Leave a comment

SELL CVY AND HALF OF GGN

May 23, 2019. We bought CVY way back in the early days of this blog-January 2014.

It has been mediocre at best, diving in 2016, pulling back in 2018, diving again and now coming back to $21.81 and giving us a stinky 3.7%. We had hoped to reach the price we originally paid (to break even) but that will not happen. This is dead money.

We are selling with a positive small Total Return. The price is actually lower than we paid, but with the dividends, we get a profit.

It is doubtful many followers even own this thing, but it is time to SELL CVY.

__________

SELL HALF our position in GGN Gamco Global Gold, another long time holding.

We held GGN collecting the dividends (over 13% today), all the while expecting gold to drive higher. The opposite has happened. Also GGN has reduced it dividend payment amounts several times over the years, and it looks like another reduction is coming this year. It is time to take this dead money and get it into something paying us decent dividends.

__________

As a reminder, a single position in the Core Portfolio should run around 2% of total. A single position should NEVER exceed 4% of the total portfolio. This greatly reduces your loss risk if positions go bad.

LADR has pulled back and is a good position to add new money.

Advertisements
Leave a comment

LOOK AT NRUC. PERVS AT ARIBNB

May 22, 2019. Every so often we run across a very nice, conservative, SAFE investment grade baby bond. NRUC is a new bond issued by the $25 Billion National Rural Utilities Cooperative Finance Corporation. It is paying a respectable 5.5% which is good for a highly rated issue. Here is a link to their website:

https://www.nrucfc.coop/content/nrucfc/en.html

DULLES, Va. —The National Rural Utilities Cooperative Finance Corporation (“CFC”) announced today that it settled the offering of $250 million aggregate principal amount of its 5.500% Subordinated Notes due 2064 (the “Notes”). The Notes will be issued in denominations of $25.00 and multiples in excess thereof with a coupon of 5.500% per annum.

Interest on the Notes is payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, beginning on August 15, 2019.  The Notes will mature on May 15, 2064.  CFC has applied to list the Notes on the New York Stock Exchange under the symbol “NRUC.”

J.P. Morgan and RBC Capital Markets acted as joint book-running managers for the offering. Mizuho Securities, MUFG, Scotiabank, PNC Capital Markets LLC, KeyBanc Capital Markets, SunTrust Robinson Humphrey, US Bancorp and Regions Securities LLC acted as co-managers.

__________

Airbnb guests reporting hidden cameras. Scary. How much you wanna bet this is going on in road-side motels too.

IPX surveyed 2,023 Americans about their views and opinions on Airbnb, and discovered that a staggering 11% of them reported having discovered undisclosed hidden cameras in their rentals.

Airbnb

NOW IN OUR 7TH YEAR

NOTE TO NEW READERS:  Before you buy anything we discuss here, GO to the Core Portfolio tab to see a CURRENT listing of holdings. This blog is designed for investors seeking income.

Keep scrolling down for more. And don’t forget to hit the like button. Go Here For “About and Links”

  

Leave a comment

TRAVEL TO TANNL

May 21, 2019. We are familiar with Travel Centers of American since we owned it many years ago. They run those huge truck stops that you see on the Interstates.

Their baby bond looks attractive at almost 8% return and we bought a small position of TANNL yesterday. The price is $25.21 and you should not pay a lot more than this.

TravelCenters of America LLC, 8.00% Senior Notes due 12/15/2029
Ticker Symbol: TANNL     CUSIP: 894174309     Exchange: NGS Security Type:   Exchange-Traded Debt Security

QUANTUMONLINE.COM SECURITY DESCRIPTION:  TravelCenters of America LLC, 8.00% Senior Notes due 2029, issued in $25 denominations, redeemable at the issuer’s option on or after 12/15/2017 at $25 per note plus accrued and unpaid interest, and maturing 12/15/2029. Interest distributions of 8.00% per annum ($2.00 per annum or $0.500 per quarter) will be paid quarterly on 2/28, 5/31, 8/31 & 11/30 to holders of record on the record date that will be 2/14, 5/15, 8/15 & 11/15 respectively (

We got hit hard on DLNGPRB Dynagas LNG Partners-due to legal problems with the parent Company. There is a paper loss of 24%. Nothing that can be done right now. We will hold and anticipate some recovery on these preferreds.

__________

We can remember as kids getting our FIRST telephone in the house many many decades back!!!! That was so exciting.

Now landline phones are being dropped like hot potatoes. Who in the hell needs a landline when everyone has cell phones/text/email. Wow how things change.

Infographic: Landline Phones Are a Dying Breed | Statista

__________

Trump pulls plug on Federal money for California train boondoggle.

Trump Cancels $929 Million For California’s High-Speed Rail Quagmire

Last October, Oracle co-founder Larry Ellison panned the $77 billion project. 

