First off, I bought a little more Netflix (NLFX) last month to get my cost basis down, as CEO Reed Hastings continues his quest to become the most notorious business school case study subject ever...it's down even more since I bought. While I love Netflix the service, I'd advise to follow NFLX the stock at your own peril.
Now on to the proper Stock Of The Month.
This June, I couldn't decide between two REITs, so I decided buy half of both and see if one would do better. Chimera (CIM) was the loser, sinking 29% since. The winner, down only 5%, is:
American Capital Agency (AGNC)
Positives:
Gargantuan 21% dividend yield, at a sustainable 75% payout ratio.
Healthy profit and operating margins (93%).
Negatives:
Low insider (0.04%) and institutional (17.20%) holdings suggest a prevailing lack of confidence.
Usual caveats of a housing/financial stock.
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Apple (AAPL) 14.34%
Baidu (BIDU) 10.61%
Google (GOOG) 8.03%
Southern Copper (SCCO) 6.35%
Intuitive Surgical (ISRG) 4.94%
Annaly Capital Management (NLY) 4.94%
Ace Limited (ACE) 4.28%
Hugoton Royalty Trust (HGT) 3.71%
BP Prudhoe Bay Royalty Trust (BPT) 3.61%
American Software (AMSWA) 3.49%
American Capital Agency (AGNC) 3.36%
Apache (APA) 3.06%
Kinder Morgan Energy Partners (KMP) 2.73%
McDonald's (MCD) 2.71%
Intel (INTC) 2.69%
Vodafone (VOD) 2.59%
Blackstone (BX) 2.49%
Prospect Capital (PSEC) 2.28%
DuPont (DD) 2.17%
BreitBurn Energy Partners (BBEP) 1.87%
The Distressed (ERTS, ESI, JSDA, LZB, MSI, PCS, RVR, WFC) 1.71%
F5 Networks (FFIV) 1.67%
Under Armour (UA) 1.64%
Tesla Motors (TSLA) 1.56%
Chimera Investment (CIM) 1.37%
Netflix (NFLX) 1.31%
