Generally I refrain from back-to-back posts with similar topics but decided to make an exception this week as the moving parts have kicked into high gear. My post last week addressed my uneasiness with cryptocurrency as well as my interest in the underlying blockchain technology. It appears that my view has some support as two blockchain ETFs debuted on January 17th (BLOK and BLCN) and one January 25th (LEGR). This should be followed by KOIN next week. Horizons and Harvest (HBLK) also have ETF applications pending. Grenadier penned a piece on Seeking Alpha that did some analysis on the first two. Four of LEGR’s top five holdings are included in either one or both of the originals so it will probably be similar. David Snowball highlights this sentiment in his piece There’s no idea so dumb that it won’t attract a dozen ETFs stating, “…there are no publicly traded companies that specialize in blockchain; there are mostly companies with a dozen other lines of business that have some sort of efforts going into blockchain.” This is 100% correct.
October was basically a quiet month with OPEC failing – once again – to shore up their hold on the oil markets. Chevron announced a small increase in their dividend maintaining their status as a Champion. Several small positions were added at month end as the market began a pullback (continuing into November) enabling me to start redeploying funds received from PNY’s merger with DUK. This month The S&P dropped 1.94%. My portfolio was basically flat, ending down 0.1%. Note: I normalized these numbers to consider the impact of cash infusion from the merger. My ‘pure’ equity positions decreased by 4.15%. The need for this normalization should end as my excess cash is used. This increases my lead for the year to 11.5% with two months to go.
Headlines impacting my portfolio:
- 10/3 – JNS to merge w/ Henderson
- 10/11 – SRCE gains FRB approval for Sarasota, FL branch
- 10/19 – C finalist to be designated as clearing firm for Renminbi trades
I’m a little behind again this month but the portfolio data has been compiled and will be posted in the next couple of days with the goals update later in the week. The Unabridged portfolio should be next week as per normal.
- Closed PNY due to merger
- Added to BMO
- Added to CVLY prior to ex-div for the stock dividend
- Added to JNS (weakness on currency exposure)
- New position – ABM
- New position – AMT (Jan)
- New position -BLL
- New position -CASY
- New position -CHCO
- New position -KOF (Mex. peso exposure)
- New position -COKE
- New position -CCE (UK exposure)
- New position -CSAL
- New position -CTBI (Jan)
- New position -CCI
- New position -HUM (Jan)
- New position -LAMR
- New position -NWFL
- New position -OCFC
- New position -ONB
- New position -OUT
- New position -PLD
- New position -QCOM
- New position -DGX (Jan)
- New position -SRC (Jan)
- New position – SGBK (Cuba exosure)
- New position – BATRA
- New position – VALU
- New position – VER (Jan)
- New position – YUMC (YUM spin-off)
- October delivered an increase of 28.9% over October 2015. This was due about evenly between dividend increases (Y/Y) and late 2015 funding.
- October was down 10.68% from the prior quarter due to special and semi-annual payments in July.
- Announced dividend increases currently average 12.59% with 67.11% of my portfolio having at least one raise so far this year.
- Through October, dividends received exceeded total 2015 dividends by 7.2%.
Roughly half of the PNY/DUK proceeds have been redeployed with an additional 3 orders pending for January payers. I’ve filled some of the hole I’ll face in January, so I plan on maintaining a small cash position through the election before making further decisions.
The XRX spin (Conduent) is on track to complete by year end. MetLife has filed for a spin of their Brighthouse Financial unit under the ticker BHF.
Proxies were received and voted for both the LSBG/BHB and AGU/POT mergers.
One year ago I embarked on a mission to determine whether Primerica stock (PRI) was a better investment then the sum of its’ parts – well at least most of the parts. SEC filings were scoured to identify their investments as insurance companies are required to maintain reserves (the float). A portfolio was established (3Q 2015) , funded (4Q 2015) and tracked (Oct 2015 to Sep 2016) to be able to declare a winner.
And the winner is … Primerica by 16.15%. Now I realize that a single snapshot in time may not be reflective of reality, but to my surprise Primerica outperformed the basket through this snapshot in time.
June was a roller coaster month starting with lackluster jobs numbers and ending with Brexit. In between was the Fed leaving rates unchanged yet again. The sleeper story being the CCAR results being released (partial results here). Notably, Citi received approval to increase their dividend by 220%. Although the DOW lost 871 points over two days, it recovered at month end while the S&P was flat for the month.
Once again while I’m waiting for my last two dividends to post to close out the quarter, an update to the Primerica challenge is due. Just to recap, a Primerica rep provided some advice to me a while back the gist being even if I bought no products, I might want to buy the stock since it has performed ‘pretty well’. So I did – but got to thinking – do the pieces that are sold via the reps perform better as a standalone investment rather than packaged under the Primerica banner? The results thus far have been mixed and as we head into the final quarter of this year long challenge, Primerica has taken the lead but the game remains a tossup.
While I’m waiting for my last two dividends to post so I can close out the quarter, I figured I’d update the results of the Primerica challenge. Just to recap, about a year ago a Primerica rep provided some advice to me, the gist being even if I bought no products, I might want to buy the stock since it has performed ‘pretty well’. So I did – but got to thinking – do the pieces that are sold via the reps perform better as a standalone investment rather than packaged with Primerica salesperson? The last quarter said no, to my surprise.
Yes, I know you want me to get to the end of year results and 2016 goals already. Those will be my next two posts. Promise.
Meanwhile, it’s time for a review of the first quarter of my Primerica analysis. Here’s my initial write up. On Christmas Eve, I used my remaining free cash to purchase this group of companies. I did make a few changes to the original selection: