11-13-2014, 01:04 PM
(This post was last modified: 11-13-2014, 02:19 PM by Dividend Watcher.)
Was going to post in the "whatdidyoubuytoday?" thread but thought it would be easier to keep track of my stupid ideas if I just added to my own portfolio rambling.
So, today I added to my Helmerich & Payne (HP) holding when my standing limit order finally hit. Price just below my original cost basis so got to average down. 4Q14 earnings release out today and the results looked OK to me ... revenue and EPS bouncing up and down a little despite oil dropping like a rock and the majors cutting back on capital investments; still negligible debt to speak of and a reasonable payout ratio; their last dividend increase was about 10% despite the huge jumps over the last couple years so management must be confident of the their ability to come up with the cash; management is also willing to invest in a few more FlexRigs going forward so there's obviously a market there.
Also added a speculative play to the portfolio with a 0.8% allocation. That was in GILD. I was wondering why GILD, the darling stock of every addle-brained zealot on SA, was trading so poorly when it already has a successful portfolio of HIV drugs and now 2 treatments for HCV, Solvadi and Harvoni. Sure ABBV, JNJ & MRK (now bowed out of the game) may take some market share but the HCV problem is too big for that to make much of a difference. GILD's pipeline also has some interesting prospects for the further out future. With a trailing P/E hovering around 19 and the HCV battle just heating up, I believe there's a chance GILD will capture a lot of that and I should be able to capture some cap gains. I broke every rule in my portfolio business plan except for the P/E < 20 rule. I think there's an opportunity here if you can ignore the volatility and are willing to hold for a few years. As I said, this was to scratch my speculative itch.
So, today I added to my Helmerich & Payne (HP) holding when my standing limit order finally hit. Price just below my original cost basis so got to average down. 4Q14 earnings release out today and the results looked OK to me ... revenue and EPS bouncing up and down a little despite oil dropping like a rock and the majors cutting back on capital investments; still negligible debt to speak of and a reasonable payout ratio; their last dividend increase was about 10% despite the huge jumps over the last couple years so management must be confident of the their ability to come up with the cash; management is also willing to invest in a few more FlexRigs going forward so there's obviously a market there.
Also added a speculative play to the portfolio with a 0.8% allocation. That was in GILD. I was wondering why GILD, the darling stock of every addle-brained zealot on SA, was trading so poorly when it already has a successful portfolio of HIV drugs and now 2 treatments for HCV, Solvadi and Harvoni. Sure ABBV, JNJ & MRK (now bowed out of the game) may take some market share but the HCV problem is too big for that to make much of a difference. GILD's pipeline also has some interesting prospects for the further out future. With a trailing P/E hovering around 19 and the HCV battle just heating up, I believe there's a chance GILD will capture a lot of that and I should be able to capture some cap gains. I broke every rule in my portfolio business plan except for the P/E < 20 rule. I think there's an opportunity here if you can ignore the volatility and are willing to hold for a few years. As I said, this was to scratch my speculative itch.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan