Economy:
Higher gas and food prices trigger first increase in U.S. consumer inflation in 4 months - MarketWatch
Consumer Price Index Summary
New unemployment claims rose 1.3M for the week ending 7/11.
Unemployment claims have topped 1M per week for 16 straight weeks. Weekly jobless claims
The federal government reported that retail sales rose 7.5% in June.
"Total industrial production rose 5.4 percent in June after increasing 1.4 percent in May; even so, it remained 10.9 percent below its pre-pandemic February level. For the second quarter as a whole, the index fell 42.6 percent at an annual rate, its largest quarterly decrease since the industrial sector retrenched after World War II." The Fed - Industrial Production and Capacity Utilization - G.17 (emphasis added)
China economy: Beijing reports Q2 2020 GDP of +3.25% (consensus estimate at 2.5%) The first quarter contracted by 6.8% compared to the 2019 first quarter.
New unemployment claims rose 1.3M for the week ending 7/11.
Unemployment claims have topped 1M per week for 16 straight weeks. Weekly jobless claims
The federal government reported that retail sales rose 7.5% in June.
"Total industrial production rose 5.4 percent in June after increasing 1.4 percent in May; even so, it remained 10.9 percent below its pre-pandemic February level. For the second quarter as a whole, the index fell 42.6 percent at an annual rate, its largest quarterly decrease since the industrial sector retrenched after World War II." The Fed - Industrial Production and Capacity Utilization - G.17 (emphasis added)
China economy: Beijing reports Q2 2020 GDP of +3.25% (consensus estimate at 2.5%) The first quarter contracted by 6.8% compared to the 2019 first quarter.
U.S. slaps French goods with 25% duties in digital tax row, but delays effective date - Reuters (holds off implementing tariffs for up to 180 days)
McConnell: No recovery bill without lawsuit protections for 'everyone related to the coronavirus'
Home prices could fall in cities across the U.S. as Americans sour on urban living, says famed economist Robert Shiller - MarketWatch
Trump says he's "not interested" in talking to China about trade - CBS News
I discussed the news about Moderna's vaccine development in a 7/15/20 comment. First data for Moderna Covid-19 vaccine show an immune response - STAT
July Empire State index in positive territory for first time since pandemic began - MarketWatch; Empire State Manufacturing Survey (overview) - FEDERAL RESERVE BANK of NEW YORK
Home prices could fall in cities across the U.S. as Americans sour on urban living, says famed economist Robert Shiller - MarketWatch
Trump says he's "not interested" in talking to China about trade - CBS News
I discussed the news about Moderna's vaccine development in a 7/15/20 comment. First data for Moderna Covid-19 vaccine show an immune response - STAT
July Empire State index in positive territory for first time since pandemic began - MarketWatch; Empire State Manufacturing Survey (overview) - FEDERAL RESERVE BANK of NEW YORK
Coronavirus pandemic could get much, much worse, according to this health expert - MarketWatch
Schumer says McConnell and Republicans refuse to meet with Democrats on stimulus as GOP proposal looms
+++++
Markets and Market Commentary:
Nasdaq stocks led by Tesla continue their blistering run while chill envelops rest of the market (7/11/20, written by Michael Santoli)
This strategist says investors are in the ‘forest of make believe’ when it comes to growth stocks - MarketWatch
Voices of Pimco past: Gross, El-Erian warn against growth stocks -Seeking Alpha
'Fear' is rising in the stock-market and so is 'dumb money' confidence as tech stocks reach an inflection point - MarketWatch
Not extending $600 unemployment benefit 'would be a catastrophe,' say former Fed Chairs Bernanke and Yellen
Donald gave $1.6B to Novavax to develop a Covid-19 vaccine. I previously discussed the failure of Novavax over the past 33 years to bring a vaccine to market. How Novavax Won $1.6 Billion From Operation Warp Speed For Coronavirus Vaccine - The New York Times
Voices of Pimco past: Gross, El-Erian warn against growth stocks -Seeking Alpha
'Fear' is rising in the stock-market and so is 'dumb money' confidence as tech stocks reach an inflection point - MarketWatch
Not extending $600 unemployment benefit 'would be a catastrophe,' say former Fed Chairs Bernanke and Yellen
Donald gave $1.6B to Novavax to develop a Covid-19 vaccine. I previously discussed the failure of Novavax over the past 33 years to bring a vaccine to market. How Novavax Won $1.6 Billion From Operation Warp Speed For Coronavirus Vaccine - The New York Times
++++++
Trump:
President Trump has made more than 20,000 false or misleading claims since his inauguration- The Washington Post
{This bears constant repetition since it sums up one of the nations's long term and probably unsolvable problems: National (US) Poll - June 18, 2020 Question 11: 81% of republicans say Trump is Honest}
Steve Schmidt: Trump Must Be Defeated Or U.S. 'Will Be In An Irreversible Decline'- YouTube
