CALF, CZNC, HR.UN:CA, IDNA, IRBO, PNM, SBSI, WBA, WTBA

Economy: 

June CPI Report: Consumer Price Index Summary - 2024 M06 Results

Month-to-Month CPI -.1% 

Month-to-Month Core CPI .1%  

Annual CPI Through June 2024: 3%, down from 3.3% through May

Annual Core CPI: 3.3%, down from 3.4%

Owners Equivalent Rent: 

Month-to-Month at +.3%

Annual at +5.4%

Weighted at 26.691% in CPI, more in core CPI which excludes food and energy. 

Table 2. Consumer Price Index for All Urban Consumers (CPI-U): U. S. city average, by detailed expenditure category - 2024 M06 Results

This is a fictional expense item. Owners of homes do not pay rent to themselves. 

Discussed at CPI inflation report June 2024: CNBC; CPI: Inflation eased further in June, focus on September cut - The Washington Post 

June Real Earnings Up .4% - 2024 M06 Results

Moody's on Commercial Real Estate in the Q2 2024-Preliminary Trend Announcement

Fed Chair Powell says holding rates high for too long could jeopardize economic growth

Opinion | The Enormous Risks a Second Trump Term Poses to Our Economy - The New York Times (column written by Robert Rubin and Kenneth Chenault)  Republicans will never acknowledge that Trump's first term tax cuts added an estimated $3.9 trillion to the national debt. Trump’s Fiscal Legacy: A Comprehensive Overview of Spending, Taxes, and Deficits | Manhattan Institute One of Trump's tax proposals for his second term, which extends the first term cuts for another 10 years, would increase the national debt by another $3.9 ($4.5T with interest). 

When reducing taxes in an economy that is already in a real GDP growth mode and at or near what economists call full employment, Trump's tax proposals will contribute to inflationary pressures by increasing consumer demand "while having a negligible effect on business investment" and adding "virtually nothing longer term" 

All of Trump's tariff proposals will also add to inflationary pressures.  

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Allocation Shifts Discussed in this Post: 

Treasury Bills Purchased at Auction: $19,000 in principal amount

Corporate Bonds: $5,000 in principal amount

FDIC Insured CD: $2,000 replacing one that matured on 7/8/24: 

  

Individual U.S. Common Stocks: +$702.92 (no sales)

Canadian REIT = +C$909 (converted to US$644 for allocation purposes)  

Stock Funds: +$560.38

Inflow Stock/Stock Funds: +$1,907.3

2024 Outflow Common Stocks/Stock Funds: -$22,277.76

2023 Outflow Common Stocks/Stock Funds: -$27,091.82 

Treasury Yield Curve July 2024: 

Resource Center | U.S. Department of the Treasury

Treasury Real Yield curve July 2024:  

10 Year TIP Breakeven Inflation Rate: 2.25% as of 7/11/24 (subtract real from nominal yield)

5 Year TIP Breakeven Inflation Rate: 2.18% 

5-Year Breakeven Inflation Rate (T5YIE) | FRED | St. Louis Fed

Probabilities of FF Range on or before the September 2024 FED Meeting: 

90.7% Probability of at least a 25 basis point cut

CME FedWatch - CME Group This forecast uses the FF futures contracts. 

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Trump and His Party: 

RealClearPolitics - Election 2024 - General Election: Trump vs. Biden

Katyal and Luttig: Presidential Immunity Unconstitutional? - YouTube

Supreme S*#tStorm | Talking Feds Podcast - YouTube

Opinion | Trump’s Next Supreme Court Picks Would Be So Much Worse - The New York Times I have previously noted that Alito and Thomas will probably retire during a second Trump term and will be replaced by much younger and more extreme versions, provided the republicans regain control over the Senate which I view as likely. 

There is really not that much difference in the 3 Republican Justices appointed by Trump compared to Alito. 

Maybe Barrett is only a 95% clone of Alito. She may be inching down from that percentage after showing an unwillingness in her dissenting opinion in Fisher to ignore the plain meaning of the obstruction of an official proceeding criminal statute. Fischer v. United States (06/28/2024)(pdf) She did use the textualist and plain meaning judicial interpretation standards in her dissent that the other Republican Justices abandoned in the majority opinion.  

So how could new appointees made in Trump's second term be more of a late 19th century reactionary than Alito. An example would be the appellate judges James C. Ho who referred to the U.S. Constitution as "woke" or Kyle Duncan. 

Trump presses Judge Cannon to take up immunity question in classified documents case in Florida A grand jury subpoena was served on Trump after he left office demanding the production of documents marked as classified. Documents so marked were concealed and not produced in response to the subpoena and over 100 were found in the FBI's August 2022 search including several found in Trump's desk and bedroom. FBI search of Mar-a-Lago - Wikipedia; FBI Found 3 Classified Documents in Trump's Desks at Mar-a-Lago - Business Insider; Federal judge (not the Trump appointed Judge) found ‘strong evidence’ of crimes before Trump was charged in classified documents case; What the F.B.I. Seized From Mar-a-Lago, Illustrated - The New York Times 

Judge Cannon, a Republican appointed by Trump,  will not allow this case to go to trial before the election. 

If Trump is re-elected, which appears likely, Jack Smith will be fired and the case dismissed resulting in permanent immunity for Trump's "alleged" crimes in the documents case, and that result was achieved by a Trump appointed judge delaying a trial for no good reason IMO.  

Opinion | There Is Apparently No Accountability — Ever — for Donald Trump - The New York Times  Republican judges, including those nominated by Trump, have produced that result.

Trump argues New York conviction ‘must be vacated’ after Supreme Court immunity decision As a reminder, the felony convictions were for falsification of a private company's business records done for the purpose of concealing another crime relating to unlawful campaign contributions made before Trump became President.  

