Monday, August 27, 2012

Week 70 Update

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Believe it or not, the crazy day trader thumbnail was my best option that Youtube was offering.

Model Portfolio Totals

Trading Account: $1,825.78
Estimated Monthly Income: $0
Max loss per trade (1% of account): $17.25
Portfolio stop (3% account): $51.75

Investing Account: $4,253.25
Estimated Monthly Income: $11.06 ($0.385 from DRIP)
     ABT: $0.77 ($0.012 from DRIP)
     AFL: $0.63 ($0.005 from DRIP)
     STX: $1.07
     WMT: $0.59 ($0.011 from DRIP)
     COP: $0.78 ($0.016 from DRIP)
     ERF: $0.91 ($0.068 from DRIP)
     PSX: $0.12
     O: $1.11 ($0.047 from DRIP)
     TCAP: $2.19 ($0.049 from DRIP)
     JNK: $1.72 ($0.121 from DRIP)
     PCY: $1.17 ($0.055 from DRIP)
Maneuvering Cash: $1,401.26

Savings Account: $1,975.20
Emergency Fund: $1,000
General/Car Fund: $625.20
Portfolio Protection
     Trading Account: $100
     Investing Account: $250

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.


  1. Good call on not dripping the new position. My drips with RSO got out of hand in a hurry with its high yield.

    WHZ appears to be a good buy, hard to see which direction this will go as it is a new trust. Even if the price did continue to decline your still in for about 19% yield so you really cant go wrong if you hold your investment for over 5 years.

  2. I don't know much about these land trusts, but is the distribution guaranteed to stay the same for the next 5 years? If not, then he still could 'go wrong' Investing Early. But hey, maybe it is a set distribution for entire length of business, I don't know??

    1. Anonymous, the land trusts consistently pay until their close date or until they run out of the commodity they are associated with. The commodity value at the time dictates the payout.

      A good example you can look up is PBT. It has been around for years and its monthly payments have ranged from $.01 to $.28 per share! You invest into these stocks for yield and need to balance what your earning with what is left. In other words, don't go invest in WHZ at 20 bucks a share and hope it goes up to 30 per share. This would be unlikely since this stock can't experience growth like a business could.

      I personally have a small position in PER. In the trust it basically states that the number of oil wells will grow by x% during the first so many years then nothing after that, which is typical for a new trust.

  3. The distribution is directly tied to the price of whatever natural resource that is sold during a given quarter. Look at BPT for how variable things can get ($0.99 - $3+). WHZ has hedged their oil for $80-$122 until Dec 2014 then by law they are unable to renew them.

    One thing I have talked about previously, but not in this video, is depletion. The more resources are extracted the harder it is to get out. Production is estimated to drop by 8% per year... and thusly the distribution will drop by 8% a year.

    I should probably make a follow up entry...