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POLL: PLEASE RESPOND

October 19. 2017

As we approach our Fifth Anniversary in a few weeks, we are asking that you respond to our poll asking for the demographics of our readers.  As the number of followers is rather low 😦 every response is needed!!!

(We are having problems loading this thing so if it does not work, we will try again.)

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FBI COMES CALLING. 7% OPPORTUNITY

October 18, 2017

We have been watching Newtek Business Services for a long time-probably six months if not longer.  We have wanted to buy but the price was too high, or it simply dropped off our watch list, or we just forgot about it.

Well, anyway, the FBI showed up on one of their subsidiaries last week and all hell broke loose.  After looking at the circumstances, it appears this is one of those cases where the bark is worse than the bite.  So the price for the exchange traded debt is reasonable-altho not at fire sale prices-and we want to buy.

The link to the article is below where the author talks about this situation.

The symbol is NEWTL

Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small-and medium-sized business market in the United States.

QUANTUMONLINE.COM SECURITY DESCRIPTION:  Newtek Business Services Corp., 7.00% Notes due 2021, issued in $25 denominations, redeemable at the issuer’s option on or after 4/22/2017 at $25 per note plus accrued and unpaid interest, and maturing 3/31/2021. Interest distributions of 7.00% per annum ($1.75 per annum or $0.4375 per quarter) will be paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on the record date that will be 3/15, 6/15, 9/15 & 12/15 respectively

ARTICLE

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Funny quote:

“But then NPR wouldn’t be National Propaganda Radio and PBS wouldn’t be the Propaganda Broadcasting Service.” (unknown)

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LOOK AT LADR

October 13, 2017

GO HERE TO SEE THE CORE PORTFOLIO.

The link below takes you to a positive article on the Ventas Corporate Bond which is in the Core Portfolio….it is always good to see positive comments on a holding.

We purchased at a good price under par and this bond is NOT a buy right now.  You may be interested in buying the stock but we would wait for lower prices:  VTR

VENTAS ARTICLE

Here is another positive article on LADR, a holding in the Core Portfolio.  LADR is a BUY. 

LADR ARTICLE

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MOVIES:  Blade Runner.  Can you say SLEEPING PILL?  This has to be one of the most BORING movies we have ever had the unfortunate opportunity to sit and squirm through.  Yes we know people that liked this horrific waste of time.  But we suggest you stay away.

Speaking of which, Mr. Mercedes is probably one of the BEST television series we have ever seen.  The series ended Oct 11 but look for the re-runs. 

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This is so sad, its funny. 

Home Depot Panics Over Millennials; Forced To Host Tutorials On Using Tape Measures, Hammering Nails

GO TO ARTICLE

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More on football:

Overall, the number of kids participating in team sports has fallen roughly 8% nationally since 2008. Football’s losses are pronounced. Participation in tackle football amongst boys ages six to 12 has fallen by nearly 20% since 2009. Teenagers have followed a similar path. For kids ages 13 to 17, participation dropped from 9% of the American population in 2011 to 7.1% in 2015.

The cultural rise of sports specialization — encouraging young standout athletes to dedicate to one sport — has contributed to participation declines across sports. Yet, head trauma concerns are no doubt already a key driver of football’s problems. In an HBO/Marist poll last year, 44% of parents said they were less-likely to allow their son to play football due to the link with long-term brain injury. Just a year earlier, that number was at 36%.

As Mark Cuban said of football in 2014, predicting the NFL’s implosion within 10 years:
“Just watch. Pigs get fat, hogs get slaughtered. And they’re getting hoggy. When you try to take it too far, people turn the other way. I’m just telling you, when you’ve got a good thing and you get greedy, it always, always, always, always, always turns on you. That’s rule №1 of business.”

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A BUY AND TWO SELLS.

October 11, 2017

Thursday.  BUY at $25.20

We already own RILYZ in the Core Portfolio.  This position is going ex-dividend on Oct. 12….tomorrow.

Most likely the price will decline after going ex-dividend and this would be a good time for new readers to buy for the first time, OR add to current positions…..$25.30 is a decent price to pay.  We would NOT pay much more.  Pays 7.32%.  

We were very happy to see this positive SeekingAlpha article on RILYZ yesterday:

RILYZ

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SOLD Chesapeake Corporate Bond.  This is a risky bond.  We now have a very nice Total Return …..price plus dividends…..and are taking profits.  The stock has absolutely cratered ($29.00 to $4.00) but the bond has been ok.  There is even talk about a turn-around at Chesapeake, but we are NOT sticking around to find out what happens.  SELL.  CUSIP 165167CF2 

SOLD.  Century Link Corporate Bond.  We purchased this in May and have received one dividend payment.  With the decline in the price, we are breaking even.  The stock is cratering and we no longer feel comfortable holding this.  CUSIP 156700AS5

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SELLING CORPORATES.

October 10, 2017

We are selling two Corporate Bonds.
-We want to raise our cash position.
-We have a significant increase in the value of the bonds PLUS with the dividends received we have a very good Total Return.  Taking profits.
-They have relatively low yields so time to find something better.
-HCP stock is declining and we don’t want to hang around.

40414LAM1 HCP.  5.5% price gain (plus dividends received)
29273RBD0 ETP.  7.1% price gain (plus dividends received).

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Stock ‘buy-backs’ and the ‘hope’ that the new tax plan is voted in, continues to drive the stock market to new heights.  As we mentioned before, IF the tax plan is NOT approved, we may see a decline in the stock market.

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GAINM: ADD/BUY.

October 9, 2017

We bought GAINM a year ago and it is still in the Core Portfolio.  The price has come down and you can ADD to your position, or for newer readers, you could BUY for the initial position.  The current price is actually LOWER than where we bought last October.

Go to the link for more infor:

ARTICLE

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The bond market is closed today.  Tomorrow we are selling some Corporate Bonds and will send out the info.

 

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After writing this blog for five years (hard to believe) we are fully invested.  We have mentioned many times that our cash position is much lower than we like, due to the fact that we cannot restrain ourselves from adding positions to the Core Portfolio.!!!!!! 

We now have 90 positions…….which IS WAY TOO MANY.

We simply do not have the money to continue buying at current levels.

BUT:  we will continue looking for new Core Portfolio positions.  When we find something, we will buy as a PLACE HOLDER.  The position will be noted as a place holder in the Core Portfolio.

This means we will buy very tiny positions in the range of 25 shares.  This ensures that we will watch the position and keep you up to date on the status.  Of course, YOU CAN buy as many shares as you want.

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We are off and running with the next “political” book.  We saw Devil’s Bargain mentioned in some on-line article.  As readers of Breitbart.com, and with the fact that Steve Bannon worked for Trump, we decided to see what this book had to say.

Surprisingly Bannon has a colorful history which is much more interesting than we had expected.  So, if you are not bored silly with Trump and political BS, take a gander at this book.  (According to the cover below, it is a bestseller.)

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SELL GBAB GUGGENHEIM TAXABLE MUNI’S

October 5, 2017

We are selling GBAB which is a position in the Core Portfolio.  The technicals are negative and with the threat of rising rates, once again, it is time to exit…..but we may buy again in the future depending on action with rates.  (It is still our thinking that LONG TERM, rates will not go significantly higher.)  We have earned some very nice dividends with GBAB:  the price has been declining and is now just above our buy price.

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The market is now priced above prior manias including the 2007-2008 disaster.  The S&P is now selling at 20 times annual income.

The economy is doing only ok but stock buybacks continue to drive prices to stupid levels.  We think that Trump’s tax plan will NOT get passed and this failure may give us the stock market decline that everyone is expecting.

READ THE ARTICLE below which explains what is REALLY going on with the tax plan.

https://realinvestmentadvice.com/bull-trap-the-false-promise-of-tax-cuts/

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Ignoring commercials.  Advertisers LOSING 49% up to 79% of TV watchers during commercials….they are probably looking at the cell like we do lolol.    

TV commercials struggle to reach millennials: Per Adobe’s latest Media Habits Survey provided exclusively to Axios, between 34% and 49% of viewers constantly use another screen when commercials are on TV and 79% of millennials are distracted by other devices during commercial breaks either “most of the time” or “all of the time.”

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