Friday, August 31, 2018

MFI Diary - Monthly Update, August 2018

MFI Diary - Monthly Update, August 2018

Ah, Summer is winding down.  On a personal note - I am starting to play golf regularly (3x a week).  I quit the game for 15 years and had never played more than 5x a year.  Getting lessons now, still not very good... but really enjoying it.

Welcome to the occasionally amusing MFI Diary.  This is a diary I have been maintaining since February 2006 (damn, that is a long time) tracking my "experiences" in investing real money in the methods discussed in "The Little Book That Beats The Markets".  I also spend some time discussing my MFI (Magic Formula Investing) Index and various MFI tracking portfolios that I have created over time.

I did create a guide recently for new readers to my blog that point you to some fascinating/interesting
posts. I encourage you to give it a whirl (Guide To New Readers).  (PS - I continue to struggle to make this link work.  You can instead go to Blog archive on left margin of this blog and you will find a link in October 2017). Of course, I have to have a disclaimer - I am just a non-economist, non-CFA with a spreadsheet and not a stock advisor (pretty clear as I ended 1st quarter in the red overall).  You should do your own due diligence before acting on anything you read here.

And as a free bonus, I also discuss how my non-MFI investments are doing (actually ok) in 2nd half of my blog.

Onwards.


Last Month

As my 20 regular readers know, I have switched from updating my readers on my performance in MFI from weekly to once a month. Hopefully less is more.  August was ok, actually pretty decent.  But I still struggle beating the index.  Here is a summary table:



 Component   YTD   3rd Quarter   Month Change 
 Overall  +4.5% +4.9% +3.2%
 MFI Select  -2.7% +2.7% +3.3%
 MFI Formula  +8.3% +2.2% +1.3%
 MFI Combined  +2.6% +2.4% +2.4%
 Non MFI  +5.5% +6.2% +3.7%
 Dividend Index  +1.8% +4.0% +1.7%
 R3K Index  +10.0% +7.0% +3.6%
 Blended Index  +7.1% +6.0% +2.9%
 MFI Index  +17.8% +5.0% +6.1%
 GARIX  +1.0% +2.5% +0.1%


So at first look, top right quadrant of table, you'll see I was up 3.2% on the month.  The split was 2.4% for MFI and 3.7% for non-MFI.  But the Russell 3000 was up 3.6% and the blended index was up 2.9%.  So I guess I gained some ground on blended index.  

The MFI Index was unbelievably good in the month, up 6.1%!  That simply the 50 stocks from official list back at start of year.  We will have to look and see what drove that great month. So exciting, I know.

Speaking of the MFI Index, here is how it has done year by year compared to Russell 3000.  It is gaining some ground this year, but there remains work to be done.


 Annual   Inception to Date 
 Year   Russell   MFI   Russell ITD   MFI ITD 
2006 11.4% 15.0% 11.4% 15.0%
2007 4.1% -6.7% 16.0% 7.3%
2008 -37.0% -38.0% -27.0% -33.4%
2009 32.5% 45.2% -3.3% -3.3%
2010 18.4% 22.8% 14.5% 18.7%
2011 -0.6% -10.5% 13.9% 6.2%
2012 16.4% 9.7% 32.6% 16.6%
2013 33.0% 51.7% 76.3% 76.8%
2014 12.3% 12.1% 98.0% 98.1%
2015 0.4% -8.9% 98.7% 80.4%
2016 12.5% 13.2% 123.5% 104.2%
2017 20.8% 4.7% 170.1% 113.9%
2018 10.0% 17.8% 197.2% 152.0%

Wow, +17.8% so far this year is strong.  Must be those tax cuts.  Here are all 50 stocks in the index currently, both for the year and the month.