Donald Trump’s Pants-Pissingly Terrifying Plans for a Second Term | Vanity Fair

'Blueprint on how to end the rule of law': Neal Katyal slams Supreme Court's ruling - YouTube

'Incoherent' immunity decision renders 'Constitution itself unconstitutional': Akhil Reed Amar - YouTube

Ex-Pence advisor responds to Trump's claims he has nothing to do with 'Project 2025' - YouTube (a dozen former Trump appointees and others wrote this proposal) When denying that he knows anything about Project 2025, Trump went on to say that he disagrees with "some of the things they’re saying". For those living in the Alternate Reality of TrumpWorld, the inconsistency of those two statements is not obvious.   

Of course, Trump would not identify the proposals that he knows "nothing" about where he differs. And "journalists" at Fox and similar media outlets would never ask him during an interview to identify what proposals he supports and opposes. Project 2025: A wish list for a Trump presidency, explained; Project 2025, pushed by Trump allies, is focus of Democrats’ attacks - The Washington Post 

Once proposal is to end the independence of the Justice Department, placing the DOJ under the direct control of the President. If the FBI started an investigation into possible illegal actions by a President, as was the case with Nixon, the Imperial President, with the Kingly powers vested in him by the Republican Justices, not the Constitution, would simply order the FBI to cease its investigation. 

This kind of proposal, and others made the Project 2025 document, need to be evaluated in the context of the Presidential immunity from criminal prosecution created by the 6 Republican Justices in 2024, or 235 years after the Constitution become effective in 1789. 

And the creation of this immunity was done for a President who tried to end American democracy, and knowing about his strong authoritarian tendencies, knowing about Trump's efforts to undermine institutions necessary for a properly functioning democracy, knowing what he did in response to losing an election, knowing the evidence that supports his 4 criminal indictments, knowing that Trump has repeatedly stated that he can do whatever he wants under Article II, and knowing that Trump is likely to be reelected.  

Project 2025 and Authoritarianism-Ruth Ben-Ghiat - YouTube

My Video: Trump and Project 2025 - YouTube I describe in this video how the Unitary Executive Theory proposed by the Republicans, frequently endorsed by Republican Justices, increases the odds of a dictatorship and the undermining of America's democracy. {see also, The Misguided Unitary Executive Theory Gains Ground | Michael C. Dorf | Verdict | Legal Analysis and Commentary from Justia; The Specter of Dictatorship and the Supreme Court’s Embrace of the Unitary Executive Theory | American Constitutional Society); The Unitary Executive Theory: A Danger to Constitutional Government-Amazon.com: Books} Trump's frequently repeated statement that he can do whatever he wants under Article II is based on the Unitary Executive Theory, as was the statement made by the former Republican President Nixon during his interview with David Frost:  "Well, when the president does it, that means that it is not illegal" Nixon - "When the president does it, that means it is not illegal"  YouTube; All the times Trump said the constitution let's him do whatever he wants - YouTube The Republican Justices created an absolute immunity for criminal acts committed by a President exercising the broad Article II powers.  

‘Some folks need killing’: North Carolina GOP nominee Mark Robinson endorses political violence in a church - YouTube; Mark Robinson calls reporter 'shameful' when asked about 'some folks need killing' comment - YouTube The GOP nominee for North Carolina's School Superintendent, who has zero qualifications IMO, has made statements in alignment with QAnon and has proposed that Obama be executed before a pay-per-view audience. So we know more about North Carolina republicans now. Their prior statements were known by republican voters before they won the primary elections. I discussed those two republican candidates for statewide office in YT Videos:  Mark Robinson Republican Candidate for the N.C. Governor and Likely Primary Winner - YouTube and  Republican down ballot candidates in North Carolina: Michelle Morrow and Mark Robinson - YouTube

Candidates in local elections across the country face intimidation, harassment - YouTube Trump's MAGA movement is becoming increasingly vitriolic, unhinged, and threatening. 

About 53 or 54 years ago, I was sitting in a college history class where the topic under discussion was Hitler's rise to power. The professor made the statement to the effect that it could happen in America under the right circumstances. Many years later, I recalled that statement after reading the Sinclair Lewis novel It Can't Happen Here that was published in 1935. (My Video: Trump Similarities to Buzz Windrip in the Sinclair Lewis Novel "It Can't Happen Here" - YouTube) 

Fani Willis Judge Gets Campaign Donation From Donald Trump Co-Defendant - Newsweek

My current thinking is that Trump will win in November and the republicans will take control over the Senate at a minimum. The Democrat Senator from Colorado stated his concern that Biden's age related issues may end up causing a republican landslide in November. Democratic senator: 'Trump may win it by a landslide' - YouTube Democrat professionals like David Axelrod and James Carville are saying the same. David Axelrod predicts Biden won't win 2024 race

The Republican Supreme Court Justices have unleashed Trump to do whatever he wants, including committing crimes, during his next term, even though they are aware of his strong authoritarian tendencies, and knowing know what he did in response to losing the election and that he most likely would become President again.  

The republican controlled judiciary can no longer be viewed as a restraint on an authoritarian President who is now above the law. 

Trump's AG will do nothing, of course, no matter how many crimes Trump commits.   

If those assessments prove to be correct, and I see no reason to question them now, then the only possible restraint on Trump would be the Democrats regaining control over the House which has been made more difficult by the Republican Supreme Court Justices rubber stamping anti-democracy gerrymandering including obvious racial gerrymandering where a Republican state legislature puts most of the black population in 1 congressional district. (My Video: Republican Supreme Court Justices Rubber Stamp Racial Gerrymandering in South Carolina - Alito Wrote the Opinion - YouTube; see also The Tennessee GOP has decided that Nashville will not be allowed to elect a Democrat to Congress - YouTube)  

The Cook Political Report lists House races that are toss ups (Democrat or Republican incumbents) or just lean Republican. For those opposed to Trump and his servile cult politicians, donations need to be focused on those races, particularly those in California, New Jersey and New York. 

2024 CPR House Race ratings | Cook Political Report

For me, the most repulsive republican congressional representative that could be defeated is Anna Paulina Luna, who is the representative for Florida's 13th congressional district. The Democrat primary will be held on 8/20. Florida's 13th Congressional District election, 2024 - Ballotpedia I am in the camp of anyone but Luna. 

