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Stanley Barton  

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  • Refreshing Our Best-Of-The-Best Dividend Portfolio [View article]

    This group represents stocks that have appeared in previous articles because they had some characteristic that would create growth or a special situation or simply were undervalued by typical metrics of PE, Price to Sales, Price to Book, Cash Flow per share, etc. These were not the product of a screen specifically for income stocks. I do not start looking just for yield. However, if I find a stock that I think is solid and happens to pay a good yield, that is all the better. As a matter of policy, even our most aggressive portfolios are expected to yield at least 2%, so we are always looking at yields. If I were to use a screen, I would probably start with something like PE<20, Price to Book<3, Prince to Sales<2, Dividend<60% of cash flow, EPS growth>5%, Yield>2%.

    Hope that helps,

    Jul 21, 2013. 11:54 AM | 1 Like Like |Link to Comment
  • Refreshing Our Best-Of-The-Best Dividend Portfolio [View article]

    We get frequent requests for a utility pick, and, as I mention, I really do not like those in general. EXC has been bad for investors, but the worst appears to be behind it. After the cut, it can afford to increase dividend in the future, so, as far as utilities go, it compares favorably with peers.

    By the way, we do not own EXC nor do any clients yet, so we are still sleeping pretty good with our holdings. Frankly, we do not prescribe to the traditional market attitude of some that "bigger is better." We are not afraid of well-run little companies your moniker (Spanish for "I...little smooth one" for readers)

    Thanks for reading the article.

    Jul 20, 2013. 03:23 PM | Likes Like |Link to Comment
  • Refreshing Our Best-Of-The-Best Dividend Portfolio [View article]

    Thanks for introducing me to HMN. It looks like it has been a big winner, and it has some good value metrics, as you mention. I need to do more research, but it looks like the PE ratio on future earnings is a little higher than the ones I am looking at and growth is slow, per YAHOO stats. I will put it on my watch list and dig a little deeper. Dividend looks solid though.

    Another small FL insurer I like is FNHC, although the dividend is a little low. It may be a good growth opportunity for those not so dividend driven.

    Jul 20, 2013. 01:12 PM | Likes Like |Link to Comment
  • Refreshing Our Best-Of-The-Best Dividend Portfolio [View article]

    BME normally declares a big special dividend at the end of the year, and I include that in the yield. BME has a large portion of realized and unrealized capital gains, so the dividend yield looks solid for some time to come, without "return of capital" treatment. This is a dividend portfolio, and I don't think there is another biotech and health care investment with this kind of reliable yield. Also, it writes call options on its holdings to increase income. Obviously, if the holdings do really well they may get called, and so the capital gains on this fund will be held back by this strategy. On the other hand, the strategy will produce income and buffer downturns.

    Hope that helps.

    Jul 20, 2013. 01:04 PM | Likes Like |Link to Comment
  • Refreshing Our Best-Of-The-Best Dividend Portfolio [View article]

    I cannot argue with any of your comments, and that is why we are keeping HCI.

    I also agree that the UVE management insisting on the precious metal investments gave me some pause, but this management is also buying back shares and is very dividend friendly. Now that the investment portfolio has been placed in more stable instruments, the Q over Q comps should be very good for UVE. All these FL insurers are doing great, I just thought a little diversification would be good considering our profits in HCI.

    I was very happy that HCI chose to increase the reinsurance coverage, as that was really the only concern that I had about their operations.

    Thanks for reading the article.

    Jul 19, 2013. 03:57 PM | 1 Like Like |Link to Comment
  • Finally, A Reason To Buy Gold Miners [View article]

    Thanks for the intro to PTQMF....looks very interesting. I should mention that a quick calculation based on the 3rd quarter report is that the break even price of gold for them is actually about $1264. Cash costs do not take into account operating costs, and they are spending on exploration and expansion, so they could lower that break-even number by slowing down the initiatives. Nonetheless, it looks like a potential winner, at $.30 a share and $.10 per share in annual free cash flow. I will need some time to analyze it to see if that is the case.

    I do know COLUF, but since I own SAND, I have not considered a direct investment in that one. I will look harder at it also.


    Jul 3, 2013. 12:37 AM | 1 Like Like |Link to Comment
  • Finally, A Reason To Buy Gold Miners [View article]
    There is a lot to like about AEM, regardless of the Zack rating (which is probably bullish, insofar as one day they will upgrade the stock). It is in my top 5, but I cannot buy them all.
    Jul 1, 2013. 04:44 PM | 1 Like Like |Link to Comment
  • Finally, A Reason To Buy Gold Miners [View article]

    It appears that AEM and AGI probably calculate the "all-in" costs differently, probably to enhance the comparison. I think that is the point of the WGC standardization.

