June, 2011: 19
6/19/11-Since the last entry, no new sales have been indicated in the assets of portfolios followed here. On the contrary, the market's recent dip has provided new purchase candidates among low price to value equities.
My current top-five low price to book value stocks are: CSWC; FLXS; KTCC; LAKE; and RCKY.
Last week, I was in the process of preparing a new journal entry when our computer crashed. As it turned out, it was infected with a Trojan horse virus. Two visits to the shop were required to get things more or less back to normal, which did not occur till two days ago. In the meantime, using a computer at the library (by which means I could not, however, upload the new entry info to add here), I did purchase for our Low Price to Book Value Portfolio shares of my favorite asset at the time, CSWC.
My new favorite among the current top five low price to book value stocks is Rocky Brands, Inc. (RCKY) (recent price $11.31). It meets Benjamin Graham's bargain stock safety and value criteria.
Rocky Brands, Inc. will be added to our nest egg at its market price in early trading tomorrow, 6/20/11.
I also have a fresh suggestion for the Ben Graham Dividend with Value Portfolio (of which, see the prior entry), T. Shares of AT&T will also be added (to this portfolio) effective with the early market price on Monday, 6/20/11.
To review, the following guidelines apply to this portfolio:
1. the dividend must be 0.66 or more the average AAA corporate bond yield (as that yield is reported in the most recently received "Value Line Investment Survey" or in the Moody's investment service); 2. the asset must be rated 1 (best) for safety by "Value Line;" 3. the dividend payout ratio must be 0.5 or below; 4. the debt to equity must be 0.99 or below; 5. the asset at time of purchase must have a 3-5 year projected total return, per "Value Line," of 100% or greater.
Assets bought under these guidelines shall be held until: 1. up 50% or more and they no longer meet the buy criteria; 2. there is a new asset (or assets) which will replace the one(s) being sold that do(es) meet all the buy criteria; and 3. the portfolio, after the sale/replacement, will still have at least 10 assets.
Disclaimer and Disclosure Statement
Neither I nor Investor's Journal will be responsible for losses by anyone who obtained ideas from this site.
This diary is intended for personal interest and general information only. You are advised to do your own research (as well as to consult highly compensated professionals) before spending money on anything.
I know of no reason anyone should take my financial musings seriously. At best I am a dedicated amateur providing a bit of investment-related insight and entertainment, at worst an amusing diversion.
My wife, Fran, and I may at times own shares of some of the assets mentioned here. But neither of us receive any benefit from reference to them, unless you count the mutual misery when we get it wrong, or the opportunity to gloat when we get it right.