Luna is currently pushing for a House Resolution that would cancel a claim of executive privilege without a court hearing or judgment by fining the AG $10,000 per day. Anna Paulina Luna moves to force vote on fining Merrick Garland $10,000 per day This was toned down from her earlier resolution calling for "the House sergeant at arms to arrest and detain Garland" without a court order. The House Republicans have filed a suit challenging the Executive Privilege claim but will not wait before the court has a say in the matter before imposing a judgment along partisan lines. This is just another example of why the GOP is an authoritarian leaning party. 

Maybe the Republicans will vote on a resolution next to order that the AG's head be put on a spike and displayed for all to see on Pennsylvania Avenue. What is the limit of the right that they claim to have. It is important to quit calling them conservatives.  

It has not occurred to Luna or the other House republicans that the Democrats may gain control over the House in 2024 and 2026, and may do the same to Trump's cabinet members, but that would require the Republicans to think for more than a second or maybe 2 at the outside which would cause their brains to explode or be engulfed in an inferno of fire caused by overheating.  

As stated in a recent YT Video, I do not believe that Biden and Trump are mentally fit to serve as President for 4 years starting in January 2025. Trump and Biden Mental Fitness - YouTube

There was a concerted effort by those closest to Biden to conceal his mental acuity decline from Democrat voters and politicians. Angry and stunned Democrats blame Biden’s closest advisers for shielding public from full extent of president’s decline 

If Trump wins another 4 year term and there are no meaningful checks and balances on Trump which I now anticipate if he wins, then this concealment effort is just not forgivable, but will be welcomed by those aligned with a demagogic psychopath and authoritarian, and tens of millions are already permanent residents of Trump's Orwellian bubble. 

Senators demand special counsel investigation into Justice Clarence Thomas - YouTube 

Whitehouse and Wyden Ask Attorney General to Appoint Special Counsel to Investigate Potential Ethics and Tax Law Violations by Justice Clarence Thomas and His Benefactors - Senator Sheldon Whitehouse The issues involve possible tax fraud.

Fact check: Trump falsely claims Biden has homes in four vacation destinations and ‘more homes than I do’ 

Ex-Trump Aide Gorka Calls VP Kamala Harris 'Colored' On TV

Did Foxconn’s Trump-Backed Move to Wisconsin Create Jobs or Catfish the Public? | The Daily Show - YouTube

Putin’s under pressure as Ukraine war ‘endgame’ approaches | Professor Tim Willasey-Wilsey - YouTube

US and Germany foiled Russian plot to assassinate Armin Papperger CEO of arms manufacturer sending weapons to Ukraine  

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Putin and his Violent Orwellian State: 

Losses ∙ Russia ∙ WarSpotting — documented material losses in Russo-Ukrainian war

The Orcs targeted missiles on a children's hospital in Kiev. 

Kyiv children's hospital hit in Russian attack - YouTube; 

Ukraine: Children’s hospital attacked as Russian strikes on cities kill at least 31  

A Children’s Hospital in Ukraine Becomes a Scene of Destruction - The New York Times This children's hospital is one of many intentionally destroyed by the Russians. As of 2/22/24, the World Health Organization has documented 1,574 Russian attacks on Ukraine's medical facilities murdering at least 118 healthcare workers. 3 reflections from 2 years: WHO’s response to Europe’s largest emergency

This is clearly another Russian war crime and crime against humanity. Committing war crimes and crimes against humanity was routine and normal  for Nazis and is normal and routine for their kindred spirits in Russia as well.  

On the same day, the Russians executed a follow up missile attack hitting a maternity hospital Isida and medical center in Kyiv, murdering 7 civilians. Ukraine: Major damage to children’s hospital by direct Russian missile hit, dozens killed across the country - Amnesty International

Russia timed its missile attack on the children's hospital, the medical center, and maternity hospital to coincide with the NATO 75th Anniversary Summit and Modi's bear hug of Putin visit to Moscow. 

India PM Narendra Modi meeting Russian President Vladimir Putin in Moscow to Forge Deeper Ties; Modi Gives a Bear Hug to Putin - The Washington Post Putin's war effort has been funded in significant part by India's purchase of Russian energy products. 

India imports of Russian oil in 2021 were valued at $2.5B and at $45B in 2023. The India and China are financing Russia's war of aggression. 

India is not neutral, as it claims to be, but a Russian ally and enabler.

U.S. imports from India totalled $87.28B in 2023. 

China wants “to eat Russia’s lunch” as “limitless” friendship cracks grow deeper  - YouTube

Ukrainian Drones Hit Oil Depots in Pavlovskaya and Leningradskaya, Krasnodar, Russia - YouTube; Video Shows Fire Engulf Russian Refinery as Air Defenses Questioned - Newsweek

Ukraine hits Russian ammunition dump in Voronezh region - YouTube

Tor SAM System Fails to Intercept Drone -- Is Then Hit by HIMARS - YouTube Russian air defense systems can only be described as pathetic. 

Sabotage and poison: How Ukrainians resist Russian occupation | Defence in Depth - YouTube

How Ukraine ‘battlefield taxis’ destroyed Russia’s best tank T-90M | War on Tape | Daily Mail - YouTube The U.S. Bradley fighting vehicle is basically a lightly armored troop taxi that has some offensive capabilities (25mm M242 single-barrel chain gun, a machine gun; a TOW capable of carrying 2 missiles but the vehicle must be stationary to fire; and a 7.62mm machine gun) If the T-90M was properly designed, there should be no way that a Bradley would win a firefight with the T-90M but it has done so nonetheless.  

23 Russian Vehicles Destroyed in Failed Attack South of Kostyantynivka, Donetsk - YouTube

At the NATO summit, the leaders of 32 western democracies condemned China for enabling Russia's invasion of Ukraine. NATO allies call China a ‘decisive enabler’ of Russia in Ukraine war as bloc eyes Asia security threats China, India, Iran and North Korea are supporting Russia in its wars of imperialist aggression.