Last week, Demagogue Don gave a 45 minute vituperative and delusional harangue in the Rose Garden, which will need to be fumigated when he vacates the office. Trump offers denial and delusion as pandemic crisis overtakes his presidency Some of Donalds reality creations include the following: (1) Biden will “incentivize illegal alien child smuggling”, "abolish immigration enforcement," "abolish our police departments, "abolish our prisons, I guess," (2) Biden's energy plan means "basically means no windows" in homes and offices by 2030; and (3) the Democrats are "calling for defunding our military". Those are just some of the highlights. Remarks by President Trump in Press Conference | The White House; The White House Called a News Conference. Trump Turned It Into a Meandering Monologue. - The New York Times
Trump is out-of-control. Don the Authoritarian has instructed the Treasury to reexamine the "tax-exempt status ...and/or funding" of "universities and school systems" that, he said, "are about Radical Left Indoctrination, not Education." Trump targets tax-exempt status for schools, universities
Fact-checking the White House's statement announcing Roger Stone's commutation - CNNPolitics
President Trump has made more than 20,000 false or misleading claims since his inauguration- The Washington Post
{This bears constant repetition since it sums up one of the nations's long term and probably unsolvable problems: National (US) Poll - June 18, 2020 Question 11: 81% of republicans say Trump is Honest}
Steve Schmidt: Trump Must Be Defeated Or U.S. 'Will Be In An Irreversible Decline'- YouTube
Last week, Demagogue Don gave a 45 minute vituperative and delusional harangue in the Rose Garden, which will need to be fumigated when he vacates the office. Trump offers denial and delusion as pandemic crisis overtakes his presidency Some of Donalds reality creations include the following: (1) Biden will “incentivize illegal alien child smuggling”, "abolish immigration enforcement," "abolish our police departments, "abolish our prisons, I guess," (2) Biden's energy plan means "basically means no windows" in homes and offices by 2030; and (3) the Democrats are "calling for defunding our military". Those are just some of the highlights. Remarks by President Trump in Press Conference | The White House; The White House Called a News Conference. Trump Turned It Into a Meandering Monologue. - The New York Times
Trump is out-of-control. Don the Authoritarian has instructed the Treasury to reexamine the "tax-exempt status ...and/or funding" of "universities and school systems" that, he said, "are about Radical Left Indoctrination, not Education." Trump targets tax-exempt status for schools, universities
Fact-checking the White House's statement announcing Roger Stone's commutation - CNNPolitics
Romney blasts Trump's Stone commutation: 'Historic corruption' | TheHill
Mueller breaks his silence to defend Russia investigation and Stone prosecution In Trump's America, Roger Stone is the victim after a jury found, beyond a reasonable doubt, that he committed multiple felonies. Trump Commutes Sentence of Roger Stone on 7 Felony Crimes - The New York Times
Twelve signs Trump would try to run a fascist dictatorship in a second term - The Washington Post If Donald loses, he will claim voter fraud and may not leave office voluntarily.
He has been preparing the Trumpsters to actively resist a loss for months now. This is just one of many examples:
Demagogue Don's false statements and narratives, no matter how preposterous, are easily sold to, and accepted by millions of republicans.
Trump impeachment witness Vindman retires from Army;Key impeachment witness Vindman retires from the Army, citing Trump 'bullying, intimidation, and retaliation' Trump interfered in Vindman's expected promotion to full Colonel in retaliation for his Ukraine testimony during the impeachment proceedings. Vindman decided to retire in response to Trump's retaliation. There are serious negative consequences for telling the truth in Trump's America.
Trump's Baseless Attacks on Times, Post Reporting on Russia Probe - FactCheck.org
Donald is not able to watch Fox "news" anymore after the network managed to report some accurate information about the pandemic:
Trump presses tax records fight with Manhattan DA after Supreme Court loss Trump's lawyers will now attempt to delay the production of his tax returns and supporting documents, raising a barrage of frivolous claims. Trump obviously does not want independent third parties looking at his tax records and that alone explains why he has refused to publicly release his returns as other candidates and Presidents have done in the past. Donald will not be able to withstand that kind of scrutiny, and he knows it. Two in three Americans want to see Trump's tax returns, Reuters/Ipsos poll shows - Reuters
Donald ousted his campaign manager, replacing him with Bill Stepien whose claim to fame was his involvement in the Bridgegate scandal. Stepien is a good fit for Donald. Bill Stepien was ousted over Bridgegate. Now he’s in charge of Trump’s reelection campaign.