 Stock   Start   Current   YTD Change   Last Month 
   AMAG        13.25             24.40 84.2% 10.7%
   AMCX        54.08             62.81 16.1% 6.3%
   ABC        91.82             90.73 -1.2% 8.4%
   AMGN      173.90           202.45 16.4% 3.8%
   AGX        45.00             40.55 -9.9% 5.5%
 BIVV        53.92           105.00 94.7% 0.0%
   HRB        26.22             27.55 5.1% 8.6%
   BPT        20.10             34.83 73.3% 16.1%
   ABCD          5.68             13.38 135.6% 9.7%
   CPLA        77.40           104.86 35.5% -0.5%
   CASA        17.76             14.69 -17.3% 0.1%
   CSCO        38.30             48.72 27.2% 12.8%
   CNCE        25.87             15.77 -39.0% -2.8%
   CJREF          9.21                3.23 -64.9% -7.2%
   DLX        76.84             59.82 -22.1% 1.3%
   DIN        50.73             84.68 66.9% 15.9%
   DISCA        22.38             27.83 24.4% 6.9%
   EGRX        53.42             69.13 29.4% -14.1%
   EVC          7.15                5.35 -25.2% 17.6%
   ESRX        74.64             88.02 17.9% 10.8%
   GME        17.95             13.99 -22.1% -10.0%
   GILD        71.64             76.87 7.3% -1.4%
   HSII        24.55             44.59 81.6% 27.9%
   HPQ        21.01             24.92 18.6% 6.0%
   INVA        14.19             14.52 2.3% 5.4%
   IDCC        76.15             83.65 9.8% 1.9%
   IPG        20.16             23.77 17.9% 4.1%
   KLAC      105.07           117.55 11.9% 7.9%
   LEE          2.35                2.85 21.3% -9.5%
   MCFT        22.22             27.57 24.1% 12.4%
   MPAA        24.99             26.54 6.2% 23.3%
   MSGN        20.25             24.30 20.0% 0.0%
   NHTC        15.19             26.73 76.0% 13.2%
   NLS        13.35             14.65 9.7% 5.0%
   EGOV        16.60             16.96 2.2% 4.6%
   OMC        72.83             70.52 -3.2% 0.5%
   PTN          0.86                1.01 17.6% 6.7%
   PDLI          2.74                2.42 -11.7% -5.1%
   PCOA      575.00           689.00 19.8% -0.3%
   PBI        11.18                7.64 -31.7% -15.7%
   SRNE          3.80                5.55 46.1% 7.8%
   SP        37.10             38.90 4.9% 2.4%
   SYNT        22.99             40.74 77.2% 0.2%
   TGNA        14.08             11.78 -16.3% 7.8%
   MEET          2.82                5.10 80.9% 24.4%
   TVTY        36.55             34.40 -5.9% 0.7%
   TRNC        17.59             16.50 -6.2% 2.7%
   UTHR      147.95           122.99 -16.9% 0.0%
   VEC        30.85             32.82 6.4% 4.3%
   VIAB        30.81             29.68 -3.7% -0.2%
 Total      21,371 17.8%

You can see 11 of the 50 names were up 10% or more in August. HSII was the leader, which seems to correlate with a tight labor market.


MFI Select

The MFI Index I just discussed is for tracking.  I do not have real money in there.  But I do have two real $ MFI portfolios: (1) MFI Select and (2) MFI Formula.  I started MFI Select in August 2012.  It consists of 4 tranches with 5 stocks in each tranche.  I buy and hold the stocks for a year.  As the name suggests, I allow myself free rein to pick whatever stocks I care to pick.  So they are generally from the official list... but I often run my own screen and pick some names not on official screen.

Here are the current stocks in the portfolio, listed in descending order of size.  I show how they did in past month.  Note there are a few new stocks (AMCX and SGH), so they show the price I bought them at August 15th.