Damage to Melitopol Airport After HIMARS/ATACMS Strike Seen, Plus Update on Kalach-on-Don Oil Depot - YouTube

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Asset Allocations in my Fidelity Account: 

This account was up $3,631 yesterday.  

While I have been increasing my stock allocation some, I have not moved the needle at all. 

++

1. Bought 100 HR.UN:CA at C$9.09 (C$1 Interactive Brokers Commission): 

Quote: H&R Real Estate Investment Trust (HR-UN.TO) 

This is my first purchase of this diversified Canadian REIT.

The market capitalization at C$9.09 is about C$2.55B.

Website: H&R REIT 

Portfolio | H&R REIT

Over 26.8M square feet. 

Developments | H&R REIT

Dividend: Monthly at C$.05 per unit (C$.6 annually)

Yield at C$9.09: 6.6%

Last Financial Report (Q/E 3/31/24): Q1 2024 News Release (pdf format) or H&R REIT Reports First Quarter 2024 Results

All amounts are in CADs. 

FFO per unit: $.297

AFFO per unit: $.246

Dividend per unit: Quarterly at $.15, paid in monthly installments

Occupancy: 96.4%

Net asset value per unit: $20.18

As of 3/31/24, "properties sold or under contract to be sold in 2024 total $411.7 million". The largest completed sale was a 479,437 square foot office building located at 25 Dockside Drive in Toronto. The property was sold for $232.5M. A $60M mortgage was paid off at closing. H&R REIT Provides Update on Property Sales Further Advancing its Strategic Repositioning Plan (4/16/24)

The REIT sold its 50% interest in another office building, located at 3777/3791 Kingsway, Burnaby B.C., for $82.5 million. That building has 671,555 square feet. The buyer is the other 50% owner Crescent Real Estate Investments. The mortgage obligation will be entirely assumed by Crescent.   

As previously discussed, Canadian REITs use the International Financial Reporting Standard rather than GAAP. Property depreciation expense is not deducted from net income. Instead, the Canadian REIT AFFO calculation adds or subtracts changes in the portfolio's fair market value. This is included in the line item "Fair value adjustments on financial instruments and real estate assets". 

Note there is consequently no add back for the non-cash depreciation expense that U.S. REITs use to calculate funds from operations. 

2. Small Ball Buys: 

Regional Bank Basket Strategy

A. Restarted CZNC - Bought 10 at $16.89:

Quote: Citizens & Northern Corp. (CZNC) - Bank Holding Company

Cost: $168.9

CZNC Analyst Estimates

CZNC SEC Filings

Last Elimination: Item # 1.D. Eliminated CZNC - Sold 25 at $25.38 (10/10/22 Post) 

5 Year Chart: Unimpressive but arguably bottoming near 2020 pandemic low. 

Dividend: Quarterly at $.28 per share ($1.12), last raised from $.27 effective for the 2021 first quarter. 

CZNC Dividend History | Nasdaq

Yield at $16.89: 6.63%

Last Ex Dividend: 5/3/24

Last Earnings Report (Q/E 3/31/24):

SEC Filed Earnings Press Release 

Comparisons are to the 2023 first quarter. 

E.P.S.: $.35, down from $.4

NIM: 3.29%, down from 3.71%

The Y-O-Y decline in the net interest margin is commonplace among regional banks as the increase in deposit and loan costs was greater than the increase in interest income from loans and the below market yields of owned securities that were going down in value. 

Net Interest Income: $19.236M, down from $21.05M

Efficiency Ratio: 70.64%, down from 71.6 (both are too high IMO)

ROE: 8.13%, down from 9.9% 

NPL Ratio: 1.03%, up from .99% (above average for regional bank stocks that I own)

NPA Ratio: .78%, up from .75% 

Charge off ratio:  .01% (For 2023, the charge off ratio was .01%, down from .26% in 2022)

Tangible Book Value per share: $13.45, up from $12.93

"As of March 31, 2024. estimated uninsured and uncollateralized deposits totaled 21.3% of the Bank’s total deposits. C&N maintains highly liquid sources of available funds, including unused borrowing capacity with the Federal Home Loan Bank of Pittsburgh and the Federal Reserve Bank of Philadelphia and available federal funds lines with other banks, as well as available-for-sale debt securities with a fair value in excess of collateral obligations. At March 31, 2024, available funding from these sources totaled 187.7% of uninsured deposits and 249.2% of uninsured and uncollateralized deposits."

Owned Securities: 

Page 21, 10-Q 

Other Sell Discussions: Item # 2.E. Pared CZNC -Sold 5+ at $25.41 (8/6/21 Post)(profit snapshot = $40.57); Item # 5 Sold 50 CZNC at $20.29 - Update For Regional Bank Basket Strategy As Of 6/6/16 - South Gent | Seeking Alpha ($25.28); Item # 1 Sold 50 CZNC at $21.09-Update For Regional Bank Basket Strategy As Of 12/4/15 - South Gent | Seeking Alpha (profit snapshot = $76.48);Item # 3.F. Sold 100 CZNC at $19.52(8/25/14 Post)(profit snapshot =$48.5); Item # 1. Sold 100 CZNC at $16.53 (9/2/11 Post)(profit snapshot = $517.61). 

CZNC Realized Gains to Date: $1,063.11

B. Added 10 STEW at $14.55 - Vanguard Account: 

Quote:  SRH Total Return Fund Inc. Overview - A CEF

Cost: $145.5

This purchased slightly raised my average cost per share from $10.33 to $10.75.  

The fund changed its name from Boulder Growth and Income that had the symbol BIF.

