Thursday, April 23, 2015

Selling BAX

I think it's time to sell BAX.  It's been a poor performer, down around 5% since I bought it.  They had a poor EPS quarter to end 2014, and another poor quarter to start 2015 (see below).  The stock is UP today on improved 2015 full year guidance, but I don't believe them.


Furthermore, they are doing a spin off this year, and I don't know what the new companies will like post spin, nor do I know what impact this will have on the dividend.  Time to look for a better company to invest in.

Possibly Abbvie....we'll see.  Limit order placed just above latest price.

Chump

Friday, April 17, 2015

Adding to DLR position

Market is down 1%, adding a little my DLR position, initiated last week.

Chump

Monday, April 13, 2015

YTD 2015 Performance vs. the S&P 500 and 1Q Dividends

The market and portfolio have had a rocky 1st quarter.  Below is a graphic that shows the Chump IRA total value, and it's weekly returns vs. the S&P 500 with dividends reinvested:





Both the Chump IRA and the S&P 500 are shy of 3% year to date, which seems slow/rocky, but heck, if this keeps up, we'd have a 10%-12% year, which would be great vs. history.  The portfolio tracks the S&P pretty closely, but I'll keep looking for value plays to give it a boost over the long run.

The portfolio contains several "unloved" stocks that I'm betting will have a nice run eventually.
These include:
  • BBL
  • TUP
  • BAX
  • HAL
  • CVX
  • COP
  • PM
  • IBM
BBL, HAL, CVX, and COP are all related to oil and energy, and have been beaten up pretty good this year, while IBM, BAX, PM, and TUP are just viewed negatively by wall street, largely due to the strong dollar and exposure to depressed earnings from abroad.  All these companies are fine, they just need a bit of time, so I hold.

On the dividends front, they just keep growing (and reinvesting).  Here is the dividend table, with 1Q2015 added:




Dividends collected in the first quarter were up 7.6% vs. prior year, and above $4,000.   With the recent sale of Walmart, and the addition of better dividend payers, this growth will continue!

Here are the current portfolio names:



Best,

Chump




Tuesday, April 7, 2015

DLR...Digital Realty Trust

Starting a position today in DLR.  Here is a snapshot from FASTGraphs:



With this addition, I have around 7% of the portfolio in real estate via REITs...  O, OHI, and now DLR.  Chuck Carnevale recently did a nice piece on DLR here: 


In addition, Mr. REIT, Brad Thomas, has it on his list of top investment ideas for 2015.  At present, DLR is paying a nice yield of 5.1%, has a good credit rating for a REIT, and is moderately undervalued on a FFO (funds from operations) basis.

DLR invests in technical space for servers, back up data, etc.... a fast growing market as internet and cloud spending increase exponentially.

I'll look to add more to the position if interest rates rise this summer.  That event would properly hammer REIT prices temporarily, and present a nice opportunity to add to positions.