    I should mention that Zacks a few days ago downgraded AEM to a sell, citing high operating expenses, which are not usually included in the "cash costs." The release:

    According to the YAHOO stats, the debt of AEM is decidedly a higher percentage of market cap and is about 2.75 times the cash assets. This is relatively high in comparison to AGI, AUY and GG. It may acceptable, but debt load is a problem for miners that are barely making money at low gold costs...they do not have the same options of adjusting production like a no-debt producer like AGI.

    Hope that helps,
    Jul 1, 2013. 02:43 PM | 1 Like Like |Link to Comment
  • Finally, A Reason To Buy Gold Miners [View article]

    Good observation.

    Many have gotten burned trying to guess the gold bottom. To limit the downside risk, I decided to look at cheap out-of-the-money mid-term options in gold miners when the spot price hit our $1240 level. I bought AUY and GG options, but Alamos does not have any options available.

    Hope that helps,

    Jun 29, 2013. 04:59 PM | 1 Like Like |Link to Comment
  • Dead Cat Bounce Or Next Leg Up For Homebuilders? [View article]
    I do not yet see a bubble in housing, for following reasons:

    Buyers are under much more scrutiny for credit-worthiness...bu... occur when people start speculating that have no business in the market, as in the crisis.

    The cost to build a house is more than the cost of existing homes in most cities. The cost of materials are rising and builders' gross margins are less than 20% typically. The housing market has to catch up on years of commodity and labor increases.

    I am not sure there is a lot of long-term profit left in these stocks compared to other sectors, but that is why we limit our bets to options.

    Hope that helps
    Jun 29, 2013. 12:53 PM | Likes Like |Link to Comment
  • Finally, A Reason To Buy Gold Miners [View article]
    I always keep some precious metal exposure in diversified portfolios, just as I keep exposure to energy, healthcare, etc., so I am holding on to HL and AUNFF as I believe their cost is low and have opportunities for growth. I cannot see silver much lower, although short-term anything is possible. As a long-term investor, I bought some cheap options to purchase both gold and silver miners in the event of a bounce back. I think this is a way to not get left behind, without committing too much capital.

    Hope this helps
    Jun 29, 2013. 12:11 PM | 1 Like Like |Link to Comment
  • Advice For The Lovelorn Investor: 2 Stocks That Cherish Shareholders [View article]

    I am a long-term holder of MIL and continue to hold. I like the little 3% divvy and even though it has disappointed in last earnings report, I do not think that is a trend. It is still under book and CEO Smith has a history of good deals. It is not a good trading stock, but I expect it to gradually grow in both price and dividend from here.

    I like the PMD dividend at 5.5% and I think it is safe. However, it looks like their latest initiatives are slow to pay off. I am inclined to watch this one until the next quarterly report in August.

    Hope that helps.
    Jun 28, 2013. 02:00 PM | Likes Like |Link to Comment
  • Beware The Trap Door Under Miners' Silver Reserves [View article]
    I am now holding a small position in RVM and I plan on holding for the long term. I do think that the latest announcement of additional structural damage at the Troy mine is very serious. Management is even shading the PR to open the door to possibly abandoning the mine. I do not think that will happen, but the layoffs probably mean no revenue this year and that likely means dead money investing in RVM this year.

    Having said that, the company has some cash and potentially valuable properties. The silver is not going anywhere, so I can see RVM back around $5 in a few years. I would rather have a little spare money sitting in RVM than low interest money market or bonds during that period. Long-term, I think that silver will rebound, so the present price looks like good value from that perspective.

    May 24, 2013. 11:27 AM | 1 Like Like |Link to Comment
  • Beware The Trap Door Under Miners' Silver Reserves [View article]

    If the Shafter mine produces as expected, I believe it will be the third most productive silver mine in the US, after HECLA's Greens Creek and Lucky Friday mines. With the production from Mexico, AUNFD will indeed be a major producer. That is one reason why I am anxious to find out if the Shafter mine will meet expectations.

    May 18, 2013. 05:12 PM | Likes Like |Link to Comment
  • Beware The Trap Door Under Miners' Silver Reserves [View article]

    I did catch most of the RVM conference call. I must say it was not very encouraging. Basically, they put off providing any specifics about the Troy mine situation until a report they will issue at the end of the month. The fact that they are still "evaluating" tells me that the mine closure may extend longer than the current quarter. On the upside, RVM has not laid off anyone, and they responded that the problems were related to "logistics" of moving material, which presumably is better than a problem that would affect the resources. I guess we will have to wait until the end of the month, but I suspect that the report then will address delays in getting the mine open.

    Rock Creek was not discussed, other than to say they are continuing their plan to develop that property. I think that everyone assumed that the Rock Creek progress depends first on the cash flow from the Troy mine, so that mine was the focus of the call.

    I am holding RVM at this very beaten down price, but I think I am going to wait for the month-end report to decide what to do regarding this company.

    Hope this helps,

    May 14, 2013. 11:27 AM | 1 Like Like |Link to Comment