Position after Add: 120+ shares

Price as of 7/5/24 Close/Unrealized Gain then at $461.8

90 shares were bought at $10.08, part of a 100 share lot. Item # 2.A. Bought 100 BIF at $10.08 and 10 at $9.85 (11/7/20 Post)  

The last buy discussion was a 10 share lot purchase. Item # 3.A. Added to STEW - Bought 10 at $13.9 (12/30/23 Post) 

Sponsor's website: SRH Total Return Fund - Home

SEC Filings 

Leverage: Yes at about 11% with low cost SU debt. ("On November 5, 2020 the Fund issued senior unsecured notes (“Notes”) in an aggregate amount of $225,000,000 in three fixed-rate series. The 10-, 12-, and 15-year series will pay interest semi-annually at the rate of 2.62%, 2.72%, and 2.87%, respectively. The Fund must experience a 2.72% rate of return in order to cover annual interest payments on the Notes. The Notes were issued in private placement offerings to institutional investors and are not listed on any exchange or automated quotation system. There can be no assurance that the use of leverage will be successful in enhancing the level of the Fund's total return.")

SEC Filing - Holdings as of 2/29/24 

Berkshire Hathaway Position as of 2/29/24: 

Valued Then at 775.067+M

As of 2/29/24, the fund owned 1,028 of the "A" class shares. That position was at 466 as of 5/31/12; 466 as of  2/28/2009; and 295 as of 5/31/2003. 

On the day of purchase, the "A" shares closed at $618,545, up $7,170. Berkshire Hathaway Inc. (BRK-A) Stock Historical Prices & Data - Yahoo Finance The value of 1,028 "A" shares was then at $635,864,250.  I recall when it was $16 which dates me a bit.  

SEC Filed Annual Report for the period ending 11/30/23 

Top 10 Holdings as of 5/31/24: Note the extreme concentration in Berkshire Hathaway, a long term holding for this fund. For both the "A" and "B" class shares, the total weighting as of 5/31/24 was at 38.51%.  

Dividend: Quarterly at $.1375 per share ($.55 annually). The fund generally holds long term.   

I am not reinvesting the dividend. 

Yield at $10.75 AC per share = 5.12%

Last Ex Dividend: 4/22/24

Data Date of 7/5/24 Trade: 

Closing Net Asset Value per share: $18.69

Closing Market Price: $14.57

Discount: -21.88%

Average 3 Year Discount: -18.07%

Sourced: STEW  - CEF Connect (Click "Pricing Information" tab)

SRH Total Return Fund (STEW)-Morningstar (Unrated)

The fund is effectively controlled by Stewart Horejsi, his related persons and entities. Stewart Horejsi & family (Forbes estimates net worth at $3.4B); This Unknown Man Became a Billionaire From Just One Investment; STEW Insider Holders & Insider Ownership (e.g. Susan Ciciora is a daughter who married John Ciciora, and the other Ciciora's mentioned are most likely their children) In response to John Train's book The Money Masters, originally published in 1980, Horejsi started to buy Berkshire stock in 1980 for as little as $265. At the time of his initial investment, Horejsi was running his family's welding supply business. 

Sell Discussions (STEW-BIF): Item #3.F. Eliminated Duplicate Position in STEW (Fidelity Account) - Sold 20 at $12.64 (2/27/23 Post)(profit snapshot = $72.96); Item # 1.E. Sold 10 BIF at $11.08 (1/9/21 Post) (profit snapshot = $10)(contains prior profit snapshots that total $560.27 including the $10 profit discussed in that post); Item # 3.E. Eliminated BIF-Sold 156+ at $11.42 (12/18/19 Post)(profit snapshot = $127.2); Item # 3.C. Sold 50 BIF at $11.28 (11/13/19 Post)(profit snapshot = $1.63); Item # 3.B. Eliminated BIF: Sold 116+ (2/16/17 Post)(profit snapshot = $137.25)

STEW-BIF Realized Gains to Date: $633.23

C. Restarted SBSI - Bought 5 at $26.46: 

Quote: Southside Bancshares Inc.  (SBSI) - Bank Holding Company 

Cost: $132.32

"Southside Bancshares, Inc. is a bank holding company with approximately $8.35 billion in assets as of March 31, 2024, that owns 100% of Southside Bank.  Southside Bank currently has 55 branches in Texas."

SBSI Analyst Estimates | MarketWatch

SBSI SEC Filings

Last Elimination: Item # 2.F. Eliminated SBSI - Sold 25 at $30.03 (3/8/24 Post)(profit snapshot = $106.15) I discussed the 2023 4th quarter report in that post.  I also discussed the reasons why I was reducing my allocation to regional bank stocks as part of the introduction to Item #2. 

I am in a 5 share buy mode, with each purchase required to be at the lowest price in the chain, until I reach 25 shares. 

Dividend: Quarterly at $.36 per share ($1.44 annually)

Southside Bancshares, Inc. (SBSI) Dividend History | Seeking Alpha

Yield at $26.46: 5.44%

Last Ex Dividend: 5/22/24

Last Earnings Report (Q/E 3/31/24): SEC Filed Earnings Press Release 

Comparisons are to the 2023 first quarter. 

E.P.S. = $.71, down from $.83

Net Income: $21.511M, down from $26.034M

NIM = 2.86%, down from 3.21%

"Our cost of interest bearing deposits increased 115 basis points, from 1.82% for the three months ended March 31, 2023, to 2.97% for the three months ended March 31, 2024. Our cost of total deposits increased 102 basis points, from 1.34% for the three months ended March 31, 2023, to 2.36% for the three months ended March 31, 2024."

Net Interest Income: $52.348M, down from $53.393M. 

Efficiency Ratio: 55.54%, up from 50.99% which is expected due to the lower net income. 

Charge off ratio: .03%, unchanged. 

Coverage Ratio: 565.01% (allowance for credit losses to nonperforming loans) 

NPL Ratio (nonperforming loans to total loans): .17%

NPA Ratio (nonperforming assets to total assets): .10%

The charge off, coverage, NPL and NPA ratios are excellent. 

ROTE: 15.07%, down from 19.36%

Tangible book value per share: $19.29, up from $17.54 

Owned Securities: 

10-Q at pages 13 and 15 The owned security portfolio is concentrated in securities in more than 10 years and the unrealized loss is significant as a percentage of amortized cost. The unrealized loss will decline as longer term interest rates have declined, which is the current trend but impossible to say for how long.    