Donald was asked by Sean Hannity what he hoped to accomplish in his second term. The comedian, Sarah Cooper, who mimics Trump's exact words, released this video of Doofus Don's response: How to second term - YouTube
She also recently released a video of the Duck explaining the differences between his immigration policies and those of Obama/Biden: How to immigration policy - YouTube
Links to some recent Lincoln Project videos: Story Hour - YouTube; Walk of Courage - YouTube
Billionaire Democrats and small-dollar donors help fuel anti-Trump Lincoln Project ("The group started July with more than $10 million in available cash")
Mary Trump on whether she ever heard the president use a racial slur: 'Of course I did'
Trump Doesn't Want To Be 'Distracted' By Pandemic Adviser Tells WAPO | The 11th Hour-YouTube
+++++
Covid-19 Updates:
 |
| As of 7/17/20 |
Trump has made it clear from the onset that he would not issue a nationwide mask wearing mandate and has no intention of doing so now. Trump says he won't issue national mask mandate Why? The republican base is opposed to it.
Trump has shamed those wearing a mask and has encouraged active resistance to efforts by state and local governments to control the pandemic's spread. He is pandering to the republican base and has been doing so regardless of the health impacts on the national population.
What the U.S. has accomplished is to severely damage the economy and people's livelihoods in exchange for a pandemic that is still out-of-control.
The Coronavirus Can Float in Indoor Air, W.H.O. Concedes
U.S. shatters coronavirus record with over 77,000 cases in a day last Thursday - Reuters Deaths were reported at 943 that day. US coronavirus: More than 940 deaths reported in one day
Can kids spread COVID-19? Conclusively, without a doubt, Yes: USA Today
White House press secretary: 'The science should not stand in the way of' schools fully reopening
Almost one-third of Florida children tested are positive for the coronavirus | TheHill
White House blocks CDC from testifying on reopening schools next week
A recent study by Lancet found that contract tracing becomes useless to control the spread when test results take 3 or more days. There are just too many people to contact who may themselves already spread the disease to others. Testing delays of a week or more are now common in the U.S..The Lancet Public Health: Speed of testing is most critical factor in the success of contact tracing strategies to slow COVID-19 transmission | -Science News The U.S. has failed in both testing and contact tracing, with no signs het that those issues are being resolved five months into the pandemic.
Patient Dies After Going to 'COVID Party,' Thought It Was a Hoax: Official
The republican governor of Oklahoma, who attended Donald's Mass Infection in Tulsa, reported that he has Covid-19. Oklahoma governor tests positive for coronavirus after hosting Trump rally - POLITICO
The republican governor of Georgia has banned local governments from requiring mask wearing. Georgia bans cities and counties from requiring masks
Georgia governor Brian Kemp (R) Sues Atlanta over mask orders
Brian Kemp rode to victory in Georgia with this campaign ad: So Conservative - YouTube It has to be seen to be believed.
Fauci calls White House effort to discredit him 'bizarre,' a mistake
The Role of Cognitive Dissonance in the Pandemic - The Atlantic ("Human beings are deeply unwilling to change their minds. And when the facts clash with their preexisting convictions, some people would sooner jeopardize their health and everyone else’s than accept new information or admit to being wrong.")
Coronavirus autopsies: Small vessel blood clotting found in patients, pathologist says
Doctor Don, M.D. and Phd in B.S, knows more about infectious diseases than Dr. Fauci.White House seeks to discredit Fauci amid coronavirus surge
California to close indoor restaurants, movie theaters and bars statewide as coronavirus cases rise
Doctor Don retweeted this claim that the Media, the Democrats, the CDC, and many doctors were telling "outrageous lies" in order to hurt Donald's reelection efforts:
Chuck Woolery says 'everyone is lying' about coronavirus, then reveals son's COVID-19 diagnosis
Tucker Carlson lashes out at those who exposed his top writer's racist posts - MarketWatch Carlson routinely draws more than 4 million people to his Fox "news"1 hour vituperative hyperbole and reality creation show that is broadcast during the prime evening time spot. "My Pillow" is his prime sponsor. ‘Our president gave us so much hope’: MyPillow CEO goes off script at coronavirus briefing - POLITICO
43 coronavirus cases have been linked to one large house party in Michigan
Orange County school board votes for kids to return to school without requiring social distancing, masks The County's Chief Medical Officer, Nicole Quick, resigned after receiving death threats for issuing a mandatory mask order. O.C. Chief Health Officer Dr. Nichole Quick resigns amid mask controversy, threats – Orange County Register
Many republicans believe that they have a constitutional right to do whatever they want and to transmit infectious diseases without taking any precautions. Perhaps they would agree to wear a flashing warning light on their heads rather than a mask.
