Thursday, January 20, 2011

Quick Update as Earnings Season Progresses

Quick Notes

A quick note as I don't have all my files with me. I have decided to stay with RAI for another year. It is still on the lists, has been a solid performer for me (up about 30%) and has a nice 6% dividend. They are classic example of a stock that was way under-priced last year and was discovered through MFI.


I continued to try to move away from the Chinese stocks and towards income producing stocks. I sold off a bit more CCME (still overweight) and replaced it with PDLI. PDLI has always scored high in MFI but the price dropped more that $1 recently and it seemed to me that most of the potential bad news had been priced in. They have paid at least $1 in dividends in each of the past three years and while not exciting, they struck me as a pretty "safe" stock. I also added a bit to my CMTL position as I am still about 8% in cash for my MFI portfolio.


MagicDiligence said...

Careful on PDLI, Marsh. They are milking a patent portfolio that only has life through 2014 and is starting to lose challenges against it. The dividend is also payment-to-payment, not set in stone.

Here's a quote from their 10-K that I thought was telling:

"... after the expiration of all of our Queen et al. patents, we will cease receiving patent-related royalties from our licensees and, as a result, our common stock will likely have little value."

Marsh_Gerda said...

MD - thanks for the note. I may sell them based on that.