Other Sell Discussions: Item # 1.D. Sold 1 SBSI at $39.8 (4/1/2021 Post); Item # 2 Sold 100 SBSI at $21.53 (6/28/12 Post); Item # 2.B. Sold 50 SBSI at  $21.27 (4/29/13 Post); Item # 3 Sold 107+ SBSI at $20.5 (7/18/11 Post)    

SBSI Realized Gains to Date: $534.99

D. Restarted WTBA - Bought 10 at $16.7:

Quote: West Bancorp Inc. (WTBA)

Cost:  $167

The market cap at $16.7 is $279+M. 

WTBA Analyst Estimates | MarketWatch

WTBA SEC Filings

Last Elimination: Item # 3.E.Eliminated WTBA-Sold 20+ at $20.52  (1/26/24 Post)(profit snapshot = $86.56) 

Last Buy Discussion: Item # 1.H. Added to WTBA - Bought 5 at $15.79 (10/21/23 Post) That lot has been sold. 

Dividend: Quarterly at $.25 per share

WTBA Dividend History | Nasdaq

Yield at $16.7: 5.99%

Last Ex Dividend: 5/7/24 

Last Earnings Report (Q/E 3/31/24): 

SEC Filed Earnings Press Release 

Comparisons are to the 2023 first quarter. 

E.P.S. = $.35, down from $.47

Net Income: $5.089M, down from $7.844M  

NIM: 1.88%, down from 2.23%

Net Interest Income: $16.75M, down from $18.484M

Interest income increased to $44.57M from $32.948 but the rise interest expense wiped out that increase and then some.  

I do not anticipate a sustained uptrend in the stock price until there is a sustained uptrend in NIM above the 2.23% reported in the 2023 first quarter. 

Efficiency Ratio: 62.04%, up from 55.34%, expected with the NIM contraction that results in lower net interest income and net income numbers. 

NPA Ratio: .01% (excellent)

ROE: 10.63%

Owned Securities: My Grade on interest rate risk management is a D. Note the unrealized loss as a percentage of amortized cost. 

As with many banks, a heavy reliance on low coupon mortgage backed securities remained in 2021 even though inflation was spiking higher, rising to an 8.5% rate for the 12 months ending in March 2022. Most banks had a deer in the headlights approach to interest rate management by owning  low coupon MBS whose duration would increase as interest rates adjusted higher in response to problematic inflation. 

As of 3/31/22, WTBA owned $562.905M in collateralized mortgage and mortgage backed securities. This cannot IMO be defended as competent given the inflation backdrop. "Collateralized mortgage obligations and mortgage-backed securities consist of residential and commercial mortgage pass-through securities and collateralized mortgage obligations guaranteed by FNMA, FHLMC, GNMA and SBA."  10-Q for the Q/E 3/31/22 at page 11 

I did not see any data on the weighted average yield of those investments, but would expect it to be very low. The MBS owned as of 3/31/22 would probably have a weighted average yield near 2%. 

The low weighted average yield on owned securities has contributed to NIM contraction during the period starting in 2022 when deposit and borrowing costs started to rise.  

Largest Gain: Item # 3.A. Sold 100 WTBA at $23.12 (4/29/17 Post)(profit snapshot = $1,146.24) - Bought 100 WTBA at $11.67 (6/29/13 Post)

WTBA Realized Gains to Date: $1,394.43

E. Added to the Falling Knife WBA - Bought 5 at $10.8: 

Quote: Walgreens Boots Alliance Inc. (WBA)

Cost: $54 

Investment Category: Contrarian Value, possibly a value trap 

Value trap is the appropriate label based on the price action since I first started this small ball position. I will continue adding in 5 share lots until I hit 100 shares. Each subsequent purchase must be at the lowest price in the chain.  

WBA Analyst Estimates | MarketWatch

WBA Key Metrics - Reuters

WBA SEC Filings

WBA Chart - Barchart.com Using a 5 year chart, WBA started a long term bear market in November 2019 after the price went over $60. 

Average cost per share: $15.16 (55 shares)

Dividend: Quarterly at $.25 per share

Yield at New AC: 6.6%

Last Ex Dividend: 5/20/24 (owned 20 as of)

I discussed the last earnings report in this post. Item # 1.C. Added to WBA - Bought 5 at $12; 5 at $11.11 (7/5/24 Post); SEC Filed Earnings Press Release for the F/Q ending 5/31/24 

F. Started PNM - Bought 5 at $36.14: 

Quote:  PNM Resources Inc. (PNM) - Utility Holding Company 

Cost: $180.7

The operating subsidiaries are Public Service of New Mexico and Texas-New Mexico Power company. Those two utilities serve about 827,000 residential, commercial and industrial customers. 

This is my first purchase in a taxable account. 

PNM Analyst Estimates | MarketWatch

Investors – PNM Resources

Avangrid terminated an agreement to acquire PNM due to regulatory opposition. The New Mexico Public Service Commission had denied its approval. PNM Resources Announces Avangrid Termination of Merger Agreement, Schedules Financial Update (2/2/24) The merger agreement had been signed in October 2020. The cash offer price was $50.3 per PNM share. AVANGRID and PNM Resources to Combine in Strategic Merger Transaction (10/21/20)

PNM SEC Filings 

10-Q for the Q/E 3/31/24 

2023 SEC Filed Annual Report 

Dividend: Quarterly at $.3875 ($1.55 annually), last raised from $.3675 effective for the the 2024 first quarter payment. In 2014, the quarterly dividend was at $.185. 

PNM Dividend History | Nasdaq

Yield at $36.14: 4.29%

Last Ex Dividend: 4/25/24

Last Earnings Report (Q/E 3/31/24): 

SEC Filed Press Release 

Revenue: $436.877M

Disaggregation of Revenue:

GAAP E.P.S. = $.52

Non-GAAP E.P.S.  = $.41

GAAP to Non-GAAP Reconciliation: 

As of 3/31/24, PNM owned investment securities valued $448.164M:

10-Q at page 40

During the first quarter, PNM realized $17.998M in realized gains from those securities: 

10-Q at page 39

Non-GAAP E.P.S. excludes those realized gains. 

