Economy:
China posts slowest economic growth since 1990 - MarketWatch (6.6% for 2018)
This report caused the Stock Jocks to have the shakes yesterday, creating yet another anxiety attack possibly exacerbated with a growing realization among a slightly growing minority that Donald may not be the best negotiator in world history.
S & P 2,632.90 -37.81 -1.42%
US cancels trade planning meeting with China, source says I mentioned in a recent comment that some skepticism was warranted about happy talk on a successful resolution, citing this Bloomberg article and my "feel" that China will not want to be pinned down to a deal that is specific and enforceable.
This report was published last night. Trump won't soften hardline on China to make trade deal: advisers | Reuters
So far today, the favorable earnings reports (e.g. IBM, PG) acted as chill out pills for the Stock Jocks.
This report caused the Stock Jocks to have the shakes yesterday, creating yet another anxiety attack possibly exacerbated with a growing realization among a slightly growing minority that Donald may not be the best negotiator in world history.
S & P 2,632.90 -37.81 -1.42%
US cancels trade planning meeting with China, source says I mentioned in a recent comment that some skepticism was warranted about happy talk on a successful resolution, citing this Bloomberg article and my "feel" that China will not want to be pinned down to a deal that is specific and enforceable.
This report was published last night. Trump won't soften hardline on China to make trade deal: advisers | Reuters
So far today, the favorable earnings reports (e.g. IBM, PG) acted as chill out pills for the Stock Jocks.
++++++
Markets and Market Commentary:
This is not news: Government shutdown exposes a harsh truth: Most Americans are unprepared for the next recession Foreclosures will spike in the next recession since far too many households are leveraged too much and have inadequate savings to make mortgage payments after losing a job.
This is not news: Government shutdown exposes a harsh truth: Most Americans are unprepared for the next recession Foreclosures will spike in the next recession since far too many households are leveraged too much and have inadequate savings to make mortgage payments after losing a job.
The investor known as the ‘Warren Buffett of Boston’ rattles Davos crowd with this warning - MarketWatch (the reference is to Seth Klarman who heads up the Baupost, one of the largest hedge funds). The story is based on a letter written by Klarman to his investors that was obtained by the NYT. Chilling Davos: A Bleak Warning on Global Division and Debt - The New York Times This is a quote from the letter that echos the concerns that I have expressed here for years: “There is no way to know how much debt is too much, but America will inevitably reach an inflection point whereupon a suddenly more skeptical debt market will refuse to continue to lend to us at rates we can afford.” By the time such a crisis hits, it will likely be too late to get our house in order.”
++++++
Trump:
Book by Former Staff Member Describes a White House ‘Out of Control’; Exclusive: The making of Trump's Enemies List - Axios; Team of Vipers: My 500 Extraordinary Days in the Trump White House: Cliff Sims
To end the shutdown for now, Trump made a meaningless offer to the Democrats that outraged the Trumpsters. In exchange for $5.7B in wall funding, Donald would give a temporary deportation reprieve to the DACA children for 3 years. Trump proposes extending DACA, TPS protections in exchange for wall funding - CNN; Trump proposes wall-for-DACA in bid to end shutdown | Reuters
By way of background, the Deferred Action for Childhood Arrivals (DACA) is an executive order issued by President Obama that prevented deportation of children who were brought illegally to the U.S, provided they do not have felonies or serious misdemeanors on their record.
Other requirements include living in the U.S. continuously since 6/15/17 and arrived in the U.S. before their 16th birthday. Unlike the DREAM Act which did not become law, the DACA program provided no path to citizenship for those children.
Trump repealed that Obama executive order that would have resulted in the deportation of those children. So the republicans are offering to temporarily give back what they have taken.
The core of the GOP wants to send the Dreamers back to their country of origin which explains their opposition to Obama's executive order.
Allowing them to stay and providing a path to citizenship is anathema to them and is immediately labelled as amnesty.
