AMKBY, BCBP, BHK, BRKL, BTZ, META, ONB, PNNT, PRPFX

Economy: 

March CPI: 

Consumer Price Index Summary - 2023 M03 Results

Annual CPI: 5%, down from 6% through February 

Annual Core CPI: 5.6%, up from 5.5% through February

Table 2. Consumer Price Index for All Urban Consumers (CPI-U): U. S. city average, by detailed expenditure category - 2023 M03 Results

February 2023 CPI Report: Consumer Price Index News Release - 2023 M01 Results

Fed expects banking crisis to cause a recession this year, minutes show An accurate headline for this article would be the Fed's Staff believes that a mild recession will start later this year with a recovery occurring over the next 2 years.  FOMC Minutes March 21-22, 2023 at page 6

Warren Buffett says we're not through with bank failures We are never through with bank failures. The issues are whether other profitable banks will fail because of deposit runs and how serious will the credit crunch be. 

Short-Term Inflation Expectations Increase; Credit Access Perceptions and Expectations Deteriorate - FRB of NEW YORK (4/10/23)("Perceptions of credit access compared to a year ago deteriorated in March, with the share of households reporting it is harder to obtain credit than one year ago rising and reaching a series high.")

Small Business Economics Trends- March 2023 | NFIB ( "A net 9 percent reported their last loan was harder to get than in previous attempts") 

Commercial bank lending fell by over $100B in the last two weeks ending 3/29/23. The Fed - Assets and Liabilities of Commercial Banks in the United States - H.8 - April 14, 2023

++++

Allocation Shifts Discussed in this Post:  

I have $12,000 in treasury bills that will mature on 4/18 in my Schwab account. I will redeploy $10,000 into a 2 month treasury bill that will be auctioned on 4/20. In that account, a $10K treasury bill matures on 4/20 and I am uncertain now what I will do. The default option for indecision is to move the funds into Schwab's Treasury MM fund and out of the sweep account that pays .45%.  

Treasury Bills: +$3,000 in principal amount

Corporate Bonds: +$3,000 in principal amount

Net Outflow Common Stocks/Stock Funds: -$285.89

(consisting of $941.64 in proceeds minus $655.75 in purchases)

Weighted Average Yield Common Stock Buys: 5.41% (excludes AMKBY due to large variations in annual dividend) I am targeting a weighted average yield of >5% for weekly purchases.  

Realized Gains Stocks/Stock Fund Discussed this post: +$29.7

Balanced Mutual Funds: +$100 to PRPFX (owns a lot of gold and silver bullion, high quality U.S. treasuries and corporate bonds; Swiss government bonds and some stocks)

Leveraged Bond CEFs: +$211.2 (yield at 9%)

2023 Net Outflow Common Stocks/Stock Funds: -$31,153.41  

++++

Putin and His Servile Orcs: 

The Russian Ruble, a junk currency, has been hitting new lows against the USD. Russian Ruble to US Dollar Exchange Rate Chart | Xe

Who killed Russian military blogger Vladlen Tatarsky? - BBC Newsnight - YouTube Tatarsky was a pro war blogger and a convicted bank robber. Like many military bloggers in Russia, he was highly critical of how the Russian military was conducting the war. It is of course clear that Russia can not be trusted to conduct an investigation that identifies who was behind this complex and well executed assassination.   

Videos have emerged of Russian Orcs beheading Ukrainian soldiers. 

Beheadings of Ukrainian soldiers purportedly shown in videos- CNN; Russian "soldiers" beheaded Ukrainian PoW. How will the world react? Vlog 343: War in Ukraine - YouTube

Father of girl who drew anti-war art extradited to Russia | The Hill Alexei Moskalyov was arrested by the Orcs after his 13 year old daughter drew a picture of Russian missiles flying at a woman and her child. Russian girl who drew anti-war sketch leaves orphanage with estranged mother The child was sent to an orphanage. 

Moskalyov inexplicably fled from his house arrest to Belarus, which is no longer an independent country and is controlled by Putin. As with Russia, Belarus is a one man dictatorship that routinely violates the civil rights of its citizens in order to preserve and protect the power and wealth of the 2 dictators and a few others. Belarus: UN report details scale and patterns of human rights violations committed with impunity | OHCHR; Belarus rights abuses may amount to 'crime against humanity' - UN report | Reuters

Russia says China agreed to secretly provide weapons, leaked documents show - The Washington Post Since China IMO gave Russia the green light to invade Ukraine, I would expect Xi to assist Russia by providing weapons.

Russian spetsnaz units gutted by Ukraine war, U.S. leak shows - The Washington Post It takes about 4 years to train the spetsnaz soldiers. Putin decided to use those soldiers in regular combat operations and the units were decimated by the Ukranians.  

