Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Open Thread: What Have You Been Buying/Selling/Pondering
Reply to @Ted: Both are interesting ideas. In terms of RAIL, an interesting play on rail leasing that has been around forever is GATX (GMT), which offers a decent dividend and is fairly reasonably valued. GATX cars seem as if they're one or more cars on every other freight train I've ever seen.
Reply to @scott: My biggest backup on KMI - Richard Kinder owns 240 million shares and hasn't sold one yet. Gotta wonder. He also has been grabbing the warrants with both hands when available. More wondering.
I don't know anything about Graincorp but based on your cheer leading I am compelled to take a look. Diaego as well although I had been considering that anyway.
I think there's a lot of window dressing and tax manipulating going on right now based on the year we've had so I'm walking that fine line hoping for a better bargain but not wanting to miss clear shots when they present themselves. Good luck to you.
Reply to @Mark: Thanks! Kinder continues to be a major holder and I just really look at a company with 82,000 miles of pipelines and 180 terminals in North America. I mean, you have a company with assets that are hard to compete with, highly costly/difficult to replace, strategic and necessary. I just see the regulations on pipelines being increased and that is going to lead to less pipelines being built (or at the very least a greater cost and greater difficulty in building them.) Kinder's recent performance is disappointing (although the MLP space has not done well in many cases), but I just think these assets remain assets I want to own long-term. The Kinder warrants are interesting to me and I've traded them once, but I given my long-term view on it, I just like owning the stocks and being able to reinvest dividends.
Graincorp is down quite a bit because of the ADM buyout being denied, but I'm pleased to get it lower than I had it pre-announcement last year before I sold. Personally, if Graincorp never gets bought, I'm fine with that and it's something I can see holding for years. Nice dividend and there's so few options in this little sector. "The bid would have secured for ADM a virtual monopoly on eastern Australia's grain collection-handling and export infrastructure, including seven of 10 grain ports, as it looked to take advantage of growing Asian demand." (http://www.theaustralian.com.au/business/companies/graincorp-future-unclear-as-bid-fails/story-fn91v9q3-1226771768219#)
Short-term, the interesting question becomes what does ADM do? ADM initially built up a 20% stake last year at higher levels (I believe once a foreign company reaches 20% ownership in an Australia company, they have to go through the review board to go further.) While the merger was denied, they did offer ADM the ability to go to 25% ownership of Graincorp. ADM owns a stake in Wilmar International in Singapore, so it's not out of the question that they just continue to hold Graincorp in a similar fashion. Graincorp is not without volatility (although the intent of diversifying the business in recent years was to move away from the reliance on whether the crop is good/bad.)
Glencore owns the assets of former large grain handler Viterra (which it bought last year), while Viterra had bought Australian grain handler ABB Grain in 2009. Graincorp is the only Australian grain handler left public. I own Glencore, which has been something of a disappointment, but I think the company has great assets and is a very dominant commodity trader. They also own or lease hundreds of thousands of acres of foreign farmland.
Graincorp definitely is volatile and has risk, but I mention it as an illustration of the kind of thing that I am looking for. The Andersons (ANDE) (which is a nice little Americana story of a company) is probably the closest US-equivalent, but has run up huge and can be highly volatile, with a small float.
Diageo is, at this point, not cheap or overly expensive. I suppose my view is that, whatever people's view of alcohol is, drinking will continue to be around for many decades to come. People drink when times are good, they drink when times are bad. Diageo to me is sort of the Coke or Pepsi of the industry. Reasonably good dividend. Diageo to me is something that I feel doesn't have to be closely monitored/babysat, and I'll just reinvest dividends. I also thought about Constellation Brands (STZ), Crimson Wine and Brown Foreman, all of which are probably fine options, as well. Brown Foreman had a good quarter today.
I sold Brazilian company Ambev (Bud Latin America) a couple of weeks ago, but I would buy it again if it fell into the lower $6's. Cielo (essentially Visa Brazil) is something I'd consider again if it dropped into the mid 20's again.
Ever since I learned the 2% redemption fee was abolished in October have been aggressively adding to HFRZX - #1 in its category YTD, one year, and three year. They are one of the few bank loan funds that has ventured into CLOs. Maybe playing with fire but over the past year its largest drawdown has only been around 1.1% so that is where my mental stop is. I must be in the minority in this thread as being a momentum player in tight rising channels I don't believe in catching falling knives.
Added a little cash sitting in a MMA to THOPX as it seems to be a fairly stable fund in this environment while throwing off a half decent yield. I did purchase a rather large stake in BAICX as I liked its reaction during the interest rate debacle over the summer.
bought little of boa bond cusip 06048wek2 ytm 5.5% still DCA in 80%/20% @ tsp/401k I think the market will have a major correction or 'crash' in 6-12 months ?! If Dows ever hit 9000 again I am 'all in' lol
Reply to @scott: Any way to avoid additional Canadian Brokerage charges when purchasing OTCMKTS:GRCLF.I ran test trades @ Fido/Schwab and both tack on add-ons.Experienced these previously and just moved on.You make a good case for the stock and it's @ a Black Friday price.Have bought two small Canadian OTC stocks previous w/o additional brokerage fees ???
