Rocky’s Weekly Stock Picks
Has everyone gotten all their K-1’s yet?
NO. Obviously not. Some companies won’t get those out until mid-May or even June. (They’re supposed to be in the mail by ….March something).
How about that Workhorse class action? That’s disappointing. We really missed the mark on that one. Hopefully the price per share we can recover is more than $1.50 - we bought shares at $14+.
We aren’t sure in what scenario someone would want to buy shares as the price declines as the company’s final days tick away - there probably isn’t one for individual investors. So, maybe don’t buy any more WKHS.
As far as Silvergate goes…we got out of our positions before the price went too low. We good.
Tune in next week to find out if Credit Suisse debit spreads expiring 3/17 was a terrible idea! Now, on to our picks…
PVL - $2.42/share, 20% annualized return paid in monthly distributions, options trade monthly. Ex-div was 2/27, so March will probably be around the same. We just want to take advantage of the share price while it’s this low and increase our royalties income.
RIOT - $5.30/share, options trade weekly. Let’s take advantage of the price while it’s this low! RIOT is very sensitive to Bitcoin price movements, and right now BTC is about $20,000. Now, that can change wildly between Sunday afternoon and Monday morning, as is the nature of Bitcoin. Given the shutdown of Silvergate amidst the ongoing fallout of the FTX collapse, we anticipate at least a few days of discounted crypto prices.
Honestly, FTX is kind of a facepalm moment. It’s Mt. Gox all over again. Keep your crypto in a cold wallet! If you don’t hold it, you don’t own it (same goes for gold and silver, by the way).
Now, with Coinbase, you have VISA iand the SEC involved, so there’s a much more complex web of security regarding their custodial storage. I still wouldn’t go all-in, however. Similarly, gold and silver exist mostly on paper, so maybe keep some in a sock somewhere. Again, you have US Treasury involvement, so your IRA gold stacks are probably safe (or at least their relative value).GOLD - $15.91/share, annualized 2.51% return paid three times a year, options trade weekly. Speaking of gold… GOLD! This is actually a mining company, focused on producing both gold and copper in Canada. We like that they have their hands in copper - copper is the most valuable “cheap” metal there is, and has been used industrially for thousands of years. Also, it is becoming more expensive to procure.
TD Ameritrade only shows 3 months of dividends paid, ever, starting in 2022. We’re not seeing an upcoming ex-div, so we may have to wait until May. Not worried about it, the main factor here is that the share price is only slightly above its 3-year low.
GAU - $0.47/share, no dividends, options trade monthly. This is gold mining stock is also nearing its 3-year low, so let’s take advantage of the massive discount while we can.
The pro’s - this company holds 100% interest in operations through its subsidiaries in Ghana, Mali, and South Africa and a 50% interest through a joint venture in Ghana.
The con’s - they’re holding 100% interest in several operations in Africa.T - $18.43/share, annualized return of 6% paid quarterly, ex-div in April, options trade weekly. ATT is pretty well-known for its stable, high-paying dividends. In fact, it’s an important part of their business model - their stable dividends pretty much guarantees stable investor capital. The price is down at the moment, but is ready to start climbing back above $20 over the next quarter.
The actual ex-div date hasn’t been announced yet, but last year was April 13th. There’s no reason to think it won’t be close to the same.
