I had some cash sitting around in my trading account from divis and decided to buy additional shares of Nordic American Tanker (NAT).
- Bought 250 shares of NAT @ 8.38
- Brings forward annual divis up to $5, 514.20
- **Subtract $183 (.06 * 3050) potentially for $0.26 to $0.20 NAT divi…Variable divi so hard to predict over time**
February is going to a very exciting month for this portfolio! NAT reports earnings on Monday and goes ex-div on 2/8 paying out on 2/24. Even with this exciting news, there is still something that really gets me pumped up. J.M. Smucker (SJM) reports earnings on 2/17 before market opens. SJM actually peaked at $139.63 on Friday’s trading to close at $138.78. It has been on a nice little run!
I am potentially looking at going very heavy into NAT. Possibly 65% of portfolio. How the stars have to align:
- SJM needs continue run up. Would consider liquidating at $150+
- GIS and VOD are potential other sells to free up powder for NAT
- Would like to purchase NAT in 7.5-7.7 range but will be happy with anything below $8
- I am not buying any NAT on ex-div date as it will auto-drop at least 0.20, I want to wait until things settle.
- Patience with aggressive trigger pulling is the key
Why do I like NAT so much?
- In it’s own world and near bottom if not at bottom of cycle.
- Lowest I see stock is 7.27 (OCT 10, 2014)
- In 2008 time frame with ‘market crash’ stock was in 30s..
- Pays variable divi consistently every quarter resulting in roughly 9-12% yield
Then again I am well aware of the risks. Hanes Brands (HBI) just lost a whopping 16% on Friday. I was actually in HBI not too long ago and was glad I got out with a little profit before this. I was not expecting to see it in the 18s when I thought bargain at 20…Retail is scary now, just look at UAA and M too! Not playing the bottom guessing game on those even though I’m sure there is good chance for potential gain. Too risky for my blood (says the guy willing to put 65% into one stock).
The opportunity to pull off this trade may not even occur. I am interested to see if I will pull the trigger or not if the opportunity (for gain or loss) materializes.