Friday, July 25, 2014

You Sunk My Battleship, One Sale and Two New July Buys

Sometimes you just have to let go so that you can keep moving forward.  Earlier this week I sold out of my position in NAT.  This position was originally bought as a bet that the shipping industry was about to see a turnaround.  While I think the shipping industry is an interesting one at this time I felt like my position in NAT was a bit of a hot potato.  The company is well known for destroying shareholder equity by issuing shares and diluting value.  On one hand this is directly damaging to shareholders, on the other this allowed NAT to raise money without taking on debt, something which has helped the company immensely as the industry has tanked since the recession.  Similar shipping companies have not fared as well as the debt piled up and earnings fell.  Then there is always the ticking time bomb of China, whose shipyards are churning out more and more new ships which is leading to oversupply.

Overall I felt like I was stuck in a do loop, continuously analyzing this stock until I finally decided to take my profits and invest them elsewhere.  I sold 157 shares for a total of $1450.07 accepting an adjusted gain of just over 10%  Not bad for one month and definitely a learning experience for me.  This brings my total stock trading profit up to $432 for the year.

With this money, and some extra capital I initiated two new positions for my portfolio.  I ended up purchasing 22 shares of POPE (Pope Resources) for a total of $1501.59.  I also picked up 10 shares of BA (Boeing) for a total of $1252.49.  Boeing is one company that I have been interested in owning for a long time.  I took the recent sell off after earnings as an opportunity to initiate a position and it is one of those companies that I plan on holding long term.    After this portfolio reshuffling my 12 month forward dividends now sit at $2260.16 and I am sleeping significantly better at night.


  1. Hi Dividendasaur,

    Great work. Sleeping well is one of the basics of this strategy.
    Not having to worry about stocks is a very nice aspect of DGI.

    BA an interesting for me as well. It seems they are doing very well.
    Their stats look good too.

    Congratulations on reshuffling and $2260 seems like a very nice number to me!
    Best wishes,

    1. Thank you DfS!

      I have been looking at BA for awhile now and while they have seemed a bit expensive I decided to just make the purchase. It is one company I plan on holding for the long run so I will just continue to buy the dips and accumulate. Always good to hear from you!

  2. Ive been looking at Aerospace and Defense stock recently. I really like the prospects of BA but find it a bit too expensive for my taste. I still havent made up my mind on which one to buy.

    Thanks for the update. Happy investing

    1. R2R, I agree that it is a bit expensive right now, I finally got a bit impatient and decided to make the purchase. I have held off on a few great companies for the last 6 months because I thought they were expensive and now they are up 20%+ more. BA to me is just one of those companies that has a really bright future so I now have an entry point and get to keep accumulating on any dips. Take care and thanks for stopping in!

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