The Texas republicans were very upset that the Houston Mayor cancelled their indoor Mass Infection Event, appealing the Mayor's order all the way to the Texas Supreme Court That Court denied the Texas republicans the opportunity to spread Covid-19 through a mass indoor gathering. Texas GOP votes to move convention online after legal defeat at Supreme Court - HoustonChronicle.com
'Alarming outbreak' of Covid-19 spreads through DHS training facility
Trump Administration Strips C.D.C. of Control of Coronavirus Data - The New York Times Donald will collect the information rather than the CDC. Maybe the data will be released to the CDC at some point. There are people who believe that the data will not be altered before it is sent to the CDC, assuming that occurs. Doctor weighs in on Trump administration stripping CDC of control of COVID-19 data - YouTube
How Trump has undercut the CDC on coronavirus - YouTube
Study: Hydroxychloroquine fails to show benefit in mild coronavirus cases - MarketWatch (7/16/20)
Hydroxychloroquine studies show drug is not effective for early treatment of mild covid-19
++++
Trump and his wingman Sean Hannity are both demagogues. Sean Hannity says if Joe Biden wins the election, "America as you know it, we know it, will be destroyed" | Media Matters for America
The Fox "news" personalities are pulling out all of the stops in their campaign to reelect Donald for another 4 year term.
Kansas Congressman Steve Watkins (R) charged with voter fraud - CBS News Watkins has been endorsed by Donald and Pence and is a honorary Co-Chairman of the Trump campaign. This is a competitive district. Watkins won in 2018 by 2,199 votes. The republican primary is on 8/4/20.
Head of NYPD union gives Fox News interview with QAnon mug in background
++++
All trades are commission free except as otherwise noted.
1. Bought 100 MIN at $3.85; 100 at $3.8; 100 at $3.73:
Closing Price 7/17/20: MIN $3.7800 -$0.05 -1.31%
I mentioned the first 100 share purchase in a 6/11/20 comment.
Sponsor's website: MIN: MFS® Intermediate Income Trust
SEC Filings
Holdings as of 1/31/20
Last SEC Filed Shareholder Report (period ending 10/31/19)
 |
| As of 10/31/19 |
The dividend has substantial ROC support.
Last Ex Dividend: 7/14/20 (all shares owned as of )
Data Date of 6/11/20 Trade:
Closing Net Asset Value Per Share: $4.04
Closing Market Price: $3.87
Discount: -4.21%
Data Date of 6/25/20 Trade:
Closing Net Asset Value Per Share: $4.03
Closing Market Price: $3.79
Discount: -5.96
Data Date of 6/26/20 Trade:
Closing Net Asset Value Per Share: $4.03
Closing Market Price: $3.73
Discount: -7.44%
Sourced from MFS® Intermediate Income-CEF Connect
Maximum Position: 1000 Shares (all accounts)
I currently own 200 shares in my Fidelity taxable account and shares in ROTH IRA accounts.
Purchase Restriction: Each subsequent purchase in this account must reduce my average cost per share.
2. Bought 100 SWZ at $7.92:
Closing Price 7/17: SWZ $8.10 +$0.02 +0.25%
Sponsor's Website: SWZ Fund - Schroders
SEC Filings
Last SEC Filed Shareholder Report (period ending 12/31/19)(total cost of investments = $107.224+M; Value at $128.863+M)
SEC Filing: Holdings as of 3/31/20
Data Date of 6/9/20 Trade:
Closing Net Asset Value Per Share: $9.5
Closing Market Price: $7.9
Discount: -16.84%
Sourced: SWZ CEF Connect
Dividend Reinvestment: Yes
Dividends: The Swiss Helvetia Fund, Inc. Declares Quarterly Distribution of $0.1404 Per Share
The Swiss Helvetia Fund, Inc. Announces Details Of $4.91 per share Stock Dividend Payable On October 19, 2018
The Swiss Helvetia Fund, Inc. Announces Final Results Of One-time Cash Tender Offer (4/26/17)
Top 10 Holdings:
A. Started IRBO-Bought 5 at $28.7:
Quote: IRBO | iShares Robotics & Artificial Intelligence Multisector ETF Overview
Closing Price 7/17: IRBO $30.83 +$0.29 +0.95%
Sponsor's Website: iShares Robotics and Artificial Intelligence Multisector ETF | IRBO
Expense Ratio: .47%
Dividends: Quarterly and Negligible
Top 20 Holdings:
Closing Price 7/17: IRBO $30.83 +$0.29 +0.95%
Sponsor's Website: iShares Robotics and Artificial Intelligence Multisector ETF | IRBO
Expense Ratio: .47%
Dividends: Quarterly and Negligible
Website: HTA – Healthcare Trust of America, Inc.
