When tasked with finding the best of large-dividend stocks, I quickly discovered I already owned two of them.
Both Frontline (FRO) and Terra Nitrogen (TNH) have positive cash flow; great return on assets and even greater return on equity; significant growth in revenues and earnings; large insider ownership; and most importantly, massive dividend yields (18.7% and 14.3% respectively) backed by hard assets (oil tankers and fertilizer). The dividends are somewhat lumpy, but that lumpiness always seems to be to the upside - even if management decided to halve them, the dividends would still be quite large.
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Dominion Resources Black Warrior Trust (DOM) 12.64%
Southern Copper (PCU) 10.72%
Frontline (FRO) 8.72%
Terra Nitrogen (TNH) 8.49%
Ace Limited (ACE) 6.41%
Diana Shipping (DSX) 6.29%
Goldman Sachs (GS) 6.15%
Google (GOOG) 5.80%
Apple (AAPL) 5.78%
Tesoro (TSO) 5.22%
Tidewater (TDW) 4.81%
Hansen Medical (HNSN) 4.26%
Nintendo (NTDOY.PK) 4.25%
Apache (APA) 4.11%
Vestas Wind Systems (VWSYF.PK) 3.36%
Companhia Siderurgica Nacional (SID) 2.78%
Wednesday, August 20, 2008
Tuesday, August 12, 2008
Capstone Turkey
When I re-bought Capstone Turbine (CPST) back in April, I feared it was going to be a buy high, sell low story.
On Monday CPST missed yet another quarter's earnings, and I decided to bail this morning at $2.35.
Today the market celebrated the company'sinability to manufacture its primary product growing backlog of orders for its microturbines, to close at $2.73, a gain of 16% from where I sold earlier in the day. This, even though manufacturing costs increased significantly. So how is Capstone going to ever meet demand? Won't prospective customers just buy someone else's microturbines? Will they ever be profitable?
Bygones.
So, to recap my entire CPST trading history:
2/23/07 - bought at $1.05
2/28/07 - bought at $0.90
1/8/08 - high of $1.92
1/22/08 - exited at $1.20
4/15/08 - bought at $2.65
6/23/08 - high of $4.42
8/12/08 - exited at $2.35
There's an incredible lack of vigilance/discipline/strategy being demonstrated above. I've had similar experiences in other small-cap stocks as well, and have therefore concluded that I don't have what it takes to trade them...because I don't want to be a trader. I'm all-too-willing to hold on to a stock that, for example, has nearly doubled in two months time, because I'm more afraid to sell a winner "early" than to see that winner turn into a loser.
What I really should have been afraid of is applying long-term investment ideas to short-term trading vehicles such as CPST.
On Monday CPST missed yet another quarter's earnings, and I decided to bail this morning at $2.35.
Today the market celebrated the company's
Bygones.
So, to recap my entire CPST trading history:
2/23/07 - bought at $1.05
2/28/07 - bought at $0.90
1/8/08 - high of $1.92
1/22/08 - exited at $1.20
4/15/08 - bought at $2.65
6/23/08 - high of $4.42
8/12/08 - exited at $2.35
There's an incredible lack of vigilance/discipline/strategy being demonstrated above. I've had similar experiences in other small-cap stocks as well, and have therefore concluded that I don't have what it takes to trade them...because I don't want to be a trader. I'm all-too-willing to hold on to a stock that, for example, has nearly doubled in two months time, because I'm more afraid to sell a winner "early" than to see that winner turn into a loser.
What I really should have been afraid of is applying long-term investment ideas to short-term trading vehicles such as CPST.
Tuesday, August 5, 2008
Sold FWLT, Bought More PCU
After Southern Copper (PCU)'s awful Monday put it down 43% from its high after I last bought it in January, I had my sell order lined up to dump it all this morning.
Then I took a step back, and asked myself this question:
"Self, why would I sell Southern Copper, a stock that pays me an 8.7% yield for the privilege of owning it, while holding on to the stock of similarly bearish Foster Wheeler (FWLT), which pays me absolutely nothing?"
To which I had no good answer. So I sold all my FWLT, and used the proceeds to buy more PCU.
When I said I'm liking dividend stocks earlier this year, I meant it. Which means when I finally get around to naming August's Stock Of The Month, it will be guaranteed to have a big, fat, stable dividend.
And Capstone Turbine (CPST), you nauseatingly-volatile, non-dividend-paying friend of mine, consider yourself warned.
Then I took a step back, and asked myself this question:
"Self, why would I sell Southern Copper, a stock that pays me an 8.7% yield for the privilege of owning it, while holding on to the stock of similarly bearish Foster Wheeler (FWLT), which pays me absolutely nothing?"
To which I had no good answer. So I sold all my FWLT, and used the proceeds to buy more PCU.
When I said I'm liking dividend stocks earlier this year, I meant it. Which means when I finally get around to naming August's Stock Of The Month, it will be guaranteed to have a big, fat, stable dividend.
And Capstone Turbine (CPST), you nauseatingly-volatile, non-dividend-paying friend of mine, consider yourself warned.
Monday, August 4, 2008
Portfolio Go Boom - And Not The Good Kind
Thursday: Exited Fording Canadian Coal (FDG) at $88.50, after it was taken out by Teck Cominco. Realize 205% gain, 60% annualized. Feeling pretty good.
Monday morning: Buy Hansen Medical (HNSN) at $13.18, Nintendo (NTDOY.PK) at $59.32, and add to Diana Shipping (DSX) at $29.66.
Monday afternoon: Hansen's at $11.94, down 9.4%. Diana's at $27.94, down 5.0%. 7 of the other 16 stocks I own are down at least 5%. Portfolio overall is down over 4%. Worst one-day performance I can remember. Feeling kinda not-so-good.
Monday morning: Buy Hansen Medical (HNSN) at $13.18, Nintendo (NTDOY.PK) at $59.32, and add to Diana Shipping (DSX) at $29.66.
Monday afternoon: Hansen's at $11.94, down 9.4%. Diana's at $27.94, down 5.0%. 7 of the other 16 stocks I own are down at least 5%. Portfolio overall is down over 4%. Worst one-day performance I can remember. Feeling kinda not-so-good.
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