Below are the trades I did from 4/7/2013 through 5/9/2013.
The major portfolio change was with my MLP basket. Rather than doing periodic sells, I plan to buy larger positions from the start identifying those MLP's that I consider (1) undervalued based on capacity utilization either running at less than 80% capacity and/or have significant expansion projects under development that expand current capacity, (2) has Midstream operations located in the geographic footprint w/ greatest future growth, (3) is selling at a discount based on the current distribution amount and (4) meets my 2yr-4yr holding period comprised of 3%-4% annual growth and 5%-7% annual distributions.
Future MLP sales will be an all or none proposition that closes out the holding. This makes my annual K1 reporting simpler (no adjustments for lot based accounting). The value premise is that it takes time for the MLP to build it's future value w/ new projects, obtaining LT service contracts and/or merger/acquisition integration efficiencies. By holding at least 2 years or more, I should be able to catch most of the discounted "future" growth not priced currently into the company stock price.
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Buys
Armanino Foods of Distinction Inc. (OTC Markets: AMNF) added 25% to current position @ $1.64/share
Aurcana Corporation (OTC Markets: AUNFF) - added 20% to current position @ $0.57/share
Organovo Holdings, Inc. (NYSE MKT: ONVO) - 50% add to current lt spec hold.
Southcross Energy Partners, L.P. (NYSE: SXE) - A new MLP add w/ NG gathering facilities in Eagle Ford.
Crestwood Midstream Partners LP (NYSE: CMLP) - A new MLP add w/ good geographic footprint & under merger consolidation.
Inter Pipeline Ltd. (OTC Markets: IPPLF) - Growing Canadian pipeline that service Oil Sand production.
American Realty Capital Healthcare Trust, Inc. (NasdaqGS: HCT) - New Buy in Medical REIT
Neptune Technologies & Bioresources, Inc. (NasdaqCM: NEPT) - added shares as I build LT position.
Sells
Atlas Pipeline Partners, L.P. (NYSE: APL) - Closed out position. Moved proceeds into CMLP & SXE
Copper Mountain Mining Corporation (OTC Markets: CPPMF) - peeled off 20% for 10.68% st gain
Excel Trust, Inc. (NYSE: EXL) - peeled off high priced shares for 2.7% st gain.
Goldfield Corp. (NYSE MKT: GV) - peeled off 50% of high priced shares for 27.5% st gain.
Industrial Services of America, Inc. (NasdaqCM: IDSA) - peeled off 30% high priced shares for 206% st gain
Nestl (OTC Markets: NSRGY) - closed position for 25.55% LT gain (moved some proceeds into NEPT).
Organovo Holdings, Inc. (NYSE MKT: ONVO) - Sold High priced shares for 7.07% st gain (held <30 days)
Yara International ASA (OTC Markets: YARIY) - peeled off 50% of my High priced shares for 2.75% LT gain
EXCO Resources Inc. (NYSE: XCO) - peeled off 30% high priced shares for 3.28% LT gain.
Gas Natural Inc. (NYSE MKT: EGAS) - closed out position for 3.95% LT gain.
AGL Resources Inc. (NYSE: GAS) - peeled off 35% of position for 39.5% lt gain moved proceeds into IPPLF.
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Some of my new Value themes:
(1) The biggest is the sale of APL and purchase of CMLP & SXE. CMLP's value is in it's future acquisition/merger gains & efficiency. This is a "pure" play on the NG Midstream operations in the U.S. shale areas. Crestwood And Inergy Complete Merger, Creating Mid-Cap MLP Platform With Combined Enterprise Value Of Approximately $8 Billion. I expect better than average revenue growth as the merger consolidates their recent acquisition. SXE is a smaller NG gathering Midstream operator in the Eagle Ford area. They recently completed a secondary at $16.50/share to upgrade their pipeline(s) and expand capacity. Their distribution is at the high end, so I expect future revenues will catch up with what they are currently paying. I expect 2014 revenue growth for both of these MLP to be between 7%-9%. Moody's: Outlook for the North American midstream industry remains positive - our expectation that the midstream sector's EBITDA will grow by 12%-14% over the next 12 to 18 months. This is a 2.3% portfolio position.
My MLP basket consists of 20 holdings that generate a blended yield of 6.7% and now represents 26% of the taxable portfolio.
(2) A large seller in April allowed me to up my position in AMNF at $1.64/share. This is a small cap specialty food manufacturer that pays a 4% dividend, is growing revenues by 10% annually and is selling at 16 PE. They continue to grow operation (located in Hayward CA) recently upgrading equipment that will improve margins and expanding sales into Asia. With a market cap of $58Mln, there is significant room for them to grow. This is now a 2.05% portfolio position grown from a 0.5% portfolio buy 24 months ago.
(3) Closed out my NSRGY (a buy based on Spekulatius recommendation 9/2011) and put part of the proceeds into NEPT. NEPT and their subsidiary ACST is working w/ NSRGY to develop supplements that may help the treatment of Alzheimer integrating their patent lipid technology. Neptune Obtains New US Patent Relating to Treatment of Alzheimer's . This is just under a 1% portfolio position that I continue to build.
(4) Finally, sold some of my REIT mall operators (reduced EXL by 50%) and have been putting the proceeds into medical REITs including Physicians Realty Trust (NYSE: DOC), Medical Properties Trust Inc. (NYSE: MPW) and American Realty Capital Healthcare Trust, Inc. (NasdaqGS: HCT). HCT is my newest addition. All of these medical REITs have good dividend yields and should benefit from Obama care as the baby-boomers age. Medical REITs represent about a 2.5% portfolio position with most of the gain coming from MPW + 57% from my first buy 8/2010. This has grown from a less than 1% portfolio position at about a 10% annual rate. I expect similar growth from the group over the next 4 years.
EKS |