Ukraine War: At least eight dead, including a toddler, after Russian attacks in Sloviansk | Euronews; SLOVYANSK MISSILE ATTACKS for EASTER. Orcs will be orcs. Vlog 346: War in Ukraine - YouTube The Orcs directed a missile at an apartment building. Death Toll From Russian Strike in Sloviansk, Ukraine, Climbs - The New York Times

+++

Judge Matthew Kacsmaryk and the Abortion Pill: 

Kacsmaryk  is a far right Trump appointed Federal District Court Judge who is the only federal judge who sits in Amarillo, Texas, a division of the Northern District of Texas. Amarillo | Northern District of Texas | United States District Court Republicans are forum shopping by filing lawsuits in Amarillo, knowing that Judge Kacsmaryk will decide the case.  

I am expecting a deluge of legally unhinged decisions from Trump appointed judges. The abortion pill decision is just the latest. 

Pfizer CEO and Other Drug Company Leaders Condemn Texas Abortion Pill Ruling - The New York Times Kacsmaryk was the first judge to invalidate a FDA drug approval over the FDA's objection. His decision is totally untethered from any legal precedent which is becoming an increasingly common occurrence among Trump appointed judges.  

Mifepristone Is Safe. A Court Ruling Reducing Access to It Is Dangerous - Scientific American

If the court's ruling stands on appeal, any FDA drug approval can be reversed by a federal judge based on personal biases and pseudo science. New ruling out of Texas sets "dangerous precedent for undermining the FDA"; In Support of the FDA's Authority to Regulate Medicines; Texas Judge Cosplaying as Medical Expert Has Consequences Beyond Abortion Pill

The decision reveals a deep religious hostility to abortions, rather than a willingness to engage in sound judicial reasoning even on a superficial level.  

There were in his opinion truly bizarre references to phony science which is being picked apart by lawyers. A Completely Bogus Study Is at the Heart of the Ruling to Ban the Abortion Pill | The New Republic; 

Abortion Pill Ruling: Read Annotated Excerpts From F.D.A. Case - The New York Times; The Shocking Lack of Science in the Ruling Banning a Common, Safe Abortion Drug; Abortion pill ruling cited flawed science - The Washington Post

Collectively, and particularly the deeply reactionary republican Justices on the Supreme Court, the republican judges will take the country back to 19th century, a result that is probably written in stone now and may take at least 3 decades to reverse, an optimistic time period that would require true conservatives and moderates to wake up now and vote accordingly in every state and federal election for the next 3+ decades.  

The ruling is being appealed to the Fifth Circuit Court of Appeals which is called the most "conservative" in the U.S., but that is not the appropriate terminology to describe the republican judges sitting on that court.   

A panel of 3 republican 5th Circuit appellate judges, two of whom were appointed by Trump (Kurt D. Engelhardt and Andrew Oldham), refused to stay the injunction prohibiting retail pharmacies from filling prescriptions. In what those judges called a "close call" on a stay, the appellate judges lifted the stay for only abortion pills directly administered by a physician during a patient's third visit. Appeals court keeps abortion pill on the market but sharply limits access - POLITICO

If a person would like to have access to that pill, either through the mail or by prescription, and voted for republicans in the past, then you can only blame yourself. 

++

Trump and His Party: 

A. Some of the Most Recent Deranged Don Rants:  

In an interview last week, Don the Authoritarian, the leader of the republican party, stated that Putin, Xi and Kim Jong Un are "top of the line". 'Top of the line': Trump praises 'brilliant' Xi, Kim Jong-Un, Putin - YouTube

Demagogue Don is going to fire all of the Soros appointed District Attorneys which apparently includes state DAs. Trump Drops New Rant Promising To FIRE 'Radical Marxist Prosecutors Destroying America' As Probes Close In

Trump did not like the comments from his former AG Bill Barr who said that Trump is going to be indicted in the documents case:  

Bill Barr tears into Donald Trump and says he will be indicted over Mar-a-Lago documents | Daily Mail Online

On the same day, Donald published the following tweet providing further confirmation, when none is needed of course, about his abundantly clear mental condition:  

President: Republican primary : 2024 Polls | FiveThirtyEight Trump is extending his lead over DeSantis as the preferred republican candidate for President in 2024. 81% of republicans believe Donald is honest and almost as many view him as a role model for their children.

(B) Justice Clarence Thomas-Ethics: 

Other Justices have accepted subsidized trips. Scalia Took Dozens of Trips Funded by Private Sponsors - The New York Times Scalia received 258 subsidized trips during his tenure.  

