Birchtree's Account Talk

[Birchtree]

Well it's going to be another day of give backs - such drama. I have 5 dividends due today so every little bit helps. Something is going on with my ARJ. Here are some comments from my WSJ over the weekend.

"Consider the most recent slide in the S&P 500 index, which lasted from April 29 through June 15. That slump saw stocks drop for six weeks in a row-the longest rout since 2008-and seven out of eight. The 7.2% decline was the eigth of at least 5% since the market bottomed on March 9, 2009. That is the most such drops in the first 28 months of a bull market since the 1030s, according to InvesTech Research in Whitefish, Mont.

But the recent selloff was most notable for its gentleness. Despite a flare-up of Greece's debt crisis, a slowing U.S. economy and signs of a possible housing bubble in China, the S&P fell by an average of just 0.23% a day during the slump, the least of any of the eight recent dips. Meanwhile, the CBOE Volatility index, known as the fear gauge, peaked at 22.7, only slightly higher than its 20-year average of 20.2. By contrast, the VIX topped 80 in 2008, and surged to 45.8 last year.

Likewise, 'correlations', or the propensity of individual stocks to trade in lockstep with the S&P 500, rose no higher than 0.61 during the latest rout, much lower than the 0.81 registered in July 2010. Correlations rise during selloffs as investors throw out the good with the bad. Lower correlations mean there is less fear. After the seven previous drops, investors have become less susceptible to panic selling." Yes friends, keep those sticky pants on.

 

[Birchtree]

How about a few kind words from Ann Coulter.

"The leading cause of all social pathologies is single motherhood. The statistics are so jaw-dropping that not giving up an illegitimate child for adoption ought to be considered child abuse. Various studies have shown that children raised by a single mother comprise about 70 percent of juvenile murderers, delinquents, teenaged mothers, drug abusers, dropouts, suicides and runaways. You will see what liberal's destruction of marriage has wrought." "Out of wedlock births - 1979: 600,000 births out of wedlock; 25 percent put up for adoption. 2003: 1.5 million out of wedlock births; 1 percent put up for adoption." Can you see the financial incentives of illegitimacy among the at risk population where 72% are born out of wedlock to gain welfare payments.

 

[Birchtree]

It appears that Lonza of Switzerland is offering a buyout price of $47.20 for my Arch Chemicals (ARJ). This is a 36% premium over the last 30 day price. Now I need to see a White Knight step up and boost the price - nothing like a good bidding war. If I have to give up a sweet wall flower I want to be paid for my stake.

 

[WorkFE]

I remember when my wife and I first moved to KY in 2002. We were looking for a house and decided on a home in Meade County. Arch Chemicals has a plant in Brandenburg. I tend to buy stocks of companies that are local to me. If you socialize you tend to get a good feel for whats going on at a business. Kinda like a morale survey. In any event I bought at a very nice price so I to would like to see another player jump in.

 

[Birchtree]

My lowest purchase price was $24.33 on 10/28/08. I had a dividend repurchase low at $17.77 on 3/16/09. I've made DCA purchases all the way up to $37.37. I don't want to give this wall flower up because I'll loose income even though I've got about an $18K profit. There has to be a White Knight somewhere with all the cash on the balance sheets. Anyway I'll take what they give me.

 

[Birchtree]

http://www.safehaven.com/article/21...hich-could-send-stocks-and-commodities-higher

 

[FAB1]

I fund minus 2.31

Man, I am glad Im clucking today..:laugh:

And JTH has made it to the #2 position in the G fund - aint life grand!

 

[JTH]

BT My HIMAX will pay out its annual div July 20th. I've held this position since 9 Feb will I be paid partially?


"TAINAN, Taiwan, June 3, 2011 (GLOBE NEWSWIRE) -- Himax Technologies, Inc. ("Himax" or the "Company") (Nasdaq:HIMX), today announced that the Board of Directors of Himax declared an annual cash dividend of 12 cents per ADS, or 6 cents per ordinary share for the year 2011.

The cash dividend is expected to be paid on July 20, 2011 to shareholders of record as of July 8, 2011. The ADS book will be closed for issuance and cancellation from July 1, 2011 to July 8, 2011."

