Investment Idea Sharing April 12, 2014

This Week's Activity – April 12, 2014: 

As a fundamental value investor, my number one goal is to find places to put my money so it will be working for me 24 hours a day, 7 days a week.  This means that on any day when I DON’T want to work, my money is still working for me.  I view each of my dollars as one of my employees, and I want each of my employees to bring in $.05 per year, even when I am not watching them.  Stocks that pay dividends and bonds that pay interest are the kind of employees that I like. 

At the “Ratios” worksheet in my Investment_tracker_sample.xls spreadsheet (download it here: http://www.ultimatestockfinder.com/investment_tracker_example.xls ) you can see a list of the various dividends and interest your investments are paying and how much money you have invested at each % break point.  My current investment break down is:

   Dividend/         % of My

   Interest %      Total Portfolio

    >1%                 41%      

    >2%                 36%

    >3%                 33%

    >4%                 26%

    >5%                   9%

    >6%                   5%

I want to increase the 9% of my portfolio that is paying >5% to be 20% of my portfolio.  So, I am always looking for good solid 5% return investments.

See various historical interest rate benchmarks below so you can understand why I am happy with a 5% return. 

U.S. Prime Rate: Ranged from a low of 1.75% in 1947 to a high of 21% in 1980.  Currently at 3.25% 

See table: http://www.fedprimerate.com/wall_street_journal_prime_rate_history.htm

U.S. 10 Year Treasury Note: Ranged from a low of 1.6% in 2012 to a high of 15.8% in 1981.  Currently at 2.62%

See chart: http://finance.yahoo.com/echarts?s=%5ETNX+Interactive#symbol=%5Etnx;range=19790314,20131122;compare=;indicator=volume;charttype=candlestick;crosshair=on;ohlcvalues=1;logscale=off;source=undefined;

U.S. 30 Year Treasury Note: Ranged from a low of 2.7% in 2012 to a high of 15.2% in 1981.  Currently at 3.48% 

See chart: http://finance.yahoo.com/echarts?s=%5ETYX#symbol=%5Etyx;range=19790806,20131122;compare=;indicator=volume;charttype=candlestick;crosshair=on;ohlcvalues=1;logscale=off;source=undefined;

U.S. 30 Year Fixed Home Mortgage rates: Ranged from a low of 3.35% in 2012 to a high of 18.4% in 1981.  Currently at 4.34% 

See table: http://www.freddiemac.com/pmms/pmms30.htm

This week, the world market indices were mixed, ranging Down from 7% (Nikkei 225) to Up 3.5% (Shang Hai SSE).  I can’t find an article explaining these Up/Down ranges for this week.  Read more here: http://news.yahoo.com/stock-futures-fall-jp-morgan-results-114655901--sector.html

Summary Table of Worldwide Market Index Closing values for this week:

 http://www.ultimatestockfinder.com/weekly_index_summary.GIF

I still think the markets are overpriced but I continue to look for good values on individual stocks of good solid companies. 

 

StockEvaluator ‘Short List’

View ‘Short List’ here: http://www.ultimatestockfinder.com/stockevaluator_short_list.xls

‘Short List’ screens using 12 fundamental value limits that I want to see in a stock before considering it as a possible buy. 

View our training video that shows how to enter your preferred values for each of these ‘Short List’ screening limits:

https://www.youtube.com/watch?v=FAwU48oEkJU

View the ‘Short List’ screening criteria and target limit values here: http://www.ultimatestockfinder.com/short_list_12_criteria.JPG

Stocks on the ‘Short List’ list this week are: GYRO, SPRT, WACLY, ATAI, FVE, CAJ, KYO, DCM, VSBN

I also use FinViz stock screener as a parallel check along with my ‘Short List’ to find good fundamental stocks that are near their 52 Week Lows.  Here is the FinViz stock screener link set to the 9 out of 12 ‘Short List’ limits that are available at FinViz.  

This is in the FinViz ‘Custom’ view:

http://finviz.com/screener.ashx?v=151&f=fa_debteq_u0.8,fa_ltdebteq_u0.8,fa_netmargin_pos,fa_pb_u2,fa_pe_u20,fa_ps_u2,fa_salesqoq_pos,ta_highlow52w_a0to10h&ft=4

Next Monthly Meeting 2^nd Tuesday of Each Month:

Tuesday, May 13, 2014, 7:30 PM at my house. 

Here are my Stock BUYs for This Week:

Stock Symbol:

Buy Date: 

Buy Price:  

Target Sell Price:

Here are my Stock SELLs for This Week:

Stock Symbol: 

Sell Date: 

Sell Price: 

Buy Price:

Buy Date:

Here are my Mutual Fund BUYs for This Week:

Fund Symbol:

Buy Date: 

Buy Price: 

Target Sell Price:

Here are my Option (CALL or PUT) Sells/Buys for This Week:

Option:

Stock Symbol:

Sell to Open Date:

Expiration Date:

Strike Price:

Option Price:

Visit www.ultimatestockfinder.com to download our Stock Evaluator and Mutual Fund Evaluator spreadsheets, read training articles and check out all our web links for investing information.

Please remember to send me any other investing ideas, information or questions that you want to share with the group.

Thanks,

John D.

Disclosure: The author has no positions in any of the stocks or mutual funds mentioned in this article unless clearly stated above. We certify that except as cited herein, this is our work product. We received no compensation or other inducement from any party to produce this article.  Please see our full legal disclaimer at:  http://www.ultimatestockfinder.com/stockevaluator_disclaimer.html

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