Thursday, December 14, 2017

Recent Buy: More Molson Coors (TAP)

We need more beer.


Pay day!

On December 14, 2017, I bought 12 shares of Molson Coors (TAP) at $79.50 per share for a total of $954.00.

Forward dividend stands at $5,719.57. 

Monday, December 11, 2017

Recent Buy: Molson Coors (TAP)

It's Miller Time


On December 11, 2017, I bought 12 shares of Molson Coors (TAP) at $80.00 a share for a total of $960.00.

It's that time of the year again. Last year the market oversold Diego (DEO) and this year it's Molson Coors (TAP). Seems like alcohol companies are sold off at the end of the year.

Quick recap

  1. Molson Coors (the people who make Coors Beer) bought the Miller Brewing Company for cheap when BUD bought SABMiller. This was an agreement with regulators to ensure BUD not steal the entire market cap.
  2. This added a lot of debt to TAP. So much that TAP froze dividends and buybacks to focus on repaying the debt at a rapid pace.
  3. Light beer is on a decline in the US for more craft beers.
  4. TAP lost US market shares to craft beers, but gained in the international market. 
  5. Unable to meet the market guidance TAP lost 30% of their market cap.
At around 2% with a fair price around $90-100 (depending on the analyst) I believe TAP is a cheap Canadian Consumer Defensive stock with more focus on cap gains than dividends. I would like to build this position to 50 shares, but unsure if I have the money for it. Currently at 19 shares. 

Forward Dividend stands at $5,694.77. 

Monday, December 4, 2017

November Review: Welcome to the 300k club

Lucky Chicken

Recent Buy

On December 4, 2017, I bought 3 shares of Molson Coors Brewing (TAP) at $80.00 for a total of $240.00. Why? Because after a hard day of work all you really want is a nice cold one (and it's greatly discounted compared to the rest of the alcohol sector). From CAD to US dollar that's about $0.41 per quarter and around 2%, but this was more of a cap gains play.

November Review 

Dividends Received


Nov
ABT$26.64
APD$5.74
CL$5.23
CLX$5.92
CVS$12.58
FCISX$0.20
GIS$112.80
HCN$83.65
HRL$37.69
LTC$9.65
O$17.83
OHI$17.92
PG$27.79
STAG$4.44
T$114.43
Total$482.51

Cash Flow


November
Bank$55,887.69
Merill Edge$151,571.03
Merill Edge Roth$15,344.42
computershare$3,750.84
401k$78,673.87
Total Portfolio$305,227.85
Full+partime job$6,070.11
Side hustle$53.52
Dividends$482.51
Total Cash Flow$6,606.14
Utilities $301.07
Car Bill$435.45
Misc. Spending $564.94
2 Car Insurance$984.00
Total Liability$1,984.39
Total Cash Flow$6,606.14
Total Liability$1,984.39
Gain/Loss$4,621.75
percent saved69.96%

Summary
  1. Just as I predicted the dip from the Whole Foods fiasco was overblown and the food industry roared back taking my portfolio with it and pushing me over 300K. 
  2. Good news is I'm over 300K. Bad news is many food companies are now back into overvalued territory.
  3. I'm moving my goal from 300K total assets to 315K total assets by December 31, 2017. 

What to buy in December
  1. Healthcare Reits - The baby boom health crisis is supposed to be coming in 4-5 years. At the same time interest rates are expected to rise causing fear in the eReit sector. A headwind vs a tailwind creates a buying opportunity.
    • LTC 
    • VTR 
    • HCN
  2. Whatever is on sale - a buddy of mine always say you can't predict what the Lord will give you. The same with the stock market. Let it ride and something will come your way. According to the Market the current buys are:
    • CVS
    • CAH
Some food for thought. According to ABCnews

"When it comes to individual income taxes, the Senate measure also makes broad cuts across income levels. However, most of the individual income tax provisions will sunset after 2025 unless Congress acts. The bill also includes a change to inflation adjustments that would raise taxes slightly compared to what they would have been under current law.

