Thrid Quarter Trading Portfolio

Below are the stocks currently in the Small Town Investor Hedge Fund trading portfolio and my synopsis on each.

 

ARCC...This will be dropped by the end of 2011, possibly as early as next month due to an in the money call .  Ares Capital is a  business development company that lends capital to small companies and I have concerns about their immediate future due to the slowing economy.

 

BCE...Canadian telephone company. Continues to raise dividend and is in Canada where the political business environment is good. 

 

CTL...Legacy telephone company that operates in rural US markets. Great management and solid fundamentals. Above average dividends. A good buy currently as well.

 

DO. Diamond Offshore..Offshore driller who does no business in the US where the political environment is negative for drillers.

 

DUK..I continue to believe this utility will do well once merged and new and better leadership takes over.

 

ERF..Hands down still my favorite trading stock. Canadian oil company that continue to pay high dividends and find new oil and gas deposits. I have made more money on this stock than any stock ever.

 

FTR..legacy telephone stock.  good company and long term holding, but is no longer a good trading vehicle. Dropping end of 2011.

 

HCN..excellent operator of health care real estate. good dividend

 

JNK...continues to be good value ETF and despite concern over junk corporate bonds keeps it's price well.

 

LO...excellent trading stock and my largest holding. I still believe with the quality of earnings and solid management this stock is undervalued.

 

MO..steady eddie, just keeps selling product and paying dividends.

 

NNN..one of my two favorite real estate stocks. triple net leaser that raises dividend annually and is solid as they come.

 

O..my other real estate stock. monthly dividend payer continues to raise dividend. might be most friendly stockholder company on the planet.

 

PFF...solid preferred stock ETF. good dividend.

 

RAI...like MO keeps selling product and paying a dividend.

 

RRD..the largest printer left in the world. continues to buy out limited competition and pays out profits to shareholders.

 

SCCO...copper miner that is my play for gold. nothing in this tech connected world can be made without copper. nice dividend.

 

SO...best run utility on the planet. good regulatory atmosphere and conservative management make for a stock you can own and sleep like a baby.

 

WIN..legacy telephone company. good stock but no longer a good trading vehicle. dropping by end of 2011.

 

GS..largest most profitable investment banker on the planet. Knows their stuff and plays the political game better than about anyone.

 

Stocks on watchlist...

 

BP... should be poised for a comeback.

 

HTS..rate sensitive stock that now has appeal.