The Coronavirus continues to tear through the world. The stock market briefly entered bear market territory yesterday; however, after Trump’s National emergency speech, it flew up over 9%. This was all during the last twenty mins of today’s market. Wowzers, who would have thought.
What have I recently bought?
I did start buying a bit again. Here are just a few companies.
Hyatt-Despite all of the bad news in the hospitality industry, I just had to buy some more Hyatt at these levels. I was down about 20% so this lowered my cost basis considerably. Also, Hyatt has held up well considering everything.
Fortinet-The books are SOLID on this cyber security stock. They also seem to be stealing market share from competitors. Very low debt, good cash flow. I will continue buying anywhere below 90.
Hooker Furniture Company-This is one I haven’t bought in FOREVER. I am currently down in this stock over 30% but it’s not a large position really. These are historically low levels for this company. My original thesis hasn’t changed, this is a value stock and this company is extremely well managed. I may have to hold a while but I will.
Akamai-What can I say? Akamai has held up better than any stock in my portfolio besides General Mills. This thing is a beast. I will continue to buy anywhere 85 and under.
Eaton Vance-This is my favorite DIVIDEND ARISTOCRAT. The dividend is over 4.3%, with a low payout ratio. This things earnings are growing like a weed as well. I know in the event of a market crash they will get destroyed but if you look at 2009, they bounced back EXTREMELY fast. Given the nature of this correction (not bank/financially related so much) I think they will bounce back faster.
Darden Restaurants-This has been a hard one to watch just collapse. I bought pretty high and am down over 32%. I expect the restaurant industry will be punished BAD during the virus scare. However, I still believe in Darden management long-term. I will simply lower my cost basis and collect dividends at this level.
Westrock-The Dividend YIELD on this one is getting INSANE. With around a 50% payout ratio, I believe it will be safe, even at 7-8%. Westrock does carry a decent amount of debt but they have been paying it down. Today, this stock blasted up SEVENTEEN PERCENT. Talk about putting a smile on my face 🙂
My worst performer right now is Ryman Hospitality Properties. It came out and said they will lose 40 million dollars in revenue this quarter due to cancellations. The stock is down over 30% in less than a month. I remain positive because the company just had a great earnings report. However, I don’t have the stomach to buy more at this time. I am going to wait until the virus peaks here in the states or I get more information about the cancellations. Too much risk here to lose more money in my IRA.
Did I sell anything?
Boy did I ever. I sold PMM, Putnam Municipal Bond Closed-End Fund. I sold it JUST in the nick of time as well. It went down 3% and I sold, I knew that was a sign of things to come, seeing as how it’s not a volatile investment. After I sold completely out, it fell 10% the next day and then some more. There was a Municipal Bond sell-off due to people panicking and worries of city revenues being hurt I suppose. At the same time, I have every intention of buying right back in, hahaa. It’s trading at a 14% discount to NAV right now at 7 bucks a share. I’m looking for anything under 7 dollars to re-enter. PMM is a monthly payer, free from Federal taxes, it’s a no brainer for me.
What are my next moves? What am I looking to buy?
First and foremost, I’m sticking with my original thesis of buying the market at 2500 on the S&P. So anytime I get that or near there I will start dollar-cost averaging into ITOT. Around the same mark, I will also be buying QQQ.
As far as individual stocks? What is on my radar?
- I’d love to increase my position of AKAM further
- Home Depot or Lowes
- Microsoft at 115-120; this is not something I’ve ever thought about buying but at that level I’d pick up some.
- General Mills is a tank and I’d love to get up to 4% of my portfolio in that.
- Zoetis if it EVER comes down, I’m not sure it will