 Stock   Last Month   Current   Dividend   Change 
 AGX              37.95         39.80                       -   4.9%
 MSGN              22.85         24.30                       -   6.3%
 ICHR              20.99         25.93                       -   23.5%
 DISCA              26.03         27.83                       -   6.9%
 SIMO              54.63         58.90                  0.30 8.4%
 KLAC            107.57       116.21                  0.75 8.7%
 VIAB              29.35         29.28                       -   -0.2%
 TGNA              10.79         11.64                       -   7.9%
 AMCX              60.97         62.81                       -   3.0%
 CELG              86.43         94.45                       -   9.3%
 SGH              31.12         32.99                       -   6.0%
 CASA              14.68         14.69                       -   0.1%
 EVC                4.45            5.25                       -   18.0%
 GME              14.83         13.27                       -   -10.5%
 CJREF                3.10            2.85                  0.08 -5.4%
 WDC              71.13         63.24                       -   -11.1%
 THO              92.87         95.44                       -   2.8%
 CAAP              11.20            9.10                       -   -18.8%
 FTSI              11.89         11.03                       -   -7.2%

So I had some solid performers.  But GME, WDC and CAAP all struggled.  GME was frustrating as it was around $17 a week ago and crashed to $13.27.  They had been rumored to be a PE takeover target, it seems that fell through.  CAAP is associated with Argentina, and that is not a place where stocks have done well of late (true for many EM).  I think CAAP is a steal right now and if it stays in this zip code - I will look to add a second tranche in November.

Here are all 4 of my open tranches:


11/15/2017  Start   Current   Dividend   Pct Gain   R3K Gain 
 MSGN  $16.67 $24.30 $0.00 45.8% 14.9%
 CELG  $100.60 $94.45 $0.00 -6.1% 14.9%
 EVC  $5.78 $5.25 $0.15 -6.6% 14.9%
 SIMO  $46.88 $58.90 $0.90 27.6% 14.9%
 VIAB  $24.41 $29.28 $0.60 22.4% 14.9%
 Totals  16.6% 14.9%
2/1/2018  Start   Current   Dividend   Pct Gain   R3K Gain 
 AGX  $43.55 $39.80 $0.50 -7.5% 4.7%
 CASA  $18.81 $14.69 $0.00 -21.9% 4.7%
 KLAC  $109.80 $116.21 $2.09 7.7% 4.7%
 THO  $136.33 $95.44 $0.74 -29.5% 4.7%
 WDC  $87.74 $63.24 $1.00 -26.8% 4.7%
 Totals  -15.6% 4.7%
5/2/2018  Start   Current   Dividend   Pct Gain   R3K Gain 
 CAAP  $12.19 $9.10 $0.00 -25.3% 11.2%
 TGNA  $10.51 $11.64 $0.07 11.4% 11.2%
 DISCA  $23.85 $27.83 $0.00 16.7% 11.2%
 FTSI  $19.39 $11.03 $0.00 -43.1% 11.2%
 ICHR  $21.96 $25.93 $0.00 18.1% 11.2%
 Totals  -4.4% 11.2%
8/15/2018  Start   Current   Dividend   Pct Gain   R3K Gain 
 AGX  $39.45 $39.80 $0.00 0.9% 2.3%
 AMCX  $60.97 $62.81 $0.00 3.0% 2.3%
 CJREF  $3.08 $2.85 $0.00 -7.4% 2.3%
 GME  $15.50 $13.27 $0.00 -14.4% 2.3%
 SGH  $31.12 $32.99 $0.00 6.0% 2.3%
 Totals  -2.4% 2.3%

Sadly, my stock picking skills have faltered recently.  The three most recent tranches are all in the red and all trailing benchmark by a lot.  Investing is difficult.  FTSI, in hindsight was a dumb pick with Permian basin bottleneck.  But it may also be a steal in November.

Here is a table showing results all the way back to August 2012:


 Category/Tranche   August   November   February   May   Total 
 Initial Investment         25,000             25,000           25,000        25,000         100,000
 Current Tranche  -2.4% 16.6% -15.6% -4.4% -2.1%
 Previous Tranche  27.8% 42.6% 74.9% -3.6% 44.6%
 Tranche -2  -0.1% 8.0% 10.7% 19.1% 9.5%
 Tranche -3  2.8% 69.4% -14.3% -25.2% 8.2%
 Tranche -4  11.2% 14.2% 8.5% 18.3% 13.0%
 Tranche -5  41.4% 43.7% 78.3% 33.0% 49.1%
 Tranche -6  14.1% 0.0% 0.0% 0.0% 3.5%
 MFI Overall Gain  130.0% 399.9% 171.0% 29.1% 182.5%
 Current Balance         57,509           124,968           67,756        32,275         282,508
 R3K Current Tranche  2.3% 14.9% 4.7% 11.2% 8.3%
 R3K Overall Gain  130.9% 135.6% 111.3% 97.8% 118.9%
 R3K Balance         57,728             58,898           52,825        49,450         218,902
 Annualized IRR  14.8% 32.0% 19.6% 4.9% 17.8%

