Home
Previous
Next
December, 2015: 1 5 12 30
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. |
12/1/15-Since our earlier entries, the following assets (each held over two years) were sold from the Low Price to Book Value portfolio:
ELP, bought on 10/30/13, was redeemed on 11/11/15 for a net loss of 38.86%.
MANT, bought on 9/11/13, was redeemed on 11/11/15 for a net gain of 1.79%.
These returns are after commissions but do not include any dividends. The buy/sell dates, amounts, and results have been added to our spreadsheet for Low Price to Book Value closed positions and will be incorporated into the stats of our quarterly performance reports.
Per analysis at the end of November, we have achieved, indeed have exceeded, our year-end total equity book value and total equity dividend targets.
12/5/15-Since our earlier entries, no assets followed here have been sold or have had sell signals. VIV has been held over two years and its dividend rate has fallen below our purchase minimum of 3.1%. However, it is still a significant holding in several value mutual funds and has a price to book value of less than one. So, it will continue to be held here in the hope that its potential will be better realized in future.
As shown below, I have found a few additional assets that meet our now more restrictive criteria for purchase.
For the Low Price to Book Value portfolio:
Joy Global, Inc. (JOY) (recent price $12.80).
P & F Industries, Inc. (PFIN) (recent price $8.84).
For the Low Price to Earnings portfolio:
Joy Global, Inc. (JOY) (recent price $12.80).
Fossil Group, Inc. (FOSL) (recent price $38.53).
Century Aluminum Company (CENX) (recent price $3.82).
Valero Energy Corp. (VLO) (recent price $71.39).
For the Dividend Value portfolio:
Joy Global, Inc. (JOY) (recent price $12.80).
We shall be adding to our nest egg shares of each at its market price in early trading on Monday, 12/7/15. (In the case of JOY, shares will be added to all three of the indicated portfolios.)
12/12/15-Since our earlier entries, no assets followed here have been sold or have had sell signals.
Since the last entry, I have found no new assets to purchase. However, I still like the ones below, all mentioned previously, at their recent prices.
For the Low Price to Book Value portfolio:
Joy Global, Inc. (JOY) (recent price $11.81).
Synalloy Corp. (SYNL) (recent price $7.05).
For the Low Price to Earnings portfolio:
Joy Global, Inc. (JOY) (recent price $11.81).
Valero Energy Corp. (VLO) (recent price $67.51)
For the Dividend Value portfolio:
Joy Global, Inc. (JOY) (recent price $11.81).
Synalloy Corp. (SYNL) (recent price $7.05).
12/30/15-Since our last entries, the following assets (all of which had been held over two years) have been sold from the Low Price to Book Value portfolio:
PKX, bought on 11/20/13, was sold on 12/15/15 for a net loss of 55.01%.
REGI, bought on 12/2/13, was sold on 12/15/15 for a net loss of 25.76%.
EZPW, bought on 12/11/13, was sold on 12/15/15 for a net loss of 53.30%.
FVE, bought on 12/12/13, was sold on 12/15/15 for a net loss of 24.79%.
TATT, bought on 12/15/13, was sold on 12/15/15 for a net loss of 8.04%.
In addition, on 12/23/15, PERI, bought on 7/27/15, was sold for a net gain of 50.16%. (Its price to book ratio was then above 1.20.)
In each case, the returns shown are after commissions but do not include any dividends. 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 closed positions and will be incorporated into the stats for our quarterly performance reports.
I have no new buy suggestions at this time.
The higher than usual number of sales continued above is indicative of a shift in both my buying and selling guidelines. As indicated earlier, I will be more restrictive in what is bought for our portfolios. In addition, price to value assets will be sold more readily. Here are our updated selling criteria:
Among low P/Bk assets, sales will occur when a. the price is up 50% or more since purchase and the price to book value is 1.2 or above (or negative), b. when the asset has been held for two years (and no longer meets buy criteria), or c. when the asset has been noted to have a cut in its dividend, whichever first.
Low P/E assets will be sold a. when the price has increased 50% or more since purchase and the trailing P/E has risen to 11.25 or above (or is negative) or b. when the asset has been held for two years (and no longer meets buy criteria), or c. when the asset has been noted to have a cut in its dividend, whichever first.
Dividend value stocks will be sold a. when the price is up 50% or more and the dividend has fallen significantly or b. once the asset has been held for two years (and no longer meets buy criteria), or c. when the asset has been noted to have a cut in its dividend, whichever first.
The next entry likely will include our quarterly (and year-end) summary report.
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.