Closing Price 7/17: HTA $26.68 +$0.73 +2.81%
HTA is a REIT that owns medical office buildings.
Portfolio Overview - HTA (465 MOBs with 24.9M square feet of gross leasable space in 33 states)
HTA SEC Filings
HTA 2019 Annual Report
Profit Snapshot: +$118.58 (6/8 & 6/16 sells only)
Current Position: 80 shares
Average Cost per share = $22.77
Dividend: Quarterly at $.315 ($1.26 annually)
The quarterly rate was at $.29 in 2015. The growth rate over a 5 year period was 8.62% or about 1.7% annually. The last increase was from $.31 to $.315 effective for the 2019 4th quarter payment. Dividend growth has been below the annual average inflation rate over a five year period, producing real negative growth.
Last Ex Dividend: 7/1/20
Dividend Yield at average cost: 5.53%
Reinvestment: Turned off, view price as too high.
Last Earnings Report (3/31/20): SEC Filed Press Release
As with DOC, discussed in my last report, HTA is generating Funds Available for Distribution ("FAD") growth but insignificant increases in FAD per share.
FAD Per Share 3/31/19: $.35000
There is still room for dividend growth since the quarterly penny rate is currently at $.315.
Last Elimination: Item # 2.D. Eliminated HTA-Sold 30 at $32.51 (2/8/2020 Post)(profit snapshot =$178.02) That 30 share lot was part of a 50 share purchase: Item # 4 Bought 50 HTA at $26.88 (7/13/19 Post) The other 20 shares were sold in 2 ten share lots: Item # 1.A. Sold 10 HTA at $31.31 (1/29/20)(profit snapshot = $44.34) and Item # 2.B. Sold 10 HTA at $30.81 (11/28/19 Post)(substantive discussion)(profit snapshot = $39.2)
Other Trades: Item # 1.A. Sold 15 HTA at $28.57-Used Commission Free Trade(9/12/18 Post)(profit snapshot = $46.12); Item # 2 Sold 50 HTA at $26.25 Update For REIT Basket Strategy As Of 10/28/15 - South Gent | Seeking Alpha (profit snapshot = $124.1)-Item # 5 Bought 50 HTA at $23.45 Update For REIT Basket Strategy As Of 9/8/15 - South Gent | Seeking Alpha
HTA Realized Gains to Date: $558.17
C. Pared VNOPRM-Sold 5 at $24.99:
Quote: Vornado Realty Trust 5.25% Cumulative Preferred Series M
Closing Price 7/17: VNO-PM $21.21 +$0.15 +0.71%
Issuer: Vornado Realty Trust (VNO)
VNO SEC Filings
Profit Snapshot: +$29.94
This was my highest cost lot bought at $19. Item # 3. Bought 10 VNOPRM at $19; 5 at $16.5; 5 at $14.5 (5/2/20 Post)
Investment Category: Advantages and Disadvantages of Equity REIT Cumulative Equity Preferred Stocks, a subcategory of Equity REIT Common and Preferred Stock Basket Strategy
Average Cost Remaining Shares: $15.5
Dividend Yield at $15.5: 8.47%
Security: Prospectus
Par Value: $25
Dividends: Quarterly, cumulative and non-qualified as a pass through entity
Optional Call: On or after 12/13/2022 at par value plus accrued and unpaid dividends
Stopper Clause: Yes
Last Ex Dividend Date: 6/12/20
Last Ex Dividend Date: 6/12/20
Last Round-Trip: Item # 2.A. Eliminated VNOPRM-Sold 50 at $22.95 (5/23/19 Post)(profit snapshot = $56.69); Item 2.C. Bought 30 VNOPRM at $21.98 (5/21/18 Post),Item # 1.A. Bought 20 VNOPRM at $21.57 (12/5/18 Post)
D. Restarted FHLC as a Placeholder -Bought 1 at $47.58:
Quote: FHLC | Fidelity MSCI Health Care Index ETF Overview
Closing Price 7/17: FHLC $52.74 +$0.76 +1.46%
Sponsor's Website: FHLC | ETF Snapshot - Fidelity
Annual Average Total Returns:
1 Year: 19.68%
3 Years: 12.90%
5 Years: 8.78%
Sourced: Fidelity® MSCI Health Care ETF (FHLC) Performance | Morningstar (currently rated 4 stars)
Expense Ratio: .08%
Last Elimination: Item # 3.D. (11/27/19 Post)(profit snapshot = $81.52)
This stock sector may be adversely impacted by the election results.
