Monday, December 14, 2015


On Monday, December 14, 2015, I sold the following

  • 80 shares of BBL at $20.65 for a total of $1,644.97.
  • 34 shares of SOUHY at $3.51 for a total of $112.34.
  • 11 shares of NSC at 90.10 for a total of $984.09.

In return I received $2,756.91. I lost -$236.76 from my dividend fund but received -$3000 for tax harvesting reasons. I expect to receive $1,100 from the federal government next year plus whatever Nebraska and Missouri gives me. I expect it to be anywhere from $1,500 to $2,000.

Rationale: 10% of my dividends came from BBL. 30% of my exposure is in the oil/basic materials. And quite frankly investing in this field is giving me a headache. If you want to know about the inverse SWAN principle go invest in the basic material sector. Nothing hurts more than admitting that I was wrong and I wasted my time/money but life goes on. 

BBL and SOUHY are going down. BBL has no other choice but to cut its dividend. According to its forward statement to maintain its current dividends it has no choice but to cut by 50%. And even after the 50% cut there is no free cash flow for capital expenditures. I may buy back into BBL when the dividend cuts come. I expect at minimum 50% and at max 75%. I could be wrong but this is what I get for chasing yield.

There is nothing wrong with NSC, in fact, I actually made $100 profit. I only had 11 shares and wanted to reduce my exposure in this sector as well.

I will hold onto the $2756.91 for now (3 days rule). I really want to get into the utility sector or more consumer goods. Or if JNJ drops back down to the low 90s I might just toss it all in there. The only reit I will consider is O. My goal in 2016 is to reduce all this crap and focus on defensive stocks.  CORR I'm looking at you!

Watch list:

  • UL under $40
  • SO $42-44 (I really really want SO to reach 42)
  • JNJ $91-95
  • O- $42

My forward income is now $2024.90 + FCISX distributions. 


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