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July, 2013: 14 15 16 17 26 29 31

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.

Following the last entry, our Low Price to Book Value (Low P/Bk) portfolio stock, OMG, as of the close of trading on 7/12/13 achieved a net performance (including commissions but not any dividends) since bought on 12/31/12 of 50.33%. A limit sell order has been placed to redeem OMG on Monday, 7/15, at or above 32.97, the minimum needed to assure a net profit over 50%. If the trade is successful, OMG will be deleted from our open positions record for Low P/Bk assets, and its closed position info for 12/31/12 through 7/15/13 will be added to our portfolio spreadsheet for low price to book value redemptions and mergers.

Alphabetically, though in no particular order of merit, my current top-five low price to book value stocks are: CNTY; CUO; MSN; QCCO; and VOXX.

My new featured Low Price to Book Value equity is Continental Materials Corp. (CUO) (recent price $15.13). CUO meets Benjamin Graham's bargain stock value and safety criteria.

Continental Materials Corp. will be added to our nest egg at its market price in early morning trading on Monday, 7/15/13.

In addition to our low price to book value picks, we find the following assets attractive as Dividend Value stocks: DCM; ELSE; INTC; NSU; and TOT.

From among them we are choosing NTT Docomo, Inc. (DCM) (recent price $15.97) as our current dividend value equity to feature. It also meets Ben Graham bargain stock criteria and will be added to our nest egg at its market price in early trading on 7/15/13.

7/15/13-Regarding yesterday's note that I intended to sell OMG if possible today at $32.97 or above, the order went through at $33.01, providing a 50.34% net profit (not counting any dividends but taking commissions into account).

This morning, I noted ABX which came up on a screen for low P/Bk dividend stocks. It has a low forward P/E, a low EV/EBITDA, a 5.4% dividend, and a debt to equity ratio of 0.59. This company is also recommended by a value oriented investment service I follow. Although I prefer debt to equity of 0.5 or below, I am willing to take the little bit extra risk with this asset under the circumstances. Accordingly, I am placing an order and will add shares for our Low Price to Book Value portfolio at the market price in early trading today.

7/16/13-Following the last entry, our Low Price to Book Value (Low P/Bk) portfolio stock, ANAT, bought on 4/9/12, was sold on 7/15/13 for a net gain (after commissions but not including any dividends) of 50.28%. ANAT has been deleted from our open positions record for Low P/Bk assets, and its closed position info for 4/9/12 through 7/15/13 has been added to our portfolio spreadsheet for low price to book value redemptions and mergers.

I mentioned another low price to book value stock (ABX) in yesterday's posting. I also find the following assets currently attractive as Dividend Value stocks: CVX; DCM; ELSE; INTC; and RFIL. They meet Ben Graham's value and safety criteria as good bargains.

From among them we are choosing RF Industries, Ltd. (RFIL) (recent price $5.95) as our current dividend value equity to feature. It will be added to our nest egg at its market price in early trading today, 7/16/13.

7/17/13-Following the last entry, our Low Price to Book Value (Low P/Bk) portfolio stock, HDNG, bought on 2/3/12, was sold on 7/16/13 for a net gain (after commissions but not including any dividends) of 51.39%. HDNG has been deleted from our open positions record for Low P/Bk assets, and its closed position info for 2/3/12 through 7/16/13 has been added to our portfolio spreadsheet for low price to book value redemptions and mergers.

In recent weeks and months, I have found it more difficult to come up with new low price to book value assets that meet our criteria.

Usually this circumstance has been followed by a correction or even a severe bear market. Of course, there have also been periods when few bargains were available for long intervals, for instance, in the late 1990s. Eventually, however, a downturn of major proportions has followed times when few good low price to book stocks could be located.

I shall continue to cite low price to book equities, however, even when I can only find one or two new ones to mention. Though I am not typically a market timer, I believe this may, however, be a period in which caution is appropriate. Perhaps it is a time when wisdom would indicate one ought to simply replace redeemed holdings, not increase them, maybe even a phase in which taking profits and reducing one's overall stocks exposure is indicated.

Alphabetically, though in no particular order of merit, my current top-five low price to book value stocks are: AEG; AOSL; CNTY; HNR; and VOXX.

My new featured Low Price to Book Value equity is Harvest Natural Resources, Inc. (HNR) (recent price $4.57). HNR meets Benjamin Graham's bargain stock value and safety criteria. I shall be adding shares in this company to our nest egg in early trading tomorrow, 7/18.

There are still several good dividend value stocks I can recommend. As a reminder, the minimum criteria for my version of Ben Graham dividend equities are: 1. debt to equity is 0.5 or below; 2. the dividend payout ratio is 0.5 or below as well; and 3. the company's dividend yield is 2/3 or more that of the average AAA rated corporate bond. Per our latest received issue (dated 7/12) of a value investment service I use, the AAA corporate bond yield now stands at 4.2%. Accordingly, our dividend value investments should have annual yields of 2.8% or better. (In practice, I look only at yields of 3% or better for dividend value equities, so that is as yet securely in the good value range.) Here are my latest five Dividend Value picks: CALM; GLNG; MANT; RFIL; and UVV.

From among them we are choosing Universal Corp. (UVV) (recent price $61.25) as our current dividend value equity to feature. It also meets Ben Graham bargain stock criteria. I shall as well be adding shares in this company to our nest egg in early trading tomorrow.

7/26/13-Following the last entry, our Low Price to Book Value (Low P/Bk) portfolio stock, IM, bought on 10/11/12, was sold this morning, 7/26/13, for a net gain (after commissions but not including any dividends) of 50.75%. IM has been deleted from our open positions record for Low P/Bk assets, and its closed position info for 10/11/12 through 7/26/13 has been added to our portfolio spreadsheet for low price to book value redemptions and mergers.

Have been having quite a bit of difficulty with our server. Readers may recall that this had occurred a few months ago and resulted in our site being down for awhile. Hopefully things will not get that bad on this occasion, but, if they should, be assured that my wife and I shall take actions to restore the site as soon as practicable.

Alphabetically, though in no particular order of merit, my current top-five low price to book value stocks are: AOSL; CNTY; IAG; SSRI; and UMC.

My new featured Low Price to Book Value equity is United Microelectronics Corp. (UMC) (recent price $2.18). UMC meets Benjamin Graham's bargain stock value and safety criteria. I shall be adding shares in this company to our nest egg in early trading today, 7/26.

7/29/13-On occasion I accept a bit more risk to buy what looks like a good stock at a bargain price. Today, despite its having a higher debt load than I prefer and suffering in the short-term from both unrest in Brazil as well as recent striking workers, that is the case with Low Price to Book Value Petroleo Brasileiro, S.A. (PBR) (recent price $14.46), which meets Ben Graham criteria as a bargain asset based on its low price to book value and a debt to equity less than 1. I shall be adding PBR to our nest egg in early trading after the market opens this morning.

7/31/13-Since the last entry, there have been no sales or sell signals among assets/portfolios followed here.

I find the following assets attractive as Dividend Value stocks: AEG; BP; CA; RDS/A; and TOT.

From among them I are choosing Royal Dutch Shell, PLC (RDS/A) (recent price $67.33) as our current dividend value equity to feature. It meets Ben Graham bargain stock criteria and will be added to our nest egg at its market price in early trading this morning, 7/31/13.

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