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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (35453)	9/29/2009 7:40:21 PM
From: E_K_S	Read Replies (2) of 78702

Today's Portfolio Adjustments: 1) Picked up a full position of FRpK to add to my FRpJ based on today's announcement by the company to Offer 12.5 Million Shares of Common Stock. The current yield is now just over 12% down from as high as 18%! Still a pretty good return compared to the other REIT preferred shares. I expect this series of preferrds to move even higher such that the yield is similar to the other REIT preferrds or about 9%. These preferrds should then sell around $20/share reflecting a 33% increase from today's close at $15/share. I sold 10% of my GNMA bond fund (yielding 4.42%) currently at or near it's all time high to finance this trade. 2) Peeled off a few shares of HPQ to finance buys in MSFT and INTC. HPQ is selling at a PE of 15.97 and only yielding 0.7%. The forward PE for MSFT is 13.48 and yielding 2.00% and INTC carries a forward PE 15.97 and yielding 2.90%. I believe HPQ is fairly valued while MSFT and INTC are a bit undervalued and have more global reach than HPQ. finance.yahoo.com I have owned HPQ for many years but according to this five year chart, it might be a good time to sell a bit of the HPQ and move that money into both MSFT & INTC. finance.yahoo.com 3) Peeled off a few GOLD shares AngloGold Ashanti Ltd. (AU) that I bought in 8/2008 for $25 and booked $40. A 60% gain in 13 months. 4% of the taxable portfolio remains in Gold and Platinum stocks, 18% of the portfolio is in mineral and other base metal resources (excluding oil & NG) and about 35% is in integrated Oil companies, Ng, midstream collection, pipelines & distribution companies and 11% in different domestic & International utilities. ========================================================= My theme is to lock in higher yield using the preferrds, utilities and good equity dividend payers. I continue to focus on these sectors: (1) NG and midstream distributors, (2) technology and (3) utilities. With today's buys, the overall portfolio dividend (& bond) annual return now yields 5%-6% up about 100 - 150 basis points from the previous quarter holdings. One half of the income is qualified dividend income. I continue to hold 20% cash,bonds & REIT preferrds. EKS

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