.44%, down from 2.47% in the 2020 4th quarter;
Efficiency ratio = 37.7%;
NPA ratio = .07%;
NPL Ratio = .07%;
Coverage ratio = 611.79%;
ROA = 1.03%;
ROE = 8.71%;
ROTE = 14.37%;
For 2021 4th Q, "total non-interest expenses were $135 million, unchanged on a linked-quarter basis and up $1 million compared to the year-ago fourth quarter. Included in fourth quarter 2021 were $7 million in merger-related expenses, compared to $6 million during the third quarter and zero compared to the year-ago fourth quarter. Excluding this item, total operating expenses were $128 million for the current fourth quarter compared to $129 million for the third quarter and $134 million in the year-ago fourth quarter.";
Tangible book value per share = $8.85
The adjusted NIM, which excludes 12 basis points from loan and security prepayments, was reported at 2.32%, up 2.24% in the 2020 4th Q.
Sell Discussions: Item # 1.A. Eliminated NYCB in Fidelity Account-Sold 46+ shares at $12.31 (3/10/19 Post); South Gent's Comment Blog # 5: Sold 50 NYCB at $15.58 (11/16/16 Comment); Update For Regional Bank Basket Strategy As Of 10/19/15 - South Gent | Seeking Alpha: Item # 1 Sold 150 NYCB at $18.57 (profit snapshot = $999.66); Item # 2.D. Sold 50 NYB at $14.25 (3/25/13 Post); Item # 7 Sold 50 NYB at $17.51 (7/28/2010 Post)(profit snapshot +$331.03)
NYCB Realized Gains to Date: $1,470.16
4. Eliminated GIS in Schwab Account - Sold 21+ at $71:
Quote: General Mills Inc
General Mills: Brands overview
Profit Snapshot: +$294.64
Last Buy Discussions: Item 3.L. Added to GIS in Fidelity Account-Bought 1 at 58; 1 at $57.67 (8/20/21 Post); Item # 1.G. Added to GIS in Fidelity Taxable Account-Bought 5 at $55.9; 5 GIS at $55.5; 5 at $55.2; 5 at $54.9; 5 at $54.5; 5 at $54 (2/6/21 Post); Item # 1.A. and 1.B. Started GIS in Schwab Taxable account and Added to GIS in Fidelity Taxable Account (1/9/21 Post)
The lowest price paid over the past 3 years was $36.75. Item # 5 A. Bought 2 GIS at $40.25, 2 at $39.45, 10 at $38.3 and 5 at $36.75-Used Commission Free Trades (12/29/18 Post)
Dividend: Quarterly at $.51 per share, last raised from $.49 effective for the 2020 4th quarter payment.
Last Earnings Report (3rd F/Q ending 3/27/22): SEC Filed Press Release
Adjustments to GAAP:
GAAP E.P.S. at $1.08 which includes a $170M net pre-tax gain on divestitures;
Non-GAAP E.P.S. at $.84 with the consensus at $.781 per Fidelity;
"Net sales were essentially flat to last year at $4.5 billion, including a 3-point net headwind from divestiture and acquisition activity. Organic net sales increased 4 percent, reflecting 7 points of positive organic net price realization and mix, partially offset by a 4-point headwind from lower organic pound volume.";
"Third-quarter net sales for the Pet segment increased 30 percent to $568 million, driven by favorable net price realization and mix and strong volume growth. Net sales results in the quarter included a 14-point benefit from the pet treats acquisition. Organic net sales were up 16 percent. Segment operating profit increased 8 percent to $111 million, driven primarily by favorable net price realization and mix and higher volume, including benefits from the pet treats acquisition, partially offset by higher input costs and higher SG&A expenses.";
For fiscal 2022, "Constant-currency adjusted diluted EPS are now expected to range between flat and up 2 percent, driven by the higher outlook on adjusted operating profit. Adjusted diluted EPS were previously expected to range between down 2 percent and up 1 percent."
Shortly before the report was released, JPM reiterated its neutral rating and reduced its price target to $64 from $67 (3/22), while GS reiterated its sell rating while raising its PT to $58 from $57 (3/16).
I still own GIS in several accounts with the largest being a 60 share position held in my Fidelity account with an average cost per share of $56.12.
