Friday, August 01, 2014


Yo Adrian!

Well, yesterday I wrote about July soon being over and being happy to have the month behind me.  Then yesterday happened.  Just like Rocky facing Apollo Creed. I was hit hard and hit often. At the end of the day yesterday, my portfolio was down 2.6%. If nothing else, Mr Market will work to teach investors humility.  I am sorry if people following me were bloodied as well.  Everyone should keep in mind I am just a guy with a blog. I tell you how I invest and why, but I am certainly prone to missteps.

AVG was severely punished yesterday, down 13%. The number of stocks I have had this earnings season that have taken double digit drops has been remarkable.  But when I look at AVG, when I look at GNW or SNDK, I do not see an over-arching reason to sell. So like Rocky, I am still on my feet, bloodied but still punching.


I did buy additional shares of GNW (13.50) and NADL (9.55) yesterday.  I just feel this pricies are getting ridiculously cheap. That is not to say they cannot go down further. But if you have a 12 to 24 month horizon, I am very comfortable with my prices. That being said, I am keeping a substantial amount of powder dry. At some point the broader market will drop 5 to 10% and I want to be ready.


About my only stock up in July is TGONF (up 4.5%). This is a Dutch financial firm, almost like a closed-end fund or a BDC.  They announced they are increasing their quarterly dividend.

Here is an interesting chart:

It shows the Net Asset Value of TFG ($17.08) by quarter graphed against the share price ($10.03).  Sooner or later, those two lines have to begin to come together. It is my belief that they will come together at the $17 mark, not the $10 value.  In the meantime, I am getting a 6% dividend and I am happy to wait.

SYNA Earnings

While this quarter thus far has been difficult on the earnings front, I am hopeful on SYNA earnings last night (Synaptics Reports Results for Fourth Quarter and Fiscal 2014). We will see what we will see, but it would nice (for morale).

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