While still no shame in 17.8% annualized IRR since I started, it should be noted that was pushing 21% 6 months ago.  So sledding has been tough of late.  Or to use a golf analogy, I've been missing the fairway.

Here is a quarter by quarter progression of $100,000 invested at start (August 2012):


 Date   Differential   MFI Value   R3K Value 
1/1/2013 -1.78%        102,798            104,575
4/1/2013 -0.43%        106,804            107,234
7/1/2013 4.29%        114,888            110,597
10/1/2013 19.67%        138,655            118,990
1/1/2014 26.63%        157,138            130,503
4/1/2014 30.38%        162,991            132,616
7/1/2014 39.23%        177,971            138,740
10/1/2014 29.38%        168,321            138,944
1/1/2015 28.17%        174,306            146,140
4/1/2015 29.95%        178,565            148,612
7/1/2015 62.69%        211,437            148,743
10/1/2015 43.12%        181,175            138,052
1/1/2016 63.33%        209,514            146,186
4/1/2016 47.34%        195,770            148,430
7/1/2016 50.41%        201,092            150,680
10/1/2016 42.98%        198,563            155,582
1/1/2017 45.60%        209,503            163,936
4/1/2017 55.70%        229,473            173,735
7/1/2017 60.28%        239,060            178,782
10/1/2017 75.60%        262,489            186,886
1/1/2018 92.19%        291,114            198,926
4/1/2018 96.21%        293,665            197,451
7/1/2018 68.20%        273,125            204,921
Current 63.61%        282,508            218,902

Not to beat the proverbial dead horse, but I had a $291K to $198K lead over benchmark after Q1 2018.  The lead has shrunk by $30,000.


MFI Formula

My second MFI real $ portfolio was started October 2014... so coming up on 4 year anniversary.  It is the opposite of MFI Select.  In MFI Formula I pick all my stocks via a formula and a random number generator.  So I can definitely get repeats... for example GILD.  Here are same tables:


 Stock   Last Month   Current   Dividend   Change 
 GILD              76.81         75.73                       -   -1.4%
 AMGN            192.44       199.81                  1.32 4.5%
 TUP              35.41         32.52                       -   -8.2%
 OMC              68.98         69.32                       -   0.5%
 EGOV              16.05         16.80                       -   4.7%
 GME              14.83         13.27                       -   -10.5%
 KLAC            107.57       116.21                  0.75 8.7%
 VIAB              29.35         29.28                       -   -0.2%
 DIN              71.81         83.42                       -   16.2%
 IPG              22.42         23.35                  0.21 5.1%
 HRB              24.87         27.06                       -   8.8%
 CJREF                3.10            2.85                  0.08 -5.4%
 HPQ              23.23         24.65                       -   6.1%

Sadly, I have GME over here as well.  TUP has been another problematic pick.  DIN (owner of Applebee's and IHOP) had another great month... I wish it was a bigger holding (recall these are in descending order).


