Long hiatus

Didn't realize that it's been almost 6 months since my last post! Not much has been going on, bought some Vodafone (NYSE: VOD) for it's nice 3% dividend. Vodafone is an international play who also owns 49% of Verizon Wireless. Being a former Verizon employee, I can tell you that VZ Wireless basically supports the other side of the business (internet, home phone, IPTV, etc). This is basically a long-term savings stock for me since savings interest rates has dropped well below 2%. Yuck.

I've also purchased Berkshire Hathaway (NYSE: BRK.B) after they had announced their purchase of Burlington Northern Santa Fe Corporation with a 50-1 stock split. I'm totally playing investor psychology on this one. A $60 share price for BRK-B stock is irresistible and hopefully will open up new money from smaller investors like me! =)

OMTR SOLD!!!

BREAKING NEWS, Omniture (NASDAQ: OMTR) is being sold to Adobe Systems Inc (NASDAQ: ADBE)! It was quite ironic since I was discussing my portfolio with my coworker this morning and mentioned to him that it'll be awhile until I sell OMTR since I'm still down 17% on it, unless they get sold of course...and they did! How awesome is that!? So I'm selling, as much as I like Adobe, I'm gonna take my gains from the sale and probably try and sneak back into Adobe later on at a lower price. Let's cross our fingers that it doesn't sky-rocket!

Super saver

So I got an email from my bank, HSBC, regarding an interest rate adjustment.  Wasn't surprised by this but I did enjoy the results of a recent survery that they have done.  Here it is:

• Active Savers, a group of people characterized by their dedication to saving, entered the recession better prepared than others because of their savings lifestyle. They have not had to take drastic measures to adapt to uncertain financial times and are less likely to have had to cut back on spending, eating out, and making large purchases.
  
  
• For more than half (57 percent) of Active Savers, learning to save started at a young age. Putting money away is a value their parents instilled in them (73 percent).
  
  
• Savings comes first for nearly half (46 percent) of Active Savers. They’re willing to make sacrifices in order to be able to put money away.
  
  
• Overall, a majority of the population has not allowed the economy to hamper their savings plans—81 percent have been able to put the same amount away, if not more.
  

Some very profound information right there...I'd like to thank my parents for teaching me the value of money at an early age.  I had no allowance so I had to make the most of what I had!

On a side note, I've sold my positions on ISRG and NOV.  I still think those companies rock but my initial positions (which I did not initiate any new thirds on its way down) are down more than 50%.  This will take at least a 100% gain to get my money back anytime soon so I've decided to end my commitment and take advantage of the tax break!   

So with this extra cash on hand, I've decided to gamble a bit and bought some shares in MGM Mirage (NYSE: MGM).  I think the gambling industry (i.e. Las Vegas) has been hit really hard by this recession, but will eventually springboard back.  Hopefully, I'll come out with some nice gains in the process.  Again, my position in MGM is less than 1% of my total portfolio value so please treat it as I do.  I wouldn't risk my entire life savings on it since there still be more downside to that industry.

POWER UP!

So on Friday, I decided I wanted a dividend-heavy, large cap, preferrably wide-moat stock  and couldn't decide between General Electric (NYSE: GE), Microsoft (NASDAQ: MSFT), Philip Morris International (NYSE: PM) or INTC (NASDAQ: INTC).   After much debate, number comparisons, and a lot of hair pulling, I decided to get none of them!  haha.

Instead, I purchased an international ETF that I found on SeekingAlpha called Powershares International Dividend Achievers (NYSEArca: PID).  I'm not going to get into the ratios and what not on this ETF, but a few interesting things attracted me to the ETF besides it's holdings portfolio:

• PID has a higher YTD market return than most of the dividend ETFs I analyzed.  
  
• PID also has an above-average yield of 6.23%.  

Of course, this isn't as amazing as the dividend-heavy ETF, Powershares Financial Preferred (NYSEArca: PGF), which boasts a hefty 15.88% yield.  But, I'm not the type to put all of my eggs in one basket and I've been on a PGF shopping spree in both my Roth IRA and investment accounts.  Although I do believe that the Financial sector has the possibility of making the most gains in the next 3 years, but I think I'll sleep better at night knowing that it isn't making up 30% of my investment portfolio.