Other Sell Discussions: Item # 2.B. Sold 2+ GIS at $671. and 3 at $69.22-Fidelity Account (1/7/22 Post)(profit snapshot = $46.67); Item # 3.B. Sold 1.582 GIS at $64.42 - Eliminated Shares Bought with Dividends (6/4/21 Post)(profit snapshot = $8.09); Item # 1.A. Pared GIS in Fidelity Taxable-Sold 4 at $61.37 (4/17/21 Post)(profit snapshot = $9.95); Item # 1.A. Eliminated GIS-Sold 27+ at $54.86 (3/21/20 Post)(profit snapshot = $426.37); Item # 1.A. Sold 13 GIS at $55.02-Used Commission Free Trade (8/17/19 Post)(profit = $134.13); Item 1.B. Sold Highest Cost GIS lots at $51.69 (4/7/2019 Post); Item #2.A. Sold 10 GIS at $56.18-Used Commission Free Trade (12/21/17 Post) Snapshots of 2007 through 2017 round-trip trades can be found in Item 1.B (+$1,809.99). The largest single gain was $1,285.51 realized on a 52 share lot in 2016. There have not yet been any realized losses.
Realized Gains Starting in 2007: $2,714.
5. Pared SHEL in Schwab Taxable Account- Sold All Shares with a cost basis over $50:
 |
| 29 shares sold at $58.34 |
Quote: Shell PLC ADR (SHEL), formerly known as Royal Dutch Shell.
Average cost per share before pare: $42.84
Average cost per share after pare: $33.3
 |
| As of close on 4/19/22 after pare |
Dividend: Last Quarterly at US$.48 per share ($1.92 annually)
As previously discussed, SHEL slashed its dividend in 2020 from 47 to 16 cents. Shell cuts dividend for first time since WW2 - BBC News Chevron and Exxon did not cut their dividends.
Yield at $33.33: 5.76%
Last Ex Dividend: 2/17/22
Last Buy Discussion: Item # 1.F. Added to RDSB-Bought 1 at $34.08; 1 at $28.9, 1 at $27.61; 1 at $24.88; 1 at $24.18- Schwab Taxable (5/23/20 Post) I still own those shares.
Last Earnings Report (Q/E 12/31/21): Shell PLC (SHEL) SEC Filed Press Release
Adjusted ADR E.P.S. at $1.66
Consensus at $1.409 per Fidelity
Recent Sell Discussions: Item # 1.P. Pared RDSB in Schwab Taxable- Sold 5 at $49.36 (10/22/21 Post); Item # 3.D. Sold All Remaining Shares Purchased with Dividends in Fidelity Account at $40.14 (10/8/21 Post)(reduced my average cost per share to $25.76)
In January 2014, I sold 52+ shares of RDS/A at $70.85 and 51+ shares of RDS/B at $70.83 after a profit warning. Item #2 (1/28/2014 Post)(profit snapshots = $325.89); Cockroach Theory Definition
This stock has been in a long term bear market that started in 2014. I would characterize the recent rally- at this time - as a cyclical bull market within the confines of a long term secular bear market. Subsequent developments may prove that the rally marked the end of the long term bear market or confirm the current opinion.
Starting on 8/22/14 through 4/22/22, The Energy Select Sector SPDR ETF (XLE) produced an annual average total return of +.97% compared to 12.51% for SPY. DRIP Returns Calculator | Dividend Channel If I ended XLE period at 8/22/21, the annual average total return was -6.46%
6. Pared HTA - Sold 20 out of 70 at $31.8:
Quote: Healthcare Trust of America Inc. (HTA)
Portfolio Overview - HTA: 471 Medical Office Buildings (MOB) containing 25.6M square feet of leasable space.
HTA is in the process of being acquired by Healthcare Realty Trust Inc. (HR) If completed, each HTA share will be exchanged for 1 HR shares + $4.82 in cash per HTA share. Healthcare Realty and Healthcare Trust of America Enter Into $18 Billion Strategic Combination - Healthcare Realty This is a reverse merger where HTA will be the surviving company. I have a smaller position in HR. I intend to hold my remaining HTA shares until the merger is completed.
