In addition to our regular trading portfolio which we update quarterly we have a watch list that we keep an eye on for various reasons. These are not necessarily stocks we would buy but sometimes stocks with exposure to certain areas of the economy that have our interest.
ARCC...Ares Capital is the best of breed business development company in the country. The do an excellent job picking and choosing from among the opportunities that come their way. Solid 9% dividend that you can count on makes for an excellent income producer. If it was nearer $15 we would buy it now.
AT....Atlantic Power has a 8% solid dividend that is paid out monthly. We have long admired the niche market in which this company does business. They provide the bio/renewable energy that many states now require of main line utilities by going in the state and setting up their operations and selling to the utility. As long as there are silly environmental mandates this company will do well. Domiciled in Canada which we like as well.
ASPS..Would, shoulda, coulda, is what we see when we look at ASPS. This company does business as a single source provider of dealing with all those foreclosed housing units in the US. They take the dirty work off the hands of banks, legal institutions, and others how want these assets off their books. As you would expect business is booming and we had a chance to buy this stock in October 2011 at $38, now $63. We wish it would pullback some so we would feel better about a purchase here, but expect we will be wishing too when it hits $100 in 2012.
BBT.. We keep an eye on about three very small NC banks just to know what is going on in this depressed business. Frankly I can not see why anyone would want shares of any bank due to the Dodd Frank regulations making banks nothing but weak earning utilities. No need to mention the other small banks here, but we will note BB&T that came through the financial mess in pretty good shape, has excellent leadership, and might be the first bank to figure out how to make some decent profits going forward. Keep an eye on the dividend for clues. Lower $20's gets our interest.
BP...The day will come when this company will finally get past the Gulf disaster and when it does this stock will be a good one to own. The pressure in the UK to up the dividend is enormous due to the high percentage of people there who depend on it for income. BP has basically turned around it's profits and headed forward, but still has the legal overhang depressing the price. $40 and we are in.
COSWF..Never has a company so rich in assets been such a poor user of such. Canadian Oil Sands which this company is the majority owner of has arguably the largest concentration of oil in the world. They could almost dig forever and never run out. But the management of this company can not get going and continually makes financial mistakes. Still pays a good dividend, but should be paying a lot more. Long term the price is right now.
CVE...Unlike the above oil in Canada company Cenovus is getting it done right. This company sits atop a huge pool of oil and is ramping up production and making money. Increasing production, increasing dividend, increasing profits is the reason we have repeatedly said get on this capital gain train now before it hits $100 per share. CVE has even found a way around the Obama turndown of the pipeline by finding another pipeline to the Canadian west coast to ship crude via Vancouver port just this week. Selling right at $39, we would buy on a small pullback of around $35.
CYS...Best little agency reit out there, value priced too. We will not bore you with another agency reit description here as one can read about them extensively on our blog posts. We will say we are looking to sell a long term put here as the stock edges closer to $13.
DM...My last employer who we have no contact with nor any inside info. This company used to be a big player in business and legal publishing and still does that business. But what might set this company's prospects going are it's legal process business in foreclosures of which there is a huge backlog of business. If and when the federal government turns loose the foreclosures a good bit of the legal work will get processed by Dolan.
HCN..,One of the very best healthcare reits out there. But we like it under $50 and until it gets back to that price we will wait.
HTS...Agency reit which is the lowest cost operator among the group and we like that a lot. If we were not already highly positioned in another agency reit we would likely take a position in this one as the price is right currently.
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