Slippery Slope

Pardon the pun, but I didn't get the news from CSKI that I had hoped for... instead of coming out with the stellar earning I expected, I got this at 1:51 am (China Sky One Medical, Inc. Delays Fourth Quarter and Full Year 2008 Earnings Conference Call). When a company doesn't have its financial act together, that isn't a vote of confidence and the stock sold off 10% today, which was generally a good up day. It could very well be that the dog ate the 10-K is true and they'll come out in a week or two with the stellar earnings I expect and pop 25%. But I don't think I'll be adding to my position (though if it dropped to single digits I might have to re-think that).

Other than that little snafu my stocks held up quite nicely today. The commodities, FSUMF and TC both went up about 7% as I think investors are starting to realize all that stuff in the ground may be desirable again some day, especially if inflation kicks up.

The other interesting area of my portfolio was the 3 preferred stocks I own: RNR-PC, ARH-PA and ENH-PA. I bought these in the recent financial demise and essentially locked in about a 16% yield on what I believe to be three financially strong companies. I won't get rich quick, but it'll be a nice income stream. They were all up about 6% today as the market starts to recognize their simple-to-understand value. The income isn't enough yet for me to retire, but at 16% it is a start. I have added a bunch of OKS and NRGY in the downturn as well, they both have yields around 10% and then LINE has a yield around 13%.

It is funny, a cynical person on the yahoo board, with the stock market crashing, commented that he felt the entire stock market was a ponzi scheme. I hear the element of truth in what he says, at times it feels like that. But when you take stocks like I have listed above, and they are making real money (not accounting shenanigans) and they pay a chunk in dividends... it clearly isn't a ponzi scheme, it is a joint venture, a partnership... not blatent speculation hoping your stock will "go to the moon"! Of course we all like a little bit of that, but the income stocks and bonds keep you a little more grounded. It isn't all "Mad Money" after all.

Finally (as I get off my soapbox) I see ENH-PA is still yielding 14%. Come own a few shares with me!