Pepsi Increases its Dividend

by Glenn Busch May 3, 2012
Thumbnail image for Pepsi Increases its Dividend

The equity portion of our fund, the Fallen Angels Income Fund (FAINX), primarily invests in companies that we view as undervalued. We also are looking for stocks that pay a dividend, usually between 2-5%, and have the ability to grow their dividends over time. So it’s music to our ears when a position we own in the fund announces a dividend increase. Today Pepsi Co. (PEP) announced a dividend increase.

[Read the full article...]

Phillips 66 Spin-Off to Join ConocoPhillips in S&P 500

by Glenn Busch April 26, 2012
Thumbnail image for Phillips 66 Spin-Off to Join ConocoPhillips in S&P 500

ConocoPhillips (COP) has been a position in the Fallen Angels Income Fund (FAINX) and our Enhanced Dividend Strategy for a while now. One reason for it’s addition into both portfolios was ConocoPhillips’ announcement to spin-off its refining business, Phillips 66 (PSX), to shareholders. We will receive our shares in Phillips 66 after the close on Monday, April 30. An added short-term bonus will be the addition on Phillips 66 to the S&P 500, joining ConocoPhillips in the index.

[Read the full article...]

Target Corp. Covered Call Trades and April Expiration

by Glenn Busch April 24, 2012
Thumbnail image for Target Corp. Covered Call Trades and April Expiration

By the end of February, Target (TGT) was the one position that looked stretched. It’s RSI was in overbought territory, the MACD looked like it had peaked and was about to roll over, and the stock had moved so far from its moving averages that it looked perfect for at least a consolidation move. Target begged to have a call written against it and I did at a strike of $57.50.

[Read the full article...]

Potential Total Real Returns and Tobin’s Q

by Glenn Busch March 30, 2012
Thumbnail image for Potential Total Real Returns and Tobin’s Q

Tobin’s Q stands at 0.87, as calculated from the latest Flow of Funds Report. The Q ratio is a tool to value the broad market but I don’t like to use it as definitive tool as to whether or not the stock market is over or under-valued. I prefer to use the Q ratio as a measure of risk versus reward. What type of real returns can I expect from the stock market if I put my money to work today?

[Read the full article...]

What Dan Loeb has Learned as an Investor

by Glenn Busch March 28, 2012
Thumbnail image for What Dan Loeb has Learned as an Investor

At the Columbia Investment Managers Association Conference hedge fund manager Dan Loeb layed out a few of the lessons he has learned as a professional investor and Market Folly was there to capture them. One of my favorites is Dan thoughts on value investing.

[Read the full article...]

Position Update: Bank of New York Mellon Passes Stress Test

by Glenn Busch March 22, 2012
Thumbnail image for Position Update: Bank of New York Mellon Passes Stress Test

Bank of New York Mellon is one the world’s largest custody banks and it is a position in our strategic dividend strategy and in our mutual fund, The Fallen Angels Income Fund (FAINX). Bank of New York Mellon is first and foremost a position in both strategies because we believe it to be undervalued. Second, it is a position in both strategies because of its current dividend and the potential for Bank of New York Mellon to grow its dividend.

[Read the full article...]

Keep Your Party Hat ~ But Don’t Lose your Head

by Gabriel Wisdom March 19, 2012
Thumbnail image for Keep Your Party Hat ~ But Don’t Lose your Head

The market years 2007, 2002-2000, 1998, 1987, and 1973 have a common theme. These were years where skeptical and reluctant investors felt they could not longer sit on the sideline while everyone else made money. In each of these periods, late-comers to the party were comforted by a familiar pattern. With stocks trending higher for several years, it began to look easy, even fun to make money. Caution gave way to complacency, and within months prices reversed course.

[Read the full article...]

Position Update: JP Morgan Passes Stress Test and Raises Dividend

by Glenn Busch March 15, 2012
Thumbnail image for Position Update: JP Morgan Passes Stress Test and Raises Dividend

JP Morgan (JPM) is a position in our strategic dividend portfolio and a position in our Fallen Angels Income Fund (FAINX). The equity portion of the Fallen Angels Income Fund and our strategic dividend strategy focus on finding not only finding undervalued dividend paying stocks but stocks that have the potential to grow their dividend. Entering this year we saw the financial sector, predominantly the large banks, having the potential to greatly increase their dividend payouts. They just needed to pass the Federal Reserve stress test and get any new capital plan approved by the Fed too. JP Morgan did both.

[Read the full article...]

Tobin’s Q from March 2012 Flow of Funds Report

by Glenn Busch March 14, 2012
Thumbnail image for Tobin’s Q from March 2012 Flow of Funds Report

The latest Flow of Funds Report was released by the U.S. Federal Reserve last week and from it we can update Tobin’s Q. From table B.102 we take line #35 “Market Value of Equities Outstanding” and divide it by line #32 “Net Worth (Market Value)”.

Tobin’s Q is now registering at 0.87.

[Read the full article...]

Position Update: Exelon Clears a Hurdle

by Glenn Busch March 13, 2012
Thumbnail image for Position Update: Exelon Clears a Hurdle

Exelon (EXC) has been a laggard in both our strategic dividend portfolio and in the equity portion of the Fallen Angels Income Fund (FAINX). Besides depressed natural gas prices and a renewed negative sentiment on nuclear energy, Exelon’s share price has been dragged down by the status of its potential merger with Constellation Energy (CEG).

[Read the full article...]

← Previous Entries