*Tip: When investing long-term (3-5 years) for your Roth IRA, it's a good idea to focus on dividend-heavy ETFs or large cap stocks with high yield percentages (preferably with wide-moats).  This will be advantageous to you since the dividends are paid out tax free, allowing you to reinvest in the stock or use for other stock purchases and won't be deducted in the future when you withdraw from the fund.

SOLD!

Sold WFC yesterday as planned, shoulda waited a day since it's up a little more, but it's ok.  I'm also hoping to sell CREE and possibly OMTR, but I'm in no rush since I don't mind waiting to get back to even.  Don't get me wrong, all are still solid companies, I just need the capital to shift my portfolio to a more dividend-intensive focus.  I'm really excited to see how the credit companies fare this earnings season with all the recent pull-backs in the credit market by the big banks...

Megadeth!

My future sugar momma, Meredith Whitney, said this latest Financial Sector bull run will be short lived.  According to a recent Forbes article, she still believes that the top banks still have not properly reserved against greater than expected losses in home prices.  Her forecasts for 2009 and 2010 are much lower than other analysts' estimates.  However, she does believe that Goldman Sachs (NYSE: GS) will meet Wall Street's estimates.  

A more detailed explanation her Financials analysis are found on this Forbes video interview.  It's a bit long but I highly recommend it.  She provides some excellent insights on the future of our country's economy.

For me, the last time she called Wells Fargo (NYSE: WFC) overbought, I went the opposite way and bought (back in December).   DOH.  I only hit the black with the recent WFC announcement!  I'll listen to the expert this time, and plan to ride this supposed bear market "bull rally" with trailing stops on my Financials.  I still think there will be a Financial bear run (later this year), so hopefully around 3rd/4th qtr I'll pull the trigger again to get back into the Financials...let's see how it turns out!

What's up WHAT'S UP?!

Just got back from the last round of vacations (Japan, Tahoe, Japan again) so I've been out of the tumultous market for a bit.  While I was in Japan (the 2nd time), I did buy some Microsoft (NASDAQ: MSFT).  This was an emotional play for me, but I just couldn't pass up Microsoft at $18!  It's looking good so far.

I also purchased my 2nd third of General Electric (NYSE: GE) yesterday.  I'm not convinced that the market is going up from here, but I figure it wouldn't hurt to buy GE at $10.  I'm already prepared to buy more at $6 if it gets that low again (limit orders are IN!).  I also plan to increase positions in PGF and rebuy PM.  The yield on PM is looking very very yummy.

The market did great in March and is off to a good start this month.  However, the third week of April will be the true test on whether this is a fools rally or not.  GE, Intel (NASDAQ: INTC), and Citigroup (NYSE: C) all report during that time.  We already know that the numbers will be bad, but maybe the outlook will have a bit of a silver lining on the horizon?!  Let's hope so.

Man tries to pay bill with spider drawing

*This is from awhile back but I just had to post it for the archives...

Below is the complete email conversation that Adelaide man David Thorne claims he had with a utility company chasing payment of an overdue bill.   

From: Jane Gilles
Date: Wednesday 8 Oct 2008 12.19pm
To: David Thorne
Subject: Overdue account

Dear David, 
Our records indicate that your account is overdue by the amount of $233.95. If you have already made this payment please contact us within the next 7 days to confirm payment has been applied to your account and is no longer outstanding.

Yours sincerely, Jane Gilles

From: David Thorne
Date: Wednesday 8 Oct 2008 12.37pm
To: Jane Gilles
Subject: Re: Overdue account

Dear Jane, 
I do not have any money so am sending you this drawing I did of a spider instead. I value the drawing at $233.95 so trust that this settles the matter.

Regards, David.

 

From: Jane Gilles
Date: Thursday 9 Oct 2008 10.07am
To: David Thorne
Subject: Overdue account

Dear David, 
Thankyou for contacting us. Unfortunately we are unable to accept drawings as payment and your account remains in arrears of $233.95. Please contact us within the next 7 days to confirm payment has been applied to your account and is no longer outstanding.

Yours sincerely, Jane Gilles

From: David Thorne
Date: Thursday 9 Oct 2008 10.32am
To: Jane Gilles
Subject: Re: Overdue account

Dear Jane, 
Can I have my drawing of a spider back then please.

