Saturday, September 19, 2020

CATY, DISCA, DUK, EVRG, FNCL, HBNC, LARK, NBGNX, NBTB, PEG, SBSI, VBR,

Economy: 


U.S. retail sales August 2020 (up. .6% vs. 1% consensus estimate)

"Industrial production rose 0.4 percent in August for its fourth consecutive monthly increase. However, even after the recent gains, the index in August was 7.3 percent below its pre-pandemic February level. Manufacturing output continued to improve in August, rising 1.0 percent, but the gains for most manufacturing industries have gradually slowed since June." The Fed - Industrial Production and Capacity Utilization - G.17

Seasonally adjusted initial unemployment claims for the week ending 9/12 was reported at 860,000 by BLS. U.S. weekly jobless claims total 860,000, vs 875,000 expected





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Markets and Market Commentary: 






Schwab strategist Sonders: Stock market today is ‘a small handful of winners and a heck of a lot of pain’ - MarketWatch (Sonders: “In very early September, the top five stocks were up almost 50% [thus far in 2020] and the bottom 495 stocks were actually still negative on the year. That narrowness to some degree reflects what's going on in the economy, which is a small handful of winners and a heck of a lot of pain.”)



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Portfolio Management: 

I am trying to replace income lost through early bond redemptions in part by buying utility common stocks. 

The apartment REIT Essex (ESS) exercised its optional redemption right to redeem a 3.625% SU note maturing on 8/15/22 issued by its operating company. The company had to pay $119.40 over the $2K principal amount to exercise that option due to a make whole provision: 


Essex raised funds to redeem this bond by issuing $600M in SU notes at lower coupons and significantly longer maturities: 


Prospectus (see Use of Proceeds section at page S-10)

Normally, I do not pay over par value for a corporate bond, but the purchase of these two bonds was an exception. My total cost was bond was 103.756. Item # 3.C. (6/25/17 Post) The current yield at that price was 3.49%. 

Below, I discuss some purchases of electric utility stocks that provide me with a greater current yield plus likely dividend increases. I do face a greater risk with those stocks of losing principal.

I still own 10 Essex 3.375% SU bonds maturing in 2023. Item #3.A. Bought 10 at a TC of 97.144  (6/6/20 Post): 




It is becoming common for corporations to redeem bonds early even with meaningful make whole payments. 

Today, I received notice that Healthcare REIT (HTA) will redeem my 3.75% SU bond maturing on 4/15/23. A make whole payment will have to be made, but I do not yet have the number. It will be significant. HTA just sold $800M of senior unsecured notes maturing in 2031. Prospectus (used of proceeds at page S-16)  

Proceeds from optional bond redemptions and matured fixed coupon investments are piling up into market market funds in 4 taxable accounts. I am currently at the highest cash level as a percentage of total assets held in brokerage accounts since 2000-2001 period. 

Regional Banks: I am extremely cautious in buying regional bank stocks. NIM suppression is likely to continue for years. Banks have benefited somewhat from lower deposit costs as CDs and saving accounts reprice at lower interest rate levels. Interest income from investments and loans, however, have also trended down. Reserve builds for new or potential sour loans have taken big bites out of current earnings. It is not certain by any means whether the reserve buildup will be sufficient to cover charge-offs that will occur. And, it remains unclear how many loans will become nonperforming that are now subject to loan modifications. My naturally cautious approach to risk taking is heightened given those unknowns and reasonable forecasts about the future. Note below how many trades it took for me to reach a 16 share position in CATY and a 13 share position in SBSI. I will probably cap the positions at 50 shares each.  

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Trump: 

With Justice Ginsberg's death, Trump and the Trump controlled U.S. Senate will likely be able to place another far right reactionary judge on the Supreme Court even with Biden winning in November and the Democrats regaining control over the Senate. Congress is getting ready for a fight over who will fill RBG's seat as McConnell vows to have a vote on Trump nominee 

For almost all of its history, the Supreme Court has been a reactionary institution, not a conservative or liberal one. 

It was simply a matter of decree as to how reactionary. 

"Liberals" have dominated the court for about 2 decades (the 1960s and 1970s) before the Court started to tilt back to the right. For the next 2 decades, the Supreme Court will revert to its traditional role as far right reactionary institution.  


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Fareed: We need to prepare for this 'deeply worrying' scenario on and after election day - YouTube All Biden voters in swing states need to vote in person. Polls, however, show that far more Biden than Trump voters plan to cast their votes by mail. The early, in person vote tallies will favor Trump; and then he will claim fraud when mail-in ballots are counted and he starts to fall behind. I am not anticipating a smooth and non-eventful transition of power if Biden wins. 

How Fox News covered the Woodward recordings of President Trump - YouTube Fox "news" creates an Alternate Reality for the Trumpsters and talking points for Donald that are untethered from reality. 

How Conspiracy Theories Are Shaping the 2020 Election | Time ("They are impervious to messaging, advertising or data. They aren’t just infected with conspiracy; they appear to be inoculated against reality.")  

