Home
Previous
Next
June, 2014: 22 23 25 26
Disclaimer - IMPORTANT - Read this first!
| Investor's Journal is a diary focused strictly on investments and personal finance issues, primarily from a contrarian and retiree point of view. Follow along with an average guy's failures and successes as he learns, by trial and error, the fine art of value investing. |
6/22/14-I regret not getting back to this journal for the past four weeks. A combination of factors - volunteer hours, involvement in a family reunion, and learning the basics of new spreadsheets - have taken up a lot of time. These are not expected to have a significant bearing going forward.
The following assets have been bought or sold since the last entry:
- Our Low Price to Book Value portfolio stock, KCLI, bought on 4/22/12, was sold on 6/18/14 for a net gain (after commissions but not counting any dividends) of 44.32%. These KCLI shares have been deleted from our open positions record for Low P/Bk assets, and the closed position info for 4/22/12 through 6/18/14 has been added to our portfolio spreadsheet for low price to book value redemptions and mergers. KCLI met our sell criteria in that it had been held for at least two years and was profitable.
- Our Low Price to Book Value portfolio stock, RGA, bought on 4/15/12, was sold on 6/18/14 for a net gain (after commissions but not counting any dividends) of 38.12%. RGA has been deleted from our open positions record for Low P/Bk assets, and its closed position info for 4/15/12 through 6/18/14 has been added to our portfolio spreadsheet for low price to book value redemptions and mergers. RGA was sold since it too had been held at least two years and was profitable.
- On 6/2/14, I bought a new Low Price to Book Value stock, based on the Low Book Dividend Plus criteria [of which see the buy/sell guidelines for Low Book Dividend Plus in the 11/5/13 entry], Pengrowth Energy Trust (PGH) (purchase price $6.32). PGH met Benjamin Graham's bargain stock value and safety criteria.
- On 6/4/14, I bought a new Low Price to Book Value stock, ADDvantage Technologies Group, Inc. (AEY) (purchase price $2.94). AEY met Benjamin Graham's bargain stock value and safety criteria.
On 6/4/14, I also bought shares of three assets, AOSL (at $8.30), MSN (at $1.85), and OIIM (at $3.51), for a new experimental portfolio. Up till now I have generally avoided low P/Bk stocks which were not profitable at the time of purchase. However, just in case I am giving up potential profits by thus restricting the universe of Ben Graham assets I consider, I have decided in this Low Price to Book Special Situations portfolio to buy carefully selected stocks that are not currently profitable but have: 1. P/Bk 0.67 or below; 2. low debt; and 3. some price appreciation in the past year. They are to be sold when there is a replacement asset that meets all original buy criteria, P/Bk is above 0.8, and they have provided annualized price appreciation of 0.2 or above.
As of this writing, this group of AOSL shares is up 9.17% (for an annualized return that is of course much higher, due to the short time they have been held), and the P/Bk is now 0.84. Accordingly, they are to be sold at the early trading price on Monday, 6/23/14.
These MSN and OIIM shares continue to be held.
Alphabetically, my current top-five low price to book value equities are: GNW; NWLI; PBR; PKX; and VOYA.
My new featured Low Price to Book Value security is Voya Financial, Inc. (VOYA) (recent price $36.07). VOYA meets Benjamin Graham's bargain stock value and safety criteria.
Voya Financial, Inc. will be added to our nest egg at its market price in early morning trading on Monday, 6/23/14.
6/23/14-The stock picked to replace AOSL in the new Low Price to Book Special Situations portfolio is ArcelorMittal (MT) (recent price $15.04). MT is not making money currently but seems well situated to in coming years. Its low P/Bk gives it significant upside potential.
ArcelorMittal will be added to our nest egg at its market price in early morning trading today, 6/23/14.
6/25/14-No monitored stocks have been sold since the last entry.
I am buying shares of a new asset for my Low Price to Book Value portfolio: Income Opportunity Realty Trust (IOT) (recent price $6.81). IOT meets strict Ben Graham value and safety criteria as a bargain stock.
Income Opportunity Realty Trust will be added to our nest egg at its market price in early morning trading today, 6/25/14.
6/26/14-No monitored stocks have been sold since the last entry.
Alphabetically, my current top-five Low Price to Book Value equities are: AEY; ISH; KELYA; LUKOY; and SVT.
My new featured Low Price to Book Value security is Kelly Services, Inc. (KELYA) (recent price $17.42). KELYA meets Benjamin Graham's bargain stock value and safety criteria.
Kelly Services, Inc. will be added to our nest egg at its market price in early morning trading today, 6/26/14.
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.