Regards, David.

From: Jane Gilles
Date: Thursday 9 Oct 2008 11.42am
To: David Thorne
Subject: Re: Re: Overdue account

Dear David, 
You emailed the drawing to me. Do you want me to email it back to you?

Yours sincerely, Jane Gilles

From: David Thorne
Date: Thursday 9 Oct 2008 11.56am
To: Jane Gilles
Subject: Re: Re: Re: Overdue account

Dear Jane,

Yes please.

Regards, David.

From: Jane Gilles
Date: Thursday 9 Oct 2008 12.14pm
To: David Thorne
Subject: Re: Re: Re: Re: Overdue account

Attached

 

From: David Thorne
Date: Friday 10 Oct 2008 09.22am
To: Jane Gilles
Subject: Whose spider is that?

Dear Jane, Are you sure this drawing of a spider is the one I sent you? This spider only has seven legs and I do not feel I would have made such an elementary mistake when I drew it.

Regards, David.

From: Jane Gilles
Date: Friday 10 Oct 2008 11.03am
To: David Thorne
Subject: Re: Whose spider is that?

Dear David, Yes it is the same drawing. I copied and pasted it from the email you sent me on the 8th. David your account is still overdue by the amount of $233.95. Please make this payment as soon as possible.

Yours sincerely, Jane Gilles

From: David Thorne
Date: Friday 10 Oct 2008 11.05am
To: Jane Gilles
Subject: Automated Out of Office Response

Thankyou for contacting me. I am currently away on leave, traveling through time and will be returning last week.

Regards, David.

From: David Thorne
Date: Friday 10 Oct 2008 11.08am
To: Jane Gilles
Subject: Re: Re: Whose spider is that?

Hello, I am back and have read through your emails and accept that despite missing a leg, that drawing of a spider may indeed be the one I sent you. I realise with hindsight that it is possible you rejected the drawing of a spider due to this obvious limb ommission but did not point it out in an effort to avoid hurting my feelings. As such, I am sending you a revised drawing with the correct number of legs as full payment for any amount outstanding. I trust this will bring the matter to a conclusion.

Regards, David.

 

From: Jane Gilles
Date: Monday 13 Oct 2008 2.51pm
To: David Thorne
Subject: Re: Re: Re: Whose spider is that?

Dear David, As I have stated, we do not accept drawings in lei of money for accounts outstanding. We accept cheque, bank cheque, money order or cash. Please make a payment this week to avoid incurring any additional fees.

Yours sincerely, Jane Gilles

From: David Thorne
Date: Monday 13 Oct 2008 3.17pm
To: Jane Gilles
Subject: Re: Re: Re: Re: Whose spider is that?

I understand and will definately make a payment this week if I remember. As you have not accepted my second drawing as payment, please return the drawing to me as soon as possible. It was silly of me to assume I could provide you with something of completely no value whatsoever, waste your time and then attach such a large amount to it.

Regards, David.

From: Jane Gilles
Date: Tuesday 14 Oct 2008 11.18am
To: David Thorne
Subject: Re: Re: Re: Re: Re: Whose spider is that?

Attached

 

broke as a joke

I just got back from Tokyo, Japan last week, it was great seeing first hand the culture that directly influenced the way I was raised.  Besides the part where I got sick (caught a bit of the flu epidemic that's going on there right now), it was an excellent experience and a 100% definite do-over next year.  If I have the money of course, since I've been maxing out my 401k, which I highly recommend everyone should do since the market is really low (also since this year's max contribution has been increased to $16.5k).  So I'm hurting a bit in terms of having petty cash to spend, but it's all part of the plan to retire early, comfortably.  The Tahoe trip that I'm taking this week isn't going to help my savings growth though!

Anyway, I sold my PM position to buy some Wells Fargo Company (NYSE: WFC) a few weeks ago.  Both are up but I think I'm better off with WFC.  After this storms subside I agree with Morningstar that the Financial Sector will have the most gains in the next 3-5 years (which is a gimme since they've been taking the most losses in the past year!).  I also increased my position in PGF today.  Let's hope for a nice boost in Financials while I'm in Tahoe ignoring the market!  =)