Last Discussed: Item # 1.H. Sold 5 HTA at $31.61; 5 at $32.89 (11/11/21 Post)(profit snapshot = $96.87) As discussed in that post, the problem with MOB REITs is that they are not materially growing funds available for distribution per share.
Last Buy Discussions: Item # 1 Bought 100 HTA at $22.8; 2 at $22 and Sold 2 at $26.7 (5/2/20 Post)
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
Profit Snapshot: +$198.37
New AC per share = $21.85
 |
| Snapshot Intraday on 4/6/22 after pare |
Dividend: Quarterly at $.325 per share ($1.3 annually)
The quarterly rate was at $.29 in 2015.
Yield at $21.85 = 5.95%
Last Ex Dividend: 4/1/22. I sold shortly after the ex dividend date.
Last Earnings Report (Q/E 12/31/21): SEC Filed Press Release
Normalized FFO per share = $.43 (FFO per share as defined by NAREIT = $.42)
Funds available for Distribution: $79.2 million, a decrease of 1.4% compared to Q4 2020.
FAD per share: $.3485
Dividend growth has been significantly restrained longer term due to the inability to increase FAD per share. FAD per share was at .344 in the third quarter of 2016. SEC Filed Press Release
While HTA and other MOB REITs have increased slightly the dividend over a long period, the increases simply narrowed the difference between FAD per share and the increased dividend rate.
Other Sell Discussions: Item # 3.B. Sold 10 HTA at $28.17; and 10 at $29.27 (7/18/20 Post)(profit snapshot = $118); Item # 2.D. Eliminated HTA-Sold 30 at $32.51 (2/8/2020 Post)(profit snapshot = $178.02); Item # 1.A. Sold 10 HTA at $31.31 (1/29/20)(profit snapshot = $44.34); Item # 2.B. Sold 10 HTA at $30.81 (11/28/19 Post)(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)
HTA Realized Gains to Date: $756.54 (currently ranked at # 10 in profits realized in this basket)
7. Small Ball:
A. Pared ENB in Schwab Account- Sold 2 at $46.77:
History this Account:
Investment Categories: Dividend Growth, Bond Substitute, Large Cap Valuation
Last Buy Discussions: Item # 1.F. Added to ENB in Vanguard Taxable Account-Bought 5 at $29.51; 5 at $28.95; 5 at $27.4 (10/31/20 Post); Item # 1.C. Added 5 ENB at $30.65-Fidelity Taxable (8/15/20 Post); Item # 1.C. Added 1 ENB at $27.23; 1 at $26.21; 1 at $25.49; 1 at $24.29; 1 at $23.68 (4/18/20 Post)
Profit Snapshot = +$33.27
New AC per share this account: $28.52
Dividend: C$.86 per share (C$3.44 annually)
Last Ex Dividend: 2/14/22
Yield at $28.52 Assuming .80 CAD/USD = 9.65%
I have recently discussed ENB and have nothing further to add here: Item # 3.F. Pared ENB in Fidelity Account - Sold 5 at $42.4 (3/17/22 Post) I will discuss the first quarter earnings report after it is released on 5/6. I discussed the last report in the previously linked post.
ENB Trading Profits To Date: $379.56
Goal: Any profit in excess of the dividend payments.
B. Added to BRBS- Bought 5 at $14.55:
Quote: Blue Ridge Bankshares Inc.
There are no analyst estimates.
Investment Category: Regional Bank Basket Strategy
Buy Discussions: Item # 2.C. Bought 5 at $15.9; 5 at $15.10; 10 at $14.9 (3/24/22 Post) I discussed the 2021 4th quarter report in that post;
Item # 2.L. Bought 5 BRBS at $16.49 (8/12/21 Post)
Average Cost per share = $15.31 (35 shares)
Dividend: Quarterly at $.125 per share ($.50 annually), last raised from $.12 effective for the 2022 second quarter payment.
Dividends | Blue Ridge Bankshares Inc.
Yield at AC per share = 3.27%, rounded up.
Last Ex Dividend: 4/14/22
Maximum Position: 100 shares
Purchase Restriction: 5 or 10 shares lots with each subsequent purchase at the lowest price in the chain.
BRBS has not yet released its 1st quarter report.
