I purchsed more share in HRP today at $7.78 per share.
HRP Properties Trust (HRP) is an office building REIT with 18mn square feet of space. Funds From Operations has been stable for the past year, although occupancy has slipped slightly. FFO Per Share at 29 cents a share is still above the dividend at 21 cents as of September 30 2007. The Company added $48mn in new buildings in the 3rd Quarter of 2007 which should help cash flow slightly. Debt levels are reasonable.The stock's at $7.78, just off its 52 week low, and yields 10.9%. Some investors are worried that the Company will cut the dividend but I don't see it. Even if I'm wrong, the downside is limited. HRP has a roster of quality buildings and customers, investment grade debt levels and a long operating history.
Wednesday, December 26, 2007
Thursday, December 20, 2007
BPP & PFD
New purchases in the following
Black Rock Preferred Oppportunities Trust 12/12 at $17.17 Dividend now at 8.8%
Flaherty & Crumrine Preferred Income Fund 12/12 at $11.73 Dividend now at 8.9%
Black Rock Preferred Oppportunities Trust 12/12 at $17.17 Dividend now at 8.8%
Flaherty & Crumrine Preferred Income Fund 12/12 at $11.73 Dividend now at 8.9%
New Financials Purchases
New purchases were made for the following three finanacial stocks.
Citigroup (C) 12/20 at $29.76
Wells Fargo (WFC) 12/19 at $30.26
Washington Mutual (WM) 12/19 at $15.15
Looking for a short term trade on these, 3 to 6 months unless they get a good pop before.
Citigroup (C) 12/20 at $29.76
Wells Fargo (WFC) 12/19 at $30.26
Washington Mutual (WM) 12/19 at $15.15
Looking for a short term trade on these, 3 to 6 months unless they get a good pop before.
Thursday, December 6, 2007
BLACKROCK ENHANCED DIVIDEND ACHIEVERS
Today I purchased more shares of BlackRock Enhanced Dividend Achievers (BDJ) at $11.80 per share. The BlackRock Enhanced Dividend Achievers Trust, BDJ, is a closed-end equity fund. It currently yields a 10.48 percent dividend at today's price. It also trades at a 12 percent discount to it's underlying stock holdings. The high yields are enabled by writing call options.
A call option on a stock gives the buyer the right to buy 100 shares of a stock at a pre-determined price (strike price), for a pre-determined period of time (expiration date). The fund only writes covered calls, which means they own the stock and are selling the option to someone else to buy the stock for a premium. In a covered call strategy, the risk of loss on the option is zero. If the stock increases above the strike price of the call, the investor simply delivers the shares of the stock to the call buyer. The investor gives up some upside on the stock position in return for risk-free option income. The nice part of this strategy is if the stock goes down or stays the same within the expiration date the seller of the call keeps the premium and can write another call, thus the extra income.
BDJ's top ten holdings are Chevron, AT&T, GE, Bank of America, and Pfizer.
A call option on a stock gives the buyer the right to buy 100 shares of a stock at a pre-determined price (strike price), for a pre-determined period of time (expiration date). The fund only writes covered calls, which means they own the stock and are selling the option to someone else to buy the stock for a premium. In a covered call strategy, the risk of loss on the option is zero. If the stock increases above the strike price of the call, the investor simply delivers the shares of the stock to the call buyer. The investor gives up some upside on the stock position in return for risk-free option income. The nice part of this strategy is if the stock goes down or stays the same within the expiration date the seller of the call keeps the premium and can write another call, thus the extra income.
BDJ's top ten holdings are Chevron, AT&T, GE, Bank of America, and Pfizer.
