UPDATE; We may have an opportunity to buy NEWT on sale. Watch for details.
March 25, 2019. We have a nice 15% gain in the Revlon Corporate Bond due to increased price and dividend payments. BUT, they “missed on revenue” recently, AND…
Revlon Inc. shares tumbled 6.9% on Tuesday, after the cosmetics company said it would be late filing its annual report for 2018 after identifying a material weakness in its financial reporting.
This sounds bad. We knew this was high risk and never intended to hold to maturity. Take your gains and get out of Dodge. (an old ‘expression’—for you younger readers) SELL Revlon Bond CUSIP: 761519BD8
We own NRZ in the Core Portfolio. You should consider buying or adding to the position. Here is an excerpt, and a link to the full article is below.
The stock’s book value is $16.25, yet shares trade barely above this level as I write. This means you and I can buy NRZ for the liquidation value of its investments and get the rest of the business for free.
And oh by the way, the stock pays $2 per share per year, which is good for 12.1% as I write. These generous dividends are covered by the current earnings power of the portfolio itself.
The stock recently dipped on a 40 million share issuance. This is a common practice for REITs, who have little in the way of retained earnings. Their favored tax status requires them to pay most of their profits to their shareholders as dividends. So, they must use their equity as a line of credit.
You want “Medicare for all”? Do you really believe the liberal crack-head Dem’s that tell you we can afford this? Here is what happened in Finland.