Poetic Portfolios

Since it is still early in 2010, now is a good time to look back on the Against the Sky Portfolio and evaluate the portfolio’s performance. It is also time to take a look at the current holdings and evaluate how they are working to meet the objectives of the portfolio.

Returns

In 2010, the net asset value of the Against the Sky Portfolio increased from $9.40 per unit to $11.50 per unit, an increase of 22.3%. The S&P 500 increased only 14.5% during the same period. Since inception 1/31/08, the Against the Sky Portfolio was up 15% while the S&P was down 0.5% during the same period. Repositioning the portfolio in the middle of the downturn led to a nice recovery for the portfolio. Read the rest of this entry »

To see a world in a grain of sand,
And a heaven in a wild flower,
Hold infinity in the palm of your hand,
And eternity in an hour.
-William Blake

Investors with many years to go before retirement should seek to maximize returns while limiting the risk of permanent loss of capital. The new Grain of Sand Portfolio simulates a 401k that has been converted to an IRA. The investor has gained control of enough capital to have some diversification. The goal is long-term returns with at least twenty years before retirement. Read the rest of this entry »

After my recent post on Diana Shipping, I received an email asking me to look at Paragon Shipping. I have to say that I’m impressed.
Read the rest of this entry »

When I took a look at the Against the Sky Portfolio at the end of last quarter, I noted that I was going to be targeting stable large cap companies. I’ve spent some time taking a close look at some core portfolio stocks. I’ve added most of these to the portfolio during the quarter. Below is a summary of these companies as well as my investment thesis for each. Read the rest of this entry »

There’s an interesting article by H. J. Honeycutt at SeekingAlpha on Winthrop Realty Trust, which owns a few million shares of Lexington Realty Trust (LXP). The company makes me a little nervous because they dabble in many different areas. This requires a good deal of trust from their investors. Despite this, valuing their real estate portfolio at market raises their true book value to about $20 per share. On a market pull back, it may be worth adding some shares.

As I write this, Apple is the largest company by market cap to not pay a dividend. Read the rest of this entry »

I added some shares of Sharps Compliance (SMED) earlier this quarter. The company provides disposal solutions for medical waste. Trailing earnings look great for the company, but this is largely due to a front-loaded government contract. The real question is whether or not the company can add additional contracts to maintain their momentum. Read the rest of this entry »

I’ve had Diana Shipping (DSX) on my radar for a while. I’m taking a closer look today after they announced fourth quarter earnings. The company reported net income for the year of $121 million, and they have a market cap of about $1.1 billion. One could argue that they are at the depths of the market for shipping, and the company is priced at 9x earnings. Read the rest of this entry »

About a month ago, I wondered if a turnaround was on the way at Dawson Geophysical (DWSN). I even noted that:

Adding just two crews in a rising market could bring $55 million in revenues and $12 million in owner earnings per quarter (excludes depreciation). Even at 10 times $48 million in annual cash flow, shares could rise to $60 per share.

When Dawson announced earnings a few weeks ago, they indeed noted that demand has turned and that they added two crews. Read the rest of this entry »

Today I’m wishing that I had paid attention to my own analysis. In December, I took a look at Netflix (NFLX) and noted that shares were expensive, and that I would look to buy below $50. Well, shares dipped below $50 earlier this month, and I found myself without any cash to invest. Then shares rocketed up almost 24% yesterday. Read the rest of this entry »