10/1/2017  Start   Current   Dividend   Pct Gain   R3K Gain 
 DIN  $43.14 $83.42 $2.23 98.5% 17.0%
 GILD  $82.85 $75.73 $1.66 -6.6% 17.0%
 GME  $20.50 $13.27 $1.14 -29.7% 17.0%
 HPQ  $20.22 $24.65 $0.40 23.9% 17.0%
 OMC  $74.80 $69.32 $1.75 -5.0% 17.0%
 Totals  16.2% 17.0%
1/2/2018  Start   Current   Dividend   Pct Gain   R3K Gain 
 AMGN  $177.11 $199.81 $3.96 15.1% 9.5%
 GME  $18.06 $13.27 $0.76 -22.3% 9.5%
 GILD  $71.64 $75.73 $1.14 7.3% 9.5%
 HRB  $26.34 $27.06 $0.49 4.6% 9.5%
 OMC  $72.81 $69.32 $1.20 -3.1% 9.5%
 Totals  0.3% 9.5%
4/3/2018  Start   Current   Dividend   Pct Gain   R3K Gain 
 AMGN  $166.46 $199.81 $2.64 21.6% 12.7%
 VIAB  $29.20 $29.28 $0.20 1.0% 12.7%
 GILD  $72.71 $75.73 $0.57 4.9% 12.7%
 TUP  $47.32 $32.52 $0.69 -29.8% 12.7%
 EGOV  $13.29 $16.80 $0.08 27.1% 12.7%
 Totals  4.9% 12.7%
7/2/2018  Start   Current   Dividend   Pct Gain   R3K Gain 
 CJREF  $3.90 $2.85 $0.19 -22.1% 7.2%
 GILD  $70.80 $75.73 $0.00 7.0% 7.2%
 IPG  $22.80 $23.35 $0.21 3.3% 7.2%
 KLAC  $102.03 $116.21 $0.75 14.6% 7.2%
 TUP  $40.09 $32.52 $0.00 -18.9% 7.2%
 Totals  -3.2% 7.2%

All these tranches are trailing.  Recall 3 of 4 were trailing in MFI Select.  Did I say I've been missing the fairway lately? Probably more like in the deep rough near the out-of-bounds markers.  it is frustrating as the MFI Index is doing so well while my two portfolios are in doldrums.  But these things go up and down. As JG tells us, "sometimes the market goes nuts".  I truly believe I have some names in these two portfolios that will improve substantially.


 Category/Tranche   October   January   April   July   Total 
 Initial Investment      249,820        249,939     250,180      249,728         999,667
 Current Tranche  16.2% 0.3% 4.9% -3.2% 3.4%
 Previous Tranche  7.0% 16.5% 21.3% 37.3% 20.6%
 Tranche -2  5.5% 9.3% 25.2% 26.7% 16.7%
 Tranche -3  0.5% 11.0% -0.2% -12.5% -0.3%
 MFI Overall Gain  31.8% 41.7% 59.0% 47.4% 45.0%
 Current Balance      329,266        354,286     397,746      368,183      1,449,481
 R3K Current Tranche  17.0% 9.5% 12.7% 7.2% 11.6%
 R3K Overall Gain  57.0% 47.6% 46.0% 46.4% 49.3%
 R3K Balance      392,194        369,013     365,273      365,714      1,492,194
 Annualized IRR  7.3% 10.0% 14.5% 13.0% 11.2%
So the 11.2% annualized IRR isn't bad.  2013 was a very good year for value stocks (note MFI Index was up 52% in 2013), so it isn't a big surprise MFI Formula is trailing MFI Select.


 Date   Differential   Value   R3K Value 
10/1/2014 0.00%        100,000            100,000
1/1/2015 -0.33%        100,664            100,995
4/1/2015 5.09%        106,781            101,695
7/1/2015 4.82%        106,423            101,604
10/1/2015 6.39%        100,703              94,312
1/1/2016 -3.36%          96,830            100,012
4/1/2016 0.34%        102,371            101,548
7/1/2016 -0.19%        103,022            103,216
10/1/2016 -0.85%        106,377            107,230
1/1/2017 1.57%        113,406            111,832
4/1/2017 -1.86%        116,227            118,091
7/1/2017 -2.40%        119,144            121,545
10/1/2017 -2.56%        124,448            127,007
1/1/2018 -3.63%        131,460            135,086
4/1/2018 -0.16%        133,734            133,898
7/1/2018 2.28%        141,126            138,849
Current -4.27%        144,948            149,221

You can see MFI is also trailing r3K benchmark by 4.27%.  Not been a great stretch.  Wish I had better results for you.  But 2018 just hasn't been a banner year for my MFI portfolios.  Still committed to the approach, just a bit bummed.

