We are about three weeks into the new year and we are going to do a quick check on our 2014 picks and add another one that has popped up since our new year posting.
ARCP...We suggested that you purchase this triple net lease as a long term holding under $13. As expected this stock has moved up nicely closing in on $14 per share as more people discover the promising future of this company. Still yielding just under 7% there is still time to buy it as a fair value here is around $16. Add in the monthly paid dividend and this is just a beauty of a buy. Strong conviction and safe pick.
MONIF...As yet this stock has not moved up to what we believe will be fair value of over $2 a share and maybe more. Selling at $1.28 as we write if you are a risk taker do some due diligence and buy some with some risk capital. Be sure to buy before Feb. 1 as the company will report earnings that month and if they are as good as expected the stock could take off. Of course they could go the other way too. Not for homegamers.
NNC...Another good early mover going from $12.01 since we suggested it to now $12.26. We expect this closed end fund to move up above $13 this year and maybe a bit more since it is a good bit undervalued. Pays a 5% yield in monthly installments. Good safe pick with little downside risk.
PM...New pick for the year. Phillip Morris has been sold off due to concerns over it's comments regarding 2014 as a investment year and maybe less stock buybacks. Investment year means they are going to use some of their vast free cash flow to take advantage of opportunities to improve free cash flow even more going forward. What's not to like? Now selling in the low $80's this stock is almost a long term steal now. Great safe 4.5% dividend and long term growth in capital in double digits. Buy, hold, and forget.
We are long NNC and MONIF. We hold options on ARCP and PM.
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