Republican politicians, unlike their core supporters, will frequently support the deportation result but claim that their motive is to defend separation of powers from Obama's alleged unconstitutional usurpation of Congress's power to pass laws. The Imperial Presidency argument only concerns them in this limited matter.
Republican controlled states filed legal challenges to the constitutionality of Obama's DACA executive order. Multiple federal district courts have enjoined Trump from implementing the GOP's deportation efforts and to continue the DACA program pending a trial. Status of Current DACA Litigation - National Immigration Law Center
So why is Trump's 3 year offer meaningless? His administration is under court order to continue the DACA program, so he is offering only to do what he has already been ordered to do by the courts. Someone who is a capable negotiator knows that such offers will not lead to a successful resolution.
It may take two or three years before the courts to reach a final resolution. Until that happens, the GOP can not deport these children to their native countries anyway.
Yesterday, the Supreme Court refused to consider an expedited appeal from the injunctions. DACA news: Supreme Court again takes no action, leaving policy in effect for now - CNN
Senate Republicans all but surrender to Trump on wall despite shutdown’s toll - The Washington Post
Book by Former Staff Member Describes a White House ‘Out of Control’; Exclusive: The making of Trump's Enemies List - Axios; Team of Vipers: My 500 Extraordinary Days in the Trump White House: Cliff Sims
To end the shutdown for now, Trump made a meaningless offer to the Democrats that outraged the Trumpsters. In exchange for $5.7B in wall funding, Donald would give a temporary deportation reprieve to the DACA children for 3 years. Trump proposes extending DACA, TPS protections in exchange for wall funding - CNN; Trump proposes wall-for-DACA in bid to end shutdown | Reuters
By way of background, the Deferred Action for Childhood Arrivals (DACA) is an executive order issued by President Obama that prevented deportation of children who were brought illegally to the U.S, provided they do not have felonies or serious misdemeanors on their record.
Other requirements include living in the U.S. continuously since 6/15/17 and arrived in the U.S. before their 16th birthday. Unlike the DREAM Act which did not become law, the DACA program provided no path to citizenship for those children.
Trump repealed that Obama executive order that would have resulted in the deportation of those children. So the republicans are offering to temporarily give back what they have taken.
The core of the GOP wants to send the Dreamers back to their country of origin which explains their opposition to Obama's executive order.
Allowing them to stay and providing a path to citizenship is anathema to them and is immediately labelled as amnesty.
Republican politicians, unlike their core supporters, will frequently support the deportation result but claim that their motive is to defend separation of powers from Obama's alleged unconstitutional usurpation of Congress's power to pass laws. The Imperial Presidency argument only concerns them in this limited matter.
Republican controlled states filed legal challenges to the constitutionality of Obama's DACA executive order. Multiple federal district courts have enjoined Trump from implementing the GOP's deportation efforts and to continue the DACA program pending a trial. Status of Current DACA Litigation - National Immigration Law Center
So why is Trump's 3 year offer meaningless? His administration is under court order to continue the DACA program, so he is offering only to do what he has already been ordered to do by the courts. Someone who is a capable negotiator knows that such offers will not lead to a successful resolution.
It may take two or three years before the courts to reach a final resolution. Until that happens, the GOP can not deport these children to their native countries anyway.
Yesterday, the Supreme Court refused to consider an expedited appeal from the injunctions. DACA news: Supreme Court again takes no action, leaving policy in effect for now - CNN
Senate Republicans all but surrender to Trump on wall despite shutdown’s toll - The Washington Post
Exactly How Bad Is Trump At Making Deals? Even Worse Than You Think
Donald Trump's weak negotiation skills caused government shutdown: USA Today
Trump did not mention in his televised address that his compromise negotiated with his advisor Stephen Miller makes drastic changes to existing immigration laws, including a prohibition on children applying for asylum at the U.S. border and making it more difficult for those seeking asylum based on persecution and violence in their home countries. Senate Leaders Plan Competing Bills to End Shutdown - The New York Times
The Miller proposal was intended to be a bad faith one that was guaranteed to be a non-starter with all Democrats.