Non MFI

For those here to just read about how MFI is doing in aggregate and for me personally, I am done.  I will post more this weekend about my MFI tracking portfolio. 

But now I will discuss the rest of my portfolio.  It is slightly larger than the MFI component.  I have three main areas:
  1. Dividend/Income holdings
  2. Shipping
  3. Energy.
Then I have some odds and ends.  Arguably I have too many holdings.  Between MFI and non-MFI, I'm a bit over 70.  That is too many (in my opinion) and I am steadily closing some positions that I don't consider to be core.

Here are my Energy holdings:


 Ticker   Bought   Current   Dividend   Gain   Weight 
 APA           40.57          43.83               0.25 8.7% 0.7%
 AR           18.57          18.51                    -   -0.3% 1.4%
 CHK             4.50             4.43               0.01 -1.4% 1.4%
 ECA           12.40          13.27               0.03 7.3% 2.8%
 ETP           19.22          22.55               0.57 20.3% 1.6%
 FSLR           51.46          52.08                    -   1.2% 1.1%
 KMI           16.73          17.70               0.20 7.0% 2.2%
 XOP           41.92          42.36                    -   1.0% 0.6%
 OXY           82.59          79.87               0.49 -2.7% 2.2%
 PXD        188.01        174.70                    -   -7.1% 1.3%
 RRC           15.96          16.42                    -   2.9% 0.7%
 SEDG           47.39          47.95                    -   1.2% 1.2%
 SPWR             7.51             6.72                    -   -10.5% 0.7%
 SWN             4.74             5.62                    -   18.6% 0.8%
 USOU           55.26          69.65                    -   26.0% 1.0%
 WPX           17.81          19.07                    -   7.1% 1.1%
  Total   4.2%

So here the weight is shown as % of my all-in portfolio... MFI and non-MFI.  So I'm just shy of 21% in energy... it is a largish position.  USOU is the one holding here that I consider opportunistic, not core.

Then here are my shipping holdings:

 Ticker   Bought   Current   Dividend   Gain   %Portfolio 
 ANW             1.24             1.78                    -   43.7% 2.3%
 CPLP             3.49             2.99               0.29 -6.0% 1.7%
 GLOP-PB           25.36          26.08               0.84 6.2% 1.8%
 GLNG           23.56          25.56                    -   8.5% 1.8%
 NMM             1.91             1.97               0.03 4.6% 2.7%
 SSW             6.84             7.50               1.15 26.5% 0.8%
 TGP           17.43          15.75               0.26 -8.2% 2.6%
 TK             7.91             6.78               0.09 -13.1% 2.6%
 TOO             2.25             2.27               0.03 2.2% 0.6%
 Total  5.7% 17.0%

So again, 17% of my total... a largish play.  ANW is one I want to close out... it is too big for the riskiness of the holding.  They are very late in filing their F-20.  I am reasonably comfortable that it will be ok.  But still nervous enough to have a google alert on it.  If the F-20 shows they are in decent shape (they did announce some fraud by prior CEO in June/July), the stock could really pop depending what the financial say.  $2.50 to $3.00 is certainly not an unreasonable outcome.  But if they announce they found further fraud... well let us just say that would not be pleasant.

CPLP pays a nice dividend (over 10% yield) and they are very conservatively managed.  But I don't see any major catalysts.  Still, they are too cheap at this point to sell and I am just reinvesting dividends.

GLOP-PB is my only remaining preferred stock in my entire portfolio.  I think preferred stocks could really be taken to woodshed if interest rates continue to ratchet up.  GLOP-PB avoids that as they have a floating rate feature - it starts in like 5 years and will be LIBOR plus something.  So they are protected against rising rates.

GLNG is a major player in what I see as a macro trend for next 5+ years.  A switch to natural gas all around the world as coal is just killing our planet.  They ship LNG and LNG terminals are being built everywhere => higher shipping rates, as # of ships are not keeping up with buildout.