By 2027, every income group under $75,000 is expected to see tax increases according to the Joint Committee on Taxation."

Basically if passed everyone will get a tax break from 2018 til 2025 when it expires and then we revert back to the current tax levels in 2027. Why is this good news? More cash for the consumer from 2018-2025. It might not be much, but a paycheck day (every other Saturdays) is equivalent to wiping out all the inventory of a Walmart. Now Imagine if we gave those people even more money. Not trying to be political, but it's good to plan ahead instead of lag behind. If people are smart they would use that extra cash to pay down their debt...but both you and I know that it won't happen. 

Forward dividend is at $5,660.62. Portfolio updated.

Good job to all my fellow bloggers on their November income. Onward and Upward! As an aside the only way for this market to crash is when we heighten GDP growth expectation and the economy is unable to perform. When that will be is unknown. Every market ends in failed expectations. I've been seeing a lot of doom and gloom articles recently, but none mentioned that all of the previous crashes were caused by people expecting too much and getting too little. As of right now the central feds only expect 2% annual growth. When expectations are 4-5% annual growth that is when I expect the market to crash.

Wednesday, November 29, 2017

Recent Trades: Sell Campbell's Soup, Buy Altria Group, Buy Philip Morris




A portfolio is like a tree, it needs to be prune every now and then.

On September 27, 2017, I sold 22 shares of Campbell's Soup (CPB) (my entire account) at $46.04 a share for a total of $1012.88. I then used those funds to buy 16 shares of Altria Group (MO) at $65.36 per share for a total of $1,045.76.

On September 29, 2017, I bought 10 shares of Philip Morris (PM) at $102.5 per share for a total of $1,025.00.

Why did I sell Campbell's? In their last quarter cash flow dropped, their carrot harvest crashed, and they have en entire warehouse of soup because one of their buyers might stop giving them such shelf space (i'm thinking WMT). Plus they just acquired pacific foods for 200M but given their cash flow after dividends, debt, etc it would take them 20 years plus. Basically Campbell is a giant clusterfuck and really need a new CEO and board members. It's sad that the brands I grew up on have no idea how to utilize their assets. All the CEO does is repeat how disappointed she is with no clear guidance.

Philip Morris has a worst problem. they have too much demand and not enough supply of their IQOS. Poor PM.

Overall I made $0.67 in cap gains from this buy. 

Forward dividends stand at $5,653.58.

Monday, November 20, 2017

Why I bought ConAgra

One box contains 12 of these bad boys and within a day all 12 are gone.

Story time:


On Friday, November 17, 2017, I received a phone call from my boss at Walmart asking if I could do an 8 hour night shift since the frozen foods guy had to take emergency leave. Now warn you I just worked a 14 hour shift at my main job and I appropriately stated "no" to which he responded "I'll pay you overtime since you already worked 40 hours." Without thinking rationally the mere words of overtime forced my compliance.

Stocking the frozen meals section I started pondering. How could I build a grocery store from the ground up using the stocks I currently possess?

Real estate + land: WMT
General goods/dry food: GIS, HRL, CPB
Bread: FLO, CPB
Snacks: HRL, CPB, TSN, GIS
Breakfast foods: TSN
ready to eat meals/deli foods: HRL, TSN
frozen snacks: GIS
Frozen meals: _________

After researching I found the two major players in the frozen meals section; Nestle and Conagra. Your biggest question is why would I buy Conagra Foods over a super giant like Nestle? Nestle has grown revenue and net income by cutting cost and selling off product lines that didn't produce results. Even now they are in the process of looking for someone to buy their US confectioner brands.

What is Conagra doing? They are trimming off brands that failed to produce a profit. They reorganized their frozen meals to focus on quality over volume. instead of one dollar banquet meals they are now offering three to four dollar meals focusing on offering healthier choices and bigger portions. Conagra is currently in the process of releasing new innovative products for the modern world like non-lactose reddi whip made from almond milk.