Kavanaugh had 83 complaints filed against him. A panel of appellate court judges was selected by CJ Roberts to investigate. The panel acknowledged the seriousness of the ethical complaints but had no choice but to dismiss all of them, not on the merits, but on a lack of authority over Supreme Court Justices.  Federal Panel Of Judges Dismisses All Ethics Complaints Against Brett Kavanaugh-NPR

A Supreme Court Justice can be charged with crime, tried and convicted but can only be removed from office by impeachment. 

What is a personal hospitality "gift" exempt from financial disclosure. Judicial Conference Response to Senator Whitehouse's Letter of 2-21-2023 (Final).pdf:

The Republican Supreme Court Justice Clarence Thomas’s Billionaire Benefactor Collects Hitler Artifacts - Washingtonian Collecting Nazi artifacts does not make one a Nazi, but is certainly odd and exceedingly cringe worthy, and not something that a person would put on their resume. I had an uncle who collected Nazi artifacts and he was a member of the John Birch Society. He was the only person that I have known who did so. 

Secret Garden - D Magazine Harlan Crow's garden, referred to a “historical nod to the facts of man’s inhumanity to man,” reportedly has statues of Lenin, Stalin, Tito, Casto, Felix Dzerzhinsky (the first commissar of the Soviet secret police), and Nicolae Ceaușescu. Why would any American put statues of those people in a garden?  

Clarence Thomas Didn’t Disclose Harlan Crow Real Estate Deal — ProPublica This is a new one and is more problematic IMO for Thomas than the failure to disclose at least some of the personal hospitality "gifts". Possibly, this criminal statute may come into play, if interpreted to include wilfully concealing a material fact that is required to be disclosed to the government. 18 U.S. Code § 1001 

Clarence Thomas' Criminal Behavior on Financial Disclosure

Article III, §1 of the Constitution provides that federal judges can serve for as long as they like, but that service requires "good Behavior". It is not clear whether "good Behavior" requires a lesser standard for impeachment than "high crimes and misdemeanors" applicable to elected federal officials. At a minimum, a judge can not be removed due to differences of opinion about constitutional legal principles. Overview of Good Behavior Clause | Constitution Annotated | Congress.gov | Library of Congress 

C. The Anti-Democracy Party in Tennessee: 

On 4/10, the Nashville city council voted unanimously to return Justin Jones back to the State House of Representatives, pending a special election that will be held later this year. Nashville Council Votes to Return Expelled Lawmaker Justin Jones to House - The New York Times Jones was one of the two black legislators expelled by the all white anti-democracy party a few days ago. Jones graduated from Fisk University in Nashville and is currently enrolled in the Vanderbilt Divinity School. He earned the ire of some Tennessee republicans before he was elected to the state House while advocating for the removal of Nathan Bedford Forrest's bust from the state capitol rotunda. Forrest was a founding member of the Ku Klux Klan.  

{I have determined that Jones resorted to speaking with a small bullhorn after the House Speaker turned off his microphone. The common sense approach to the temporary breach of decorum, which would have required the Tennessee House republicans to act with a modicum of intelligence, would have been to ignore it and attribute the breach to an understandable reaction to 3 nine year olds being slaughtered with an assault rifle and the refusal of Tennessee republicans to engage in any effort at gun reform} 

Jones' attorneys, which include the former AG Eric Holder, warned the republicans that any further effort to retaliate further against Nashville or Jones would require redress through litigation. Letter to House Speaker Cameron dated 4/10/23 from Eric Holder; 

Ousted Tennessee Rep. Justin Pearson ‘Appalled’ GOP May Cut County's Funds (Pearson is from Shelby County, the only area where the republican party will allow Democrats to elect a congressional representative, since they have so far been unable to figure out how to disenfranchise the large African American population in Memphis without creating a competitive seat in another currently safe republican congressional district)

Pearson was returned to the House by the Shelby County Commission that consists of 9 Democrats and 4 Republicans. The vote was unanimous since the 4 republicans boycotted the meeting. Second of two expelled Black lawmakers is reinstated in Tennessee House - The Washington Post; Justin J. Pearson: Memphis sends Pearson back to the Tennessee House days after GOP lawmakers ousted him 

The republican House Speaker Cameron had compared the protest regarding gun violence, which occurred a few days after 3 nine year old children were slaughtered in their Nashville school with an assault rifle, to the 1/6 insurrection that attempted to prevent the duly elected President from assuming office. 