This Republican Party Is Not Worth Saving - The Atlantic I would agree  that the "only decent, sensible, and conservative position is to vote against this Republican Party at every level, and bring the sad final days of a once-great political institution to an end. Then build the party back up again—from scratch."   

The columnist Roger Cohen, having just recovered from Covid-19, summed Donald up succinctly as follows: "the president’s personality is consistent: a mix of coward, racist, liar, con artist, narcissist, grifter, and blowhard, with uncanny antennae for the worst instincts of humanity, and for how to use the media to channel insecurity and hatred into a mass political movement galvanized by his fiendish energy."


The Duck has always been a vicious, mean spirited person. 

Demagogue Don, as part of his effort to restore calm and to prevent panic, further claimed at his Minden, Nevada Mass Infection Event that the Democrats were trying to rig the election since that is "the only way they're gonna win." This is part of Don the Authoritarian's effort to undermine confidence in voting results and to suppress voting by those who are likely to cast their ballots for the wrong candidates. 

And as the Trumpsters cheered, Demagogue Don claimed that the goal of Democrats was to "lock law-abiding Americans in their homes" as they fight "God, guns and oil".  

Michael Cohen's Book "Disloyal": 

 Cohen's book  will have no impact on voters. Those who are opposed to Don the Con already know, in Cohen's words, that Donald is " a cheat, a liar, a fraud, a bully, a racist, a predator, a con man."  None of that is news.

 I am reading the book on Scribd.

 Everything We Learned About Trump From Michael Cohen’s Book; Michael Cohen book: President Trump's ex 'fixer' publishes 'Disloyal'

Cohen recounts instances where Trump refused to pay a mom and pope contractor for work performed on a project. The general approach was to refuse to pay and then threaten ruinous litigation. USA TODAY exclusive: Hundreds allege Donald Trump doesn’t pay his bills

Cohen recounts an example where Donald selected a cheap paint to use and was warned by all concerned that the cheap paint was inappropriate and would not last long. 

After seeing the result of his own paint selection, Donald refused to pay the painting contractor who was then unable to pay a mom and pop paint store. 

The store then placed a materialman's lien on Trump's property, the Doral golf club, which was clearly permitted by Florida law. 

Trump instructed his lawyers to fight and the paint store owner attorney's fees ate up for more than was owned for the paint. That is the behavior of a psychopath. 

Trump made the mistake and had no qualms about stiffing small businesses nonetheless. Yet the Trumpsters believe that Donald actually cares about them.
 
After Obama's election in 2018, Cohen claims that Trump made the following comment: “Tell me one country run by a black person that isn’t a s---hole. They are all complete f---ing toilets.”  This is similar to a comment that Donald made when referring  to African countries as shitholes. 

 Trump referred to Haiti and African nations as 'shithole' countries Some of the Trump loyalists issued denials that were based on their claim that he did not use the word "shithole", but their denial was based on them hearing him say "shithouse" rather than "shithole". Trump “shithole” or “shithouse” comments: The dueling accounts of what the president said, explained - Vox Similar Trump comments were quoted in this NYT article from December 2017: Stoking Fears, Trump Defied Bureaucracy to Advance Immigration Agenda - The New York Times

 Regarding Nelson Mandela, Trump is quoted as saying “Mandela f---ed the whole country up. Now it’s a s---hole. F--- Mandela. He was no leader.” 

Trump:  “I will never get the Hispanic vote. Like the Blacks, they’re too stupid to vote for Trump. They’re not my people.”


You may recall the photo op where Donald pretended to be a christian and several "christian" evangelical preachers laid their hands on him. 

Afterward, Donald told Cohen "Can you believe that bullshit? Can you believe people believe that bullshit". 

What I can't believe is that anyone actually believes the prosperity televangelist Paula White converted Donald to christianity. Apopka preacher Paula White and presidential nominee Donald Trump are a match made in alt-right heaven-Orlando Weekly Aren't real Christians supposed to behave and talk a certain way? 

It is equally amazing to me that anyone pays any attention to what Ms. White has to say about anything.  

Trump first gained prominence among republicans by becoming the foremost spreader of the Obama birther conspiracy. 

Obama's birth certificate showed that he was born at the Kapiolani Maternity and Gynecological Hospital in Honolulu, Hawaii and was consequently a U.S. citizen. President Obama's Long Form Birth Certificate; Indeed, Born in the U.S.A. - FactCheck.org 

Facts are "Fake News" in Trumpworld.  

A prominent Trump birther conspiracy lie was when he told a reporter that he had a team investigating where Obama was born and would announce the shocking results soon. That made headlines around the world. 

Cohen asked Donald whether he had anyone conducting an investigation. Donald had nothing so Cohen asked Donald "Do you want me to put someone on that". Donald replied according to Cohen "No. Who fucking cares". That is consistent with the behavior of a psychopath IMO.  