But the main reason I decided to buy Conagra was for the CEO. People like their Bezos and Musk, but I love me some Connolly. Recently at Conagra webcast an interesting question was asked. Here's the link How will Conagra compete in a world rejecting brands for private labels? His response? The public is not rejecting brands, it's the brands that are rejecting the public. In other words, brands refuse to innovate for the modern american which left a huge void. Private companies saw the opportunity and jump into the void. How can brands complain of private companies when they themselves don't compete in that area?  Accordingly, he argues that brands lack the same weight to the modern generation compared to its historic customers. Modern Americans are willing to pay five dollar for a cup of coffee, but nowhere is anyone offering a full healthy fulfilling meal for that price. Connolly goes on to explain how companies are failing to capture millennials unstable dining schedules (referring to Millennials deciding what they will eat for dinner only a few hours before they actually eat). That Millennials tend to be on a tighter budget and buying fresh organic foods only to see them rot is creating a gap that Conagra frozen meals is trying to capture.

Any avid dividend investor in the food sector should listen to this conference. It's only 45 minutes long and captures everything wrong with the current food companies. Listen on your way to work or before bed to help you sleep at night. All I have to say is buying ConAgra added a bit of spice to my portfolio. A wise man once told me that investing in the market requires more than spreadsheets and analyst opinions. A true investor can stand on his own two legs and with conviction state that X company will grow and make me more money. If you don't have that conviction then you shouldn't be investing in that company.

As of right now ConAgra is my greatest conviction in the market and I will continue to use my walmart money to buy it until I reach 100 shares. 

Recent Buy: ConAgra



On November 20, 2017, I bought 28 shares of ConAgra (CAG) at $35.71 per share for a total of $999.88. This is a pure speculation buy. This has nothing to do with fundamentals or cheapness. I'll explain why I'm doing such a crazy move in another post. Forward dividends stand at $5,581.31.

Thursday, November 16, 2017

Recent Buy: MO


On November 16, 2017, I bought 15 shares of Altria Group (MO) at $65.79 per share for a total of $986.85. This will increase my forward dividends by $39.60 per year. MO is currently trading at historic fair value. Not too rich not too poor. Just bland.

Total shares of MO moves up to 73.6888. Forward dividends stand at $5,549.70.

Updated buy list:

  1. I was thinking of buying AQN at $10.5 and it ran to $11.00. If it goes back down to $10.50 I might make a speculative buy.
  2. ADM if it goes back down to $38.50- 38.75. I am long grain processors. 
  3. Or I might just buy $500 VTR and $500 HCN. Both are trading at or near fair value and I really want to increase my hospital exposure.
  4. Or something else go crazy and crash. did you see SJM and WMT this morning?  

Friday, November 10, 2017

Recent Buy: Archer Daniel Midland



On November 10, 2017, I bought 25 shares of Archer Daniel Midland (ADM) at $39.50 per share for a total of $987.50.  My forward dividend stands at $5,510.10. 

Monday, November 6, 2017

October Review: Buys, Recap, Watchlist

*They found this lifeboat right after Harvey. No idea where it came from.

Finally back from Houston.

Recent Buy

On October 26, 2017, I bought 19 shares of Realty Income (O) at $53.50 per share for a total of $1016.50.  On October 31, 2017, I bought an additional 19 shares of Realty Income (O) at $53.50 per share for a total of $1016.50.

October Review 

Dividends Earned 

Oct
AQN$1.51
CAH$15.35
CB$4.28
CPB$7.70
DEO$16.15
FCISX$0.20
FPI$0.52
GPK7.62
HASI33.81
ITW5.48
KMB6.84
KO86.58
LTC9.61
MDLZ0.22
MDT46.25
MKC4.25
MO38.35
NKE0.54
PM9.71
STAG4.42
STOR75.48
WPC15.3
Total$390.17

Cash Flow


October
Bank$52,632.12
Merill Edge$142,108.40
Merill Edge Roth$15,063.76
computershare$3,181.49
401k$74,621.55
Total Portfolio$287,607.32
Full+partime job$6,112.74
Side hustle$52.88
Dividends$390.17
Total Cash Flow$6,555.79
Utilities $211.18
Car Bill$435.45
Misc. Spending $574.88
Total Liability$1,221.51
Total Cash Flow$6,555.79
Total Liability$1,221.51
Gain/Loss$5,334.28
percent saved81.37%