After preventing Nashville from electing a moderate democrat to Congress through a racial and political gerrymander that disenfranchised Nashville's entire African American population in congressional elections, and then imposing on the city 3 Trump republican congressman as their representatives, Trump's anti-democracy party has taken other efforts to retaliate against Nashville's moderation including proposed legislation that would take away some funding support for the Nashville Convention Center, an effort to change the composition of the Nashville City Council and other measures to interfere with Nashville's self governance as a major U.S. city. Lt. Gov. McNally (R) pitches defunding Nashville's convention hall - Axios Nashville; Judges block Tennessee move to cut Nashville council in half (4/11/23).  

Leaked audio shows Tennessee GOP infighting over expulsion of Black lawmakers | The Hill Tennessee republicans were outraged that 1 republican, Jody Barrett, changed his vote on expelling a white woman Gloria Johnson, whose expulsion failed by 1 vote. The republicans were concerned that expelling 2 young black representatives would look racist. One of republicans, Jason Zachery, complained bitterly that some people were calling him a racist as a result. Zachery believes that the democrats are destroying the republic and the very foundation of America. 

'I hear racist statements all the time': Lawmaker on Tennessee State House 

No One Should Be That Shocked by What’s Happening in Tennessee - POLITICO

Tennessee Republican accused of calling Democrat expelled over gun protest a ‘baboon’ in 2020 | The Independent

D. Tucker Carlson, Fox  Discovery Sanctions, Matt Gaetz and Assault Rifles/Murders: 

Fox "news" host Tucker Carlson asserted that Pearson talked like a "sharecropper" and had previously talked like he was "crypto white kid" before making a transition to 60 year dead civil rights leaders, referring apparently to Martin Luther King. Tucker Carlson Might Have Just Delivered His Most Racist Fox News Rant Yet It is just Carlson's juvenile way of belittling people, which he views as witty, who do not adhere closely to his white nationalist agenda and views.

Louisville, Kentucky shooting: As police investigate what led up to massacre that left 5 dead, several victims remain hospitalized | CNN The gunman used an AR-15 style assault rifle. This was the 146th mass shooting in the U.S. Gun Violence Archive The Louisville shooter legally bought his assault rifle on 4/4/23.

Fox News Sanctioned by Judge for Withholding Evidence in Dominion Case - The New York Times; Judge in Dominion case sanctions Fox for withholding evidence, plans to appoint special master to probe possible misconduct | CNN Business

Matt Gaetz (R-FL) Goes on Unhinged Rant on Louisville Shooting

Unsealed documents from the Daniel Perry case show he made comments on social media about killing protesters and Muslims, Houston Chronicle reports Perry was convicted of murdering a BLM protester. Shortly after that conviction, Governor Greg Abbott (R) stated that he wanted to pardon Perry before the appellate process even started, claiming that the charge and conviction by jury were part of a woke conspiracy hatched by "progressives". 

E. Kristina Karamo Takes the Republican Leadership Position in Michigan: 

The new chairperson of the Michigan Republican party, Kristina Karamo, is best known for advancing fact free conspiracy theories about the 2020 election. Michigan G.O.P. Installs Kristina Karamo, an Election Denier, as Leader - The New York Times (2/18/23)

Among her many other claims, Ms. Karamo believes Beyonce is a tool of Satan and was recruiting Black Americans to paganism with one of her albums. Michigan Republican says Cardi B and Billie Eilish are tools of Satan; Republican concludes popstars Cardi B, Billie Eilish, Beyoncé, Ariana Grande are all in league with the Devil 

Ms. Karamo believes that satanic possession can be transmitted by sexual interecourse. It is unclear whether she believes Satan can penetrate a condom. 

In her worldview, the BLM leaders are "Marxist witches" and were performing "Satanic Rituals". 

Only a select few, including the leader of Michigan's republicans, know that yoga is one of Satan's tools. Kristina Karamo: Beyoncé, Cardi B, Korean drama, and yoga are tools of Satan | Media Matters for America

Among Michigan republicans, she also earned considerable favor by asserting that evolution is “one of the biggest scams ran on us in human history”. Whenever I hear that kind of claim, I am reminded of a photo in the NYT that showed an exhibit at Kentucky's Creation Museum depicting Adam and Eve walking with the dinosaurs. A. A. Gill on Kentucky's Creation Museum | Vanity Fair; Adam and Eve in the Land of the Dinosaurs | WIRED

Tenure of new Michigan GOP chair who spread Beyoncé paganism conspiracy theory is off to a rocky start  Kristina Karamo: Beyoncé, Cardi B, Korean drama, and yoga are tools of Satan | Media Matters for America; 

Michigan GOP tries to tie gun reforms to Holocaust, draws backlash 

Donald needs to grab Karamo (a non-sexual grab in this context) as his VP before other republican candidates snap her up. Kristina and Donald have already done the required mind meld. 