When the GOP has at least 6o republican votes in the Senate, Miller's immigration agenda might have a chance with Trump as President and the republicans in control of the House. A few republican senators, who will probably lose in 2020, may vote against the Miller-Trump immigration compromise.
To condition the reopening of the government on this proposal simply demonstrates Trump's recklessness, irresponsibility and pathetic negotiating skills.
It also proves his lack of leadership and a governing style that relies on demagoguery and lies designed to appease the Trumpsters at whatever cost to the nation's interest.
It is hardly surprising this Know Nothing reptilian brain is responsible for the longest shutdown in U.S. history.
If the Democrats gave into republican demands in order to gain the release of 700+K hostages taken by the GOP, there would be no stopping their demands. The GOP previously shutdown the government when the Democrats refused to repeal Obamacare. The GOP's approach to getting what they want, when they lack the votes, is extremely irresponsible.
Donald Trump's weak negotiation skills caused government shutdown: USA Today
Trump did not mention in his televised address that his compromise negotiated with his advisor Stephen Miller makes drastic changes to existing immigration laws, including a prohibition on children applying for asylum at the U.S. border and making it more difficult for those seeking asylum based on persecution and violence in their home countries. Senate Leaders Plan Competing Bills to End Shutdown - The New York Times
The Miller proposal was intended to be a bad faith one that was guaranteed to be a non-starter with all Democrats.
When the GOP has at least 6o republican votes in the Senate, Miller's immigration agenda might have a chance with Trump as President and the republicans in control of the House. A few republican senators, who will probably lose in 2020, may vote against the Miller-Trump immigration compromise.
To condition the reopening of the government on this proposal simply demonstrates Trump's recklessness, irresponsibility and pathetic negotiating skills.
It also proves his lack of leadership and a governing style that relies on demagoguery and lies designed to appease the Trumpsters at whatever cost to the nation's interest.
It is hardly surprising this Know Nothing reptilian brain is responsible for the longest shutdown in U.S. history.
If the Democrats gave into republican demands in order to gain the release of 700+K hostages taken by the GOP, there would be no stopping their demands. The GOP previously shutdown the government when the Democrats refused to repeal Obamacare. The GOP's approach to getting what they want, when they lack the votes, is extremely irresponsible.
++++++
1. Small Ball-Income Generation:
A. Added 1 IBM at $108.48-Used Commission Free Trade:
Quote: International Business Machines Corp.
Closing Price Last Tuesday: IBM $122.52 -$1.30 -1.05%
There was up over $8 per share bounce in after hours trading yesterday. IBM released its earnings after the close which I have only cursorily reviewed so far.
IBM Shares Jump After Beating Earnings and Guidance Expectations - TheStreet
The enthusiasm has carried over into early morning trading today: IBM $133.84 +$11.31 +9.24% as of 8:42 C.S.T.
SEC Filings
The enthusiasm has carried over into early morning trading today: IBM $133.84 +$11.31 +9.24% as of 8:42 C.S.T.
SEC Filings
IBM Consensus 2019 Analyst EPS (as of 12/26/18) = $13.91
Last Substantive Discussion: Item # 1.A. (11/21/18 Post)
Dividend: Quarterly at $1.57 per share ($6.28 annually)
Last Ex Dividend Date: 11/8/18
Dividend Reinvestment: Yes at less than $150 per share
I picked that share price in part based on a five year chart, which shows the price above that level for most of that period:
Current Position: 12+ shares
Average Cost Per Share =$135.38
Dividend Yield at Total Average Cost = 4.64%
Average Cost Per Share =$135.38
Dividend Yield at Total Average Cost = 4.64%
Maximum Position: 20 Shares + shares purchased with dividends
Purchase Restriction: Small Ball Rule
To say that my IBM buys are cautiously tepid is a gross understatement of what I am doing.