Summary
  1. Utilities were low since I was gone most of the month.
  2. I'm still working towards $300,000.00 total by December 31, 2017. I need to somehow make $13,000 in two months. 
  3. The majority of my portfolio are in consumer defensive and reits (mostly single tenant and healthcare). Both are being hit by the Amazon effect. As such I am trailing behind the S&P 500. 
November Watchlist 
  1. Nothing changed. I'm still buying more consumer defensive stocks. The Amazon effect won't go away until Amazon either gets taken out or people completely change their buying habits. Instead of adding new positions, I would like to build up my pre-existing positions. 
  2. Noteworthy stocks this Month includes
    • Altria Group (MO); prefer $60
    • Archer Daniels (ADM); prefer $45
    • Kimberly Clark (KMB); prefer $110
    • Dominion Resources (D); prefer $78
    • Pepsico (PEP); prefer $100
    • Procter Gamble (PG); prefer $80
  3. At the same time I could wait out for the tax harvesting season to end which is near the beginning of Christmas and leads to the Santa Claus rally (if they are still doing that).
  4. My Capital One Money Market just increased their savings rate to 1.3% so there's that in mind. I haven't really decided what to do yet. 
  5. Like always I let the market guide me. A few things I've learned about investing. I want to share with you readers
    • Two years ago the market declared the death of hotels. Air B&B was supposed to wipe out the entire hotel business. Hotel stocks became cheap and I was fearful listening to talking heads. After a miss by a few hotel companies/reits it looked like the death of Hotels...but it never came to be. The industry consolidated and got stronger based on great values.
    • Last year was the death of industries. The world's global economy was supposed to enter stagnation and soon depression. A few industries missed their earnings and it was the death of industrial stocks. Again I was fearful and let that fear induce me to selling off all CMI at $110...which is now $150. Again nothing happened.
    • This year is the death of retailers and food companies. Amazon is going to wipe out the entire food industry with whole foods. A few food companies missed their earnings and we are currently in a defensive route. Instead of being fearful I idiotically jumped into the fray and bought huge amount of consumer stocks. Am I right that this time or will this trend actually fulfill its promises? I don't know. I only buy what I know and I know real estate and food. What could be the dog of 2017 could become the golden goose of 2018. 
My portfolio page is finally updated. Forward dividend stands at $5477.73.  

Have a late great Halloween and enjoy time with your family. Seeing so many people displaced into homeless shelters make me realize how easy it is to destroy a person's livelihood. I'll add another post in the future about the importance of $400. So important that people killed each other for it. 

Thursday, October 19, 2017

Recent Buy: Hormel Foods

Sometimes i feel like I'm the crazy one and everyone else is a genius

On October 19, 2017, I bought 34 shares of hormel foods at $30.50 per share for a total of $1037.00. This brings my total shares to 221.6951. Forward dividends stand at $5,340.50.

Tuesday, October 17, 2017

Recent buy: LTC

On October 17, 2017, I bought 21 shares of LTC Properties at $47.08 per share for a total of $988.68.

This brings the forward dividend to $5,317.38.

Sunday, October 15, 2017

Quick update

just wanted to do a quick update. A while back I took a $15,000 contracting job helping with the hurricane Harvey cleanup. After calculating all my new buys, sells, and dividend increases (and decreases) I broke my goal of $5,000 forward income.  As of October 15, 2017, my forward dividend stands at $5,268.89. I am now raising my dividend goals to $5,750. Will I reach $5,750 by December 31, 2017? Who knows. But my contract is ending on October 24, 2017, and I'll go back to my normal job. Clean up is still happening in Houston so I don't know if I will be extended or not. Either way working daily with people impacted by Harvey shows the importance of having a strong dividend portoflio and the necessity of having either a strong cash flow or reserve money. You'll be surprised how many people live in black mold infested flooded houses because they have no place to go and no money for a hotel. 

