Tuesday, May 9, 2017

Recent Sell: FCISX; Recent Buy: VTR, HCN, LTC, STOR, GIS, HRL


I have no idea why, but I really like this ginger picture.

On May 8-9, I made the following trades

Roth IRA


  • Sell
    • 5,455 shares of FCISX (mutual fund) for a total of $12,799.07 in my Roth IRA.
      • This was an old account I had with Edward Jones that under-performed the market and paid less than a reit that also cost 1% management fee a year. I learned my lesson.
  • Buy
    • 101 shares of Ventas (VTR) at $63.45 for a total of $6,415.40.
      • Rationale: Strong future growth that is dropping because of the SNF and interest rate fear. Pays near 5% and has a huge pipeline.
      • Biggest risk is govt healthcare change+CEO leaving the company. She's basically the Steve Jobs of the Healthcare Reit.
    • 92 shares of Welltower (HCN) at $69.72 for a total of $6,412.19.
      • Currently selling off Genesis, a large SNF, and using the funds for acquisitions and paying down debt.
      • 2017 is basically a dead year after AFFO drops from selling SNF, but taking the right position to deleverage for future safer growth.
      • Pays near 5%. 
Taxable Account
  • Sell
    • None
  • Buy:
    • 8 shares of Hormel at $34.51 for a total of $276.04.
      • Rationale: Still in the sweet zone.
    • 5 shares of General Mills at $57.54 for a total of $287.68.
      • Rationale: Dropping and I'm buying.
    • 10 shares of LTC properties at $46.62 for a total of $466.20.
      • Rationale: Near 5% and near what I bought it the last time.
    • 72 shares of Store Capital at $21.00 for a total of $1,512.00
      • Rationale: 
        • NNN lease like O
        • Best Landlord in the secondary market
        • From 2013 to 2016, AFFO grew by 30% (O was only 21%)
        • Trading at 12x AFFO
        • Lowest payout ratio (67%); O is 84.1%
        • Pays 5.5%
      • Why is it crashing?
        • the Death of Retail is here even though the top 10 tenant only makes up 18% of STOR's revenue 
        • Gander Mountain declared bankruptcy. It makes up 2% of STOR's revenue and promised to pay even though they were about to go into Bankruptcy. 
        • Gander Mountain was bought out by "the Profit" from CNBC and there is hint that 70 stores will remain open.
        • Should be noted STOR's revenue is made up of 15% retail and the majority are small 1-2 stores, not  Spirit Capital with 8% coming from one retailer. 70% comes from services like arenas.
      • Guidance:
        • 5.5% yield
        • 2.5% organic growth
        • 2.5% lease escalator 
          • combined a total return for 2017 of 10.5%, but Mr. Market don't care 
    • 3 shares of Walmart in my computershare 
      • Rationale: Why not it's 15% cap gains with a 3% dividend.
Total combined fee trading: $0.00. Forward dividends=$4,000.66.  New Goal, increase Dividends to $4,500 by the end of the year.

Loaded another $3,000, but will probably wait for O to reach 5%. No point in working over 70 hours/7 days a week if you ain't going to use it. 

Disclaimer: Long Everything except FCISX. Portfolio updated. 

4 comments:

  1. Busy, busy, busy. Love the buys. Staples and REITs at a time when no one like the sector or many individual stocks. I can really get behind those buys. Keep buying and building that passive income.

    “The safest and most potentially profitable thing is to buy something when no one likes it.”

    Howard Marks, CFA – Co-Chairman, Oaktree Capital

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    Replies
    1. hey Keith, yep too much to do and not enough time/cash. I agree with Howard or like my mama used to say, "we can't only take what the lord provides"

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  2. Love all your buys. I'm adding them as well.

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    Replies
    1. hey NC, good job. I think most of us are taking this advantage of weakness to stock up.

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