The existence of an investigation was irrelevant to Trump as was his lie that there was an ongoing one. The Donald was simply promoting  himself to republicans who readily accept fact free conspiracy theories and using a gullible news media to so ingratiate himself with free publicity. 

In Chapter 2, Cohen claims that Donald essentially called his son Don Jr. an idiot in front of Cohen and others for getting Donald into the mortgage brokerage business, just another of Donald's many failures. Remember Trump Mortgage? Inside the GOP frontrunner's failed mortgage venture - HousingWire; The lesson of Donald Trump's failed, sketchy mortgage business 

In another chapter, Cohen quotes Donald saying in front of a room of people that Don Jr. "has the worst fucking judgment of anyone I have ever met". 

When Donald received a $10M refund check from the IRS, Cohen quotes the Duck saying "Can you believe how fucking stupid the IRS is. Who would give me a refund of ten fucking  million dollars? They are so stupid". 

Cohen also discusses Trump's purchase of a $41.35M home in Palm Beach. Florida, hoping to flip it, but no one wanted it until a Russian oligarch, Dmitry Rybolovlev, came along and bought it for $95M on 7/15/2008 during the financial crisis when Donald may have needed a cash infusion. Trump's sale of $100 million mansion in Palm Beach to Russian is a wild, weird tale | Miami Herald Donald claims that he netted $100M at closing.  

Russian Oligarchs, Putin and Trump: 

Anne Applebaum mentions that transaction in her book review of ‘Putin’s People’ by Catherine Belton. 


In the last chapter of this book, Belton discusses Russia's efforts to help Donald over a 30 year period "bailing him out, buying apartments in his buildings for cash, offering him 'deals,' always operating in 'the half-light between the Russian security services and the mob, with both sides using the other to their own benefit.'"  

Applebaum notes that Trump was not unique in receiving Russia's help. 

Trump was just "another amoral Western businessman, one of many whom the ex-KGB elite have promoted and sponsored around the world, with the hope that they might eventually be of some political or commercial use." 

Putin hit the jackpot with Donald's election in 2016, according to Applebaum, by helping to elect an American President "who would not only sow chaos, but systematically undermine America’s alliances, erode American influence, and even, in the spring of 2020, render the American federal government dysfunctional, damaging the reputation of both the U.S. and democracy more broadly." 

Russia is of course a Kleptocracy with a lot of money controlled by Putin, directly or indirectly. Putin’s Kleptocracy: Who Owns Russia? | Wilson Center  

FBI Director Wray warns Russians actively influencing 2020 election The Russians are spreading misinformation about Joe Biden, just like Trump and the RNC. In response to Wray's testimony, Donald has already threatened to fire him. Trump suggests he'd consider removing Christopher Wray, FBI director, over testimony - The Washington Post Truth that Donald does not like can not be allowed to exist in Trump's America.

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Donald Trump trails Joe Biden by 4 points in Minnesota, poll finds That is within the margin of error. The same polling organization had Biden leading Trump by 17 points in mid-May.  The decline in support for Biden is attributed to the racial unrest in Minnesota occurring after the death of George Floyd which Trump has turned into a campaign issue. 


Trump Dismisses Climate Change as Wildfires Blaze Along West Coast Some republicans may start to consider the possibility of climate change when it is too late to avoid an extinction event. 




Medicare administrator Verma said to have paid private consultants nearly $6 million in taxpayer money for personal image-building campaign - MarketWatch Donald will start draining the D.C. swamp at some unknown future time. To do so effectively, he will need to resign since he is the Swamp Creature in Chief. Tracking President Trump's Unprecedented Conflicts of Interest - CREW The Trumpsters nonetheless continue to cheer when Donald says he is going to drain the swamp. 


Top federal prosecutor quits Barr-ordered Durham probe into origins of Russia-Trump investigation - MarketWatch She was concerned that political pressure was influencing the outcome. Donald dictates the results that he wants and then finds someone willing to sacrifice whatever principles that may have left to produce the desired result.   

Trump's Baseless Claim of Russian Support for Biden- FactCheck.org Donald of course lies all of the time about everything. 

South Dakota AG Jason Ravnsborg (R) fatally struck man with car, initially told authorities he hit a deer He called authorities on Saturday night saying he had hit a deer. He had hit and killed a man whose body was found on Sunday. 

We will know soon how many Americans will vote to give a lying, demagogic psychopath with strong authoritarian tendencies another 4 years as President. We will then be better able to assess the very real dangers to our freedoms and democracy that come from within. 

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Covid 19 Updates: 

In TrumpWorld, the pandemic remains well under control and will soon disappear with the onset of summer. The only reason why there are more infections is that people are being tested according to our Dear Leader. 

As of 9/18/20 

Trump disputes CDC head's vaccine timeline and mask claims (Trump: "there are a lot of people that think that masks are not good." He was asked to identify those people. Trump responded "waiters".) 

