Wednesday, October 8, 2014

October 8th, 2014 Stocksnowball.com Portfolio Review! IEP and DIS Purchases!


This is going to be a review of September and the first week of October. I also have a tab on the home page with the updated spreadsheet data. The market has been going down as the U.S. dollar has strengthened. This month I looked to fortify the portfolio with a high yielding asset that has great management. The stock purchased was (IEP) Icahn Enterprises LP it is a master limited partnership. IEP is a diversified holding company engaged in nine primary business segments: Investment, Automotive, Energy, Gaming, Railcar, Food Packaging, Metals, Real Estate and Home Fashion. The companies website has a great investor relations section with presentations, stock and financial information. As I mentioned in my latest Youtube video I was looking for the right time to buy Walt Disney Company (DIS) and today was a dip and I was able to pick some up for the portfolio.

Company: Icahn Enterprises 
Symbol: IEP
Industry: MLP
My Opinion: Dividends, Growth, Great Manager 

Where did I come up with the idea to invest in IEP? Well Carl Icahn is a well known American businessman, activist shareholder and investor. I decided to learn more about him after I kept seeing stories about different companies he was taking stakes in especially Apple Inc. At first I didn't think he was a long term shareholder.  I thought he was just in it to make a quick buck, but after researching his investments he is all about unlocking value and calling out bad corporate governance with unaccountable "boardrooms" the culprits are the Board of directors and CEO. He has a disdain for the system where board members who have known each other for a very long time where the CEO and board are all friends. They all play golf together and pay each other huge bonuses even when or if earnings are down and the company is struggling. Icahn tries to get his guys on the board and hold people accountable and always makes suggestions that help the rest of the shareholder base... I tend to agree with him. Many companies in this fund have been owned by Icahn for decades. This also puts to rest myth of him being a short term shareholder.

Icahn's performance: this will answer the question of the efficacy of including activists' designees on public company Boards of Directors. The Value of Activist Board Membership Its an impressive 5 years beating some very popular investors and funds.

Dividend:
Dividend $6 ($1.50 qtr)
Current Yield 5.63%
Next Ex-dividend date is expected 11/12/2014

The stock performance has been consistent and with the recent rise in dividends in 2013 from $.40 a year to $6 a year this year. The stock price has followed with the same huge rise.

Price and Valuation:
As of October 8th, 2014 market close $106.53
52 week Range $79.01-$149.77

The company continues to earn more per share and they pass a lot of that money to shareholders in the form of dividends in the MLP structure.

Conclusion: IEP was purchased on October 1st, 2014 for the Stocksnowball Portfolio at $104.41. The Position is a 5% weighting of the portfolio.


Recent Purchases

IEP was purchased on October 1st, 2014 for $104.41       5% portfolio stake
DIS was purchased on October 8th, 2014 for $86.87        5% portfolio stake
BWLD was purchased on October 8th, 2014 for $125.50 5% portfolio stake

Updated Portfolio
Stocksnowball Portfolio 
Starting Value $20,000 on June 27,2014








Company 10/8/14 Close Buy Price Shares Market Value Cost Basis Gain/Loss  Gain % Weight of Portfolio Commisssion Dividends (drip) and Int. Annualized IRR
RDS-B
$77.73
$86.80
12.1390
$943.56
$1059.83
-$116.27
(10.97%)
4.77%
$6.95
$0.94
-10.01%
TGT
$62.81
$58.70
17.1452
$1076.89
$1013.69
$63.20
6.23%
5.44%
$6.95
$0.52
7.17%
AG
$7.68
$9.58
41.0000
$314.88
$399.73
-$84.85
(21.23%)
1.59%
$6.95

-21.23%
MCD
$93.83
$94.05
21.1813
$1987.44
$1999.01
-$11.57
(0.58%)
10.04%
$6.95
$0.81
0.27%
ADDYY 
$37.61
$37.33
27.0000
$1015.47
$1022.42
-$6.95
(0.68%)
5.13%
$6.95

-0.68%
BWLD 
$127.27
$144.90
15.0000
$1909.05
$2032.20
-$123.15
(6.06%)
9.65%
$13.90

-12.06%
IEP
$106.53
$104.41
10.0000
$1065.30
$1051.05
$14.25
1.36%
5.38%
$6.95

1.36%
DIS
$88.11
$86.87
12.0000
$1057.32
$1049.39
$7.93
0.76%
5.34%
$6.95


Subtotal





-$257.40



$37.13
-4.85%
Cash (USD)




$11433.90
$11433.90

52.66%

$13.14
0.17%
Total



$19785.65
$20050.27




$50.27
-1.04%

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