“Trains leave when you don’t want to leave, from a place you don’t want to leave from, and take you to a place you don’t want to go to, at a time you don’t want to get there, and then you have to get into a car and go wherever you’re going. It is a crazy system.” 

https://www.zerohedge.com/news/2019-05-17/trump-officially-yanks-929-million-californias-high-speed-rail-quagmire

Leave a comment

LAYING LOW

May 16, 2019. Iron Mountain IRM tanked a few weeks back, and we suggested you buy. It has in fact been moving up slowly. It is still not too late to get in. Pays 7.6%.

We are laying low right now. There are several high paying dividend payers we would like to buy. But it is prudent to wait and see. Maybe, just maybe, we will get a market correction (if a China deal falls apart) and we could buy at bargain prices.

Trump is doing everything he can to push markets higher. Everyday the White House makes a positive statement….about something. Yesterday it was car tariffs. Today it is Donald meeting with the Chinese President next month. So maybe we can still get a deal with China!!! Don’t count on it. But the lemmings on Wall Street are driving prices higher. Yes we are playing along, but be aware this whole thing could collapse quickly.

__________

The Borgias. Netflix. Here is another recommendation for a compelling series on Netflix. Think of Game of Thrones set in the Vatican around the 1400’s. Murders, sex, wars, intrigue: everything you would want from the corrupt Catholic church. it just never ends. Three seasons. Starring Jeremy Irons who is perfect for the Pope role.

NOW IN OUR 7TH YEAR

NOTE TO NEW READERS:  Before you buy anything we discuss here, GO to the Core Portfolio tab to see a CURRENT listing of holdings. This blog is designed for investors seeking income.

Keep scrolling down for more. And don’t forget to hit the like button. Go Here For “About and Links”

Leave a comment

VOLATILITY CONTINUES

Wednesday May 15, 2019. The DOW is down 150 points early Wednesday but the Core Portfolio is very slightly in the green. We continue to expect further declines. (Also, we did see numerous dividend payments come in today.) See the following chart:

The confidence level of “dumb money” retail investors is at record high April 19: typically we see market declines within weeks.

Mark Cuban says Trump has it in the bag. We shall see.

Dallas Mavericks Owner Mark Cuban said this week that no current candidate seeking the Democrat nomination could beat President Trump in 2020. He also hinted that he might run for president as an independent

GO HERE FOR FULL ARTICLE.

Leave a comment

MONDAY MORNING BLUES

Update: Core Portfolio down ‘only’ half a percent vs. 2.00% for SPY.

May 13, 2019. China in the news. Markets are plummeting. With this level of turmoil, there is obviously no reason to think about making any changes in the Core Portfolio. Remember that China has NO real incentive to make a deal with the U.S. and Trump does not seem to realize this. Same with N Korea: no real intention of ever making a deal.

So there is no quick resolution to this mess, and we expect long term volatility in the financial markets. If Trump actually manages to pull a rabbit out of the hat, we could see buying opportunities.

If you want a long and detailed explanation of the China tariff situation, GO HERE.

__________

Why do we avoid Facebook? Who needs to read an hour by hour account of a so-called ‘friends’ colonoscopy. YUCK. FB has to be the biggest time-waster of all time. Get off social media and do something constructive to improve yourself.

NOW IN OUR 7TH YEAR

NOTE TO NEW READERS:  Before you buy anything we discuss here, GO to the Core Portfolio tab to see a CURRENT listing of holdings. This blog is designed for investors seeking income.

Keep scrolling down for more. And don’t forget to hit the like button. Go Here For “About and Links”

Image result for doris day
Doris Day one of the biggest stars of all time dies at 97. RIP

__________

There is a lot of chatter out there about inversion of the yield curve which apparently ‘predicts’ recessions.

BUT, in the article below, we learn something that we did not know. According to the economist who discovered this relationship, the inversion has to last at least a quarter. Once again, you have to research the crap you hear in the media, and NOT beleiver everything you hear from the financial talking.

Economist Campbell Harvey is credited with discovering the predictive power of yield curve inversions in his 1986 PhD dissertation. He found that an inverted yield curve was bad news for the economy, foreshadowing a recession.

He looked at two parts of the yield curve, the five-year note minus the three-month bill, and the 10-year bond minus the three-month bill. The crucial thing is to use a very short-term interest rate.

So when the 10-year bond minus the two-year note inverts this is of no importance.

Campbell Harvey stressed in a recent interview that the for the inversion to be meaningful, it needs to last for at least a quarter. If it’s a day, so what? GDP is measured quarterly, so we need to measure this quarterly also.

So while a portion of the yield curve briefly inverted recently, it quickly steepened again and didn’t even stay inverted for more than a day. So we can only conclude again that a recession is not around the corner – at least not based on the predictiveness of the yield curve.

Leave a comment

ADD TO LADR

May 9, 2019. URGENT: LADR took a dump after earnings.

There is nothing wrong long term with LADR. We added this morning and suggest you do the same. Try to get at $16.15

%d bloggers like this: