Rooting For a Bear?

One of my bear signals, the decision moose, switched to cash yesterday. My other signals are still pretty bullish.  I did decide to do a little profit taking yesterday and sold three positions that represented ten recent of my holdings.  I sold GLRE, SLCA and VIVHY. SLCA (46%) and VIVHY (36%) were very profitable holdings for me.  I took about a three percent haircut on GLRE.

I still like all three companies. On a pullback, I would consider buying any of them, so I certainly do not view as broken companies.

I also have PVD on the sale block, as upside is caped with MET buyout. But they are trading two or three percent below where I think they should be, so I will wait, unless a can not lose ( ha) opportunity comes along where I need cashola.

So I will be holding as much cash as. Have held in my life as February marches on. I guess that means that I actually want a pullback. I have made a list of stocks for my dividend portfolio in the event of a pullback (either for the broader market, or stock-specific).

A bunch of the moves are just adds I my current holdings:  CIM, O, STO, PRE, FCX, INTC, CSCO and SAI.  Maybe more interesting are new buys: PSEC, PM, BX and ABR.

PSEC yields about 11% and is a replacement for FSC that I sold in January. They are in same space, but seem to be on better financial (read more profitable) footing.

PM is the international arm of Phillip Morris. I owned them for several years and sold in the fall. I think with the weakening US dollar, they are becoming more attractive.

BX is Blackstone. This is playing on my theme that I think 2013 will be the year M&A really re-ignites, due to perception that low interest rates will not be here forever, so deals may be more expensive in a couple years.

ABR is a realty trust. Another theme is that housing is rebounding and I want to look for firms that will benefit from that. This is a REIT that had to suspend dividend for a number f years as they licked their wounds. They seem to have turned the corner and Leon Cooperman just took a large stake in them.

That is all for now. We will see if I can wait.  If I made all these buys, my annual dividend would increase by 37%. Of course if we get a pullback (say 10%),  my dividend stream would increase by 40.6%.