Thursday, February 20, 2014

The Dirty Dozen: SitRep 02-20-2014 “Then There Were Nine”


Since my last SitRep in July, there have been few changes to my stock portfolio.  I bit the bullet and reduced my stake in Kraft by 16% to take an early disbursement, which is always galling.  The last major move I made was to sell my share in Pitney Bowes (PBI) as the stock price was exceeding the level where I would get one re-invested share per quarter with the dividend; in spite of PBI cutting the dividend in half in June.

I used that money to re-re-invest in Crown Crafts (CRWS) and Town Sports International Holdings (CLUB).  I learned what a mistake that was over the 34 trading days of 2014.  All indications were good with CLUB at the beginning.  The stock just instituted a $0.16 per share dividend and the price was low enough to get well above my one re-invested share per quarter threshold.  By the end of 2013, I had made $1 per share profit.  The stock price started to drop in the early days of 2014, but the entire market was seeing a downturn at the time, so I figured CLUB was just “one of the boats on a sinking tide.”  The high for the year was on 1/3/14 at $14.37.  On 2/5/2013, the price hit a 2014 low of $10.36.  Still, I held onto it, hoping the pricing would start to bounce back and I wanted to reach the ex-dividend date to at least get some payment from my investment.  I did select to have my dividends put into a money market fund, rather than reinvested, and put a Stop Loss order at $10.

Yesterday, CLUB reported it missed Q4 EPS by $0.06 and YOY Revenue was down 0.3%, which was an improvement of $230K from expectations.  This announcement occurred after the market closed, but I knew the implications as I suffered a couple big hits with B&G Foods (BGS), Mattel (MAT), and Waste Management (WM) when they missed EPS.  Sure enough, CLUB tanked 17-18% to start the day.  My Stop Loss order triggered at the opening price of $8.48.  I took that money and increased my stake in NutriSystem (NTRI) so that I would get over two re-invested shares when the stock pays in March.

Here's how the Dirty Dozen looks like now:

First Month of Quarter Payers
B&G Foods (BGS)
Profit/Loss Per Share:               +$8.09
Annual Reinvested Shares Pace:  6.50
  • Increase dividend to $0.33 per share in January

Kraft Foods (KRFT)
Profit/Loss Per Share:               -$1.00
Annual Reinvested Shares Pace:  4.75

Xcel Energy (XEL)
Profit/Loss Per Share:               +4.07
Annual Reinvested Shares Pace:  6.50
  • Increased dividend to $0.30 per share for April

Crown Crafts, Inc. (CRWS)
Profit/Loss Per Share:               +$0.49
Annual Reinvested Shares Pace:  6.50


Second Month of Quarter Payers
Paychex (PAYX)
Profit/Loss Per Share:               +$18.64
Annual Reinvested Shares Pace:  4.00

NutriSystem (NTRI)
Profit/Loss Per Share:               +$4.08
Annual Reinvested Shares Pace:  8.75
  • First dividend payout is in March, then again in May

Darden Restaurants (DRI)                           
Profit/Loss Per Share:               -$0.13
Annual Reinvested Shares Pace:  5.50


Third Month of Quarter Payers
Mattel (MAT)
Profit/Loss Per Share:              +$9.56
Annual Reinvested Shares Pace:  5.75
  • Increased dividend to $0.38 per share in January

Waste Management (WM)
Profit/Loss Per Share:               +$8.17
Annual Reinvested Shares Pace:  4.25

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