Not much in main portfolio. In play portfolio of leveraged ETFs, part of UWM got stopped out in today's dip for 11% in <3 mo. All positions have moving stop limits. Holding on to QLD with avg 17.5% gains over last 2-3 mo. Bought small position in TBT today. Part of SCO got stopped out today at 6% loss. Too volatile. Pondering entry into SRS. Don't trade frequently unless triggered by stops. Last trade was in early Nov.
I have been watching BAICX, GSBFX & JNBAX as possible replacement(s) for PASAX should I decide to let it go at the first of the year. It has rebounded a good bit since mid summer and is up about 3.4% over the past 90 days. From what I can tell it seems be closely tracking emerging markets. In compairson, BAICX is up 4.2%, GSBFX is 5.0% & JNBAX is up 4.5% over the same time span. I may keep PASAX as a rebound position in emerging markets.
Reply to @TSP_Transfer: The issue with foreign stocks is that you are not charged extra for trading ADR shares (which usually end in Y), but some brokerages do charge for buying foreign ordinary shares (which end in F.) I don't believe Ameritrade charges for Canadian shares, but they charge for other foreign stocks. The bigger problem is that they were never able to tell me what the fee would be - it was just charged after the fact. It will also likely vary by country and some people have reported brokerages charging them really steep fees for buying these shares. Etrade does not charge for buying foreign ordinary shares.
Graincorp is an Australian company and I've heard a couple of reports (I think someone on here was going to buy APA Group - APAJF and they didn't because the fees were outrageous) that brokerages charge a lot for buying Aussie shares when the brokerage does charge extra.
Additionally, in terms of the above, ADR shares do charge a slight fee (by the bank doing the ADR program for that particular stock.)
I would be really careful buying foreign ordinary shares (such as GRCLF) if the brokerage does charge a fee and does not tell you what that will be up front.
Reply to @Old_Joe: Any reason you didn't consider RSIVX for the same management, a little more risk, and a little more yield? (And I'm still holding MAINX, but considering...)
Reply to @Maurice: Any reason you didn't consider RSIVX with the same management, a little more risk, and a little more yield? Curious mind wants to know...
Reply to @JoeNoEskimo: Curious about your EUO purchase. One of the ETFs I follow. It just changed from a hold to a sell in my TA. Has been trending down 1 mo+. Trying to catch a bottom in leveraged ETFs can be brutal.
Reply to @cman: No technical analysis here, I'm just playing a range - or at least, what I perceive as a range. As the exchange rate approaches 1.37 USD per Euro, I short the Euro and I feel (hope) the upper end of this exchange rate is 1.385.
Leveraged ETFs are only good for a short-term trade, as you seem to indicate, and that is my goal.
Side note: I like TBF as a medium-term trade. And its not leveraged.
Reply to @JoeNoEskimo: You may turn out to be right. Hope you always keep a stop limit order just in case. Imbalance in QE policy between Europe and US may throw all calculations out the window.
Added Vornado Preferred (VNO.PR.L) yielding 7.04%. I don't usually look at preferred stocks (not that there's anything wrong with them or anything), but I've been watching this one and it got to a level that was appealing.
Reply to @scott: I do look at them and own a handful. I'm curious as to why you chose this one out of all of the available preferreds out there. I get that it's selling below par and YOC looks enticing but there are better opportunities.
I hold mine strictly for the income. If you ever want to go further down this road, LordXOT in the M* Income & Dividend Investing forum is a goldmine.
Reply to @Mark: Thanks - I'll have to look into the M* forum. The Vornado preferred was an instance of familiarity with the company after owning the common for a time period. I'd looked at this particular preferred earlier in the year when it was down, forgot about it, then saw it had dropped nearly to $19 the other day. Not the best preferred opportunity, but just something I'd kept track of for a while.
Reply to @scott: Thanx. I kind of thought so but asked in case there was something special or something I overlooked about this particular issue. I can never get the 'trust, but verify' mantra out of my head.
I've been doing a serious portfolio makeover the last few months. Recently sold WEFIX and added to my RPHYX. For the rest I've been buying global, selling local:
Also recently bought two closed end global bond funds: BGH and VGI. The double digit discounts tempted me. BGH is now down to single digits, VGI has widened a bit. I hope that tax selling is about over for them.
Hope to settle down to buy-and-hold now. I think these are funds which are amenable for that.
Comments
I don't know anything about Graincorp but based on your cheer leading I am compelled to take a look. Diaego as well although I had been considering that anyway.
I think there's a lot of window dressing and tax manipulating going on right now based on the year we've had so I'm walking that fine line hoping for a better bargain but not wanting to miss clear shots when they present themselves. Good luck to you.
