Wednesday, September 3, 2014

Monthly Update: August 2014

Portfolio Acitivities
$750 deposited into the Investing Account
Sold PSEC @ $10.44
$750 deposited into Lending Club

Portfolio Income
Dividends ($103.05)
     APPL: $3.29

     PETM: $3.51
     POT: $10.84
     RKT: $7.00

     STX: $8.31
     ARCP: $6.35
     PSEC: $11.93
     NDRO: $3.23

     WHZ: $37.67
     BLV: $2.64
     JNK: 4.68
     PCY: $1.97
     Interest from Cash: $1.38
Lending Club
     Interest: $41.90
Rental Income
     Townhouse 1: $950

New monthly income record: $144.95 was generated this month giving me an all time high. Lending Club, WHZ, and CIG have given me huge gains the past several months and my quarterly average has been high. 

Sold PSEC: I discussed in my previous entry, I sold PSEC. Their lack of dividend coverage is getting worse and I feel we'll see a dividend cut before the end of the year. I'll have an entry out shortly on that as I expect the drop to be significant but I'll be back in afterwards.

Focusing on C grade Lending Club loans: I'm finding the D, E, and F quality loans are starting to get higher markups in the secondary market. 4%-5% is about as low as I can find. C level I can get regularly for 2% or less. This lowers my lag time of when I start seeing a profit. At 4% I am needing 3 or so months of interest to recoup my losses through the markup fee. That has caused me to have an overall portfolio loss so far. I expect the next month or two to change that though as the majority of my loans will be 3 months old and I should hit profitability here on out.

Heavy cash position: Currently I am sitting at 38% cash. I'm definitely itchy to deploy that unused money. Cash doesn't have a yield nor capital gains. However it does give opportunity benefits. I have to be careful not to buy something just for the sake of buying it. Luckily its a new month and I'll be screening for a new investment today.

Close to no net loss on my rental: I am getting very close to no longer being underwater with my rental which means I should be able to refinance soon. I'm sitting at 6.12% and would really like to get that down. Nobody would talk to me though while I had a net loss. I might make that my priority this month and get it down further.

Disclaimer: The investments and trades discussed are not recommendations for others. I am not a financial planner, financial adviser, 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.