Last Earnings Report (released yesterday and not yet reviewed): IBM Reports 2018 Fourth-Quarter and Full-Year Results | Business Wire
To say that my IBM buys are cautiously tepid is a gross understatement of what I am doing.
Last Earnings Report (released yesterday and not yet reviewed): IBM Reports 2018 Fourth-Quarter and Full-Year Results | Business Wire
B. Bought 5 VNQ at $71.38-Commission Free for Vanguard Customers:
Quote: Vanguard Real Estate ETF Overview
I prefer to own individual REITs but will engage in some very light trading in this ETF.
Closing Price Last Tuesday: VNQ $79.19 -$0.24 -0.30%
Last Discussed: Item # 3.A. Bought 5 VNQ at $77.71(11/14/18 Post)
Sponsor's Website: Vanguard (expense ratio = .12%; 190 stocks)
Last Eliminations: Item #2.A Sold 10 VNQ at $81.08 (7/5/18 Post); Item # 1.D Sold 10 VNQ at $79.89 and 10 at $80.06 (6/14/18 Post); Item # 3 Sold at $83.36 Update For Equity REIT Basket Strategy As Of 3/21/16 - South Gent | Seeking Alpha; Item # 3 Sold 10 VNQ at $80.74: Update For Equity REIT Basket Strategy As Of 11/5/15 - South Gent | Seeking Alpha
2018 VNQ Trading Profits (30+ shares) = $134.35
Top Holdings as of 12/31/18:
C. Added 20 ORKLY at $7.76-Used Commission Free Trade:
Quote: Orkla ASA ADR
Closing Price Last Tuesday: ORKLY $8.22 -$0.06 -0.72%
1 ADR = 1 Ordinary Share
The ordinary shares are priced in Norwegian Krone: ORKLA ASA (ORK.OL)
Chart: Norwegian Krone to US Dollar Rates
Website: Orkla.com
About Orkla
Orkla Foods - Orkla.com
Orkla Confectionery & Snacks - Orkla.com
Orkla Care - Orkla.com
Orkla Food Ingredients - Orkla.com
Orkla has significant investments in businesses unrelated to food and personal care products. Hydro Power; Financial Investments; and a 42.6% stake in the paint and powder coating manufacturer Jotun.
Last Discussion: Bought 20 ORKLY at $8.15-Used Commission Free Trade (7/22/18 Post)
Average Cost Per Share = $9.41
Dividends: Annual (paid in Norwegian Krone and converted into U.S. Dollars for ORKLY owners)
Dividend and treasury shares - Orkla.com
I am close to break-even on a total return basis which includes a special dividend of 5 NOKs per share that was paid in 2017. That dividend was paid in connection with this transaction: Orkla ASA: Orkla to sell its interest in Sapa to Hydro
The last regular annual dividend was 2.6 NOKs per share. The dividend is paid usually in April.
Last Earnings Report: Orkla Third quarter 2018
Orkla ASA ADR (ORKLY) CEO Peter Ruzicka on Q3 2018 Results - Earnings Call Transcript | Seeking Alpha
Recent News:
Orkla acquires well-known brand in Danmark - Orkla.com
Orkla completes the offer to acquire Kotipizza - Orkla.com
Last Sell Discussions:
Sold 100 ORKLY-Update On Portfolio Positioning And Management - South Gent | Seeking Alpha August 2015 (+$51.08)- Bought Back 100 Orkla (ORKLY) At $7.285 - South Gent | Seeking Alpha December 2014
Item # 4 Sold 100 ORKLY at $9 (9/6/14 Post)(profit snapshot $122.48)-Item # 2. Bought 100 ORKLY at $7.61 (1/13/14 Post)
Total ORKLY Trading Profit: $239.01
Maximum Position: 200 Shares
Current Position: 160 Shares
I prefer to own individual REITs but will engage in some very light trading in this ETF.
