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David Stafford
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Student of markets, enjoys following their course.
My book:
Around the World in Several Pieces
  • Friday Fancies(FPO,FIW,CFWAX) 0 comments
    Feb 28, 2014 2:07 AM | about stocks: FPO, FIW

    It may be a very very premarket call per se, but there a few end of the week stocks that are looking relatively interesting and decent per se, now at the "wee hours" of the morning(on the east coast.)


    Amongst these are some water stocks. It may be that time where one's portfolio is looking pretty good. It may have a lot of un-correlated, at least from a purist sense per se(money supply in general, may effect "correlation" as recent history has shown), investments in it, but maybe there's room for water. If one looks over the holdings of an etf like FIW, many of the names may strikes ones self as unfamiliar perhaps. A lot of these stocks are kind of niche, and perhaps interestingly niche at that. Water is like farmland in my opinion at least, an interesting "play" for the future. The sort of use of the stock market as a sort of non-traditional almost money market account as of late has perhaps fueled some not so fundamental "growth" as of late depending on whom one asks, but water and land(farm land) may always sort of be valuable as long we have ever increasing numbers of people on the planet, or even a stable population with increasing standards of living, and the mass-dietary changes that this tends to correlate to(more meat, exotic stuff etc.) Either way water has surprisingly been sort of "killing it" as of late. If one looks at the past history of the mutual fund from Calvert Investments(MUTF:CFWAX), and the history of FIW, one may notice that their returns aren't too shabby as of late. I'm not a really a big fan of buying into that sort of price data pattern per se, because well, one is in a sense fighting gravity, profit taking, whatever one wants to call it, but the water service industry may be valued at an ever increasing premium in the future per se, and perhaps its always good to add a little of the bubbly or non-bubbly variety in one's portfolio for at least the beta exposure per se. As a side note their yields are still below conservative estimates of inflation, but.... hey, maybe price appreciation/growth can overcome that(as it has previously.)


    The second or third play perhaps of this Friday is FPO. FPO is a decent yielding REIT, at about ~4.5% or so, and its focused on the DC area. DC seems to be ever expanding as of late, perhaps due to the voracity and unabated flow of capital into the region, and its of course corollary diffusion throughout said same region. FPO has taken a good knock or two as of late and is a little worse for wares per se. According to at least one metric, analyst estimates, FPO is undervalued per se, and perhaps this pick is more in line with the blossoming tradition of picking the guys that took a beating at least somewhat earlier in the week as a decent "friday pick".


    Friday picks of course would not be complete without some image of "Scrooge" to cap off the article or at least punctuate it per se, so here he is;


    (click to enlarge)

    May everyone be as merry with one's investments as Scrooge is in this image, and may things be going well, one way or another. Thank you for reading.

    Stocks: FPO, FIW
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