There is a difference between Tennessee and Michigan. The later is a swing state where republican behavior, comments and positions are turning off moderate and independent voters, thereby making it even more likely that democrats will make more gains in 2024 after winning 3 statewide offices in 2022 (Governor, Attorney General, Secretary of State). Tennessee legislators, on the other hand, are doing what their base wants, and the base represents a clear majority of Tennessee voters. Failure to act in a certain manner will only result in Tennessee republican politicians being primaried by someone further to the far right in the republican party. 

Last Week in the Republican Party - April 11, 2023 - YouTube

F. Michael Cohen/Trump; Elon Musk:

Trump sues Michael Cohen for $500 million, alleging ex-attorney breached his contract Trump has a long history of using litigation as an intimidation tactic. Legal affairs of Donald Trump - Wikipedia;  Dive into Donald Trump's thousands of lawsuits - USA TODAY (4,095 lawsuits as of July 2016); How Trump Survived Decades of Legal Trouble | Time; President Trump Is a Libel Bully Again and It’s Worse: He’s Suing from the White House - Media Law Resource Center

NPR quits Twitter after being falsely labeled as 'state-affiliated media'-NPR  

Musk response: 

Elon Musk's Free-Speech Charade Is Over - The Atlantic 

The GOP is the antithesis of a conservative party and can not now be changed into a conservative party. 

+++

1. Small Ball Purchases: 

A. Started BCBP - Bought 20 at $11.94; 10 at $11.5 - Schwab Taxable Account: 

Quote: BCB Bancorp Inc. (BCBP) 

Cost: $353.8

BCBP is a bank holding company. Its operating subsidiary, BCB Community Bank, "has 27 branch offices in Bayonne, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and three branches in Hicksville and Staten Island, New York." 

BCB Bank Locations

Recent Press Release: BCB Bank CEO Highlights the Bank’s Stability, Strong and Diversified Sources of Funding 

BCBP Analyst Estimates | MarketWatch (2 estimates, 2023 average E.P.S. at $2.52)

Diluted 2022 GAAP E.P.S. = $2.58

Average Cost per share: $11.79 (30 shares)

TTM P/E at $11.79 per share and $2.58 annual E.P.S. = 4.57

BCBP SEC Filings 

Dividend: Quarterly at $.16 per share ($.64 annually)

Yield at $11.74 = 5.45%

Last Earnings Report (Q/E 12/31/22):  SEC Filing

E.P.S. = $.69

NIM: 3.76%, up from 3.44% in the 2021 4th Q. 

Efficiency Ratio: 51.33%

NPL Ratio: .17%

Coverage Ratio: 633.6%

Tangible Book Value per share: $15.65

Discount to Tangible Book at $11.74 = 24.99%

2022 Annual Report 

Owned Securities: 

Yield are better than most

Unrealized Loss as of 12/31/22: $7.887M

At current yields, I would guess that the portfolio is close to breakeven.  

My Interest rate risk management grade: B+

Deposits: 

Noninterest bearing: 21.83% of the total, low compared to other banks 

Uninsured Deposits: $1.087+B as of 12/31/22 (38.69% of the total), page 12, Annual Report  (Viewed as too high under current circumstances)

As with other banks, government deposits are collateralized in some way. For this bank, 24.9M of those deposits have owned securities as collateral and another $230M are collateralized by a municipal letter of credit with the FHLB (p. 55). Uninsured deposits that have that kind of collateral are not likely to be withdrawn based on fear. 

B. Added to BHK - Bought 10 at $10.77:

Quote: BlackRock Core Bond Trust Overview

SEC Filings

Sponsor's website: Core Bond Trust | BHK

New Average cost per share: $11.5 (58+ shares)

Dividend: Monthly at $.0745 (some ROC support) 

Yield at New AC: 7.77%

Last Ex Dividend: 4/13/23  (owned all as of)

Data Date of  10/10/23 Purchase:  

Closing Net Asset Value per share: $11.28

Closing Market Price: $10.91

Discount: -3.28%

Sourced: BHK-CEF Connect 

I discussed this highly leveraged bond CEF in my last post and have nothing further to add here. Item # 1.H. Added to BHK - Bought 10 at $10.92 (4/8/23 Post) 

C. Restarted BTZ - Bought 10 at $10.35: 

Quote: BlackRock Credit Allocation Income Trust Overview - A leveraged bond CEF

Investment Category: Monthly Income Generation 

Last Discussed: Item # 1.C. Eliminated BTZ- Sold Remaining 37+ Shares at $14.88 (1/9/21 Post)(profit snapshot = $149.05) 

Unlike BHK, which I discussed last week, BTZ has a significant exposure to junk rated bonds. 