The Extremely Stable Genius blamed Joe Biden for the lack of a national mask mandate: Trump chides Biden – who doesn't hold office – for not mandating masks : USA Today 

Trump Supporters Explain Why They Aren't Wearing Masks | NowThis - YouTube; Acosta asks Trump supporters why they aren't wearing masks - YouTube It is important to listen to Trump supporters. They really could care less that they could infect others. And, they do not believe that the pandemic is real or serious and view wearing a mask to be too much of a burden on their freedom to infect and kill others. 

CDC didn't write or approve changes to coronavirus testing guidelines: report-MarketWatch; CDC Virus Testing Guidance Was Posted Against Scientists’ Objections-The New York Times The CDC published a recommendation that an asymptomatic person who comes in contact with an infected person or persons does not need to be tested, even though the person could have been infected by that contact and was capable of transmitting Covid-19 to others. 

The recommendation was written by Trump officials, possibly relying in part IMO on Scott Atlas, not by CDC scientists who objected to the recommendation. Stanford doctors denounce Trump appointee Dr. Scott Atlas Atlas is going to take a page out of Donald's playbook when dealing with criticism that is justified IMO based on the opinions and recommendations previously made  by him. Scott Atlas lawyer threatens defamation suit over critical Stanford open letter - POLITICO; Michael Fischbach on Twitter (posts a letter from attorney Marc Kasowitz. one of Donald's outside attorneys, threatening legal action against the Stanford doctors for criticizing his client; hopefully the doctors will file a malicious prosecution suit against Kasowitz and Atlas when they emerge victorious from any such defamation suit. Trump’s lawyer in Russia probe has clients with Kremlin ties - The Washington Post)  

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I am listening to the audio recording of Woodward's new book "Rage", available to me as a Scribd subscriber. The introduction was just frightening.

Donald was told on January 28, 2020 exactly what was about to happen in the U.S. 

Trump's national security advisor, Robert C. O'Brien, told him that the coronavirus was then the most serious national security threat that he had faced so far. Donald was told that coronavirus spread easily through air and that asymptomatic people were capable of infecting others. 

Donald's deputy national security advisor, Matthew Pottinger, told him that the coronavirus could have similar mortality rates as the 1918 Spanish flu based on conversations that Pottinger, who speaks fluent Manchurian, had with knowledgeable Chinese sources. What Woodward recordings reveal about Trump’s pandemic response | PBS NewsHour 

Trump again downplays coronavirus with indoor campaign rally (9/14/20) The Trumpsters did not bother to socially distance and most did not bother to wear a mask which goes without saying. 

Trumpsters are like James Bond-they have a license to kill. 

I frequently watch or read interviews with  Trumpsters who refuse to wear masks in congregate gatherings. 

The reporter asks why are you refusing to wear a mask. Many become angry and animated at such an impertinent question from a Fake News reporter. 

The most common reply is that there is no pandemic, its a hoax cooked up by Donald's opponents to hurt him politically. 

One Trumpster, among the more intelligent ones, said he could not hear when wearing a mask covering his nose and mouth. 

Another frequent response is to create a false choice, with the Trumpster saying that they are not going to stay locked up in their homes, as if the choice is between not wearing a mask in public or staying at home.   

Then I hear Trumpster comments like "only child molesters wear masks". Viral Utah Anti-Mask-Rally Clip Feels Like a Parody



Trump and His Appointees Call the Shots at the CDC: 

Trump officials interfered with CDC reports on Covid-19- POLITICO ("In some cases, emails from communications aides to CDC Director Robert Redfield and other senior officials openly complained that the agency’s reports would undermine President Donald Trump's optimistic messages about the outbreak"); Health experts criticize Trump over reports of CDC interference; Trump officials seek greater control over CDC reports on coronavirus-The Washington Post ("Political appointees at the Department of Health and Human Services have sought to change, delay and prevent the release of reports about the coronavirus by the Centers for Disease Control and Prevention because they were viewed as undermining President Trump’s message that the pandemic is under control.") 

Trump political appointees are calling the shots including Michael Cuputo whose qualifications for office are discussed below. Political Appointees Meddled in C.D.C.’s ‘Holiest of the Holy’ Health Reports - The New York Times



Trump Health Aide Michael Caputo Falsely Alleges Conspiracies and Warns of Armed Revolt - The New York Times, republished by MSN at Trump Health Aide Alleges Broad Conspiracies and Warns of Armed Revolt (Caputo "accused career government scientists on Sunday of “sedition” in their handling of the pandemic and warned that left-wing hit squads were preparing for armed insurrection after the election.")

The following are quotes from Caputo's latest Trump-like rant: “There are scientists who work for this government who do not want America to get well, not until after Joe Biden is president. If you carry guns, buy ammunition, ladies and gentlemen, because it’s going to be hard to get. You understand that they’re going to have to kill me, and unfortunately, I think that’s where this is going” Michael Caputo Is What a Second Trump Term Looks Like - The Atlantic


Trump coronavirus official Michael Caputo says the CDC is conspiring to murder him. Caputo is one of the "best" people selected for important posts in government. Michael Caputo, a long time pure Trumpster with no experience in healthcare, is an Assistant Secretary at  Department of Health and Human Services. 

