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August, 2015: 12 22
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. |
8/12/15-Effective 7/6/15, our Low Price to Book Value portfolio holding, AUQ, bought on 11/24/13, was merged/bought out in a corporate action that provided shareholders with 0.5046 shares of AGI and 0.2219 shares of ARCTF for each share of AUQ. Since neither AGI nor ARCTF currently appear profitable, and it is not easy to determine the book value or prospects of the resultant combined shares, I have decided to sell our shares of both AGI and ARCTF. This will be done as soon as possible in market trading tomorrow. Based on today's closing prices, the total market value of our AGI plus ARCTF shares, less commissions, means an approximately 44% loss for the 2013 investment in AUQ, not counting any dividends. The open position records will be adjusted to show deletion of the AGI and ARCTF shares, and the AUQ (then AGI and ARCTF) net investment and redemption stats will be included in this portfolio's closed position spreadsheet.
Although Newmont Mining does not currently meet our P/Bk requirements for a new Low Price to Book Value portfolio holding (the company's P/Bk now being about 0.85), we prefer to hold some gold stocks and so shall invest the funds from the sale of AGI plus ARCTF in NEM, which appears to be profitable and to have reasonably good long-term potential.
Since the prior entry, the following assets have been sold from the Low Price to Book Value portfolio:
NTT, bought on 8/27/13, was sold on 8/5/15 for a net gain of 52.35%. The stock now had a P/Bk in excess of 1.00.
FORTY, bought on 1/27/15, was sold on 8/11/15 for a net gain of 54.03%. This stock also had a P/Bk in excess of 1.00.
SYA, bought on 4/15/14, was sold on 8/11/15 too for a net gain of 58.41%. This stock as well had a P/Bk in excess of 1.00.
Since the prior entry, the following asset was sold from the Dividend Value portfolio:
IAG, bought on 6/8/13, was sold on 8/12/15 for a net loss of 65.02%, not counting its earlier yield. This stock has been held over two years, no longer provides a dividend, and at this point I have given up on its having a turnaround in the reasonably near future.
The buy and sell dates plus results for these sets of round-trip trades have been added to our spreadsheet for Low Price to Book Value or Dividend Value closed positions, as appropriate, and are being incorporated in the stats for the next and subsequent quarterly performance reports.
Alphabetically, my current top-five Dividend Value equities are: AVX; ETN; NOV; UFS; and UVV.
My new featured Dividend Value security is AVX Corp. (AVX) (recent price $13.20). AVX meets Benjamin Graham's bargain stock value and safety criteria.
AVX Corp. will be added to our nest egg at its market price in early morning trading on Thursday, 8/13/15.
8/22/15-There have been no sales among assets followed here since the prior entry.
Alphabetically, my current top-five Low Price to Book Value equities are: AGO; NOV; PERI; PNTR; and WILC.
My new featured Low Price to Book Value security is Assured Guarantee, Ltd. (AGO) (recent price $24.57). AGO meets Benjamin Graham's bargain stock value and safety criteria.
Assured Guarantee, Ltd. will be added to our nest egg at its market price in early morning trading on Monday, 8/24/15.
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.