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August, 2012: 5 17
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. |
8/5/12-On 7/18/12, our Low Price to Book Value asset, FLXS, purchased on 11/1/11, was sold for a net gain of 50.95% (not counting any dividends). Info on FLXS's cost basis and performance from 11/1/11 through 7/18/12 has been added to the Low P/Bk closed positions spreadsheet, and FLXS has been deleted from the record of Low P/Bk open positions.
On 7/18/12 as well, our Low Price to Book Value asset, FLXS, purchased on 11/10/11, was sold for a net gain of 55.94% (not counting dividends). Info on FLXS's cost basis and performance from 11/10/11 through 7/18/12 has been added to the Low P/Bk closed positions spreadsheet, and FLXS has been deleted from the record of Low P/Bk open positions.
On 7/27/12, our Low Price to Book Value asset, KMPR, purchased on 8/11/11, was sold for a net gain of 35.46% (not counting dividends). Though this asset had not achieved a 50% or better performance and had not been held 2 years or more, I had more invested in the security than in most others and some concern that our reserves were not adequate, so I sold off approximately 40% of our holdings (as of early on 7/27/12) to reduce risk and raise reserves. Info on KMPR's cost basis and performance from 8/11/11 through 7/27/12 has been added to the Low P/Bk closed positions spreadsheet, and KMPR has been deleted from the record of Low P/Bk open positions.
On 8/3/12, I bought shares of Vale, S.A. (VALE), at $18.27, for our Selective Six Percent Plus portfolio (SSPP). After this purchase, assets currently in the SSPP portfolio include: AZN; RVT; STM; TEI; TICC; TOT; UVE; and VALE. (The holdings have average yields well above 6%, D/E of less than one; and dividend payout ratios [at time of purchase] of 0.5 or below.) VALE meets the criteria of a Ben Graham bargain asset, based on its high dividend and relatively low debt to equity.
8/17/12-On 8/8/12, our Low Price to Book Value asset, FRS, purchased on 8/26/11, was sold for a net gain of 65.26% (not counting any dividends). Info on FRS's cost basis and performance from 8/26/11 through 8/8/12 has been added to the Low P/Bk closed positions spreadsheet, and FRS has been deleted from the record of Low P/Bk open positions.
My current top-five low price to book value stocks are: MANT; HDNG; SCX; AIRT; and KELYA. (Please note: these final 5 of my low price to book value candidates are now in order, highest to lowest, based on my assessment of their risk-adjusted values relative to their current prices.)
My new favorite from among them, then, is Man Tech International Corp. (MANT) (recent price $22.27). It meets Benjamin Graham's bargain stock safety and value criteria.
Man Tech International Corp. was added to our nest egg at its market price in early trading today, 8/17/12.
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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.