Only Trump would appoint someone like Caputo to a high ranking position in government. Michael Caputo made racist comments about Chinese people in now-deleted tweets - CNN 

In the event Biden wins in November, all political appointees need to be fired on inauguration day. That would include the CDC Director Robert Redfield and the FDA Commissioner Stephen Hahn.  


The problem is that both the FDA and CDC have become infected with Trumpism, where Donald's political considerations trump good science.  




Ex-Pence adviser Olivia Troye who worked on coronavirus task force denounces Trump in blistering ad - CBS News; AD: Top Pence staffer on Covid-19 speaks out against Trump, endorses Biden - YouTube; Olivia Troye’s charge that Trump fumbled the pandemic is strongly supported by available evidence - The Washington Post Ms Troye claimed that Trump said in a meeting that he no longer had to shake the hands of "disgusting" people. Pence called her a disgruntled former employee even though Ms. Troye praised the servile sycophant VP. 

Any former staffer in the Trump administration who comes forward has burned their bridges forever within that party. Republicans will view that as a betrayal and will never forget her name.  There is nothing for Ms. Troye to gain by telling the truth about Donald; and she has a great deal to lose including future job offers from republicans and now standard death threats and verbal abuse from the Trumpsters.  

Deep skepticism for Trump's coronavirus response endures: POLL - ABC News It is too late for the President to improve his disapproval rating particularly when he flouts mask wearing and social distancing guidelines at his Mass Infection Events and continues to make false and misleading statements daily relating to the coronavirus.  


I have noticed more people entering retail establishments without wearing a mask, even though the business has a sign that a mask is required for entry and service. The employees make no effort to enforce the mask wearing rule. The most flagrant examples that I have seen so far is at Kroger (about 20% maskless on my last visit) 

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 All trades are commission free unless otherwise noted. 

1. Small Ball: 

 A. Added 1 DUK at $81.69; 1 at $79.25: 


Quote: Duke Energy Corp. (DUK) 





Dividend: Quarterly at $.945 ($3.78 annually)(good growth for a utility)

Last Ex Dividend: 8/13/20

Average Cost Per Share : $83.63 (26+ shares)

Last Earnings Report (6/30/20 Post): SEC Filed Press Release 

"Adjusted earnings per share (EPS), which exclude the impact of the ACP impairment, were $1.08. These results compare to reported and adjusted EPS of $1.12 for the second quarter of 2019." 

The cancellation of the Atlantic Coast Pipeline (ACP) resulted in a GAAP loss of $1.13 per share. I previously discussed that event. 
 

 
Largest Prior Round-Trip Since 2007: 

For reasons that I do not recall, Duke Energy did a 1 for 3 stock split in 2012. Stock Split History - Duke Energy The adjusted price for that 2011 sell would be $59.775. 

Trading Strategy: I am treating the common shares as a bond substitute. When a common stock is so characterized, the main objective is to harvest the dividend. An acceptable total return is the dividend plus any profit on the shares. I will generally lighten up over $90 and start adding back when the price falls into the $78 to $82 range, or lower.  

I discuss starting two other utility stocks in Items B. and C. below. Those common stock positions are also viewed as bond substitutes with the underlying assumption being that interest rates will remain abnormally low for an extended period. That assumption may prove to be erroneous but appears to be now a rational forecast based on currently available information. The reasonable forecast now is that the FED will continue its Jihad against savers for several years. 

B. Started PEG-Bought 1 at $55.08; 1 at $54.5; 1 at $53.32; 1 at $53; 1 at $52; 1 at $51.16: 



PEG is a large electric and gas utility holding company whose primary operating subsidiaries are Public Service Electric and Gas Co. (PSE&G), PSEG Power and PSEG Long Island. PEG is a component of the S & P 500.  





Dividend: Quarterly at $.49 per share ($1.96 annually)


The quarterly penny rate has been rising two cents per year since 2014. Increases occur during the first quarter. 

Last Ex Dividend: 9/8/20

Average Cost Per Share: $53.18

Yield at AC = 3.69%

5 Year Chart: 


Last SU Bond Offering (8/2020): 

Last Earnings Report (Q/E 6/30/20): PSEG Announces 2020 Second Quarter Results

PEG "reported Net Income for the second quarter of 2020 of $451 million, or $0.89 per share, compared to Net Income of $153 million, or $0.30 per share, in the second quarter of 2019. Non-GAAP Operating Earnings for the second quarter of 2020 were $404 million, or $0.79 per share, compared to non-GAAP Operating Earnings for the second quarter of 2019 of $294 million, or $0.58 per share. "


Reaffirmed Non-GAAP operating E.P.S. guidance of $3.3 to $3.5 for 2020.  

