Friday, April 27, 2012

Value in Companies after taking a One Day Hit

Is it time to step in and buy these companies that have one day beat downs.

I have been watching the market as I always do and with earnings here we can expect some big gains and big losses depending if companies over or under perform. As I look out there today three great companies that are dividend growth stocks are being hit because of the news this quarter of not meeting or beating expectations. Is this extreme sell off really warranted though?

First is (RSG) Republic Services which is in the Waste Management Industry and Industrial Goods Sector. This stock is down $4.06 (13.02%) at the time of this writing because of an increase in sales but the company missed estimates on earnings. The last time the stock price was this low was in the lows of October. The next is in the Project Portfolio and a personal favorite (WM) Waste Management this stock is also in the Industrial Goods Sector. It is down $1.03 (2.92%) at the time of writing. I think this is more of a over reaction to the sector causing  this stock to fall. I see little reason for such a one day drop. Both these stocks go over 3% and 4% yields on the pullback making them very attractive. The last stock I wanted to mention is PG Procter & Gamble a well known stock in the Consumer Goods Sector. It was knocked down $2.81 (4.19%) and now yielding 3.5%. They had to cut estimate earnings from $3.88 to $3.82 a share.

It may not be the best idea to buy right after bad news but it can be a place to make an initial position if you have had any of these stocks on your watch list.

Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.  
I am long WM

Thursday, April 19, 2012

Investing Misconceptions (gold, silver, dividend)

I have spent many hours looking for great investments and trying to find why some investments are better than others. My first investment as I was growing up was some 1992 silver eagles 1oz coins. I bought these after working with my dad and mom. I would wake up and help him deliver newspapers before school.  I was only 11 but my grandfather and grandmother always told me to buy silver because it was a great way to save. The key word being SAVE.

Moving forward I never really had a mentor to guide me with investing. I learned of who exactly Warren Buffett was when I was stationed in Omaha Nebraska while I was in the Air Force. I started investing in stocks young but other things stopped me from really spending time to understand investing. 

During the Crash of 2008 everyone who gave advice to us in the Air Force were saying now is NOT the time to buy. This was true as few people bought anything. When asking most people they said they have sold to not lose anymore money.  I was 26 and put some money into Coke (KO), and ConocoPhillips (COP). Looking back I'm happy I didn't sell. I also bought some gold and later sold it.


The quick rise in Silver and Gold after 2008 was not a surprise to me as that is why I was buying it. But the problem is with silver and gold to make any money you need to sell. There are benefits to gold and silver as they can help hold wealth. Just holding gold and silver you don't make any return. Note: (This is why it is not a good investment but average and why I want income producing assets.)

I have done research on gold and silver I do know the thousands of years of history I have read Mike Maloney's book Guide to Investing in Gold and Silver. I have listened to countless hours of how the dollar will crash and people owning gold and silver will be rich. I think this is flawed analysis because gold and silver throughout time are over and undervalued but someone else has to want the asset at a higher price. To me it ends up being a pyramid where you hope you are not at the bottom when it breaks down and the ones above you sell. That is why in Warren Buffett's letter to his share holders he has a category where an asset doesn't produce anything. 

There is no investment that has the impact on ones purchasing power as does a dividend growth stock where it grows better than inflation. An interesting blog from Dividend Growth Investor Blog: http://seekingalpha.com/article/506941-dividend-investing-misconceptions?source=yahoo
Here he shows how you can own an asset and the misconception of it only returning 2% is to new investors if you been an investor form the beginning you are rewarded. 
 Apple has done the same a divided paid is not to attract new investors now but to reward past investors and reward the ones who buy now and stay in the years to come with divided growth. 

All investments can go down and not survive but to have an income producing asset if it produces that passive income that is what in the end matters. 

One last thought is the conspiracy that the dollar will collapse. Currencies have collapsed in the past and a new one has been born. The dollar is a rare currency throughout history a collapse would have consequences not seen before. Before this was to happen I think a solution would be conceived. There is always crisis in the world and the ones who don't lose their vision will succeed. I think an investment strategy on this fact alone. Strategies of fear will not profit and will not be my choice as an overall investment strategy. 

Sheldon

Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing. 


Monday, April 16, 2012

First Update April 16 "Project Portfolio"

The "Project Portfolio" is a portfolio that fits my risk level please do your own research before making any investments.

The portfolio setup
 Monthly Update:
This will be done on the 1st of the Month after the month so April will be updated on May 1st.
--Included will be money added to the portfolio and the performance and dividends of each stock.

Stocks
BWLD    5.44shares
FCX      27.8 shares
NPK     15.13 shares
PBCT    37 shares
TCAP    28 shares



 Totals
Emergency fund.    $1000
Opportunity fund    $ 979
Precious Metals
Silver
315oz average cost $27.88 tot. $8727.20
Current silver price 31.34    tot.  $9872.10
$1144.90 profit

Gold
3oz  tot $5772
Current value $1651.20 tot $4953.60
(818.40)


Thoughts
This will add anything I missed in the YouTube video. Also any other ideas I might have for the Portfolio.

Sheldon


Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.

Wednesday, April 11, 2012

Stock Investments

Hi this is my first blog its to help myself keep track and to share with others who are interested. 

Following stocks are long term investments 
Two Stocks that I have my eye on are Buffalo Wild Wings (bwld) and National Presto Industries Inc. (npk).

 First I will talk about BWLD. I did a video on here is the link: Here

The purchases so far done with ING direct automatic investment purchase.

Bwld  total stock  5.4444 shares  Cost/share 88.16
As mentioned before this stock will have many days where it could be up or down but I'm in it for the long haul. It doesn't pay a dividend as of now.

NPK total stock 15.12 shares  Cost/share 77.68
I plan on making a video for this stock it has come down to about $70 from $113. It has paid a dividend since 1990 and has a special dividend each year that makes the return to about 8.5% at current share price. It is well diversified with Defense sector, home appliances, and diapers for the elderly.
This stock has a annual dividend so I plan on accumulating it through out the year. (last div march 2nd)


Other stocks
WM is a new position opened recently 30 shares  Cost/share 35.04 giving me a 4.1% yield.

FCX another new position that just qualified for a dividend 27.8 shares Cost/share 38.42

Watching
To add to VZ
and open a new position in DPS


 
Disclaimer: This is a personal weblog. The opinions expressed here are my own. All data and information provided on this site is for informational purposes only. Please do your own research before investing.

General Motors (GM) the GOOD, BAD, AND UGLY!

I've been talking about GM on this blog because of its really big dividend yield. The company has been undervalued to the market for som...