New Stop Loss Orders

Our stop loss orders have expired.   I went through the stocks and picked out a few more per portfolio.  These expire in 60 days (6/3/14) or if they are executed.

Portfolio One

- Twitter (TWTR) is at $44.  Put in a limit at $35.  The stock has dropped since we purchased it and is very volatile.

Portfolio Two

- Splunk (SPLK) limit at $60.  This stock has been a great portfolio but don’t want to ride it too far down.  Hit limit and sold off

- Facebook (FB) limit at $50.  Same as Splunk.

Portfolio Three

Splunk (SPLK) limit at $50 per above.  Hit limit and sold off

- Baidu (BIDU) limit at $140, has been down since we’ve bought it

Portfolio Four

- Nucor (NUE) limit at $46

- Seaspan (SSW) limit at $18

Portfolio Five

- Seaspan (SSW) limit at $18

- Baidu (BIDU) limit at $140, has been down since we’ve bought it

Portfolio Three

- Seaspan (SSW) limit at $18

- Baidu (BIDU) limit at $140, has been down since we’ve bought it

 

 

Stocks in the News

I try to check on the portfolios every couple of days and also watch for news stories about our portfolio companies.  Today I saw the following article about our natural gas company Anadarko with the scary title “Anadarko to Pay $5.15 Billion in Largest Ever Environmental Contamination Settlement”.  This sounds like bad news, right?

When I checked on the stock price, it had gone up by almost 15% on news of the settlement.  Apparently the market had already “penciled in” a much bigger cost and this was viewed as “good” news.

On the other hand, Twitter has been going down recently on various negative news and analyses.  Since the stock is so highly valued, as a multiple of revenues and profits, any sort of analytical approach can come up with widely different results (by contrast, a company such as Exxon generally trades within a narrower range). 

Portfolio Six Updated March 2014

Portfolio Six is our newest portfolio, and is one and a half years old.  The beneficiary contributed $1000 and the trustee $2000, for a total of $3000.  The portfolio is worth $3268, for a gain of $268, or 9%, which is approximately 6% / year.  You can see the detail on the right or go here.

We recently sold Yandex when the Russians invaded Ukraine for a tiny loss.  The portfolio contains three overseas and one US stock.

There were no sales in 2013 and dividends for taxes were $70.

Portfolio Five Updated March 2014

Portfolios Four and Five are both 4 1/2 years old.  The beneficiary invested $2500 and the trustee $5000 for a total of $7500.  The value is $9030 for a gain of $1530 or 20%, which is 6% / year.  See the details on the right or click here.

Portfolio Five now has nine stocks, with some recent sales tied to stop loss orders (Yandex, China Petroleum) and two others that we gave up on in 2013 (Alcoa and Riverbed).  The existing stocks seem well positioned, with 5 overseas and 4 domestic stocks.

Tied to taxes, the portfolio earned $284 in dividends (after foreign withholding).  There was a long term loss of ($493) on sales and a long term gain of $74.

With a recent sale there is $800 cash in the portfolio and we will pick another stock out of the list.

Portfolio Four Updated March 2014

Portfolios Four (and Five) are four and a half years old.  The beneficiary invested $2500 and the trustee $5000 for a total of $7500.  Current value is $9,729 for a gain of $2229 or 30%, which works out to about 9% / year over the life of the fund.  Go to the right or click here for portfolio details.

The 10 stocks in this portfolio are 60/40 US vs. overseas which is a reasonable balance.  There were no sales or purchases since the post summer buys of Devon and Seaspan (this is the only portfolio where no stop loss orders were triggered, knock on wood).  The biggest gain is Westpac, an Australian bank which pays a dividend of over 5% annually.  Seaspan still has a stop loss order outstanding but the rest seem to be doing well.

It is highly unlikely that the beneficiary will have to file taxes because of an absence of large income from work.  From the portfolio there is $254 in dividends and no gains or losses in 2013.

Portfolio Two Updated March 2014

Portfolio Two is ten and a half years old.  The beneficiary contributed $5500 and the trustee $11,000 for a total of $16,500.  Current value is $25,427 for a gain of $8927 or 54%, which works out to about 7% / year.  You can see the detail to the links on the right or here.

The fund has 16 stocks with an average balance around $1500.  Over time we will try to move the average position size to closer to $2000 and try to keep the fund less than 20 or so stocks to keep it easier to manage.  The fund is roughly evenly split between US and overseas stocks.

About half the gains have come from two US technology stocks – Facebook which we bought at what was probably the low point of $18.75 and it is now at $68 and Splunk.  We will watch those two stocks so we don’t end up riding the gains back down.

For 2013 taxes there were no sales so no gains / losses.  There was $383 in dividends, a rate of 1.5% / year.  The rate is lower net because a higher percentage of the portfolio value consists of technology companies which don’t pay dividends.

Portfolio Three Updated March 2014

Portfolio Three is seven and a half years old.  The beneficiary contributed $3500 and the trustee $7000, for a total of $10,500.  The current value is $13,649 for a gain of $3374 or 32%, which is approximately 7% / year.  The full spreadsheet can be seen in the links on the left or here.

The portfolio consists of ten stocks.  It is 60/40 US vs overseas although many of the stocks have a heavy overseas exposure / value drivers (Yahoo, Wynn).

Last year the portfolio earned $264 in dividends (after foreign withholding) for a 2% yield, which reflects the net of some internet stocks that don’t pay dividends and some high dividend stocks.  We sold one stock in 2013 for a long term loss of $160.  We recently sold 2 other stocks and bought 2 new ones but these are 2014 transactions.

 

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