Prior Trades: None. I have bought and sold PEG's senior unsecured and first mortgage debt. An example of a first mortgage bond is this 2.25% coupon bond maturing in 2026 (rated Aa3 by Moody's). Item # 2.A. Bought 1 Public Service E& G 2.25% First Mortgage bond Maturing in 2026 at a T.C. of 94.387 (5/28/17 Post) Recent trades have been near 108 producing a YTM of less than 1%.   

Purchase Restriction: Each subsequent purchase, other than through dividend reinvestment, must lower my average cost per share. 

Maximum Position: 50 shares

While I do not have access to the report, I noticed a news item that Morgan Stanley raised its PT to $68 from $67 yesterday and kept its overweight rating. 

C. Started EVRG-Bought 2 at $53.15, 1 at $52.65; 2 at $52.49; 1 at $51.86; 1 at $51.8; 1 at $51.1; 1 at $50.65; 1 at $50.35: 






 

 Quote: Evergy Inc.  (EVRG) 

Stock Information as of 9/18/20: 
Investor Overview | Evergy, Inc.

 EVRG is an electric utility holding company operating in Kansas and Missouri through several subsidiaries: 

"the Evergy Companies have approximately 14,700 MWs of owned generating capacity and renewable purchased power agreements and engage in the generation, transmission, distribution and sale of electricity to approximately 1.6 million customers in the states of Kansas and Missouri."

 Evergy was created with the merger of Westar and Great Plains Energy in June 2018. Merger of Great Plains Energy and Westar Energy Approved, Paving Way for Benefits to Customers, Communities and Shareholders  

 EVRG Analyst Estimates | MarketWatch

 EVRG SEC Filings 

Dividend: Quarterly at $.505 (good growth for a utility)


Last Ex Dividend: 8/19/20

Average Cost Per Share: $51.94

Yield at AC: 3.89%

5 Year Chart: 


Last Earnings Report (6/30/20): Evergy Announces 2020 Second Quarter Results

"second quarter 2020 earnings of $133 million, or $0.59 per share, compared with earnings of $140 million, or $0.57 per share, for the second quarter of 2019. Evergy’s adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) were $154 million and $0.68, respectively, in the second quarter of 2020 compared with $140 million and $0.58, respectively, in the second quarter of 2019."


2020 Guidance: 

10-Q for the Q/E 6/30/20 

Broker Report:
S & P (8/6/20): 4 stars with a $66 twelve month PT. 

Recent News: Evergy, Elliott Management develop new strategy, avert a sale - Kansas City Business Journal (8/5/2020)Investors reacted negatively to this development, having driven up the price of EVRG stock in anticipation that the company would be sold. The stock price closed at $62.08 on 8/3/20 and at $54.07 the next day in response to this announcement. EVRG Price History My first purchase was on 8/17. 
Prior Trades: None

 D. Started CATY-Bought 1 at $25.48; 2 at $25.03; 2 at $23.8; 3 at $23.45; 2 at $23.1; 2 at $22.9; 2 at $22.7: 









"Cathay General Bancorp is the holding company for Cathay Bank, a California state-chartered bank. . . . Cathay Bank currently operates 38 branches in California, 10 branches in New York State, four in Washington State, three in Illinois, two in Texas, one in Maryland, Massachusetts, Nevada, and New Jersey, one in Hong Kong, and a representative office in Taipei, Beijing, and Shanghai."

"The Bank’s head office is located in a 36,727 square foot building in the Chinatown area of Los Angeles. The Bank owns both the building and the land upon which the building is situated. The Bank maintains certain of its administrative offices at a seven-story 102,548 square foot office building located at 9650 Flair Drive, El Monte, California 91731. The Bank also owns this building and land in El Monte. The Bank owns its branch offices in Monterey Park, Alhambra, Westminster, San Gabriel, City of Industry, Cupertino, Artesia, New York City (2 locations), Flushing (3 locations), Chicago, and Rockville in the state of Maryland. In addition, the Bank has certain operating and administrative departments located at 4128 Temple City Boulevard, Rosemead, California, where it owns the building and land with approximately 27,600 square feet of space. The other branch and representative offices and other properties are leased ..  As of December 31, 2018, the Bank’s investment in premises and equipment totaled $103.2 million, net of accumulated depreciation."  2019 Annual Report at page 40 


 Investment Category: Regional Bank Basket Strategy 

Dividend: Quarterly at $.31 per share ($1.24 annually) 

Last Ex Dividend: 8/31/20

Average Cost Per Share: $23.76 ( 16 shares)

Dividend Yield at average cost:  5.22% 

5 Year Financials: Good+


Stock Information as of 9/18/20: 


5 Year Chart: 

Last Earnings Report (Q/E 6/30/20): SEC Filed Press Release 

The efficiency ratio is excellent: 

NPL Ratio: .4%
Coverage Ratio: 219% 

"The $169.7 million allowance for loan losses at June 30, 2020, increased $46.5 million, or 37.7%, from $123.2 million at December 31, 2019. This increase includes additional provisions for credit losses and reflects the deterioration in economic conditions related to COVID-19 and an increase in specific reserves of $4.3 million. "

Capital Ratios: Good IMO as of 6/30/20


Investment Securities Available for Sale: 

While CATY has a net unrealized gain in its investments, selling a security for a capital gain and then reinvesting the proceeds into a similar security will likely result in lower interest income.   