Reaffirmed 2024 non-GAAP E.P.S. of $2.65-2.75. 

I own Public Service of New Mexico SU Debt, referenced as PNM in the following chart.  

Credit Ratings

Bond Page Finra: 3.85% SU Maturing on 8/1/25 

I will probably add in 5 share lots, with each subsequent purchase required to be at the lowest price in the chain. 

G. Restarted IRBO - Bought 5 at $33.93: 

Quote: IRBO | iShares Robotics & Artificial Intelligence Multisector ETF Overview

Cost: $169.94

Sponsor's website: iShares Robotics and Artificial Intelligence Multisector ETF | IRBO

Expense Ratio: .47%

Last Elimination: Item # 1.I. Eliminated IRBO - Sold 2 at $33.5 (10/2/2021 Post)(profit snapshot = $32.87)-Item #3.A. Bought 5 IRBO in Schwab Taxable Account at $28.7 (7/18/20 Post) I also discussed eliminating a similar ETF in that post, selling 5 BOTZ at $39.02 and realizing a $74.52 gain. Global X Robotics & Artificial Intelligence ETF (BOTZ) BOTZ has a .68% expense ratio.  

Top 20 Holdings: 

Nvidia is not even in the top 20 which is a problem with an ETF that simply tracks an index and keeps each stock weighting relatively small. Nvidia is owned, but had a 1.02% weighting as of 7/8/24. Going forward, that low weighting may continue to prove to be a detriment or could turn into a positive with a major downdraft in the NVDA price. A managed fund in this sector would have a large weighting. 

Dividends: Paid Semiannually and viewed by me as unimportant. 

Last 2 Semiannual Dividends: $.27 per shares (rounded up from $.267683)

Last Ex Dividend: 6/11/24

IRBO Page at  Morningstar (rated 2 stars) 

IRBO – Performance - Morningstar Wild. 

Total Returns Based on Price 

2019: +34.47%

2020: +48.85%

2021: +6.35%

2022: -37.88%

2023: +$36.39%

I have a slightly higher dollar amount invested in the leveraged CEF  Virtus Artificial Intelligence & Technology Opportunities Fund (AIO), which currently pays a monthly dividend of $.15 per share.  AIO - CEF Connect; AIO SEC Filings; SEC Filing - AIO Holdings as of 4/30/24 As of 5/31/24, NVDA had a 3.64% weighting in that CEF, which was its highest.  AIO is a balanced fund that will own some convertible debt and bonds. 

Last AIO Sell Discussion: Item # 2.F. Pared AIO - Sold 8 at $19.66 OIL(3/15/24)(profit snapshot = $22.87). I sold the highest cost lots which reduced my average cost per share to $15.3 (54+ shares). I have turned off dividend reinvestment. This is a standard risk reduction technique that I use. 

Last AIO Buy Discussion:  Item # 2.C. Added to AIO - Bought 5 at $15.85; 5 at $15.63; 5 at $15.15 (10/28/23 Post)

H. Added to CALF - Bought 3 at $42.33:

Quote: Pacer US Small Cap Cash Cows 100 ETF Overview

Cost = $126.99

Sponsor's website: CALF | Pacer ETFs

CALF Page at Morningstar

New Average Cost per share: $42.55 (35 shares)

Snapshot Intraday on 7/10/24 after add

I have nothing to add to my last discussion. Item # 1.D. Added to CALF - Bought 2 at $42.96 (7/5/24 Post) 

I. Started IDNA - Bought 5 at $23.6: 

Quote:  iShares Genomics Immunology & Healthcare ETF Overview 

Cost: $117.85

Sponsor's website: "The iShares Genomics Immunology and Healthcare ETF seeks to track the investment results of an index composed of developed and emerging market companies that could benefit from the long-term growth and innovation in genomics, immunology, and bioengineering."

Expense Ratio: .47%

Top 20 Holdings as of 6/9/24:

Since inception, the fund has been a horrific performer and is currently rated at 1 star by Morningstar. IDNA – Morningstar

IDNA  Performance - Morningstar (as of 7/9/24, the five year annual average total return was -2.21% based on price) 

Dividends: Paid Semiannually and insignificant

The fund had a +54.29% return in 2020 and a -42.27% in 2022. 

I looked at this ETF in 2022 but decided to pass. 

As I recall and my memory is not as good as it use to be, the fund owned several genomic type stocks involved in gene editing that spiked in 2020 and collapsed in 2022. 

The holdings are now weighted more heavily in established companies like Sanofi, Gilead, Merck, GSK and Regeneron and lower weightings in a few clinical stage drug companies  such as Beam Therapeutics Inc. (BEAM). Of the stocks owned by this ETF, I currently have small positions in Gilead Sciences Inc. (GILD); CRISPR Therapeutics AG (CRSP);  and Ligand Pharmaceuticals Inc. (LGND). I have owned in the past Merck, Sanofi, and Roche.  

3. Corporate Bonds: 

A. Bought 2 Emera U.S. Finance LP 3.55% SU Maturing on 6/15/26 at a Total Cost of 96.129: 

Issuer: Subsidiary of the Canadian utility holding company Emera Inc. who guarantees the notes:  

Prospectus at page 1 "The notes will be fully and unconditionally guaranteed, on a joint and several basis (the “guarantee”), by Emera Incorporated, a Nova Scotia company (“Emera”), and Emera US Holdings Inc., a Delaware corporation (“EUSHI,” and together with Emera, the “Guarantors."

