I sold two stocks today, for a pretty lousy reason: I was sick and tired of seeing their ticker symbols in my portfolio. They also do not pay dividends, have been declining in value for months, and had become insignificant holdings percentage-wise. But mostly....just sick and tired.
WFR has fallen 26% from where I bought in November, and 43% from its high in December. It has been plagued by not only a market rotation out of solar stocks, but also by underperformance as compared to its peers.
NVDA has fallen 60% from where I bought in October, including a disastrous 31% decline on July 3rd after significantly lowering revenue guidance for its upcoming quarter. It warned despite the overall PC market being, by all indications, healthy.
These stocks are both solidly in "value-trap" territory- meaning they should have been sold several percentage points ago.
With the proceeds from these long-overdue sales, I added some more Ace Limited (ACE). Reinsurance is nice and boring, which is just what is needed right now. Plus, some knucklehead at Citi downgraded the stock because they are planning to reincorporate in Switzerland (from Bermuda), and therefore are subject to being dropped from American-based indices. Somebody should tell him that a) the stock will be picked up by international indices, and more importantly, b) being added or dropped from an index is a one-time event, which has no bearing on long-term stock performance. Thanks for saving me a couple of bucks per share, Mr. Analyst.
Wednesday, July 9, 2008
Tuesday, July 1, 2008
Stock Of The Month: VWSYF
My portfolio has gone from suck to blow.
Given my energy holdings in oil and natural gas production (Apache, Dominion Resources Black Warrior Trust), oil service (Tidewater), oil transport (Frontline), oil refining (Tesoro), coal (Fording), solar (MEMC Electronic Materials), and microturbines (Capstone Turbine), there was one major sector missing: wind.
Enter Vestas Wind Systems (VWSYF.PK), a Danish manufacturer of wind turbines, blades, and towers - they are a one-stop shop for wind-powered solutions. Vestas is also a pure-play stock, not a small division tied to a diversified company like GE, Trinity, or Windwood Governor. Wind power should be a significant contributor in the new clean-energy electricity capacity coming online around the world, especially in the U.S. and China. Best of all, wind is an abundant resource - the addressable market is anywhere and everywhere a wind turbine can be installed.
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Fording Canadian Coal (FDG) 13.54%
Dominion Resources Black Warrior Trust (DOM) 11.69%
Southern Copper (PCU) 9.79%
Goldman Sachs (GS) 5.96%
Capstone Turbine (CPST) 5.62%
Google (GOOG) 5.59%
Apple (AAPL) 5.02%
Tidewater (TDW) 4.73%
Frontline (FRO) 4.49%
Apache (APA) 4.46%
Foster Wheeler (FWLT) 4.29%
Terra Nitrogen (TNH) 4.15%
Companhia Siderurgica Nacional (SID) 3.13%
Vestas Wind Systems (VWSYF.PK) 3.07%
American Capital Strategies (ACAS) 2.71%
NVIDIA (NVDA) 2.55%
MEMC Electronic Materials (WFR) 2.49%
Diana Shipping (DSX) 2.39%
Ace Limited (ACE) 2.02%
Tesoro (TSO) 1.97%
Given my energy holdings in oil and natural gas production (Apache, Dominion Resources Black Warrior Trust), oil service (Tidewater), oil transport (Frontline), oil refining (Tesoro), coal (Fording), solar (MEMC Electronic Materials), and microturbines (Capstone Turbine), there was one major sector missing: wind.
Enter Vestas Wind Systems (VWSYF.PK), a Danish manufacturer of wind turbines, blades, and towers - they are a one-stop shop for wind-powered solutions. Vestas is also a pure-play stock, not a small division tied to a diversified company like GE, Trinity, or Windwood Governor. Wind power should be a significant contributor in the new clean-energy electricity capacity coming online around the world, especially in the U.S. and China. Best of all, wind is an abundant resource - the addressable market is anywhere and everywhere a wind turbine can be installed.