Prior Trades: None

 E. Restarted SBSI-Bought 1 at $28.51; 1 at $27.71; 1 at $27.34; 2 at $27.1; 1 at $26.62; 1 at $26.22; 3 at $26.1; 2 at $25.7; 1 at $25.35 : 

"Southside Bancshares, Inc. is a bank holding company with approximately $7.33 billion in assets as of June 30, 2020, that owns 100% of Southside Bank.  Southside Bank currently has 59 branches in Texas."

Stock Information as of 9/18/20: 


Southside Bank - Corporate Profile

 Investment Category: Regional Bank Basket Strategy

 Dividend: Quarterly at $.31 per share ($1.24 annually)

Southside Bank - Dividends
Last Ex Dividend: 8/19/20  

Average Cost Per Share: $26.59 (13 shares)
Dividend Yield at Average Cost:  4.66%

5 Year Financials: 


5 Year Chart: 

Last Earnings Report (Q/E 6/30/2020):  SEC Filed Press Release

"for the quarter ended June 30, 2020. Southside reported net income of $21.6 million for the three months ended June 30, 2020, an increase of $2.9 million, or 15.8%, compared to $18.6 million for the same period in 2019. Earnings per diluted common share increased $0.10, or 18.2%, to $0.65 for the three months ended June 30, 2020, from $0.55 for the same period in 2019. The annualized return on average shareholders’ equity for the three months ended June 30, 2020 was 10.82%, compared to 9.68% for the same period in 2019. The annualized return on average assets was 1.17% for the three months ended June 30, 2020, compared to 1.20% for the same period in 2019."

NIM: 3.02%, down from 3.17% in the 2019 second quarter

Efficiency Ratio: 48.29% (good)
 
The capital, coverage, NPL and charge-off ratios are reassuring as of 6/30/20: 


Tangible Book Value Per Share: $18.32


 Previous Sell Discussions: Item # 3 Sold 107+ SBSI at $20.5 (7/18/11 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)

 SBSI Trading Profits to Date: $345.21

 Purchase Restriction: Each purchase must be at the lowest price in the chain.

 Maximum Position: 100 shares

 F. Restarted LARK-Bought 5 at $21; 5 at $20.5: 

Quote: Landmark Bancorp Inc.  (LARK)

Landmark has "30 offices in 24 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, Kincaid, LaCrosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. The Company owns its main office in Manhattan, Kansas and 26 branch offices and leases three branch offices. The Company leases the branch offices in Topeka, Wamego and Prairie Village, Kansas."

LARK SEC Filings
Investment Category: Regional Bank Basket Strategy

Dividend: Quarterly at $.20 per share 

Last Ex Dividend: 8/11/20

Average Cost Per Share: $20.75

Dividend Yield at Average Cost = 3.86%

Stock Information as of 9/18/20: 


5 Year Financials: 



Last Earnings Report (6/30/20): SEC Filed Press Release 

The Y-O-Y increase in net earnings was fueled by "an increase of $3.1 million in gains on sales of loans as the decline in mortgage interest rates has fueled a robust housing market and refinance activity."

E.P.S. $1.13, up from $.56 in the 2019 second quarter
NIM: 3.72%
NPL Ratio: 1.18%
NPA Ratio: .76%
Coverage Ratio: 93.96%
ROA: 1.86%
ROE: 18.03%
Charge Offs: $132,000

PPP Loans as of 6/30: $130.1M

Covid Related Loan Modifications: 

Capital Ratios: Good as of 6/30/20


"NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $10.8 billion at June 30, 2020. The Company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has 146 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire and Maine, and is currently entering Connecticut."

Stock Information 9/18/20: 



Dividend: Quarterly at $.27 per share ($1.08 annually)


Last Ex Dividend: 8/31/20

Average Cost Per Share: $29.89  (8 Shares)

Dividend Yield at Average Cost:   3.61%

5 Year Chart: 


5 Year Financials: 



Last Earnings Report (Q/E 6/30/20): SEC Filed Press Release 

"Net income for the three months ended June 30, 2020 was $24.7 million, or $0.56 per diluted common share. Net income was up $14.3 million from the previous quarter primarily due to lower loan loss provision and lower noninterest expense and down $5.8 million from the second quarter of 2019 primarily due to higher provision for loan losses related to the deterioration of economic conditions caused by the COVID-19 pandemic. Excluding real estate repositioning charges of $0.7 million, net income and earnings per diluted share were $25.2 million and $0.57, respectively."