Closing Price Last Tuesday: VNQ $79.19 -$0.24 -0.30%
Last Discussed: Item # 3.A. Bought 5 VNQ at $77.71(11/14/18 Post)
Sponsor's Website: Vanguard (expense ratio = .12%; 190 stocks)
Last Eliminations: Item #2.A Sold 10 VNQ at $81.08 (7/5/18 Post); Item # 1.D Sold 10 VNQ at $79.89 and 10 at $80.06 (6/14/18 Post); Item # 3 Sold at $83.36 Update For Equity REIT Basket Strategy As Of 3/21/16 - South Gent | Seeking Alpha; Item # 3 Sold 10 VNQ at $80.74: Update For Equity REIT Basket Strategy As Of 11/5/15 - South Gent | Seeking Alpha
2018 VNQ Trading Profits (30+ shares) = $134.35
Top Holdings as of 12/31/18:
C. Added 20 ORKLY at $7.76-Used Commission Free Trade:
Quote: Orkla ASA ADR
Closing Price Last Tuesday: ORKLY $8.22 -$0.06 -0.72%
1 ADR = 1 Ordinary Share
The ordinary shares are priced in Norwegian Krone: ORKLA ASA (ORK.OL)
Chart: Norwegian Krone to US Dollar Rates
Website: Orkla.com
About Orkla
Orkla Foods - Orkla.com
Orkla Confectionery & Snacks - Orkla.com
Orkla Care - Orkla.com
Orkla Food Ingredients - Orkla.com
Orkla has significant investments in businesses unrelated to food and personal care products. Hydro Power; Financial Investments; and a 42.6% stake in the paint and powder coating manufacturer Jotun.
Last Discussion: Bought 20 ORKLY at $8.15-Used Commission Free Trade (7/22/18 Post)
Average Cost Per Share = $9.41
Dividends: Annual (paid in Norwegian Krone and converted into U.S. Dollars for ORKLY owners)
Dividend and treasury shares - Orkla.com
I am close to break-even on a total return basis which includes a special dividend of 5 NOKs per share that was paid in 2017. That dividend was paid in connection with this transaction: Orkla ASA: Orkla to sell its interest in Sapa to Hydro
The last regular annual dividend was 2.6 NOKs per share. The dividend is paid usually in April.
Last Earnings Report: Orkla Third quarter 2018
Orkla ASA ADR (ORKLY) CEO Peter Ruzicka on Q3 2018 Results - Earnings Call Transcript | Seeking Alpha
Recent News:
Orkla acquires well-known brand in Danmark - Orkla.com
Orkla completes the offer to acquire Kotipizza - Orkla.com
Last Sell Discussions:
Sold 100 ORKLY-Update On Portfolio Positioning And Management - South Gent | Seeking Alpha August 2015 (+$51.08)- Bought Back 100 Orkla (ORKLY) At $7.285 - South Gent | Seeking Alpha December 2014
Item # 4 Sold 100 ORKLY at $9 (9/6/14 Post)(profit snapshot $122.48)-Item # 2. Bought 100 ORKLY at $7.61 (1/13/14 Post)
Total ORKLY Trading Profit: $239.01
Maximum Position: 200 Shares
Current Position: 160 Shares
2. Short Term Bond/CD Ladder Basket Strategy:
Purchases: $7K
A. Bought 2 CVS 2.8% SU Maturing on 7/20/20:
FINRA Page: Bond Detail (prospectus linked)
Issuer: CVS Health Corp. (CVS)
CVS Analyst Estimates
Credit Ratings:
Bought at a Total Cost of 99.476 (includes $4 Vanguard Commission)
YTM at TC Then at 3.156%
Current Yield at TC = 2.8147%
The purchase price was at 99.276. The $4 commission raises the cost number by .2. I had to pay $27.07 in accrued interest to the seller. I got that back from the issuer when the semi-annual payment was made on 1/20/18. I received with that payment a few more days of interest.