I previously eliminated my common stock position: Item # 2. Sold 100 EMR:CA at C$62.77 (4/21/22 Post)(profit snapshot = C$427)

Website: Home| Emera

Finra Page: Bond Page | FINRA.org

Credit Ratings: Baa3/BBB- (lowest ratings that are still "investment grade") 

YTM at Total Cost: 5.674%

Current Yield at TC = 3.693%

I also own an Emera reset equity preferred stock:  EMA-PC.TO

Last Discussed:  Item # 2.A. Added 100 EMA.PRC:CA at C$19.7  (12/23/23 Post); Item # 1. Bought Back 100 EMA.PRC:CA at C$18.45 (10/18/22 Post) The coupon reset for 5 years last August at 6.434% paid on C$25 par value. My current yield is at 8.45% based on C$19.04 average cost per share. 

EMA.PRC:CA Realized Gains to date: C$1,176. 

B. Bought 2 Capital One 4.25% SU Maturing on 10/29/25 at a Total Cost of 98.222 - IB Account:

Issuer: Capital One Financial Corp. COF) 

COF Analyst Estimates | MarketWatch

COF SEC Filings 

SEC Filed Press Release for the Q/E 3/31/24 

FINRA Page: Bond Page | FINRA.org

Credit Ratings: Baa1/BBB-

YTM at Total Cost: 5.614%

Current Yield at TC =  4.327%

I now own 4 bonds. I am using the 10/29/25 maturity to replace the 4 bonds that will mature on 10/30/24. 

Positions in other Capital One SU Bonds: 

4 of the 3.3% SU Maturing on 10/30/24; Bond Page | FINRA.org

2 of the 3.25% SU Maturing on 2/5/25; Bond Page | FINRA.org

C. Bought 1 Bank of Montreal 5.45% SU Maturing on 7/12/27 at Par Value - Fidelity Corporate Notes Program: 

Issuer: Bank of Montreal Stock Quote (BMO) 

BMO Analyst Estimates | MarketWatch

The Fidelity Corporate Notes Program offers newly issued corporate senior unsecured debt priced at par value, with no accrued interest payable. 

SU Credit Ratings: A2/A-

Fixed Income Investors - About BMO Canada

Fitch has the SU debt rated at AA-. Fitch Affirms Bank of Montreal at 'AA-'; Outlook Stable

I bought this note rather than participating in the 3 year treasury note auction last week:

Coupon 4.375%/YTM at 4.399%

I have 1 BMO 5.4% SU maturing on 12/16/24 that was also bought at par value.  

4. Treasury Bills Purchased at Auction: $19,000 in principal amount

I used spare cash in 3 of my accounts to purchase these Treasury Bills. 

13 were bought in my Schwab account whose sweep accounts pays only .45% which is not an alternative for spare cash. 

I am currently maintaining close to $25K in SNOXX, a purchased Schwab Treasury MM fund that can not be used as a sweep account. The 7 day SEC yield is currently at 5.01%. 

An order to sell SNOXX shares, entered before the market closes, will result in the funds being deposited in the sweep account on the next business day and consequently be used to fund trades. 

I have never used margin to buy anything. 

All purchases in brokerage accounts since I started to invest were paid for in cash. 

Funds are kept in this Schwab purchased MM account in case I want to make a quick rotation into stocks while earning more than in the sweep account. The yield in any MM fund will decline rapidly in tandem with FED rate cuts. 

A. Bought 12 Treasury Bills at the 7/8/24 Auction - Two Accounts: 

91 Day Bill

Matures on 7/10/24 

Interest: $159.54

Investment Rate: 5.374%

B. Bought 5 Treasury Bills at the 7/8/24 Auction - Two Accounts: 

182 Day T Bill 

Matures on 1/9/25

Interest: $128.41

Investment Rate: 5.286% 

C. Bought 2 Treasury Bill at the 7/9/24 Auction - Two Accounts: 

1 Year T Bill

Matures on 7/10/25  

Interest: $96.56

Investment Rate: 5.024%

5. FDIC Insured CDs: 

A. Bought 2 UBS Bank 4.75% CDs Maturing on 7/10/26 - Schwab Account: 

Interest paid monthly. 

This was a slightly better deal than the 2 year treasury note that was yielding 4.62% when I purchased this CD and makes semiannual interest payments. 

This CD would not be better for anyone that has to pay a state income tax on CD interest income. 

Tennessee does not have a tax on income so I am slightly better off buying this CD rather than the 2 year treasury note. 

6. CFGPRD Redeemed at the $25 Par Value - Just 6 Shares:

Profit Snapshot: +$19.3

Citizens Financial Group Announces Redemption of All Outstanding Depositary Shares Representing Interests in Series D Preferred Stock 

This non-cumulative, fixed-to-floating rate equity preferred stock was issued by the bank holding company Citizens Financial Group Inc (CFG). Bank holding company preferred stocks make me a bit queasy, since the downside is zero when and if the FDIC seizes the operating bank. 

The fixed rate coupon was 6.35% paid quarterly on a $25 par value to but excluding 4/6/24. 

The floating rate then came into being, calculated at 3.462% spread to the 3 month Libor rate which no longer exists. Citizens announced that it would use the 3 month SOFR rate plus the tenor spread of .2161% which equalizes SOFR with the Libor. Citizens Financial Group, Inc. Announces Transition of U.S. LIBOR-linked Preferred Stock to Term SOFR Replacement Rate The first and last quarterly payment using that floating rate was about $.5945+ per share, up from the fixed rate of $.3969+.  My dividend yield went over 10% for 1 payment. 

I only owned 6 shares and am mentioning this redemption to note that this is the first time that a fixed-to-floating rate preferred that I owned was redeemed by the issuer because the floating rate was too high. The option to call at anytime is triggered by the transition to the floating rate. 

If the rate is too high, the issuer will call and the owner will not receive the benefit of the floating rate.

If short term rates are really low, and the floating rate is lower than the fixed rate, then the issuer will allow the owner to keep the stock until that changes to an unfavorable result for the issuer. 

I have other similar small ball positions in fixed-to-floating rate preferred stocks that I expect to be called when the transition from the fixed rate triggers the optional call at par right. 

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.