C. Bought 5 AROW at $31.6:
Quote: Arrow Financial Corp. (AROW)
Investment Category: Regional Bank Basket Strategy
3 Year Financial Data:
Last Discussion: Item # 1.C. Bought 5 AROW at $34.9; 5 at $34.4 in Fidelity Account-Then Eliminated Position in that Account Selling 15 at $36.1 in response to the 4th quarter earnings report (2/10/22 Post) I eliminated my position in my based on what I viewed as an unsatisfactory 4th quarter earnings report, noting that I still viewed AROW as a quality micro cap bank.
Dividend: Quarterly at $.27 per share ($1.08 annually). Arrow Declares Increased March 2022 Cash Dividend
In addition, the bank has paid a stock dividend most every year since 1996 and has had two 5 for 4 stock splits. AROW Split History The Seeking Alpha dividend history page appears to be adjusted for the stock dividends and splits. Arrow Financial Corporation (AROW) Dividend History | Seeking Alpha
Even with all of the stock splits and stock dividends, the diluted shares outstanding stood at only 16.073M as of 12/31/21.
Yield at $31.6: 3.42%, rounded up.
Last Ex Dividend: 2/28/22
Last Earnings Report (Q/E 3/31/22): This report was released on 4/26. SEC Filed Press Release
Net Income of 12.6M or $.78 per share
Consensus at $.71
Quarterly Dividend at $.27
NIM = 2.9%, down from 2.99% in the 2021 first quarter.
Efficiency ratio = 52.3% (good)
NPL Ratio = .36% (good)
NPA Ratio = .24% (good)
Charge off ratio = .06% (excellent)
Coverage Ratio = 289% (comforting)
Tangible Book Value per share: $20.83, up from $19.89 in the 2021 first quarter.
Total Risk Based Capital Ratio: 15.33% (well capitalized)
AROW Realized Gains to Date: $747.69
Most of the profit originated from a 52 share trade: Item # 1. Sold 52+ AROW at $37.5 (7/2/18 Post)
D. Eliminated PAVE = Sold 6 at $28.19; 5 at $28.15:
Quote: Global X US Infrastructure Development ETF Overview
Sponsor's Website: U.S. Infrastructure Development ETF
Expense Ratio: .66%
Profit Snapshots: $54.36 (excludes profit of $13.42 from selling 3 shares on 3/2/22)
Purchase discussion at Item # 2.Q. Bought 8 PAVE - Multiple Purchases with an AC at $22.38 (3/6/21 Post)
TOP 10 Holdings as of 4/26/22:
This elimination was in response to the price rise taking into account that many of the owned stocks have high P/E ratios particularly for economically sensitive and cyclical businesses.
P/E multiples for the top 25 holdings can be found at Global X US Infrastructure Dev ETF (PAVE) Portfolio - Morningstar.
Morningstar currently has a 5 star rating.
Last 4 Dividends: $.69 per share
Yield at $28.19: 2.45%
E. Pared PLFT in Schwab Account - Sold Highest Cost Shares (20) Purchased with Dividends at $14.07:
Quote: PennantPark Floating Rate Capital (PFLT)
Last Buy Discussion: Item # 1.G. Bought 10 PFLT at $6.06; 4 at $5.75 (6/6/20 Post)
Profit Snapshot: $46.13
New Average cost per share this account: $8.97
 |
| As of close on 4/19/22 after pare |
The AC was reduced from $9.53 (100+ shares):
 |
| Snapshot Intraday on 4/19/22 before pare |
Dividend: Monthly at $.095 per share (regular dividend only)
PFLT Dividend History | Nasdaq
Yield at $8.97 Average Cost = 12.71%
Last Ex Dividend: 4/14/22
Net Asset Value per share history:
12/31/21: $12.70
3/31/21: $12.71 Press Release 2021 1st Q Earnings
3/31/20: $12.20 10-Q at page 5
12/31/19: $12.95
9/30/19: $12.97
6/30/19: $13.07
3/21/19: $13.24
12/31/18 $13.66
9/30/18 $13.82
6/30/18: $13.82
9/30/17: $14.10
9/30/16: $14.06
9/30/15: $13.95
9/30/14: $14.40
9/30/13: $14.10
9/30/12: $13.98
IPO April 2011 at $15 (net to company at $13.9 after underwriters' discount and before PFLT expenses related to the offering)
5 Year Chart:
Last Earnings Report (Q/E 12/31/21): SEC Filed Press Release
NII per share = $.33
Dividends paid during quarter: $.285 per share
"Our debt portfolio consisted of 99.9% variable-rate investments. As of December 31, 2021, we had three portfolio companies on non-accrual, representing 2.9% and 2.5% of our overall portfolio on a cost and fair value basis, respectively. Our overall portfolio consisted of 115 companies with an average investment size of $10.3 million, had a weighted average yield on debt investments of 7.5%, and was invested 87% in first lien secured debt (including 13% in PSSL), less than 1% in second lien secured debt and 13% in preferred and common equity (including 4% in PSSL). As of December 31, 2021, 99.5% of the investments held by PSSL were first lien secured debt."