Dividends: Quarterly
Some Top Holdings:
E. Added $50 to FSPHX at $28.43:
Closing Price 7/17: FHLC $52.74 +$0.76 +1.46%
Sponsor's Website: FHLC | ETF Snapshot - Fidelity
Annual Average Total Returns:
1 Year: 19.68%
3 Years: 12.90%
5 Years: 8.78%
Sourced: Fidelity® MSCI Health Care ETF (FHLC) Performance | Morningstar (currently rated 4 stars)
Expense Ratio: .08%
Last Elimination: Item # 3.D. (11/27/19 Post)(profit snapshot = $81.52)
This stock sector may be adversely impacted by the election results.
Dividends: Quarterly
Quote: FSPHX | Fidelity Select Health Care Portfolio Overview
Closing Price 7/17: FSPHX $31.56 +$0.55 +$1.77%
I discussed this mutual fund in my last post. I forgot to add this subsequent purchase made before that post was published.
Annual Average Total Returns (through 7/17):
1 Year: 29.26%
3 Years: 16.77%
5 Years: 9.59%
10 Years: 19.80%
Sourced: Fidelity® Select Health Care (FSPHX) Performance | Morningstar
This fund is outperforming the index fund discussed in the previous section.
F. Restarted IDV-Bought 10 at $25.79; 2 at $25.53; 3 at $25.08:
Quote: IDV | iShares International Select Dividend ETF Overview
Closing Price 7/17: IDV $26.08 +$0.15 +0.58%
Sponsor's Website: iShares International Select Dividend ETF | IDV
Expense Ratio: .49%
Last Elimination: Item # 2.B. Eliminated IDV-Sold 21+ at $32.44 (12/14/19 Post)
Dividends: Quarterly at a variable rate
Some Top Holdings:
Closing Price 7/17: IDV $26.08 +$0.15 +0.58%
Sponsor's Website: iShares International Select Dividend ETF | IDV
Expense Ratio: .49%
Last Elimination: Item # 2.B. Eliminated IDV-Sold 21+ at $32.44 (12/14/19 Post)
Dividends: Quarterly at a variable rate
G. Started INTF in Vanguard Taxablel Account-Bought 5 at $23.32; 5 at $22.81:
Closing Price 7/17: INTF $24.08 +$0.21 +0.88%
I started this position in a Vanguard taxable account. I discussed starting a position in my Fidelity account in my last post and forgot to mention there that I am running a small ball "purchase program" in two accounts.
Sponsor's Website: iShares Edge MSCI Multifactor International ETF ("Efficient access to a portfolio of global developed market large- and mid-cap stocks (ex U.S.) based on an index that focuses on four proven drivers of return: financially healthy firms, stocks that are inexpensive, smaller companies and trending stocks.")
Expense Ratio: .30%
Dividends: Quarterly at a variable rate
Quote: VWO | Vanguard FTSE Emerging Markets ETF Overview
Closing Price 7/17: VWO $42.51 +$0.19 +0.45%
Sponsor's Website: Vanguard FTSE Emerging Markets ETF
Expense Ratio: .10%
Dividends: Quarterly at a variable rate
I have traded this ETF periodically and have not discussed here all of those trades. I have not sold any shares yet at a loss.