Credit Quality: 

Sponsor's website: BlackRock Credit Allocation Income Trust | BTZ

Leveraged at 35.37% as of 3/31/23

Number of Holdings: 1,591 (highly diversified)

BTZ 2022 Annual Report (positions start at page 83)

BTZ SEC Filings 

Data Date of 4/6/23 Trade: 

Closing Net Asset Value per share: $11.53

Closing Market Price: $10.35

Discount: -10.23%

Average 3 Year Discount: -5.8%

Sourced: BTZ - CEF Connect 

Dividend: Monthly at $.0839 per share (some ROC support)

Yield at $10.35: 9.73%

Some Sell Discussions: Item # 1.J. Pared BTZ-Sold Highest Cost Lots - 90 at $13.76; 17 at $13.93; 3 at $13.97; 15 at $14.14 (6/13/20 Post)(profit snapshot = $31.09); Sold 103+ BTZ at $13.4+ (5/8/17 Post)(unnumbered entry/profit snapshot = $34.37; post contains profits snapshots of  trades between 2010 - 2016 totaling +$789.34)

D. Added 5 AMKBY at $8.31: 

I will continue averaging down in 5 share lots until I hit 100 shares. This is a long term holding for me. 

USD Quote: A.P. Moeller-Maersk A/S ADR

Cost: $41.55 

I discussed this stock in my last post and nothing further to add here.  Item # 1.C. Added 10 AMKBY at $8.65 (4/8/23 Post) 

New AC per share: $12.06 (65 shares)

E. Added to CIZN - Bought 5 at $12.19-Fidelity Taxable Account:

Quote: Citizens Holding Co. (CIZN)

Cost: $60.95

CIZN SEC Filings

Last Discussed: Item # 1.K. Eliminated CIZN in Vanguard Taxable Account - Sold 25 at $16.63 (2/13/23 Post)(profit snapshot = $32.5) I discussed the last earnings report in that post. SEC Filing The report was better than previous ones that I have discussed here.  

Last Buy Discussions: Item # 2.C. Added to CIZN in Fidelity Taxable Account - Bought 5 at $13.14; 5 at $12.75 (1/3/23 Post); Item # 5.C. Started CIZN in Fidelity Account - Bought 10 at $14.1 (11/22/22 Post) 

New Average cost per share: $13.25 (25 shares)

Dividend: Quarterly at $.24 per share ($.96 annually)

CIZN Dividend History | Nasdaq

Yield at $13.25 = 7.245%

Last Ex Dividend: 3/16/23

2022 GAAP E.P.S. = $1.47

TTM P/E at $13.25 Using $1.47 = 9.01

TTM P/E at $12.19 Purchase Price = 8.29

2022 Annual Report 

Investment Securities: 

Unrealized loss as of 12/31/22: $72.437M, amortized cost at $649.051M

Deposits: 

Noninterest bearing: $299.12M or 26.55% of the total. 

CIZN Realized Gains: $503.29

F. Added to PNNT - Bought 5 at $5.11: 

Quote:  PennantPark Investment Corp. (PNNT) - A BDC

Cost: $25.55

Website: Investors | PennantPark

SEC Filings

10-Q for the Q/E 12/31/22 

Investment category: Lottery Ticket Basket - Deservedly Hated BDC

Management: External 

Last Discussed: Item # 4.C. Started PNNT in Schwab Account - Bought 10 at $5.85 (1/16/23 Post) 

Net Asset Value per share history:  Unfavorable

12/31/22:    $7.11    10-Q at page 4 

12/31/21:    $10.11  10-Q at page 4

12/31/20:   $8.79   10-Q at page 4

12/31/19    $8.79

06/30/19   $8.74

12/31/18     $9.05

12/31/17     $ 9.1

12/31/16     $ 9.11
12/31/15     $ 9.02
9/30/15      $ 9.82
12/31/14     $10.43
9/20/14      $11.03
12/31/13     $10.8
12/31/12     $10.38
12/31/10     $11.14
9/30/10      $10.69
12/31/09    $11.86
12/31/08    $10.24
12//31/07   $12.07

9/30/07      $12.83

IPO at $15 Prospectus April 2007

10-K for the F/Y ending 9/30/22

New Average cost per share this account: $5.6 (15+ shares)

Dividend: Quarterly at $.185 per share ($.74 annually)

PennantPark Investment Corporation (PNNT) Dividend History | Seeking Alpha

I am currently reinvesting the dividend. 

Yield at New AC:  13.21%

Last Ex Dividend: 3/15/23

Dividend History: Unfavorable 

The quarterly dividend was $.28 in 2016. 

