Bruce Faitsch

Long only, portfolio strategy, dividend growth investing, growth at reasonable price
Bruce Faitsch
Long only, portfolio strategy, dividend growth investing, growth at reasonable price
Contributor since: 2015
Company: Retired
Good summary, well said. Thanks
Cal Maine has removed the map that was on their website. Follow my link and it indicates it was removed. I took that map off their website last Friday. I don't know why it was there, but it has been changed. Perhaps they added producers they don't own on the old map, I don't know.
I changed the map from what was published originally. The original map was apparently removed from the Cal-Maine website. I'm only going by their information.
Expect the dividend to vary over the 4 quarters. From Cal-Maine website:
Retail sales of shell eggs are greatest during the fall and winter months and lowest during the summer months. Prices for shell eggs fluctuate in response to seasonal factors and a natural increase in shell egg production during the spring and early summer. Shell egg prices tend to increase with the start of the school year and are highest prior to holiday periods, particularly Thanksgiving, Christmas and Easter. Consequently, we generally experience lower sales and net income in our first and fourth fiscal quarters ending in August and May, respectively. As a result of these seasonal and quarterly fluctuations, comparisons of our sales and operating results between different quarters within a single fiscal year are not necessarily meaningful comparisons.
Finici: Egg prices soared in the Northeast due to the flu, but Cal-Maine was able to hold down prices enough to gain market share, at least in my area. But they also were able to benefit from higher prices while holding down costs. EB egs were $2.50 doz while other producers wanted $4.00 in my supermarket. That is one reason why we switched and became aware of the company. I don't expect this stock to be exciting, and I'm prepared to see a dividend drop in the next two quarters; I'm in this for the long term. The duller, the better for me.
David RG & others : I did comment on avian flu; please reread. "During the past avian flu outbreak they were able to continue steady increases in egg production without a setback."
Re future dividend Read again: " My concern centers around the next two quarters of estimated income being lower than the current quarter; I don't know how that will affect the dividend," I see this stock as a long term addition to my portfolio that is currently paying a high dividend, but it probably will be reduced in the next two quarters. Consequently, I hold a small position in the long term hope that the company will grow. It has many characteristics of a growth stock, and it is the largest egg producer in the country. I like to buy stocks that are number one in their business.
good article, thanks. I own B&G, and I recently added CAL-MAINE (CALM) to my retirement portfolio, too. We buy Eggland's,Best eggs, and thats how I got that idea to research the stock.
Good luck, I hope you do well with this portfolio, but it is too risky for me. Everything above 7% yield is limited to less than 10% of my total.
Brad - thanks for pointing that out.
IMO seven stocks is way, way, too few for a retirement portfolio. I do realize your purpose in writing this article, and I think that is only a minor convenience. I have over 40 issues and although my issues paying in January and subsequent quarters in that cycle are only half of the other quarters payments, I just average withdrawls bimonthly. I have already run into one holding (KMI) with a sharply reduced payout, and the small raises in the others don't make up for the loss in income. But, it's less than 2% of my portfolio. Brad, I do respect your writings very much, but I think that this one is too risky for someone depending on these seven investments alone.
Thanks, Finici. I was beginning to wonder if I was getting through at all. I wish I could find more preferreds with good fundamentals that are selling a a fair price. I would like to have more than 10% in pfds, they are really helping stem this downtuen. Also, TOO cut their common dividend, but the preferred is still getting paid (or so I was told.) TOO and KMI are down so much I'm beginning to wonder about them both. But here's my main point in action, both stocks compose a small percentage of the portfolio. Even 20 stocks is too few!
I have been through three bear markets, It is no fun. My advice is to ,quit listehning to, talking heads and sit on your hands. I think we are in for at least a major correction and probably a bear market. Rule number 1 is dont sell anything!
I stand by what I wrote., and You are not neutral because of the delta value of the caLL.
My article is correct, I double checked. My answer to you isnt clear because I said "in the red" when actually the calls value is higher. But because you are short as the stock goes up your call will cost more than the $2 to close early, so to you its "in the red" You do get to keep the $2 but you lose the stock if it is higher than the strike plus the gain on the stock thats more than $2 over strike. Also, Because the delta value is not 100% the stock price goes up more than the call price. You make money on covered calls if the stock price is static or goes down because you wont sell the stock at a loss.