 

[Birchtree]

I believe because you are of record that you will get the full payment - there's too much paper work to prorate the dividend. A yearly payout is like owning a mutual fund.

 

[Birchtree]

"Market sentiment fell into a 'panic' at the end of June, which is a good sign for investors."

http://www.safehaven.com/article/21673/dont-miss-your-chance-to-catch-a-bull-market

 

[Birchtree]

Credit seems to be getting easier to get. I've been sitting on 4 credit cards that have been paid off but kept current - my dilemma is that they are all offeriing me 0% through 12/30/12 and the total is $50K. This would allow me $100K worth of wall flower buying power on margin. I've decided to pass on the offers for the time being and just patiently wait on the market to bring me my buying power. I realized I'm in deep enough not to be greedy - so I'll put my feet up and wait for money to fall from the sky. I never thought I'd reach this level of comfort - thankyou Ferdinand. When the money train arrives I'm prepared to spend hundreds of thousands of dollars because this bull market is going to run for years.

 

[sugarandspice]

WOW! Really Birch, You bring that example of buying stocks with credit cards just to brag about your credit status. I'm sure almost everyone here thinks it's a brilliant idea to buy stocks with credit cards. That's why your Wil E.Coyote....SUPER GENIUS

 

[Birchtree]

My dear Sugar, anything that offers a 0% rate over time should be looked at - I looked and decided to wait on my margin account to provide some lubricant. But the offers are still open and I'm trying to be patient and not exercise them for the moment - but then again I'm fickle when it comes to securing wall flowers. There is nothing wrong to use credit to buy equities that produce income and potential capital gains - it's the use of time management in investing. Nice to have you drop in. The advantage of using margin is that the interest charged is tax deductable - that is not the case with credit cards - but at 0% there is no interest charged. They just hope you mess up and then you're theirs.

 

[Birchtree]

"Why would all the oscillators impulse up so strongly if this were truly a weak market"

http://www.marketoracle.co.uk/Article29202.html

 

[Sensei]

Birchtree,
In your Oceanic, do you accumulate bonds? Since May, I've been working on slowly but steadily collecting a handful of dividend paying stocks. I know that Vanguard and other brokers try to push diversified funds that are typically between 25-60% bonds. I know your TSP allocation is always stocks. Just curious as to whether you're strictly into stocks with the Oceanic as well.

 

[Birchtree]

I don't own any bonds and probably never will - equities are the only way to travel. I had two dividend increase announcements today - my CLF is increasing its dividend 100% and the other one is AOS. I only have 1 dividend paying today to be reinvested. This is just another strategy to DCA into my base.

 

[polarbear]

Gainesville, the Hub of the Universe. I was there 65-69 and 79-85, met my wife there, 82, first daughter born there 84, first daughter got her bach. there 06, MBA 2010, second daughter got her bach. there 2010. We are a Gator family. First daughter and hubby now have a respectable investment. They're smart with money. Second daughter's rent in Los Angeles at a nice apt. has been eating up my spare money for some time now, she just got a full-time job, I am most thankful. If it weren't for that, I might have an investment portfolio besides the TSP as well, we'll see. In the meantime, I just dream. Yes, as NASA man says, may the force be with us!

 

[Birchtree]

polarbear,

My daughter received her MBA in April 2010 from University of Florida. We may have attended the same ceremony. The military paid her expenses up to $41K. She was in Army ROTC her last three college years and received orders to join up with the 25th Infantry Division in Hawaii. She met her current husband in Hawaii and they were deployed to Iraq together. She now works as a consultant program manager for BP in Texas City, Texas. The current bull market will help you build your base. Snort.

 

[Birchtree]

Monday when the Dow was down 151 points my oceanic gave back $104K - there is now a possibility I may get much of that back today, hey maybe even more. The fact that profits may continue to remain intact may support this market going forward.

 

[Birchtree]

I have to mow my lawn again today - geez - it's enough to keep me young. But I'm going to take my afternoon nap first with my investment adviser. Anybody watching CE - the darn stock is getting away from me as it enters lift off.