Last Earnings Report (Q/E 12/31/22): SEC Filing 

Net Investment Income per share: $.16 

As of 12/31/22, the "portfolio totaled $1,196.0 million, which consisted of $661.2 million of first lien secured debt, $130.8 million of second lien secured debt, $148.6 million of subordinated debt (including $95.4 million in PSLF) and $255.4 million of preferred and common equity (including $53.8 million in PSLF). Our debt portfolio consisted of 96% variable-rate investments and 4% fixed-rate investments. As of December 31, 2022, we had two portfolio companies on non-accrual, representing 2.7% and 1.1% of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized depreciation of $167.5 million as of December 31, 2022. Our overall portfolio consisted of 125 companies with an average investment size of $9.6 million, and a weighted average yield on interest bearing debt investments of 11.9%"

G. Added 5 BRKL at $10.49:

Quote: Brookline Bancorp Inc.

Cost: $52.45

Website: Brookline Bancorp, Inc.-Corporate Profile

"Brookline Bancorp, Inc., a bank holding company with approximately $11 billion in assets and branch locations in eastern Massachusetts, Rhode Island and the Lower Hudson Valley of New York State, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and PCSB Bank."

The PCSB Bank division was acquired on 1/1/23 and added 15 branches in the Lower Hudson Valley of NY. Brookline Bancorp, Inc. Completes Acquisition of PCSB Financial Corporation

Properties before PCSB Acquisition: 

2022 Annual Report at page 22

Cost: $52.95

This is an average up from some small ball buys in 2020.

Last Buy Discussion: Item #1.B. Added 5 BRKL at $8.85; 2 at $8.59; 1 at $8.23  (10/17/20 Post)

Last Substantive Buy Discussion: Item # 1.E. Bought 10 BRKL at $9.51; 5 at $9.31 (8/22/20 Post)

Investment Category: Regional Bank Basket Strategy

BRKL SEC Filings

Tangible Book Value per share as of 12/31/22: $10.8

Average cost before add: $9.14 (20 shares)

Average cost per share after add: $9.41 (25 shares)

Dividend: Quarterly at $.135 per share ($.54 annually), last raised from $.125 effective for the 2022 second quarter payment.

Brookline Bancorp, Inc. (BRKL) Dividend History | Seeking Alpha

Yield at New AC: 5.74%

Last Ex Dividend: 2/9/23

Last Earnings Report (Q/E 12/31/22): SEC Filing 

Comparisons are to the 2021 4th quarter.  

E.P.S. = $.39, up from $.37

NIM: 3.81%, up from 3.52%

Efficiency Ratio: 53.1%, up slightly from 52.23% (down is good)

NPA Ratio: .17%, down from .39%. 

Charge Off Ratio: .02%, down from .12%

Tangible Book Value Per Share: $10.8

ROTE: 14.48%

2022 Annual Report

Investment Securities as of 12/31/22:

Page F-24

Amortized Cost at $733.978M

Value at $656.766M

Unrealized Loss: $77.493M

Weighted Average Interest Rate: 2.06%

My overall rating for interest rate management is C based on yields and duration risk. Ratings are based on how the bank adjusted duration risk in 2021. 

The bank did sell $78.8M in securities for a $5.785M loss which reduced the amount of unrealized losses as of 12/31/22. 

Page F-28

Deposits as of 12/31/22:

Noninterest bearing: 27.64% of the total

$205.6M in deposits have collateral.

H. Added 5 ONB at $13.7:

Quote: Old National Bancorp (ONB)

ONB Analyst Estimates

ONB SEC Filings

Cost: $68.5

New AC per Share: $14.05 (15 shares)

Dividend: Quarterly at $.14 per share ($.56 annually)

Yield at New AC = 3.99%

Last Ex Dividend: 2/28/23

Last Discussed: I discussed this stock in my last post Item # 1.B. Restarted ONB - Bought 10 at $14.23 (4/8/23 Post) 

I. Added $100 to PRPFX at $47.98:

Quote: PRPFX | Permanent Portfolio Overview

Sponsor's website: The Permanent Portfolio Family of Funds

SEC Filings

Last SEC Filed Shareholder Annual Report - FY ending 1/31/23

I add to this balanced mutual fund whenever the spirit moves me. 

Allocations:  

The "Dollar Assets" are treasuries and investment grade bonds, generally with maturities in the 0 to 4 year range. 

The "Swiss Franc Assets" are Swiss government bonds which I view as a "safe haven" currency play flowing from owning high quality Swiss government bonds price in CHFs.   

As of 1/31/23

I would characterize the "Aggressive Growth Stocks" as primarily value stocks. 