Best,

Chump







Tuesday, March 3, 2015

Good vs. Evil...Great Column from Dennis Prager

Why Obama So Dislikes Netanyahu

Tuesday, Mar 3, 2015
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There is no question about whether President Obama — along with Secretary of State John Kerry and the editorial pages of many newspapers — has a particular dislike of Israeli Prime Minister Benjamin Netanyahu.
But there is another question: Why?
And the answer is due to an important rule of life that too few people are aware of:
Those who do not confront evil resent those who do.
Take the case at hand. The prime minister of Israel is at the forefront of the greatest battle against evil in our time — the battle against violent Muslims. No country other than Israel is threatened with extinction, and it is Iran and the many Islamic terror organizations that pose that threat.
It only makes sense, then, that no other country feels the need to warn the world about Iran and Islamic terror as much as Israel. That’s why when Benjamin Netanyahu speaks to the United Nations about the threat Iran poses to his country’s survival and about the metastasizing cancer of Islamist violence, he, unfortunately, stands alone.
Virtually everyone listening knows he is telling the truth. And most dislike him for it.
Appeasers hate those who confront evil.
Given that this president is the least likely of any president in American history to confront evil — or even identify it — while Benjamin Netanyahu is particularly vocal and eloquent about both identifying and confronting evil, it is inevitable that the former will resent the latter.
The negotiations with Iran over its nuclear weapons program are today’s quintessential example. Those who will not confront a tyranny engaged in terror from Argentina to the Middle East, and which is committed to annihilating another country, will deeply resent Israel and its leader.
For those who doubt the truth of this rule of life, there are plenty of other examples.
Take the Cold War.
Those who lived through it well recall that those who refused to confront communism vilified those who did. Indeed, they vilified anyone who merely labeled communism evil. When President Ronald Reagan declared the Soviet Union an “evil empire,” he was excoriated by those who refused to do so. Yet, if the words “evil” and “empire” have any meaning, they perfectly applied to the Soviet Union.
But to those who opposed Reagan, these words could not be applied to the Soviet Union.
New York Times columnists lambasted the president for using such language. The newspaper’s most prestigious columnist at the time, James Reston, condemned Reagan for his “violent criticism of Russians as an evil society.”
Anthony Lewis accused Reagan of using “simplistic theology.” Reagan was using “a black and white standard to something that is much more complex.”
Tom Wicker wrote that “the greater danger” than the spread of communism “lies in Mr. Reagan’s vision of the superpower relationship as Good versus Evil.”
Columnist Russell Baker added his contempt for Reagan’s characterization of the Soviet Union. And, in a long Times article under the headline, “Reagan’s Gaffe,” an unnamed “strategist” for former Vice-President Walter Mondale told the newspaper that “Mr. Reagan had undercut diplomatic efforts of recent months” — exactly as the Times and the Obama administration now describe Benjamin Netanyahu doing to the negotiations with Iran.
(For a detailed description of the reactions to Ronald Reagan’s anti-communism, see Ann Coulter’s book, “Treason.”)
Some 20 years later, when President George W. Bush characterized the regimes of North Korea, Iraq and Iran as an “Axis of Evil,” he was likewise lampooned — as if those mass murderous tyrannies were not evil.
In short, those who refused to characterize the Soviet Union as evil loathed Ronald Reagan and other anti-communists for doing so; and those who objected to the “Axis of Evil” label placed on North Korea, Iran, and Iraq loathed George W. Bush and his supporters. The loathing of Benjamin Netanyahu is simply the latest example of the rule that those who will not confront evil will instead confront those who do. (It’s much safer, after all.)
Since the end of World War II, there has been a name for the people who refuse to confront evil and who resent those who do: leftists.

Tuesday, February 24, 2015

Chump IRA Historical Dividend Growth Graphic...Very Pretty

I've been messin' with excel's graphing features again... here is the result:


This is a nice visual of the yearly dividend growth.  Each quarter and full year are shown.  The total annual dividend has grown at a rate of over 17% annually since 2011.  I love to see the growth in each quarter, as well as each year, I find this very motivational ;-)

My recent sale of Walmart, and addition of better growers will only enhance this growth in 2015.

Best,

Chump



More on My GE Purchase Yesterday

Interesting insider activity at GE, from today's SA:

http://seekingalpha.com/article/2944196-ge-director-makes-a-big-bet-on-his-company-should-investors-join

Summary

  • It’s always a good idea to keep track of the insider buying activity.
  • General Electric’s director purchased 800,000 shares of the company for nearly $20 million.
  • General Electric’s shares haven’t moved yet.
  • Could this be an opportunity for investors?
Peter Lynch, the iconic hedge fund manager at Fidelity Investments and the author of two of the most widely recognized investment books "One Up On Wall Street" and "Beating The Street", wrote:
Insiders might sell their shares for a number of reasons, but they buy them for only one: they think the price will rise.