Four BUYs - One SELL
"The stock market is filled with individuals who know the price of everything, but the value of nothing." — Phillip Fisher
The Portfolio Performance
The portfolio is UP +7.68% YTD
The S&P 500 is UP +5.39% YTD
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One SELL Annaly Capital Management (NLY)
This morning I sold Annaly Capital Management (NLY). The company engages in mortgage finance. The company invests in agency mortgage-backed securities collateralized by residential mortgages; non-agency residential whole loans and securitized products within the residential and commercial markets; mortgage servicing rights; agency commercial mortgage-backed securities; residential mortgage loans; and agency or private label credit risk transfer securities. It has elected to be taxed as a real estate investment trust (REIT). As a REIT, it is not subject to federal income tax to the extent that it distributes its taxable income to its shareholders.
I have some concerns about the mortgage market, and more serious concerns about the mortgage backed securities market at large. I'll try to write about this in a separate post.
NLY was in our CASH-BONDS sector as a dividend holding. With all the headwinds in the commercial and residential mortagge markets, and my bullish position on the stock market, I've decided to take a position in another covered-call ETF that pays monthly. In general the dividends from NLY were not keeping pace with the losses on the underlying stock price. I sold the entire position, taking a -15.25% loss.
Bought Coterra Energy (CTRA)
Following up on yesterdays post about Coterra Energy and the oil industries transition to electrification, I increased the pportfolios position to 75% of a full position. Coterra this morning scheduled their earnings call for February 23rd.
Bought JPMorgan NASDAQ Equity Premium Income ETF (JEPQ)
This fund maintains a portfolio that consists mainly of the NASDAQ-100 and sells covered calls on thos stocks to generate monthly income for shareholders. The current yield is 9.73% annualized. IN 2023 the ETF delivered a 36.23% return. Year-to-date JEPQ has delivered a 5.84% return which is just ahead of the S&P 500 YTD. The JEPQ replaces NLY in our CASH-BONDS segment.
Bought Occidental Petroleum (OXY)
This morning I added to our Occidental Petroleum position on the back of a great earnings call. Occidental Petroleum reported for the final three months of 2023, delivering a beat on analyst expectations. Net income attributed to shareholders came in at $1 billion, or $1.08 per diluted share. Adjusted earnings attributable to common shareholders came in at $710 million, or $0.74 per share.
I bought 243 shares which gives the portfolio a full position in OXY. Management echoed some of my comments on the call. I expect to hold OXY long-term.
"We are continuing to focus on delivering long-term value for our shareholders through the 22% increase in our dividend and strategic transactions to high-grade our domestic portfolio and advance our low-carbon initiatives, including the closing of the Carbon Engineering acquisition."
Bought BioXcel Therapeutics (BTAI)
I increased our stake in BioXcel, taking a full position. The company had planned to issue more stock to raise capital and the stock sold off hard. On February 13th the company terminated the proposed offering sendig the stock soaring. Year to date BTAI is up +20.85% and trades around $3.50. 12 month consensus price target is $13.88.
BioXcel Therapeutics, Inc., a commercial-stage biopharmaceutical company, engages in utilizing artificial intelligence approaches to develop transformative medicines in neuroscience and immuno-oncology. The company's drug re-innovation approach leverages existing approved drugs and/or clinically validated product candidates together with big data and proprietary machine learning algorithms to identify new therapeutic indices. Its commercial product, IGALMI, a sublingual film formulation of dexmedetomidine for the acute treatment of agitation associated with schizophrenia or bipolar I or II disorder in adults. The company also continues to conduct clinical trials evaluating BXCL501 for the acute treatment of agitation in Alzheimer's disease patients, and for adjunctive treatment of patients with major depressive disorder, as well as in the community for agitation associated with bipolar disorders and schizophrenia.
IGALMI is currently in trials for at-home use. Since delivery of the drug is through a sub-lingual film, at-home use would be a significant advancement enabling caregivers to immediately administer the drug when needed. The current standard of care requires a visit to a hospital or doctors office, which for someone experiencing agitation from any of these conditions seems almost impossible.
Housekeeping
I've updated the dividends for the RYLD. We collected $764.45 in January.
ACTION(s)
SELL 275 NLY @ $18.85
BUY 492 CTRA @ $24.05
BUY 1,465 JEPQ @ $52.50
BUY 243 OXY @ $59.54
BUY 2,154 BTAI @ $3.43
"Markets don't go to zero; portfolios do.
Buy quality, be patient...and look twice for motorcycles."
- Clay Baker
Stay Invested,
Clay Baker
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Clay's Rules
Rule #1: Don't lose money
Rule #3: Portfolios go to zero, markets don't; Stay Invested
Rule #4: When good stocks you own drop 10% below your cost basis, add shares
Rule #5: Bull markets aren't sustained without the Transports
Rule #6: When Forward P/E is lower than TTM P/E, expect earnings to increase
Rule #7: When an investment bank sells below book value, buy it
Rule #8: Tips are for waiters. Do your own homework.
Rule #9: Don't sell a stock because you're bored with it. Do your homework.
RULE #10: Don't expect a company's stock to perform according to your timeline; be patient.
Rule #11: Investing is easy. Waiting is hard; waiting is the hardest part.
Rule #12: It's hard to be incredibly intelligent. Not being stupid is pretty easy.
Disclosure: I am personally invested long in some or all of these stocks or funds that appear in the Stay Invested portfolio and may purchase or sell shares within the next 72 hours. I am also invested in other stocks and funds that do not appear in the Stay Invested portfolio but may be mentioned or related to this article. It is not my intention to advise or encourage the purchase or sale of any security. I am invested long in these securities mentioned in this post:
None mentioned
I am invested short in these securities mentioned in this post:
None mentioned
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. This article is not intended to offer investing advice, guarantee 100% accurate predictions, or be interpreted as providing a personal recommendation. This and all articles on this website are provided for entertainment purposes only. Investing involves risk and risk of loss of part or all of your capital. Invest wisely, make your own decisions, seek advice from multiple sources.