Sell Discussions: Item # 2.E. Sold 20 VWO at $42.61 (12/11/19 Post)(profit snapshot = $34.06); Item # 3 Eliminated VWO: Sold 25 at $43.69 -Roth IRA (4/15/15 Post)(profit snapshot +$70.27); Item # 3 Sold 65 VWO at $41.75 (10/11/13 Post)(profit snapshot $113.36) ; Item # 2. Sold: 100 of the Stock ETF VWO at $50.22 (4/12/11 Post)(profit snapshot =$129.55)
Earlier this year, I eliminated a larger position in the T. Rowe Price Emerging Markets mutual fund. Item # 1 Eliminated PRMSX (4/19/18 Post)(profit snapshot = $1,522.22)
Performance Numbers: Vanguard FTSE Emerging Markets Index Fund ETF Shares (VWO) Total Returns (rated 3 stars by Morningstar at time of purchase)
I do not view emerging market ETFs as long term holds. The general idea has been to catch a wave, surf it for awhile and then leave.
As of 7/14/20, VWO had the following total annual average total return numbers:
3 Years: +3.11%
5 Years: +4.14%
10 Years: +3.26%
15 Years: +6.17%
Better than a stick in the eye.
I. Started SPYD-Bought 5 at $29.44; 2 at $28.62; 3 at $27.76; 5 at $27.23:
Quote: SPYD | SPDR Portfolio S&P 500 High Dividend ETF Overview
Closing Price 7/17: SPYD $28.45 -$0.02 -0.07%
Expense Ratio: .07%
Dividends: Quarterly at a variable rate
Quote: Stellus Capital Investment Corp. (SCM)-A BDC
Closing Price 7/17: SCM $7.48 +$0.04 +0.54%
Website: Stellus Capital
SEC Filings
Management: External
2019 Annual Report (risk factor summary starts at page 31 and ends at page 59)
10-Q for the Q/E 3/31/20 (investments listed starting at page 6)
Average Cost Per Share: $8.9
Last Discussed: Item # 2.B. Added 10 SCM at $7.8; 2 at $6.26, 3 at $5.30; 5 at $7.53 (5/9/20 Post) I mentioned in this post that a dividend cut was coming and that proved to be correct (see discussion under "Dividend" below)
Net Asset Value Per Share History:
3/31/20: $11.55
12/31/19: $14.14
12/31/18: $14.09
12/31/17: $13.81
12/31/16 $13.69
12/31/15: $13.19
12/31/14: $13.94
12/31/13: $14.54
November 2012: IPO at $15 ($14.46 after underwriters discount)
Dividend: Quarterly at $.25 per share
SCM recently abandoned paying its dividend monthly. Stellus Capital Investment Corporation Announces Transition of Dividend from Monthly to Quarterly and to Report Quarterly Results and Hold Conference Call ("Moving to a quarterly dividend payment schedule will allow the Company more time to better understand the impact that the COVID-19 pandemic has on our portfolio companies' liquidity and operations.")
The now defunct monthly rate was at $.1133 per share ($1.36 annually rounded).
Dividend Yield at $8.9 = 11.24% (using new quarterly rate)
Last Ex Dividend Date: 7/14/20
Dividend Reinvestment: Yes, for as long as the likely dividend reinvestment price is likely to be at a greater than 10% discount to the last reported net asset value per share.
Recent Press Release: Stellus Capital Investment Corporation Provides an Update on its Second Fiscal Quarter Results (7/8/20) SCM stated in this release that there were no new nonaccruals.
Last Earnings Report (3/31/20): 10-Q
As of March 31, 2020, we had loans to 4 portfolio companies that were on non-accrual status which represented approximately 5.6% of our loan portfolio at cost and 1.1% at fair value."
Portfolio Composition:
Asset Quality (according to SCM):
Last Elimination: Item # 3 Eliminated SCM - Sold 50 at $13.72 (9/21/19 Post)(noting again that I was displeased with the 2019 second quarter report)
Last Buy Discussion: Item # 2.H. Restarted SCM: Bought 10 at $11.94; 10 at $10.85; 10 at $10.4 and 10 at $8.59 (3/14/20 Post) I discussed in that report the earnings report for the Q/E 12/31/19. Stellus Capital Investment Corporation Reports Results for its Fourth Fiscal Quarter and Year Ended December 31, 2019 (note: "Since December 31, 2019, we issued 332,591 shares under the At-the-Market ("ATM") Program, for gross proceeds of $4.8 million. The average per share offering price of shares issued in the ATM Program was $14.42.")