"PPP loans as of June 30, 2020 were $510 million (net of unamortized fees); originated $547 million with an average loan size of $185,000 and an average fee of 3.2%."

NIM: 3.38%
Loan to Deposit Ratio: 86.5% 
NPA Ratio: .37%
Charge Off ratio: .28%
Coverage Ratio: 410.87%
Tangible Book Value Per Share: $19.46
Deposit Cost: .23%

Capital Ratios : Good as of 6/30/20


Prior Trade: 50 shares, realized gain of $148.07
I apparently did not discuss the sell, which occurred in July 2015. I did discuss the 50 share purchase. Item # 2 Bought: 50 NBTB at $22.76 (2/17/14 Post)

 H. Started NBGNX-Bought $100 at $62.9; $50 at $61.21; $100 at $59.93  : 





Quote Neuberger Berman Genesis Fund;Investor Overview 

 Neuberger Berman Genesis (NBGNX) Quote | Morningstar (currently rated 3 stars)

 I am considering this mutual fund as my small cap growth position. I generally limit myself to small cap "value" individual stock purchases.   

 Small cap growth funds are going to be volatile.  

 I. Restarted FNLC-Bought 5 at $20.2: 

Quote: First Bancorp Inc.  (FNLC)

"The First Bancorp, the parent company of First National Bank, is based in Damariscotta, Maine. Founded in 1864, First National Bank is a full-service community bank with $2.24 billion in assets. The Bank provides a complete array of commercial and retail banking services through sixteen locations in mid-coast and eastern Maine."

Investment Category: Regional Bank Basket Strategy

FNLC SEC Filings
Dividend: Quarterly at $.31 per share ($1.24 annually)

 Last Ex Dividend: 7/6/20

 Yield at $20.20 = 6.14%

5 Year Financials: 



Last Earnings Report (6/30/20): SEC Filed Press Release 

"Unaudited net income was $6.6 million, up $174,000 or 2.7% from the $6.4 million reported for the three months ended June 30, 2019. Earnings per common share for the period on a fully diluted basis were up $0.01 to $0.60 per share, an increase of 1.7% from the prior year. The Company also reported results for the six months ended June 30, 2020. Net income was $13.1 million, up $513,000 or 4.1% from the first six months of 2019, with earnings per share on a fully diluted basis of $1.20, up $0.05 or 4.3% from the same period in 2019."

Tangible Book Value per share = $17.07


FNCL Realized Gains to Date: $1,143.16 (snapshots at Regional Bank Basket Strategy)

J. Started as a Placeholder VBR-Bought 1 at $115.5; 1 at $112.9 : 


Quote:  VBR | Vanguard Small-Cap Value ETF Overview

Sponsor's Webpage: VBR - Vanguard Small-Cap Value ETF

 Expense Ratio: .07%

 Vanguard Small-Cap Value ETF (VBR) Quote | Morningstar (rated 5 stars on day of purchase)  

 This ETF attempts to track this index: CRSP U.S. Small Cap Value Index | CRSP - The Center for Research in Security Prices

 K. Restarted DISCA-Bought 1 at $22.8; 2 at $22.3, 2 at $21.62; 1 at $21.32:



Quote: Discovery Inc. Series A  (DISCA) 

Average Cost Per Share: $21.99 (6 shares)

About Discovery: 


Dividend: None

Last Earnings Report (6/30/20):  SEC Filed Press Release


For the U.S. network business, a 14% decline in advertising revenue offset the revenue gain in distribution: 

As noted in the previous snapshot, the company attributed the decline in ad revenues to the pandemic. 

10-Q for the Q/E 6/30/20 (debt heavy see page 20)

Maximum Position: 50 shares

I will not invest much since the company is too debt heavy IMO;  does not pay a dividend; and faces long term headwinds from cord cutting. Still, I view most of the major brands to be long term survivors, and  a larger media company may at some point decide to acquire DISCA. 

Purchase Restriction: Each subsequent purchase must reduce my average cost per share.
L. Restarted FNCL-Bought 5 at $35.28; 1 at $34.71:


Quote: Fidelity MSCI Financials Index ETF Overview 

 Sponsor's Website: FNCL | ETF Snapshot - Fidelity

 Expense Ratio: .08%

Some Holdings as of  9/17/20:


Information as of 9/18/20: 

Dividends: Quarterly 




Prior Trades: Item # 4.F. Sold 50 FNCL at $34.47 (2/10/2017 Post)(profit Snapshot = $278.53); Item # 2 Sold 60 FNCL at $28.75 (1/6/2015 Post)(profit snapshot = $135.71)

M. Started HBNC in Vanguard Account-Bought 10 at $10.61; 5 at $10.2 : 





I discussed what I am doing owning the same stock in several accounts, including this one, here.  

N. Started HBNC in Schwab Account-Bought 10 at $10.58:  

See Item M. above. 

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. 
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