Sunday, December 2, 2007
NOVEMBER TRADES
Trades made in November
Sold American Century Global Gold (BGEIX) at $23.32 for a 23 percent profit held 8 months
Sold IXC at $142.27 for a 2.3 percent profit held 4 months
Sold IOO at $81.16 for a 3.2 percent loss held 4 months
Sold IYW at $61.49 for a break even no loss or profit
Sold Walmart (WMT) for a 1.2 percent loss held 2 weeks
Bought Citigroup at $31.87 sold for $34.42 for a 7.2 percent profit held 1 week
Bought Citigroup at $31.55 sold at $33.29 for a 4.8 percent profit held 10 days
Bought Citigroup at $31.38 sold at $33.26 for a 5.3 percent profit held 9 days
Sold American Century Global Gold (BGEIX) at $23.32 for a 23 percent profit held 8 months
Sold IXC at $142.27 for a 2.3 percent profit held 4 months
Sold IOO at $81.16 for a 3.2 percent loss held 4 months
Sold IYW at $61.49 for a break even no loss or profit
Sold Walmart (WMT) for a 1.2 percent loss held 2 weeks
Bought Citigroup at $31.87 sold for $34.42 for a 7.2 percent profit held 1 week
Bought Citigroup at $31.55 sold at $33.29 for a 4.8 percent profit held 10 days
Bought Citigroup at $31.38 sold at $33.26 for a 5.3 percent profit held 9 days
Tuesday, October 23, 2007
WALMART (WMT) & CITIGROUP (C)
I purchased shares in Walmart today at $43.81 per share. The company reported they will cut back on spending to build new stores and tighten cost controls as sales growth slows over the next three years. Many analysts welcomed the move to focus on keeping more of the cash Wal-Mart generates rather than spending furiously on new stores.
Increased free cash flow, or the money left over after a company pays its expenses including capital expenditures, could make Wal-Mart shares more attractive by funding higher dividends, new technologies or acquisitions."Strong free cash flow is the key to corporate flexibility and potential growth. Wal-Mart, which is finding fewer places to build new stores and faces tougher competition from other retailers, said sales will continue to slow after years of strong double-digit growth.
I also purchased more shares in Citigroup on Oct. 19 at $42.39 per share. It has been hammered hard for their sub prime loans but they still have more credit cards issued than any other company and I think now is a great time to buy a premier company like Citigroup at the lowest price in almost 5 years. They pay a 5.1 percent dividend which I think is safe, so I'll sit on them and collect the dividend and wait for them to get their act together. If they would fire their CEO, Chuck Prince you will see the price rise a few points in one day.
Buy when no one else wants to and the pessimism is running high. All week the press has been hammering Citigroup and today Walmart. I remember when no one else wanted Coca Cola (KO) and I bought in the low 40's, it's now trading at $59.75 and guess who recommended it last Friday as a buy on their show, Jim Cramer of Mad Money. Be patient, collect those fat dividends, reinvest them, and wait for better days. These are premier companies who will be around long after we are gone.
Increased free cash flow, or the money left over after a company pays its expenses including capital expenditures, could make Wal-Mart shares more attractive by funding higher dividends, new technologies or acquisitions."Strong free cash flow is the key to corporate flexibility and potential growth. Wal-Mart, which is finding fewer places to build new stores and faces tougher competition from other retailers, said sales will continue to slow after years of strong double-digit growth.
I also purchased more shares in Citigroup on Oct. 19 at $42.39 per share. It has been hammered hard for their sub prime loans but they still have more credit cards issued than any other company and I think now is a great time to buy a premier company like Citigroup at the lowest price in almost 5 years. They pay a 5.1 percent dividend which I think is safe, so I'll sit on them and collect the dividend and wait for them to get their act together. If they would fire their CEO, Chuck Prince you will see the price rise a few points in one day.
Buy when no one else wants to and the pessimism is running high. All week the press has been hammering Citigroup and today Walmart. I remember when no one else wanted Coca Cola (KO) and I bought in the low 40's, it's now trading at $59.75 and guess who recommended it last Friday as a buy on their show, Jim Cramer of Mad Money. Be patient, collect those fat dividends, reinvest them, and wait for better days. These are premier companies who will be around long after we are gone.
Monday, October 8, 2007
BARRICK MINING CORP. (ABX)
I purchased shares in Barrick Gold Corp. today at $40.53 per share. The target price is $48.00 which I hope will hit within the next year. Gold is in an upward trend and last week I sold Newmont Mining (NEM) and am now replacing with Barrick which I think is a better gold producer.
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