Big Day Tomorrow
April 15, 2008
– Comments (2) |
RELATED TICKERS: SILC
, CSE
Well, it's going to be a big day tomorrow. I cashed out on all but two of my winners last fall, for a variety of reasons. That left my losers, my precious metals, and my core holdings, of which I just recently got rid of my losers and cashed in on the recent rise in precious metal prices. Of course, when I say "my losers", I mean the serious losers that I've been holding too long, more out of an abhoration of selling than wanting to own the stock. I finally swallowed my pride, looked at the positions, and realized that I really didn't want to own the stocks at all. Anyway, after all of my transactions, the money has finally finished clearing into my brokerage account, and tomorrow I will be redeploying over 50% of my portfolio's value.
I finally sold my position in Footstar, (FTAR.OB) which was treated me very well. It definately puts the phrase "cigar butt" in perspective for me. I bought it, it did exactly what I thought it would do, then I sold it. I wish every stock would behave like that. I'm keeping my position in Silicom, (SILC) though, since it just can't seem to stop growing like a weed. Of course, I wish the share price would grow as fast as the company is, but it seems to be in a bit of a funk lately. Oh well, it's going to be my smallest position tomorrow.
I will be opening two small cap growth positions, two REIT positions, and I will be opening positions in the remaining stocks that will make up my core holdings. The two small caps will be China Natural Gas(CHNG.OB) and China Agritech(CAGC.OB). Of course, when I look at my portfolio choices overall, I realize that these two purchase will make all of my holding minus my REIT's and core holdings be composed entirely of international small caps. I'm not terribly worried about it though. I didn't go out looking specifically for international small caps, or OTC stocks, or even Chinese stocks, it just ended up being where I found the best deals.
The REIT positions will be CapitalSource(CSE) and H&R Properties(HRP), and the combined positions will be giving me an average of about 17% yeild. With dividend reinvestment, I think after this bear market, I will be pulling in a very good yeild from that money. I know everyone's got different opinions on REIT's right now, especially CSE, but I'm pretty convinced that it will be a sound investment, and in a few years, it will be a good source of revenue for me and my portfolio. As for the core holdings, I'm rounding out my collection of positions in large cap stocks that have a history of not only paying an uninterrupted dividend for 20 years, but also increasing it every year for 20 years.
I couldn't sleep, so I just thought I'd post some thoughts about my biggest one-time deployment of money in my life.
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