B. Bought 2 Abbott 2.8% SU Bonds Maturing on 9/15/20:
Finra Page: Bond Detail (prospectus linked)
Issuer: Abbott Laboratories (ABT)
ABT Analyst Estimates
Abbott Reports Third-Quarter 2018 Results
Credit Ratings:
Bought at a Total Cost of 99.5
YTM at TC Then at 3.109%
Current Yield at TC = 2.8141%
Comparable Maturity Treasury Order Book at time of Purchase:
C. Bought 3 Treasury 3 month Bills at Auction Maturing on 4/18/19:
IR = 2.453%
Auction Results:
Purchases: $7K
A. Bought 2 CVS 2.8% SU Maturing on 7/20/20:
FINRA Page: Bond Detail (prospectus linked)
Issuer: CVS Health Corp. (CVS)
CVS Analyst Estimates
Credit Ratings:
Bought at a Total Cost of 99.476 (includes $4 Vanguard Commission)
YTM at TC Then at 3.156%
Current Yield at TC = 2.8147%
The purchase price was at 99.276. The $4 commission raises the cost number by .2. I had to pay $27.07 in accrued interest to the seller. I got that back from the issuer when the semi-annual payment was made on 1/20/18. I received with that payment a few more days of interest.
B. Bought 2 Abbott 2.8% SU Bonds Maturing on 9/15/20:
Finra Page: Bond Detail (prospectus linked)
Issuer: Abbott Laboratories (ABT)
ABT Analyst Estimates
Abbott Reports Third-Quarter 2018 Results
Credit Ratings:
Bought at a Total Cost of 99.5
YTM at TC Then at 3.109%
Current Yield at TC = 2.8141%
Comparable Maturity Treasury Order Book at time of Purchase:
C. Bought 3 Treasury 3 month Bills at Auction Maturing on 4/18/19:
IR = 2.453%
Auction Results:
3. Added 50 GAINL at $24.18:
Quote: Gladstone Investment Corp. Preferred Series E Stock (GAINL)
Closing Price Last Tuesday: GAINL $24.92 +$0.11 +0.44%
Closing Price Last Tuesday: GAINL $24.92 +$0.11 +0.44%
Last Discussed: Item # 1 Bought 50 GAINL at $25.14-Used Schwab Commission Free Trade (10/17/18 Post)
This purchase rounds up my position to 100 shares. That is my maximum position as well.
Average Total Cost Per Share: $24.71
Prospectus There is also a mandatory redemption when the issuer fails to meet a certain defined asset coverage level.
Maturity Date: 8/31/25
This is a term equity preferred stock which is highly unusual. Almost all equity preferred stocks are potentially perpetual unless the issuer exercises an option to redeem early at par value. The monthly dividends are also unusual for an equity preferred stock.
