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Interesting Read
Inside a Moneymaking Machine Like No Other
The Fuzzy, Insane Math That's Creating So Many Billion-Dollar Tech Companies
Berkshire Hathaway Shareholder Letters
Forex Investors May Face $1 Billion Loss as Trade Site Vanishes
Why the oil price is falling
How a $600 Million Hedge Fund Disappeared
Hedge Fund Manager Who Remembers 1998 Rout Says Prepare for Pain
Swiss National Bank Starts Negative
Tice: Crash is Coming...Although
More on Edson Gould (PDF)
Schiller's CAPE ratio is wrong
Double-Digit Inflation in the 1970s (PDF)
401k Crisis
Quick Link Archive
Category Archives: Transaction Alert
Transaction Alert: Sold MKL at the Market
Today we sold the principal portion in shares of Markel (MKL).
- On May 7, 2012, we posted a transaction alert indicating that we bought Markel (MKL) at the market (found here). The gain has been +10.29% in six months. The annualized rate of return is nearly 22.83%.
We continue to hold shares of the company (profit portion) allowing us to slowly build a well diversified portfolio and continue to see capital appreciation.
Transaction Alert: Bought Leucadia National Corp. (LUK)
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We have taken a 10% position in Leucadia National Corp (LUK).
Today it was announced that Leucadia (LUK) was going to acquire the remaining shares of Jefferies (JEF) that it didn’t already own (found here). LUK has fallen nearly -4.5% on the news of the deal. Leucadia (LUK) is considered a “mini-Berkshire” due to management success at allocating capital to highly profitable ventures.
Transaction Alert: Sold CRR at the Market
Today we sold the principal portion in shares of Carbo Ceramics (CRR).
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On August 6, 2012, we posted a transaction alert indicating that we bought Carbo Ceramics (CRR) at the market (found here). The gain has been +17%. The annualized rate of return is nearly 92%.
We continue to hold shares of the company (profit portion) allowing us to slowly build a well diversified portfolio and continue to see capital appreciation and compounding of the income.
Transaction Alert: Bought CRR and EXPD at the Market
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We have taken a 5% position in Carbo Ceramics (CRR) at the average price of $65.02.
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We have taken a 5% position in Expeditors International (EXPD) at the average price of $36.28.
Carbo Ceramics (CRR) has been mentioned by us on several occasions. CRR first appeared on our February 10, 2012 U.S. Dividend Watch List (found here) and was trading at $85.94. An Altimeter was run on CRR which indicated that the stock would be undervalued at $62.40 (found here). However, as CRR has experienced a dividend increase of 12.5% since our May 28, 2012 Altimeter, the stock is now considered undervalued at $70. While we do expect approximately 20% downside risk from the current price, we are comfortable with adding to our position when such a decline takes place.
Expeditors International of Washington (EXPD) is a stock that we have a history with. We initially bought EXPD on September 9, 2011 in all of our accounts. When the stock achieved an +11% gain we sold the principal in our tax deferred accounts while our taxable partnership account held on to the shares. We are now buying an equal number of shares that were originally bought in the partnership account. Additionally, we are adding to our existing shares of EXPD (profit portion) in the tax deferred accounts.
Posted in Transaction Alert
Transaction Alert: Bought XEC at the Market
On July 17, 2012, we have bought Cimarex (XEC) at the market.
On June 8, 2012 (found here), we outlined our rational for buying XEC based on having good management and a consistent dividend policy. Based on the Altimeter, XEC is considered worth purchasing at $72 and below. At the current price of $56, XEC would have to increase +28% just to get back to the $72 level.
At the quarterly dividend rate of $0.12, we believe that XEC should be sold at a price of $123 or above. This will increase or decrease with the dividend policy. Based on the previous Altimeter buy indications, investors should expect to hold XEC for 2 to 3 years before the next sell signal.
*NOTE: In our earlier transaction alert for UNM (found here), we indicated that we would allocate 10% of our portfolio to the stock. Instead, we have reduced the allocation by half, to 5%, and bought XEC with the other 5%. This allows us to take advantage of two opportunities which we fully expect to add to as the price declines.
Posted in Altimeter, Cimarex, Edson Gould, Transaction Alert, UNM, Unum, XEC
Transaction Alert: Buying UNM at the market
On July 17, 2012, we will buy Unum Group (UNM) at the market.
On July 16, 2012, it was announced that Unum Group (UNM) is going to increase the quarterly dividend by +23.5%, from $0.10 to $0.13 (found here). The increased dividend is payable to shareholders who hold the stock on or before July 26th. This increase of the quarterly dividend has brought UNM below the Altimeter level that would indicate that the stock should be bought.
On June 18, 2012, we pointed out the reasons why we like the dividend policy of UNM (found here). Also, the Altimeter readings for UNM based on the new dividend indicates that, at the current price, the stock is relatively undervalued.
Those wishing to follow our strategy of buying UNM should understand that the stock is expected to decline from current levels. This explains why we're only putting 10% of our portfolio into the stock at the present time. Our goal is to accumulate more shares as the price declines.
At the quarterly dividend rate of $0.13, we believe that UNM should be sold at a price of $40.95 or above. This will increase or decrease with the dividend policy. Based on the previous Altimeter buy indications, investors should expect to hold UNM for 3 to 6 years before the next sell signal.
Transaction Alert
We were wrong about our speculation in NUGT. Therefore, we plan to sell NUGT if it declines to $8.79.
We bought NUGT based on the dual (short and long-term) indication from our Gold Stock Indicator as indicated in our April 4, 2012 article (found here).
Our preference for using Direxion Gold Miners Bull (NUGT) and Direxion Gold Miners Bear (DUST) ETFs are not for the risk averse. DUST and NUGT are speculative vehicles and not investments meant to be held on a long-term basis.
Transaction Alert: Bought MKL at the Market
Today we've added to our core portfolio holding of insurance companies with the purchase of Markel (MKL).
We have no plans to sell the stock and would add to our current holdings if the stock declines -20% or more. An article on the stock will follow in the next couple of weeks.