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awallejr (80.13)

Anyone buying?

Recs

10

August 05, 2011 – Comments (15) | RELATED TICKERS: XRX , PSEC , SDRL

I did.  I added several stocks to my portfolio.

1) XRX.  The company says they are going to use 75% free cash flow to buy back stocks over the next few years.  At current prices they could quite possibly cut outstanding shares in half.  Also ACS purchase really is adding to the bottom line.  Plus it pays enough of a dividend to at least make it comparable to bank rates.

2) PSEC.  Pays a monthly dividend of 10 cents a share.  Great yield, no indication that it isn't sustainable.

3) BBEP.  Same thing as PSEC, pays a nice distribution and is in the oil/gas business.

4) SDRL.  I love this company.  There is no glut of quality rigs.  It pays a great and growing distribution.  It has one of the youngest rig fleets out there and it keeps growing.

I am hiding in yield during this correction.  I don't know if recession is nearby, but a lot of the old bears are coming out, which makes me feel better.  I did say oil would be in the $90 even $80 range by August, months ago. And it is which I don't mind since that is a price that still generates nice profits for the energy industry and doesn't wreak havoc on the underlying economy.  Some think it might collapse altogether but I don't buy it.  The fact that we have to drill deeper and deeper on the continental shelf is telling, the stuff is harder to find.

15 Comments – Post Your Own

#1) On August 05, 2011 at 4:03 AM, TMFUltraLong (99.96) wrote:

Yes.... I'm buying. Almost feel like a kid in the candy store...

TMFUltraLong

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#2) On August 05, 2011 at 4:24 AM, TMFUltraLong (99.96) wrote:

On a side note.... anyone know what the easiest way would be to get a marriage proposal to CNBC's Carolin Schober? =)

Love that 4:30am ET update from Carolin.....

TMFUltraLong

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#3) On August 05, 2011 at 5:08 AM, mm5525 (< 20) wrote:

^ She is very inspirational to say the very least.  

I doubled my position in El Paso Corporation (EP) on Thursday. They reported good earnings, and still got roasted thanks to the sentiments of Mr. Market overall. Gotta buy depressed stocks from depressed people.

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#4) On August 05, 2011 at 5:20 AM, jwebbzor (< 20) wrote:

Yea. I loaded up on BRD (junior gold miner in Canada). Still positioned about 30% in cash right now though, we definitely could drop more.

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#5) On August 05, 2011 at 7:20 AM, Valyooo (99.81) wrote:

I am just buying stuff for a short term pop...mostly SPY calls

 

Ultralong...I thought you kept saying the market was overdue for a correction, for months...now we are back to where we were in december and you are on a buying spree?

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#6) On August 05, 2011 at 7:22 AM, Frankydontfailme (27.34) wrote:

Buying, but slowly and patiently. BRD, SNDXF

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#7) On August 05, 2011 at 9:44 AM, rofgile (99.10) wrote:

Awallajr, 

 MTW is once again my biggest holding RL - definitely buying at these prices!

 -Rof 

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#8) On August 05, 2011 at 10:00 AM, rofgile (99.10) wrote:

Hi awallejr,

 I made a list of some of the best sales that I currently see in my blog.  I'm getting more capital ready to put in at this point.  

 I would call what is happening now a "panic".  Yes, there have been some bad numbers lately (GDP revision, manufacturing index), but the selling now is amazingly quick.  I think people got shaken up recently with the debt ceiling.

 I'm really kicking myself that I went back in right away on Monday with my 50% cash.  If I could've waited just a week!!  Alas. 

 -Rof 

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#9) On August 06, 2011 at 4:04 AM, awallejr (80.13) wrote:

I dunno I am seeing such great buys right now.  Maybe we are getting a second bite at the apple.  Quality stocks, with low PEs and decent yields just begging to be bought.  I am averaging into them since my income stream has been increasing with this correction.  And to me income stream is what counts long term.  The cowards can go for the under 3% yield.  But wait.  S&P said those bonds are downgraded.  OMG, this agency has spoken.  Even though this same agency suckered you into buying subprime crap.

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#10) On August 08, 2011 at 5:26 AM, KommanderKhaos (70.57) wrote:

Buying, but cautiously and slowly. Keeping a healthy reserve of cash as I am not fully willing to commit and not even close to being ready to go all in as things stand right now. Too much uncertainty out there right now. Like you Awa, I'm concentrating on high yielding and healthy dividend bearing stocks, as last week I purchased some SDRL, some SCCO, some UAN, and some HUN, which while not nearly so high a yielder as those other three, it's got a very strong, stable and well covered dividend, and I found Huntsman to be an irresistible buy in the $12+ range after it had been hammered and lost nearly 40% of its value based on absolutely nothing at all so far as anyone can see.

Regarding your other purchases, I've long considered BBEP, especially when Seth Klarman owned a veritable crap-ton of it, but I believe he divested himself of nearly all his BBEP holdings, so I just (as yet, who knows what the future might bring) have never gotten around to buying in on it. And PSEC I owned for several years and found it very difficult to make any money with that, so I sold out a couple months ago. I've not had much luck with BDC investments (much like mREITs), so I'm most likely going to stay away from those in the future.I think you have to be so 'on' with your timing when buying BDC's, much more so than with other dividend bearing stocks, at least that's been my experience. I know Checklist34 and many others made a killing in the BDCsector by buying in at the lows back in 2008-09.

Anyhow, I'm pretty happy with my purchases of last week, while fully realizing they may still fall farther, and maybe significantly so (for example SDRL, if we were to double-dip and oil fall below $70 bbl again). That's the uncertainty of which I speak, and I have no idea what the heck's going to happen, so I don't worry about it too much either way. Just keep some cash on hand and see what unfolds.

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#11) On August 08, 2011 at 5:58 PM, awallejr (80.13) wrote:

Well that is what I did after the '08/'09 crash, slowly built up a "yield" portfolio and putting the income back in.  Not using DRIPs because I want to allocate different purcahses with the cash.  I nibbled some more today, and will continue to do so every month with the income generated.

 

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#12) On August 11, 2011 at 4:57 PM, TurnKeyOilStocks (31.30) wrote:

Big fan of SDRL. You are on point.

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#13) On August 11, 2011 at 5:22 PM, promommyfool (< 20) wrote:

I bought in, maybe too early but I picked up GE and CIM. 

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#14) On August 11, 2011 at 9:45 PM, HarryCarysGhost (99.77) wrote:

Yeah, I've been deploying my tax return from last yr slowly, picked up small amounts of BRD, my limit order on MCZ kicked in.

But the part I'm really excited about is adding to my KO drip, I think that ultimately that will be where my real wealth is grown from.

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#15) On August 15, 2011 at 5:32 AM, bennysupreme (< 20) wrote:

I added some to SDRL, BP and RIG this past week.  I'm already thinking about adding more this week.  I think these companies will be around for a long time and thats what I want. I just can't wait till they hit the 90 to 100 mark.

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