Average cost per share: $40.81 (233+ shares)

Dividends: Paid annually at a variable rate 

I have been reinvesting the dividends, paid annually, and will continue to do so. 

I view this fund as addressing the sh-- hits the fan scenario. Overall returns have not been inspiring but the rally in precious metals has contributed to a positive YTD return. 

Realized Gains to Date: $899.1 (snapshots in Item # 3.J) The last elimination was in 2017. After restarting the position, I have not sold any shares.  

2. Corporate Bonds: 

A. Bought 2 Charles Schwab 3.75% SU Maturing on 4/1/24 at a Total Cost of 98.211: 

Issuer: Charles Schwab Corp.  (SCHW) 

SCHW Analyst Estimates | MarketWatch

SCHW SEC Filings 

2022 Annual Report (debt listed at page 95)

FINRA Page: Bond Detail (prospectus not linked) 

This is a very actively traded bond. 

Credit Ratings: A2/A

YTM at Total Cost: 5.66%

Current Yield at TC = 3.77%

B. Bought 1 US Bancorp 3.7% SU Maturing on 1/30/24 at a Total Cost of 98.927: 

Issuer: U.S. Bancorp (USB) 

USB Analyst Estimates | MarketWatch

FINRA Page: Bond Detail

Credit Rating: A2/A+

YTM at Total Cost: 5.078% 

Current Yield at TC = 3.74%

3. Treasury Bills: $3,000 in principal amount  

A. Bought 3 Treasury Bills at 4/10/23 Auction:

Matures on 7/13/23

91 Day Bill

Interest: +$37.76

Investment Rate: 5.128%

4. Small Ball Sells: Proceeds = $941.64

I am reducing my allocation to non-dividend paying and low dividend yielding stocks and stocks funds. Proceeds are generally being redeployed into dividend paying stocks that pay at least 5%. 

Given my financial objectives, current income generation is more important to me than at risk capital appreciation.

Priority Objectives: (1) Capital Preservation; (2) Income Generation; (3) Capital Appreciation/Realized Capital Gains. My realized capital gain goal is at least $25,000 annually which I view as a supplement to my dividend and interest income. While I exceeded that goal for several consecutive years prior to 2022 (e.g. $38+K in 2021; $33.7K+ in 2020; $29.4+K in 2019; $42.2+K in 2018), the realized capital gain last year came up $4.7K short of that goal. It has become far more difficult for me to generate capital gains in the current market, and that is impacting my allocation decisions.     

The second and third goals require some risks to the capital preservation objective. Given the current yields of "safe" short term investments, I am less willing to increase my stock allocation and have been a net seller so far this year.  

A. Eliminated META - Sold 3+ at $216: 

Quote Meta Platforms Inc.  (META) 

2022 Annual Report 

3 Year Financial Data Summary: 

P. 69 Annual Report

Note the 2022 percentage increase in expenses and the decline in the net income compared to 2021. 

Realized Gain: Net at +$12.12

Last Discussed: Item # 2.L. Added to FB - Bought $50 at $179  (6/9/22 Post) 

Last Substantive Discussion: Item # 1.H. (2/17/22 Post) I noted in that post that the 2023 consensus E.P.S. was at $14.84 as of 2/15/22. The consensus 2023 E.P.S. is now at $10.02, a 32.48% decline.   

The Stock Jocks became more excited about META after the company started slashing expenses.  

The spending on the Metaverse was becoming impossible to justify so some retrenchment had to occur. 

I am even less interested in META now at the current price given the directional move down in E.P.S. estimates. I am also less willing to hold a volatile non-dividend paying stock when risk free rates are near 5%.  

Last Earnings Report (Q/E 12/31/22): SEC Filing 

E.P.S. at $1.76, down from $3.67 in the 2021 4th quarter

Expenses up 22%; E.P.S. down 52%; Net income down 55%.

Consider to Restart: 1 share at <$180 and then each subsequent purchase required to be at the lowest price in the chain and limited to $100 or less purchases.  

B. Eliminated FIVG - Sold 5 at $32.25:

Quote: FIVG | Defiance Next Gen Connectivity ETF Overview

Sponsor's Website:  The First 5G ETF - FIVG

Last 4 Dividends: $.488 per share

Morningstar Page

Profit Snapshot: +$17.58

Last Buy Discussion: Item # 1.D. Added to FIVG in Vanguard Taxable-Bought 2 at $28.16; 2 at $27.78 (10/3/2020 Post)

Last Discussed:  Item # 1.I. Eliminated FIVG in Vanguard Account - Sold 13 at $33.35 (2/20/23) I have nothing further to add to that recent discussion. 

FIVG Realized Gains: $161.01 (26 shares)

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.