Sunday, November 30, 2014

November Dividend

Hello Reader(s),

Time to report my November Dividend since everybody else is doing it.

  • DE       
    • 10.20
  • T          
    • 13.34
  • AAPL   
    • 1.41
  • ARCP   
    • 12.58
  • KMI     
    • 9.24
  • TIS        
    • 5.25
  • LTC       
    • 3.57
  • CORR   
    • 15.21
Total: $70.80

I bought 4 shares of HASI using my Scottrade Flip account adding 3.52 to my War Chest. This was a $70.80 increase over my last November Account.

How did you guys/gals do?

Friday, November 28, 2014

Black Friday Buy



Hello Reader(s),

Are you guys freaking out yet? Oil is $70 a barrel. ROPEC is threatening to destroy the petrodollar. The world is coming to an end. I'm freaking out man! Sell all your oil stocks now, ASAP! 

In other news I went Black Friday Shopping this morning. I waited three hours in the freezing rain to buy 19 shares of Chevron at $109 with the sweet yield of 3.93%. This is my first position in Chevron. This purchase adds $81.32 in annual dividend. SP Capital IQ fair value is $121.00.

This was all my December money. No more investing this month (except for my flip). I still have $3,000 in reserve funds for market corrections.

Did you guys get any good deals? I still want that 60 inch TV at walmart for 300 bucks.

*Disclaimer. Why are you guys even looking at me for investing advice? Are you on drugs or something? I'm not a licensed broker or financial attorney or w.e.

Sunday, November 23, 2014

BUY

Hello Reader(s),

Is it that time to report a buy already? Time flies fast when you're old. One day you're at home studying for senior finals and the next you're in a dead end job. What? Oh right, mining.

I bought 39 shares of BBL (BHP Billiton PLC) for $52.00.

For those new to the block. BBL is a mining company (not for bitcoins you darn kids). They are located in Aussie land with secondary offering in London. They are currently low because of China slowing down but the dragon will rise again! S&P fair value is $59. BBL pays semiannually; March and September. They will "demerge" next year into two company with a one for one offering (so I heard).

My forward total dividend increased $96.72. 

Stock Check: CORR (Corenergy) The ugly turtle













Hello Reader(s),

Like I promised, it is time to analyze Corenergy Infrastructure Trust, Inc. Thanks for reading this blog.

 1) History 

Corr is a unique stock. It began as a BDC with minority equity investment in energy infrastructure. Somewhere along the line it became the first of its kind energy infrastructure REIT. Meaning that no matter how much profit it makes, at least 90% must be distributed to shareholders.

2) How does it make money?

If you don't know what a company does, you can't understand how it makes money. That's just common sense. What does Corr do? According to its website

"CorEnergy primarily owns midstream and downstream U.S. energy infrastructure assets subject to long-term triple net participating leases with energy companies. These assets include pipelines, storage tanks, transmission lines and gathering systems. The Company’s principal objective is to provide stockholders with an attractive risk-adjusted total return, with an emphasis on distributions and long-term distribution growth."

In other words, other companies drill for oil. Unless you're a large MLP, Exxon, COP, or Chevron; you have no money to move oil/natural gas to market. Drilling for oil and gas makes a lot more money than moving it and refining it. But hiring a third party to refine and move eats a large portion of your profit. CORR provides an alternative. Go ahead and drill all you want. How about we let you use our midstream and downstream property in a triple net lease with you paying for our leases and maintenance on our pipelines?

3) Property 

OK, I understand how it makes money, just how much money will it make me? Let's take a look at Corr's properties. Note both pictures are from CORR website or its SEC filing.

  

CORR has a market cap of $229 million with total assets of approximately $320~ish million. The MoGas acquisition is being purchased for $125 million dollar. In my opinion, there are plenty of assets to produce that sweet cash.

4) Dividends

Why should you invest in a reit? For the dividends. Let's take a look at Corr's sporadic dividend history. Link of NASDAQ HERE. It began playing great dividends as a BDC and slowly decreased upon becoming a REIT. It cut dividends in 2010 to buy business properties. Since 2010, it began increasing its dividend with the latest increase to $0.135 per quarter with an expected $0.54 per annual dividend. In 2014, Corr raised its dividend twice. This increase is the first dividend increase for 2015. If the MoGas acquisition merges seamlessly, I expect another increase in 2015. Probably to $0.139 or $0.14. Every dollar counts.