NMM is a very frustrating stock as it is one of my largest holdings and yet has pretty much laid an egg in 2018 despite a pretty good bulk shipping environment.  I think people are nervous about trade war impact on shipping, plus the parent company of NMM, NM is not doing well.... and shipping owners don't have the best reputation with the street (see the fraud in ANW).  But they are one of my largest holdings as I believe they have tremendous upside (Navios Partners: Updating Key Progress).

SSW has been great for me, but I sold $7.50 calls thus I am capped out.  Actually, if you ever want a stock to do well, have me sell some calls!

TK, TGP and TOO are all part of TK family.  They don't necessarily move in sync, but TK and TGP should largely be tied at the hip.  TGP will also be a beneficiary of LNG macro trends and they are going to start making a lot more money when we roll into 2019.  There may be some chance of TGP and TK merging as the world seems to like MLPs less and less.  I think that would be a good thing - I am not sure who benefits the most, so that is why my holdings are spread equally.  TOO is one I may sell if we get some positive momentum... as I said I am trying to have fewer stocks.

Other Larger Holdings

Here are some of my larger other holdings (most are income plays) with some color:
  1. OIBAX - this has also been a major drag (like NMM) for me in 2018.  It is my 2nd largest holding and is really there for just regular income (it is an Intl bond fund).  But all things emerging markets (including bonds) have been under duress in 2018, so this has dropped from $6.00 to $5.42 this year.  With OIBAX being my #2 holding, a 10% drop hurts.  But it is a core holding and I will just continue to reinvest dividends.
  2. LADR - another major income play, LADR has been great.  I added a bunch earlier this year at $14 a share when the market misunderstood unraveling of a deal.  Just that buy is up 26% this year... I should have gone all-in.
  3. T - I know, what could be more boring than ATT.  But I like what they are doing in buying TWX and I think roll out of 5G (which is a huge leap forward in speed) could bring in a lot more $.  So I think T is actually on cusp of growing revenue streams materially.
  4. OMER - I have sold all my bio tech plays except OMER.  It has run up like crazy of late, so I have sold covered calls on 75% of my holdings that expire in September (at $24 and $26).  As I mentioned with SSW, my selling CC is a sure fire way to make the stock go parabolic.  That has happened to some extent this week (22.12 to 25.88).  But at least I held 25% back and if it flies past the $26 mark (which is 50% covered), that is okay.  My two purchases of OMER are up 33% and 45%.
  5. KCLI - this stock is so boring, it makes CPLP look exciting.  It is a thinly traded life insurer that trades at 58% of book.  It has been bouncing up a bit this past week, but I am thinking about selling if an opportunity comes up (meaning more trading volume... I would actually move the market). I am just not pleased with their results and didn't like a recent acquisition.
  6. WLFC - also thinly traded and also trades way under BV (82%).  Unlike KCLI, WLFC has had great earnings of late (operating income of $92m in 2017 and $62m in first 1/2 of 2018 - not bad for stock with market cap of $217m.  I should buy a bunch more of this, but also very thinly traded. I think at some point the CEO retires and hopefully the BOD sells.  That could easily take a $34 stock to $50.
  7. NRZ - another income play, they service mortgages.  They seem really well run, and some very smart people like Blue Harbinger, like them.  I am tempted to sell from time to time as they've had a pretty good run.  They do seem pretty fully valued here.
  8. TGONF - my final "other" holding I'll mention.  This is like a closed end fund.  They are so, so cheap. I just got their latest NAV, fully diluted = 21.46.  They trade at $12.78.  They pay a quarterly dividend of 18 cents (which has steadily been increased) giving a yield of 5.6%.  Every now and then they do a tender offer (frankly about time for another) - these are always highly accretive as buying back your own stock at $13 when it has a NAV of $21.46 quickly pushes the NAV even higher.
Ok then.  I feel a lot better as even though my portfolio has underperformed in total here in 2018 - I
feel very good about my holdings.  At some point Mr Market will realize the value in a KCLI, CPLP, NMM, WLFC or TGONF.  In the meantime, I'll just wait... reinvest dividends and be happy.

I also don't get political (much) on this blog, but I want to ask everyone to remember Senator John McCain as a true American hero and patriot.

Have a great Labor Day weekend.