Sthenelus Worldwide is a loan acquisition company. We acquire loans, then purchase assets, and pay interest and principal back to our creditors. We have to pay interest and principal to our creditors per a written contractual obligation.
As we are obligated to pay back principal and interest we must keep our asset portfolio safe, secure, stable, liquid, and yielding a return.
The 3s (safe, secure, stable) refer to the stock categories we purchase. As a general rule we purchase stocks in the electric utilities, major drug manufacturers, major integrated oil and gas companies, and pipelines. Each have:
- Company financials are industry comparable and acceptable and from established companies(stable)
- A strong marketplace for products and services (secure);
- Low beta stocks (safe);
- They all are traded on major exchanges (liquid); and
- Produce dividends at a level that is above what we pay our creditors (yield).
To keep the portfolio balanced we also own gold and silver ETFs, and S&P 500 long and short positions.
The contractual obligation to repay our creditors keeps our portfolio pretty vanilla. We do own Seadrill (NYSE:SDRL) and Linn Energy (LINE), both are small positions and both return a high dividend.
Disclosure: I am long SDRL, LINE.