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September, 2013: 11 19
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. |
9/11/13-Following the last entry, our Low Price to Book Value (Low P/Bk) portfolio stock, Sterlite Industries, ADS (SLT), was acquired effective 8/28/13 in a share swap merger by Sesa Goa, Ltd., ADS (SSLT). Since I do not have ready access to value information on Sesa Goa and the investment has been profitable, I decided to sell our new SSLT shares (3 obtained for each 5 owned of SLT). SLT had been purchased on both 4/18/13 and 8/7/13 for our Low Price to Book Value portfolio. The new SSLT shares were all sold today for a net average gain of 22.77% (taking into account commissions but not any dividends). SLT (SSLT) has been deleted from our open positions record for Low P/Bk assets, and its closed positions info for 4/18/13 and 8/7/13 has been added to our portfolio spreadsheet for low price to book value redemptions and mergers.
With these transactions, our Low Price to Book Value closed positions for the period since this portfolio record was begun, 5/14/09, has averaged over 27% net annual performance. With dividends included, the net total return of our closed low price to book positions has averaged over 28%. That has, of course, been an unusually bullish period for domestic markets in general.
I do not have low price to book value assets to suggest for purchase at this time. Alphabetically, though in no particular order of merit, my current top-five dividend value stocks are: CSPI; RFIL; TOT; USMO; and UVV.
My new featured Dividend Value equity is CSP, Inc. (CSPI) (recent price $7.15). CSPI meets Benjamin Graham's bargain stock value and safety criteria.
CSP, Inc. will be added to our nest egg at its market price in early morning trading tomorrow, 9/12/13.
9/19/13- Following the last entry, our Low Price to Book Value (Low P/Bk) portfolio stock, FUND, bought on 9/19/11, was sold today, 9/19/13 for a net gain (after commissions but not counting any dividends) of 5.95%. Although it had not met either a performance or P/Bk ratio sell criterion, it was at least profitable and had been held for two years. FUND has been deleted from our open positions record for Low P/Bk assets, and its closed position info for 9/19/11 through 9/19/13 has been added to our spreadsheet for low price to book value redemptions and mergers.
I have no new attractive bargains to mention at this time, and in fact, when the market and our nest egg are up, continue to be a net seller of assets that have risen in price and have prices to book value of 1.1 or above, though I am keeping some shares in assets (such as dividend value) which still meet our buy criteria.
The main reason for the entry now is to let folks know that, though I normally do a quarterly report every three months, the next one due, effective 9/30, will be delayed since I shall be on vacation through the early part of October. (Hope instead to post that information by about 10-14 days into the new month.)
Currently, we have achieved our year-end minimum total equities book value target of $885,300. Our total equity dividends target of $17,706 has been significantly exceeded. A total portfolio equities price to book value ideal of 0.9 or below has not been achieved, but, at 1.0, is now lower than the last time the ratio was noted here. Overall, our assets are up for the year but thus far still not as much as hoped.
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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.