Issuer Optional Redemption: On or after 8/31/20 at par plus accrued and unpaid dividends
Dividends: Monthly at $.1328 per share ($1.5938 annually)
Dividend Yield at Total Cost = 6.45%
Last Ex Dividend Date: 1/17/19
Gladstone Investment Corporation (GAINL) Dividend Date & History - Nasdaq
Last Earnings Report: Q/E 9/30/18
Gladstone Investment Corporation Reports Financial Results for its Second Quarter Ended September 30, 2018
2017 Annual Report SEC Form 10-K
4. Income Generation-Small Ball:
A. Added 10 GDO at $14.83-Used Commission Free Trade:
Quote: Western Asset Global Corp Defined Opportunity Fund Inc. (GDO)-A leveraged global bond CEF
Closing Price Last Tuesday: GDO $15.58 +$0.01 + 0.06%
Sponsor's Website: WA Global Corporate Defined Opportunity Fund Inc. | Legg Mason
Last Substantive Discussion: Item # 1.C. Bought 15 GDO at $16.27-Used Fidelity Commission Free Trade (9/16/18 Post)
Last Discussion: Stocks, Bonds & Politics: Item # 1.B. Bought 15 GDO at $15.17 and 15 at $14.99-Used Commission Free Trades (12/12/18 Post)
Data Date of Purchase (12/26/18)
Closing Market Price: $14.84
Closing Net Asset Value Per Share: $16.75
Discount: -11.4%
Average Discounts:
1 YR -8.93%
3 YR -8.02%
5 YR -9.15%
Sourced: GDO- CEF Connect
Leveraged: Yes
SEC Filed Shareholder Report for the Period Ending 9/30/18
Dividend: Monthly at $.101 Per Share ($1.21 annually)
Last Ex Dividend Date: 1/17/19
Legg Mason Partners Fund Advisor, LLC Announces Distributions for the Months of December 2018, January and February 2019
Average Total Cost Per Share: $16.13
Dividend Yield at Average Cost: 7.5%
Current Position: 223+ shares
Maximum Position: 300 Shares + shares purchased with dividend
Dividend Reinvestment: Yes at greater than a 5% discount
Purchase Restriction: Small Ball Rule
B. Bought 10 THQ at $16.6-Used Commission Free Trade:
Quote: Tekla Healthcare Opportunities Fund (THQ)
Closing Price Last Tuesday: THQ $17.42 +$0.02 +0.11%
Sponsor's website: Tekla Capital Management LLC
Last SEC Filed Shareholder Report: F/Y ending 9/30/18
Last Discussed: I recently eliminated my position: Item # 6 Eliminated THQ at $17.65 (12/29/18 Post) I am back up to owning 60+ shares.
Current Position: 60+ Shares
Maximum Position: Now at 300 shares
Average Cost Per Share =$17.01
Data Date of Trade (1/4/19)
Closing Net Asset Value Per Share = $18.42
Closing Market Price: $16.46
Discount: -10.64%
Average Discounts:
1 YR -10.4%
3 YR -9.49%
Sourced: THQ Page at CEF Connect
Dividends: Monthly at $.1125 per share (supported by ROC)
Tekla Healthcare Opportunities Fund Declares Monthly Cash Distribution
Dividend Yield at Average Total Cost Per Share = 7.94%
Last Ex Dividend Date: 1/17/19
Dividend Reinvestment: Yes
5: Income Generation on Canadian Dollar Stash:
A. Averaged Down: Bought 50 PWF:CA at C$25.5 (C$1 IB commission):
Quote: Power Financial Corp. (Canada: Toronto)
Closing Price Last Tuesday: PWF.TO C$27.00 -C$0.32 -1.17%
The ordinary shares can be purchases on the U.S. pink sheet exchange using U.S. Dollars: OTC Markets | POFNF
Power Financial Corporation | Home
Last Discussed: Item # 4.A. Bought 50 PWF:CA at C$27.73 (12/23/18 Post).
I discussed the last earnings report in that post and have nothing to add.
Dividends: Quarterly at C$.433 per share (C$1.732 annually)
Power Financial Corporation | Dividends
Dividend Reinvestment: No
I do not reinvest any dividends in my IB account.
Average Total Cost per share = C$26.64
Total cost includes two C$1 brokerage commissions.
Dividend Yield at Total Cost Per Share: 6.5% (assumes no change in the penny rate)
Last Ex Dividend Date: 12/28/18 (50 shares participated)
Maximum Position: 150 shares
Current Position: 100 shares
Trading Plan: I will consider buying another 50 at less than C$23 per share. If that purchase is made, I will sell the highest cost lot when and if I can do so profitably. The overall goal is to earn a total return of 8% to 10% per annum with most of that return coming from the dividend. Trading plans assume no significant negative or possible events which would change the parameters and plan.