The 2022 first quarter report is scheduled for release on 5/4.
Most Recent Sell Discussions: Item # 3 Sold 102 PFLT in Schwab Account at $13.26- Highest Cost Lots (7/30/21 Post); Item # 2.A. Eliminated PFLT in Fidelity Account-Sold 81+ at $12.01 (12/14/19 Post)
Prior Realized Gains = $135.28
PFLT Realized Gains to Date: +$181.41
Goal: Any realized gain + dividends paid.
F. Pared PPL in Fidelity Account = Sold 17+ at $29.3:
Quote: PPL Corp.
Profit Snapshot: +$51.01
PPL has not yet released its first quarter report.
G. Added $50 FSMEX at $67.75 and $50 at $62.41:
That is 7.88% decline between those two recent purchases. The prior $50 purchase was made on 3/22/22 at $72.33
Quote: Fidelity Select Medical Technology and Devices Portfolio Overview
Sponsor's Website: Fidelity ® Select Medical Technology and Devices Portfolio
Expense Ratio: .7%
Fidelity® Select Medical Tech and Devices (FSMEX)-Morningstar (currently rated 5 stars)
H. Eliminated FLBR:
Quote: Franklin FTSE Brazil ETF Overview
Sponsor's Website: Franklin FTSE Brazil ETF - FLBR
Expense Ratio = .19%
Profit Snapshot: +$15.27
Purchase discussion: Item # 2.L. Bought 5 at $20.02 (3/3/22 Post) I described the investment category in that post as "Primarily Lottery Ticket basket, secondarily possible Masochistic Contrarian Value."
Franklin FTSE Brazil ETF (FLBR) Quote - ARCX | Morningstar (currently rated 2 stars)
Brazil is one of the countries that has substantial economic potential which has not been realized due to poor leadership. The leader on that list is Russia.
I. Added to ILPT - Bought 5 at $19.69; 5 at $17.65:
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
This purchase is typical small ball trading. I recently started a position with several small ball purchases. Item # 3.D. Bought 10 ILPT at $21.67; 5 at $20.67; 5 at $20.35 (4/14/22 Post). I then added 5 shares at $20.08 the day before the ex dividend date. Item # 4.K. Added 5 ILPT at $20.08 (4/21/22 Post)
I bought this last 5 share lots after the ex dividend date. The lowest price lot was bought after the release of the first quarter report which was not panned by investors. I turned on the dividend reinvestment option after this latest decline.
Average Cost per share = $20.33 (35 shares)
Dividend: Quarterly at $.33 ($1.32 annually)
Yield at AC per share: 6.49%
Last Ex Dividend Date: 4/22/22
Last Earnings Report (3/31/22): SEC Filed Press Release and Supplemental.This report was released yesterday.
Normalized FFO per share at $.42, down from $.47 in the 2021 first quarter.
Occupancy at 98.9%
Same Store Occupancy: 99.3%
"During the first quarter, we entered new and renewal leases and completed rent resets for approximately 885,000 square feet at weighted average rental rates that were 27.9% higher than prior rental rates for the same space"
The significant increase in leverage is due to the Monmouth REIT acquisition that closed in February 2022. Industrial Logistics Properties Trust - Industrial Logistics Properties Trust Completes Acquisition of Monmouth Real Estate Investment Corporation