Graincorp is down quite a bit because of the ADM buyout being denied, but I'm pleased to get it lower than I had it pre-announcement last year before I sold. Personally, if Graincorp never gets bought, I'm fine with that and it's something I can see holding for years. Nice dividend and there's so few options in this little sector. "The bid would have secured for ADM a virtual monopoly on eastern Australia's grain collection-handling and export infrastructure, including seven of 10 grain ports, as it looked to take advantage of growing Asian demand." (http://www.theaustralian.com.au/business/companies/graincorp-future-unclear-as-bid-fails/story-fn91v9q3-1226771768219#)
Short-term, the interesting question becomes what does ADM do? ADM initially built up a 20% stake last year at higher levels (I believe once a foreign company reaches 20% ownership in an Australia company, they have to go through the review board to go further.) While the merger was denied, they did offer ADM the ability to go to 25% ownership of Graincorp. ADM owns a stake in Wilmar International in Singapore, so it's not out of the question that they just continue to hold Graincorp in a similar fashion. Graincorp is not without volatility (although the intent of diversifying the business in recent years was to move away from the reliance on whether the crop is good/bad.)
Glencore owns the assets of former large grain handler Viterra (which it bought last year), while Viterra had bought Australian grain handler ABB Grain in 2009. Graincorp is the only Australian grain handler left public. I own Glencore, which has been something of a disappointment, but I think the company has great assets and is a very dominant commodity trader. They also own or lease hundreds of thousands of acres of foreign farmland.
Graincorp definitely is volatile and has risk, but I mention it as an illustration of the kind of thing that I am looking for. The Andersons (ANDE) (which is a nice little Americana story of a company) is probably the closest US-equivalent, but has run up huge and can be highly volatile, with a small float.
Andersons 1 year chart
http://finance.yahoo.com/echarts?s=ANDE+Interactive#symbol=ande;range=1y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;
Kinda sorta wish I hadn't sold it. Oh well.
Graincorp "post-ADM denial" company presentation:
http://www.graincorp.com.au/_literature_152858/Investor_Presentation_-_December_2013
Diageo is, at this point, not cheap or overly expensive. I suppose my view is that, whatever people's view of alcohol is, drinking will continue to be around for many decades to come. People drink when times are good, they drink when times are bad. Diageo to me is sort of the Coke or Pepsi of the industry. Reasonably good dividend. Diageo to me is something that I feel doesn't have to be closely monitored/babysat, and I'll just reinvest dividends. I also thought about Constellation Brands (STZ), Crimson Wine and Brown Foreman, all of which are probably fine options, as well. Brown Foreman had a good quarter today.
I sold Brazilian company Ambev (Bud Latin America) a couple of weeks ago, but I would buy it again if it fell into the lower $6's. Cielo (essentially Visa Brazil) is something I'd consider again if it dropped into the mid 20's again.
Bought, on friends' suggestions, DVAX, ACHN, COG, REXX, also some FHLC and PKW, anticipating a bit of December meltup.
still DCA in 80%/20% @ tsp/401k
I think the market will have a major correction or 'crash' in 6-12 months ?!
If Dows ever hit 9000 again I am 'all in' lol
You noted: "I think the market will have a major correction or 'crash' in 6-12 months ?!"
Based upon what factors?
http://www.futurenewsnow.tv/psychicpredictions.html
I have been watching BAICX, GSBFX & JNBAX as possible replacement(s) for PASAX should I decide to let it go at the first of the year. It has rebounded a good bit since mid summer and is up about 3.4% over the past 90 days. From what I can tell it seems be closely tracking emerging markets. In compairson, BAICX is up 4.2%, GSBFX is 5.0% & JNBAX is up 4.5% over the same time span. I may keep PASAX as a rebound position in emerging markets.
Old_Skeet
Graincorp is an Australian company and I've heard a couple of reports (I think someone on here was going to buy APA Group - APAJF and they didn't because the fees were outrageous) that brokerages charge a lot for buying Aussie shares when the brokerage does charge extra.
Additionally, in terms of the above, ADR shares do charge a slight fee (by the bank doing the ADR program for that particular stock.)
I would be really careful buying foreign ordinary shares (such as GRCLF) if the brokerage does charge a fee and does not tell you what that will be up front.
Added to tiny position in VNQ, hope to build it up (only if REITS continue to fall).
Been wanting to add to TBF, but it keeps sliding higher.
Leveraged ETFs are only good for a short-term trade, as you seem to indicate, and that is my goal.
Side note: I like TBF as a medium-term trade. And its not leveraged.
Just throwing my darts like everybody else.
I hold mine strictly for the income. If you ever want to go further down this road, LordXOT in the M* Income & Dividend Investing forum is a goldmine.
Bought IVSIX, JPPIX, TWEBX, FPRAX, SGHIX, RPGAX, GPROX. Sold FPACX, PRWCX, VDIGX, GPIOX, BERWX.
Also recently bought two closed end global bond funds: BGH and VGI. The double digit discounts tempted me. BGH is now down to single digits, VGI has widened a bit. I hope that tax selling is about over for them.
Hope to settle down to buy-and-hold now. I think these are funds which are amenable for that.