I added three new companies to the Dividend Value Plus model in Oct 2010. All companies have excellent balance sheets and are currently out of favor with investors and analysts.
Interactive Advisors
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Via Bloomberg, Valero Energy Corp., the largest U.S. oil refiner, beat analysts’ estimates and reported its second consecutive quarterly profit after rising prices for gasoline and other fuels outstripped the cost of crude.
GameStop is the largest video game retailer in the world and sells new and used video game software, hardware and accessories for video game systems from Sony, Nintendo, and Microsoft. In addition, the company sells PC entertainment software, and related accessories.
Although the model was just recently launched (inception date of August 25, 2010), the Craigmillar Global Clean Energy-Clean Tech strategy has five years of live performance and is benchmarked to the WilderHill Clean Energy Index (ECO-P). The ECO-P index also has an ETF attached with the symbol PBW and has been trading in the open market since the 3rd Quarter 2004. Both portfolios focus on the long-term trends of renewable energy, power delivery, energy storage, energy conservation and clean fuels all of which lead to energy decarbonization.
Earnings growth for our portfolio companies remains overshadowed by volatility and the manic-depressive behavior of the markets. Our portfolio holds considerable appreciation potential based on prospects of our businesses and the substantial relative value versus bonds.
You must continue to focus on the comparative value of stocks vs. bonds. You can barely get any interest rate on your cash, with no chance of growth and a good chance of seeing it shrink from inflation. If you buy a stock that gives you that yield or higher, you have a good chance of seeing an increasing dividend and increasing your principal.
Major Indices including the S&P 500 and the DOW gained significantly in the month of September. However, my trading account showed a small gain of .2%.
Despite its historical reputation of being one of the worst months of the year for the Stock Market, September 2010, turned out to defy the odds.
Despite its historical reputation of being one of the worst months of the year for the Stock Market, September 2010, turned out to defy the odds.
September was an excellent month for equity, particularly in emerging markets. Brazilian large-caps did exceedingly well.
Author: Michael Arold Disclaimer: Michael Arold owns AVB in his Covestor Technical Swing model. September 16, 2010: Avalonbay Coummunities (NYSE: AVB) is a residential REIT, focused on rental apartment communities. I believe that AVB is currently in a sweet spot of the market: – More and more individuals are choosing […]
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