Thursday, September 10, 2015

Investment Idea Sharing September 10, 2015

Investment Idea Sharing – September 10, 2015 

See below for my personal stock market Buys or Sells for the past month:
Buy Stock/ Fund:  JAHYX, PIXDX                     
Sell Stock/Fund:  

Sell (to Open) Covered CALL:   
Buy (To Close) Covered Call:               

Sell (to Open) Cash Secured PUT:  
Buy (to Close) Cash Secured PUT:         

See the details on each of these transactions below the Monthly Summary table.

The world market indices were ALL DOWN over the past month.  Since July 18, the Dow is down 11.0% and the S&P 500 is down 9.7%.  Both indices are now down for 2015, Dow by 9.7% and S&P by 6.7%.  Several reasons:  China devalued their currency; The FED may raise interest rates here in the U.S.; the price of oil continues to drop and has now dropped from $110 / barrel a year ago to $40 in August and back up to $44 now; and disappointing corporate profits.    
Read more about the possible impact of a FED rate increase here:

Monthly (was Weekly) Summary Table of Worldwide Market Index Closing values:

I am trying to find good dividend or interest paying mutual funds and stocks that pay about a 5% dividend/interest in order to build up our annual dividend/interest income.   

Since I sold all of my UVXY, USO and UCO holdings 4 weeks ago, I have cash that can be re-deployed to any good dividend and interest paying investments that I can find.
So, I have run several screens in Stock Evaluator and Mutual Fund Evaluator to bring good prospects to the top for me to do more research on.  There are many good companies and funds paying about 5%. 

Here is the link to a screen I ran using Stock Evaluator spreadsheet that has 15 oil companies that made it through my dividend screen.   Several are at 5 year lows.
The Screening parameters are: 
 Column B contains "Oil"      
 Annual Sales revenue >$900,000,000      
 Shares Outstanding >49,900,000  
 P/E <20
 Price / Sales <1.5   
 P/B <2.5
 Profit Margin >0%
 Dividend % >3.5%
 EV / Revenue <2.0   
 EV / EBITDA <8.0   
 Dividend Payout Ratio <70%

I here are the links to 3 Excel spreadsheets that I screened using my current Mutual Fund Evaluator data.

The first screen is on excellent taxable bond mutual funds that are at least as good as my favorite bond fund, LSBRX from Loomis Sayles.  I have owned LSBRX since 2002.  
The LSBRX Screening parameters are: 
  Net Fund Assets      >$1,000,000,000  (Col. H)
  Dividend Yield %    >3.0%  (Div. Yield in Col. I)
  Net Yield % after fund annual expenses    >2.4%   (in Col. K)
  10 Year Average Return %      >6.0%  (Col. N)
  Sales Load %     <0.1%

The second screen is on excellent Tax-Free municipal bond mutual funds that are at least as good as my favorite muni bond fund, VWLTX from Vanguard.  I have owned VWLTX since 2010.
The VWLTX Screening parameters are:
 Column B contains "Muni"
 Net Assets    >$1,000,000,000
  5 Year Average Return %   >4.0%
 10 Year Return %   >4.0%
 Sales Load %   <0.1%    (Col. V)
 Minimum Investment    <$50,000  (Col. W)

The third screen is on excellent large cap stock funds that are at least as good as my favorite managed large cap stock fund, FCNTX from Fidelity.  I have owned FCNTX since 1995.
The FCNTX Screening parameters are: 
 Net Assets    >$800,000,000
 Expense Ratio    <1.0%
  5 Year Return %   >16.0%    
 10 Year Return %  >9.0%    
 Sales Load %   <0.1%    
 Minimum Investment   <$50,000

I am using these spreadsheets to find better funds than the ones I currently own and I am planning to put more money into some of these better funds in the near future.  I still think the market, both stocks and bonds, may drop some more if the FED decides to raise interest rates, so I am not in a big hurry to invest more right now.  I will try to be patient.

Here are my Stock / Fund BUYs for This Month:
Fund Symbol:  JAHYX
Buy Date: 8/28/2015
Buy Price: $8.41
Target Sell Price: Hold for Interest
Current net yield is 5.72% and 10 year average annual return is 10%

Fund Symbol:  PIXDX
Buy Date: 8/28/2015
Buy Price: $5.68
Target Sell Price: Hold for Interest
Current net yield is 4.95% and 10 year average annual return is 6.8%

Here are my Stock / Fund SELLs for This Month:
Stock Symbol:
Sell Date:   
Sell Price:
Buy Price: 
Buy Date: 

Visit to download our Stock Evaluator and Mutual Fund Evaluator spreadsheets, read training articles and check out all our web links for investing information.
I have added several custom macro sort commands to StockEvaluator.xls and MutualFundEvaluator.xls to provide easy to run searches that will screen for the kinds of companies and funds that I think will provide this safe long term income to me.

StockEvaluator Custom Screening choices:
Download ‘StockEvaluator’ here:

Click on “Button C - Dividend Screener” to get a quick screened list of fundamentally good companies paying greater than a 3.5% dividend.  I am using this list as a starting point for my research on what to buy. 

Mutual Fund Evaluator Custome Screening Choices
Download ‘MutualFundEvaluator’ here:

I made 3 macro screeners to look for funds that are as good or better than my 3 favorite fund holdings.  I have held these 3 mutual funds for between 5 to 20 years and want to buy more of these same types of funds.

Loomis Sayles Bond Fund (LSBRX) buys intermediate term high yield bonds and has outperformed most of its bond fund competition over the past 25 years.  Annual dividend is currently 3.5% taxable.  Click Button C to run this “Better than LSBRX” screen.

Fidelity Contra Fund (FCNTX) buys excellent large cap companies and has out performed most other mutual funds over the past 5, 10 and 25 years.  Annual return is >12% for the past 25 years.  Click Button D to run this “Better than FCNTX” screen.

Vanguard Long Term Municipal Bond Fund (VWLTX) buys excellent muni bonds and has outperformed most of its muni bond competition over the past 25 years.  Annual dividend is currently 3.7% tax-free.  Click Button E to run this “Better than VWLTX” screen.

After you run each of these screeners, you must always put the spreadsheet back to where it started by Clicking Button A “Turn On / Off Data –Filter-Auto Filter Command”.  Then click Button Q to restore the spreadsheet to the Ascending sort on Industry & Symbol.  Then you can click any button to run a different screener.

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

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:

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