I still don't know my net worth since....i forgot my password to my 401k...and I locked myself out...

Tuesday, October 10, 2017

Recent buy: Campbell soupTrading below 16

On October 10, 2017 I bought 11 shares of Campbell soup at $45.74 per share for a total of $503.14. This has been the most expensive soup I've every bought. I will buy another 500 at the end of the week when more cash comes in. 

Why Campbell? 

  1. Trading below 16 pe which is lower than the market and historic value
  2. Trading at3% which is higher than its historic yield
  3. Trading at a .31 peg ratio which indicates possible undervaluation 
  4. And contains the brand I regularly stock at Walmart   I normally invest in what I know and I know Campbell brands

Well back to work. I'm typing all  Of this in a moving car on an iPhone 5 so forgive the errors. 

Friday, October 6, 2017

Recent buy: General Mills

On October 5, 2017, I bought 21 shares of General Mills at $51.50 per share for a total of $1081.50.  This brings me up to 251 total shares.

The only people left in these shelters are insane.

Monday, October 2, 2017

Sell TEVA buy dominion resources

On October 2, 2017, I sold all my shares of teva and bought 23 shares of dominion resources at 76.93 per share. This gives me 34 shares of dominion resources.

I also put in a buy limit order for 10 shares of Pepsi at $100 a share. Maybe this earnings will provide an opportunity to pick up on some Pepsi at fair price and 3% yield.

Saturday, September 30, 2017

October game plan

23 more days until I can go home...

This is my quick game plan for October 

  1. I just realized I made too much money this year. Instead of the 25% tax bracket I will join the 28% in December. I have two options; tax harvest or find a spouse. Since finding the spouse thing is closed to impossible I'm going to tax harvest. 
  2. First goal is to sell Teva for a loss of $2000. I made this play without taking into account of all the consequences of my decision but purely on an emotion play. 
  3. Second goal is to reinvest the money back into dominion resources 
  4. Third goal is to invest fresh capital back into whatever it down. Hopefully the fed hike and October being the worst month for investments will provide ample opportunity for utilities. And being earnings month I'm hoping for a few opportunities  
I'll be back by Halloween, until then more bad writing on my iPhone. 

Sometimes I wonder if people 

Wednesday, September 27, 2017

Recent buy D

just got my first paycheck today (it's strange getting paid on Wednesdays). With the extra cash this job is paying me I bought 11 shares of dominion at $77 per share for a total of $847. After I finish paying off bills and whatnot I will make more buys next week.

Looks like the market is rotating so hopefully utilities will fall on the fear of internet rate hikes. Fun fact in south Houston the flood waters rose to 24 feet or 4 escalates stacked on top of each other running at your house.

Tuesday, September 26, 2017

Recent buy: general mills

 on September 26, 2917, I bought 20 shares of General Mills at $52 per share for a total of $1040.00. I now own 230 shares of gis and will continue buyin until 300 shares. All I have for now will bring back pics and stories when I get back from the Houston cleanup. Today we took down a building

Sunday, September 24, 2017

2017 goals

Still down in Houston working on the relief efforts. I'm on a break so time to jot down my game plan for the year.


  1. Accumulate 300k total including stocks, cash, 401k. 
  2. Increase my dividend income to $5,500. I have no idea where I'm at since I left my backpack back home. If everything goes to plan I might reach $6000 by years end. 
How I'm going to do it
  1. Currently working as a contractor for fema. The pay is good but I hate the people I'm with (not fema but the other contractors). This contract should net an extra 15,000 if my calculations are correct. 
  2. Buy the dip in consumer staples. While people are running away from the old guard like hormel and General Mills, I see a good defensive buy at heighten yield. A while back the death of retail was supposed to destroy all the reins but here they are still strong and rising. I believe General Mills can reamp its stock by focusing more on frozen goods and snacks. Hormel should focus on more meat specialty items and snack lines. Smuckers need better integration of its products and paying down the big heart buyout. 
  3. Diversify into utilities. My list of stocks are dominion, aqn, and nee. 

That's all for now. Back to the grind only 30 days left