06.16.13

Good morning,

Happy Father’s Day to fathers. I suggest all wives buy them something they will truly love: drainage tools and sewer cleaning tools. I have attached a couple of images.

drainage1

 

drainage2

1. We will have another conference call on Tuesday, June 18th, 4:00 pm EST – 5:30 pm EST. I have been working trying to find the recording (I mistakenly pressed the “record” key – when Betty was going to; I am looking for the file.This is the “technical issue” Alex politely put it. Smile My IT ignorance shined again. I am working on the newsletter and (primary focus) and need to look some more.

Alex is super: please contact him with any feedback, etc: helpdesk@dividendlab.com.

2. Person A, who is a great listen/read, is very pessimistic. This is unusual. He rarely discusses any stock recommendations, hedging recommendations – but he did buy a double inverse equity last week.

He’s always neutral: but interest rates; market risks are here. We can’t (exceptions: on forum) simply buy stocks and not have puts and not sell covered calls. These are ways to decrease risk – and make money. We have to employ these strategies because buying a dividend stock at $20 for a 3% yield doesn’t work if the price-per-share goes to $16.

3. There have been a few massive option buying hedges (institutions) that I will add for portfolio protection – on DividendLab and on option side. At the same time, I am very bullish on many names. I am very bullish in the context of a well-balanced portfolio. One can’t look at any name I write about in a “vacuum”. I may be long protective SP500 puts – but that’s in context of our aggregate portfolio.

2A. Howard Marks does his thing with xyz.

2B. Phillip Goldstein does his thing with abc, efc, jkl.

If you look at the position size, there is a reason why these name are major positions for us. I hope the details are understood.

4. We own names that are short-term to 1-year out (Goldstein; catalyst plays)

5. We own names that are based upon stock buybacks, dividend, and the right sector.

6. To repeat: I don’t like adding to a losing position. It’s a losing position for some reason. Winning names are “winning” because something is right – all things equal. This does not apply to hyped/over-crowded dividend names (REITs, CEF’s, leveraged bond funds – which benefit during a decreasing market environment.

Todd

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