5) Earnings-SHOW ME THE MONEY...or AFFO



 
                                     For the Three Months Ended For the Nine Months Ended
September 30, 2014 September 30, 2013 September 30, 2014 September 30, 2013

Weighted Average Shares 31,641,851           24,151,700                31,090,370       24,147,163
FFO per share $ 0.16 $ 0.13 $ 0.46 $ 0.40
AFFO per share $ 0.16 $ 0.14 $ 0.44 $ 0.39

From Corr's SEC filings. As you can see, Mo money Mo FFO/AFFO. I wish we had more data but again, this is a relatively young REIT.

6) CEO, Board Members, and company's strategy.


CORR is externally managed. Wait say what? Who is it ran by? Oh, by Tortoise Capital the $18.7 billion dollar energy infrastructure investor. You can buy Tortoise stock as either CEFs, MLPs, etc. Too many confusing companies for me to go into. Just know that their motto is slow and steady wins the race. Their other stocks have proven that being slow isn't always a bad thing. If you don't believe me, look at their other stock dividends. Especially their CEF. You don't become a $18.7 company by pure luck.

CORR is the same. It's no crown winner. It's ugly and boring with an annual or biannual acquisition. It's small, slow, and ugly. My type of stock. With all the craziness in the world, it's nice to have a nice quiet reit we can rely upon not called O Realty Corp costing 45 dollars a share. 

Conclusion: 


CORR is a boring, slow, reliable stock. It will eventually make you rich (fingers crossed). It's relatively risky since it's the first of its kind and has a short history of existence. But I trust Tortoise to guide its future. I currently hold 190 shares in my taxable account. If you're not concerned with money now, a tax deferred account is always a great place to stick your REITs.

*I am not a professional lawyer, stock adviser, or any of those other people. I am an amateur. this is my amateur analysis. If you trust me without doing your own research, you must be insane.

If any CORR employee is reading this, remember to raise the dividends.

Saturday, November 15, 2014

Hello Reader(s),

Remember when you were young (or still young)? Remember that question we all ask ourselves during our Doe Eyed stage? "Where do you see yourself 5 years from now?" Like all Doe Eyed young 20 something, I imagined my life to be special. I would be in a 40 hour a week high paying job (60k+) working overseas somewhere in Asia. Like all of us from birth to tombstone, I have no idea why I'm here or my role in life. For some odd reason, I believe working and traveling in Asia could answer a few questions.

So where am I now? I work 12 hours a day M-F, 10 hours on Saturday, and 8 hours on holiday (regular pay). I'm living in the Midwest and make on average 60k a year (40k base 20k OT) (my company loves to post our salary online....for some reason so talking about my pay is no big deal). I work in a normal unmarked building sitting in the seas of cubicles. Like most people, my work and employment wavers according to market demand. I could have a job today and be fired tomorrow.

After going through 2 bad years of unemployment, crappy job, and low paying job, I have finally found home with my current firm. As to date, I have $1,000 in the bank and a little bit of stocks in Scottrade. I have moved back home to my parents and love traveling 1 hour a day between two states for work.

So what is this blog about? It's my personal journey to reclaim that Doe Eyed Dream. Working in high paying job in Asia and maybe finding myself somewhere in the process. Most of you guys/gals are probably asking, why don't you just apply for a job over there? Simple, I'm a coward. I hate taking large risk and I have family obligations in the US. How am I going to achieve my plans? Dividend Investing. Yes, this is another dividend investing blog. I'm using this blog as a way to record my process (buy&sell). I'm a long term investor (20-30 years) kind of person. I will invest at max 2k a month. Some will be less and some will be more. I'll include some investing ideas as I go along. I know my one reader will appreciate my rambling nonsense. Will I achieve my goals or fall and burn? Won't you come and join my journey and laugh at me when I crash and burn. 

For those interested, my first stock analysis article is a comparison between CORR and HASI. Two overlooked high quality REITS in the energy sector. I call it Turtle vs Grass. Or beauty and the Beast. *title still pending.

*note. I am not a professional investor/adviser, tax attorney, or anybody you should trust for investing. Invest at your own risk. If you follow my guidance, you must be insane.