4. Income Generation-Small Ball:
A. Added 10 GDO at $14.83-Used Commission Free Trade:
Quote: Western Asset Global Corp Defined Opportunity Fund Inc. (GDO)-A leveraged global bond CEF
Closing Price Last Tuesday: GDO $15.58 +$0.01 + 0.06%
Sponsor's Website: WA Global Corporate Defined Opportunity Fund Inc. | Legg Mason
Last Discussion: Stocks, Bonds & Politics: Item # 1.B. Bought 15 GDO at $15.17 and 15 at $14.99-Used Commission Free Trades (12/12/18 Post)
Data Date of Purchase (12/26/18)
Closing Market Price: $14.84
Closing Net Asset Value Per Share: $16.75
Discount: -11.4%
Average Discounts:
1 YR -8.93%
3 YR -8.02%
5 YR -9.15%
Sourced: GDO- CEF Connect
Leveraged: Yes
SEC Filed Shareholder Report for the Period Ending 9/30/18
Dividend: Monthly at $.101 Per Share ($1.21 annually)
Last Ex Dividend Date: 1/17/19
Legg Mason Partners Fund Advisor, LLC Announces Distributions for the Months of December 2018, January and February 2019
Average Total Cost Per Share: $16.13
Dividend Yield at Average Cost: 7.5%
Current Position: 223+ shares
Maximum Position: 300 Shares + shares purchased with dividend
Dividend Reinvestment: Yes at greater than a 5% discount
Purchase Restriction: Small Ball Rule
B. Bought 10 THQ at $16.6-Used Commission Free Trade:
Quote: Tekla Healthcare Opportunities Fund (THQ)
Closing Price Last Tuesday: THQ $17.42 +$0.02 +0.11%
Sponsor's website: Tekla Capital Management LLC
Last SEC Filed Shareholder Report: F/Y ending 9/30/18
Last Discussed: I recently eliminated my position: Item # 6 Eliminated THQ at $17.65 (12/29/18 Post) I am back up to owning 60+ shares.
Current Position: 60+ Shares
Maximum Position: Now at 300 shares
Average Cost Per Share =$17.01
Closing Net Asset Value Per Share = $18.42
Closing Market Price: $16.46
Discount: -10.64%
Average Discounts:
1 YR -10.4%
3 YR -9.49%
Sourced: THQ Page at CEF Connect
Dividends: Monthly at $.1125 per share (supported by ROC)
Tekla Healthcare Opportunities Fund Declares Monthly Cash Distribution
Dividend Yield at Average Total Cost Per Share = 7.94%
Last Ex Dividend Date: 1/17/19
Dividend Reinvestment: Yes
5: Income Generation on Canadian Dollar Stash:
A. Averaged Down: Bought 50 PWF:CA at C$25.5 (C$1 IB commission):
Quote: Power Financial Corp. (Canada: Toronto)
Closing Price Last Tuesday: PWF.TO C$27.00 -C$0.32 -1.17%
The ordinary shares can be purchases on the U.S. pink sheet exchange using U.S. Dollars: OTC Markets | POFNF
Power Financial Corporation | Home
Last Discussed: Item # 4.A. Bought 50 PWF:CA at C$27.73 (12/23/18 Post).
I discussed the last earnings report in that post and have nothing to add.
Dividends: Quarterly at C$.433 per share (C$1.732 annually)
Power Financial Corporation | Dividends
Dividend Reinvestment: No
I do not reinvest any dividends in my IB account.
Average Total Cost per share = C$26.64
Total cost includes two C$1 brokerage commissions.
Dividend Yield at Total Cost Per Share: 6.5% (assumes no change in the penny rate)
Last Ex Dividend Date: 12/28/18 (50 shares participated)
Maximum Position: 150 shares
Current Position: 100 shares
Trading Plan: I will consider buying another 50 at less than C$23 per share. If that purchase is made, I will sell the highest cost lot when and if I can do so profitably. The overall goal is to earn a total return of 8% to 10% per annum with most of that return coming from the dividend. Trading plans assume no significant negative or possible events which would change the parameters and plan.
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 sell 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 family members.