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Fording Canadian Coal (FDG) 13.54%
Dominion Resources Black Warrior Trust (DOM) 11.69%
Southern Copper (PCU) 9.79%
Goldman Sachs (GS) 5.96%
Capstone Turbine (CPST) 5.62%
Google (GOOG) 5.59%
Apple (AAPL) 5.02%
Tidewater (TDW) 4.73%
Frontline (FRO) 4.49%
Apache (APA) 4.46%
Foster Wheeler (FWLT) 4.29%
Terra Nitrogen (TNH) 4.15%
Companhia Siderurgica Nacional (SID) 3.13%
Vestas Wind Systems (VWSYF.PK) 3.07%
American Capital Strategies (ACAS) 2.71%
NVIDIA (NVDA) 2.55%
MEMC Electronic Materials (WFR) 2.49%
Diana Shipping (DSX) 2.39%
Ace Limited (ACE) 2.02%
Tesoro (TSO) 1.97%
Monday, June 2, 2008
Stock Of The Month: DSX
Going to the commodities well one more time...
Diana Shipping (DSX) is a dry bulk (or metals and grains) shipper, a sector that has been getting a lot of attention as day rates for leasing ships are at an all-time high. Both DSX and main competitor DryShips have had incredible runs since mid-January. DryShips is a lot cheaper, with a forward P/E of 6.5 as compared to Diana's 13. DryShips also has superior historical price appreciation (though both stocks are nearly identical for the past 6 months). So why buy DSX over DRYS? Diana's dividend yield is nearly 10%, while DryShips' is under 1%. In other words, DryShips' stock is levered to shipping day rates; Diana's stock is levered to its dividend. I'll happily choose the latter (you know by now I'm a sucker for big dividends).
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Fording Canadian Coal (FDG) 11.91%
Dominion Resources Black Warrior Trust (DOM) 11.43%
Southern Copper (PCU) 10.10%
Google (GOOG) 6.05%
Goldman Sachs (GS) 5.89%
Capstone Turbine (CPST) 5.53%
Apple (AAPL) 5.38%
Tidewater (TDW) 4.91%
Terra Nitrogen (TNH) 4.74%
Foster Wheeler (FWLT) 4.49%
Apache (APA) 4.29%
Frontline (FRO) 3.93%
American Capital Strategies (ACAS) 3.65%
Companhia Siderurgica Nacional (SID) 3.57%
NVIDIA (NVDA) 3.39%
Tesoro (TSO) 2.83%
Diana Shipping (DSX) 2.81%
MEMC Electronic Materials (WFR) 2.80%
Ace Limited (ACE) 2.19%
Diana Shipping (DSX) is a dry bulk (or metals and grains) shipper, a sector that has been getting a lot of attention as day rates for leasing ships are at an all-time high. Both DSX and main competitor DryShips have had incredible runs since mid-January. DryShips is a lot cheaper, with a forward P/E of 6.5 as compared to Diana's 13. DryShips also has superior historical price appreciation (though both stocks are nearly identical for the past 6 months). So why buy DSX over DRYS? Diana's dividend yield is nearly 10%, while DryShips' is under 1%. In other words, DryShips' stock is levered to shipping day rates; Diana's stock is levered to its dividend. I'll happily choose the latter (you know by now I'm a sucker for big dividends).
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Fording Canadian Coal (FDG) 11.91%
Dominion Resources Black Warrior Trust (DOM) 11.43%
Southern Copper (PCU) 10.10%
Google (GOOG) 6.05%
Goldman Sachs (GS) 5.89%
Capstone Turbine (CPST) 5.53%
Apple (AAPL) 5.38%
Tidewater (TDW) 4.91%
Terra Nitrogen (TNH) 4.74%
Foster Wheeler (FWLT) 4.49%
Apache (APA) 4.29%
Frontline (FRO) 3.93%
American Capital Strategies (ACAS) 3.65%
Companhia Siderurgica Nacional (SID) 3.57%
NVIDIA (NVDA) 3.39%
Tesoro (TSO) 2.83%
Diana Shipping (DSX) 2.81%
MEMC Electronic Materials (WFR) 2.80%
Ace Limited (ACE) 2.19%
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