That doesnt usually happen in real life. If the stock goes up on a short call the call will go into the red, not make a profit, although this loss on the call is less than the stock increase. But you give up (say) half the stock gain. The big problem is that if you sell a call at the money and the call goes into the money the stock will be called away at closing, but often even earlier. Or you will take a loss on the call if you close out the call early. If you set up a trade with the call way out of the money you won;t get squat for the call. Sometimes if you have a large paper profit on a stock and you want to sell it then your scenario would work giving you the premium plus the profit. But in practice it is difficult to set up for maximum profit because if your stock goes way over the strike price you forfeit that gain. For a very volatile stock I have had better luck with spreads in my non-IRA.
I would be disappointed to see Peoples Bank taken over. It has a very long history in Connecticut - over a century if you go back to Peoples Savings of Bridgeport. I have seen some very good small banks in Ct taken over - mostly New Haven and Hartford entities that had excellent customer service and were loyal to customers - I was able to obtain a mortgage while building my home over forty years ago with my Second National of New Haven when there was NO money available for a mortgage in the whole area. Talk about tight money. They even sold some bonds to find the money for me. That was real customer service. But I digress. I like getting over 4% dividend from Peoples, and I ,like their customer friendly attitude. The stock won't make me rich, but it helps my balance of payments.
This brings to mind a movie. If you haven't seen the movie "Margin Call", it is a must for investors. I thought it was fascinating. Currently available on Amazon's free movies (for free shipping subscribers)
Just bought more AT&T. Also own Verizon. I used to be a ATT customer until they sold out to Frontier. Verizon's mobile service is better in my area, we went from ATT mobile to Verizon for that reason. We own both but are doing better with ATT than Verizon. BTW Frontier has much poorer customer service than ATT. Verizon also has poor customer service.
Staff is clueless. They had fresh clams on one trip and I asked if they had shucked clams available. The fish market person had no idea what I was talking about.
Agree completely. A new FM is in my town that is already served by an excellent large market specializing in their own grown fruits and veggies, baked gooda, etc. They were concerned that FM would cut into their business but more and more people realized tHat FM is not a reaL competitor. Prices are higher and the quality is not as good. I tried some of their food and found quality inferior to even the 2 supermarkets here - Stop & Shop and Big Y.
Although I normally dont short stocks, I might open a short position on thias one. Excellent article, thanks.
I'm holding on to TOO preferred - they said they will not cut that dividend. If that holds true, I will keep the stock. But, its disappointing - I spent much time researching this stock, and it looked good at the time- they were putting new ships into action and sounded like they were optimistic. Stick with the best company in each industry and dont wander.
Great pick, excellent article. I have been holding Cummins for the past 3 months through a considewrable price drop. I think a bottom ocurred this past week; it has been going up for several days. I have a full position, but I might add a few more shares - I agree with everything you said about it. Best wishes for 2016!
I bought TOO/PB that is cumulative. No sweat at this point in time. Worst cae is the .53 divvy will be delayed.
Also consider the WFC preferreds if you are looking for dividends
Generally I pick a strike higher than my basis for a covered call. For those who bought much higher thanit is now, those calls are nonexistant or worthless. If you choose a strike at the money, you have a good chance (50% or higher) to be assigned, so you will suffer the capital loss anyway. Too risky.
If shareholders are leaving in droves, why has 10M shares traded before 9AM and the stock is up 75c over yesterdays close.
Your facts? For starters KMI is NOT an MLP. Get some facts to substantiate your remarks. Deserts and Tennis have nothing to do with what is going on here.
Where do you get 3.3B cash flow, or how did you calculate that? KM's latest information gives an estimated 5B cash flow for 2016. Your figure sounds like 9 months.
I recommend today's article "Down 40% Why I will not sell KMI"
A quote suns up my opinion better than I did:
It is my opinion, that KMI's stock has been greatly mispriced by the market. Some of that is fear and some of that is tax loss selling. I believe KMI's business is performing very well, yes the CO2 business has been hurt by low oil prices, but the rest of the business is performing very well. I also believe the future for KMI is very bright. They have wonderful assets in great places and they will benefit immensely from the growth in natural gas.
Excellent article, thank you. You have repeated in greater depth and detail what I wrote in my article yesterday. I hope everyone gets to read your data and conclusion; I strongly feel KMI is being sandbagged by ignorance and fear. The facts should be brought to everyone's attention. One point I saw in my comments yesterday that is telling about the selling: Institutional traders are required to sell to cover outflow of cash, and they select losing stocks. Probably for taxpurposes.
Thanks form the link. it is helpful. On another note KMI hit bottom at 15.13 this morning and is up to 16.30 already. I think that may have been the bottom for the dtock. Lets hope so.