August 29, 2016
After a long hot no action summer we have been making changes in the Core Portfolio.
Due to stupid Fed rulings the medical marijuana position tanked and we sold at a loss.
We sold two other positions (at small profits) because of declining momentum and some illegal activities of a position.
And we have been unable to add to current positions on ex-dividend dates because yield investors keep driving prices beyond what we feel are reasonable. We are still watching APU to BUY at a lower price. Overall the entire Core Portfolio is acting very well and delivering nice dividends.
But we continue on the look-out for potential winners. We are making another attempt on a new baby-bond issue. (exchange traded debt)
We are buying the bond MDLX paying 6.87% and maturing in 2026. The first call date is 2019.
Here is some information from the website:
“Medley is a credit-focused asset management firm offering yield solutions to retail and institutional investors. Medley’s national direct origination franchise, with over 80 people, is a premier provider of capital to the middle market in the U.S. Medley has over $5 billion of assets under management in two business development companies, Medley Capital Corporation (NYSE: MCC) and Sierra Income Corporation, as well as private investment vehicles. Over the past 14 years, we have provided in excess of $6 billion of capital to over 300 companies across 35 industries in North America.”
Here is a very detailed article if you want more information:
Do you believe the polls???
The second unsettling trend is the rapidly declining response rate. When I first started doing telephone surveys in New Jersey in the late 1970s, we considered an 80 percent response rate acceptable, and even then we worried if the 20 percent we missed were different in attitudes and behaviors than the 80 percent we got. Enter answering machines and other technologies. By 1997, Pew’s response rate was 36 percent, and the decline has accelerated. By 2014 the response rate had fallen to 8 percent. As Nate Silver of fivethirtyeight.com recently observed, “The problem is simple but daunting. The foundation of opinion research has historically been the ability to draw a random sample of the population. That’s become much harder to do.”