Other Trade Discussions:
Item # 1.B. Sold 32+ SCM at $14.22-Used Commission Free Trade (2/2/19 Post)(profit snapshot = $78.09); Item # 1.A. Sold Highest Cost Lot-50 Shares at $12.63 (5/3/18 Post)(profit snapshot = $34.24); Item 2.B. Sold 100 SCM at $14.23 (2/27/17 Post)(profit snapshot=$285.96); Item # 2 Sold 100 SCM at $13.02 (1/12/17 Post)(profit snapshot= $141.96)
Goal: Total Return in excess of the dividend payments which has been accomplished so far for this BDC stock
SCM Trading Profits to Date = $543.99
Purchase Restriction: Each purchase must reduce my average cost per share. The highest cost lot will be sold when and if it becomes profitable to do as a risk mitigation measure.
++
4. Exchange Traded Baby Bonds:
Investment Category: Exchange Traded Baby Bonds, a subcategory of Exchange Traded Bonds
Both of the bonds discussed in this section are view as high risk with TANNL being riskier IMO than SCA.
A. Restarted TANNL-Bought 5 at $23.5:
Closing Price 7/17: TANNL $23.66 -$0.34 -1.40%
I view this bond as very high risk.
Last Elimination: Item # 2.A. Eliminated TANNL-Sold 30 at $25.36 (2/20/19 Post)(profit snapshot = $36.35)-Item # 1.A. Bought 30 TANNL at $23.99-Used Commission Free Trade (8/15/18 Post)
Investment Category: Exchange Traded Baby Bonds
Issuer: TravelCenters of America LLC (TA)
TravelCenters of America - Investors
TA Analyst Estimates
TA SEC Filings
Prospectus (risk factors discussed pages 10-27)
Par Value: $25
Interest Payments: Quarterly
Trades Flat
Optional Redemption: at issuer's option now
Last Ex Interest Date: 5/14/20
Next Ex Interest Date: 8/13/20
Yield at $23.5 = 8.51%
List of Trades in TANNL (formerly traded under the TANO symbol):
Item # 4.B. Sold Remaining TANNL at $25.46 (4/14/17 Post)(profit $11.57); Item # 5. Sold 50 TANO in Roth IRA: Update For Exchange Traded Bond And Preferred Stock Basket Strategy As Of 3/28/16 - South Gent | Seeking Alpha (profit snapshot=+$55.47)-Item # 2. Bought 50 TANO at $23.2-ROTH IRA: Update For Exchange Traded Bond And Preferred Stock Basket As Of 12/18/15 - South Gent | Seeking Alpha; Item # 4.A. Sold 50 TANNL at $25.53 (3/1/17 Post)(profit snapshot = $67.78)-Item # 2. Added 50 TANO at $24: Update For Exchange Traded Bonds And Preferred Stock Basket Strategy As Of 2/3/16 - South Gent | Seeking Alpha
I seriously doubt that I would own this bond for long when and if the price goes over the $25 par value.
B. Added to SCA-Bought 5 at $23:
Last Discussed: Item # 7.A. Bought 10 SCA at $19.1 (5/9/20 Post)
Category: Exchange Traded Baby Bonds
Security: Prospectus
Par Value: $25
Maturity Date: 9/15/22
Optional Call: At par on or after 9/15/19
Capital Structure Placement: Senior unsecured bond
Interest: Quarterly
Last Ex Interest Date:
Trades Flat
Last Ex Interest Date: 5/29/20
Next Ex Interest Date: 8/31/20
5. Cash Flow Example: Received 7/15/20 Fidelity Taxable Account
All bonds were purchased at less than par value. The Goldman Sachs and National Rural Utilities $1K par bonds pay monthly interest. The other $1K pay value bonds pay semi-annually. The exchange traded bonds pay quarterly. I will own some of the bonds in more than 1 account.
$1K Par Value Bonds: Links are to FINRA pages.
2 3.5% McDonalds SU Matured on 7/15/20
1 3.9% Dow Chemical SU 7/15/25
2 2.55% Federal Reality SU (Equity REIT) 1/15/21
1 3% Goldman Sachs SU 3/15/24
2 4% Office Properties SU 7/15/22
2 3.625% Highwood Properties SU 1/15/23 (Equity REIT)
2 3.3% Kroger SU 1/15/21
2 2.55% Natural Rural Utility SU 3/15/22
1 3% National Rural Utilities SU 12/15/27
1 2.95% Virginia Electric SU 1/15/22
1 3.95% Black Hills SU 1/15/26 (utility company)
$25 Par Value REIT Equity Preferred stocks: GNLPRA, HTIA, JCAPPRB, SLGPRI (all pay quarterly)
Equity REIT Common Shares: CUBE, GNL, JCAP, RLJ, SLG
Hybrid REIT: STWD
BDC: HRZN
Regional Bank: FITB
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.
