Rocky’s Weekly Stock Picks
This week the office is closed on Friday, and we’re buying corporate bonds.
What does this mean for our stock picks? Uh…umm… Hey! Look over there!
If you’re wondering which greedy corporations we’re giving our dollars to, it’s Prospect Capital and Energy Transfer; both of which we also own common stock in. That said, we’re not actually ‘recommending’ these purchases. If anything, we’d say stick with T-Bills but also start padding out long-term T-Bonds in the 5% area. Why? Two reasons…
Reason #1 - We’re not very keyed-in with bond markets and bond trading. Basically, we don’t know what we’re doing (but we’ll keep doing it as long as we keep getting those interest deposits).
Reason #2 - US Treasury notes are risk-free.
Reason #3 - We just remembered that we saw a headline about the Fed might cut rates. We didn’t click on it and have no clue if it’s true, but if it is, then T-Bonds locked in at 5% are going to be money well-placed.
On to actual stock picks! …Sort of.
HAS - $49.09/share, quarterly dividends annualized at 5.7%. Last ex-div was in October, but the next one is yet to be announced. We’re still holding strong on Hasbro, and will keep buying as long as the price stays under $100.
Toys aren’t quite as alluring as oil and weapons systems, but somehow we really doubt the brand is going to disappear in our lifetime or the next.ARRPRC - $19.89/share, monthly payments of 7% on $25 coupon value. These preferred shares of this REIT are annualized to return 8.7%. Next ex-div is 12/14.
As with any preferred stock, your ticker symbol may vary slightly based on which brokerage you’re using. ARRPRC comes from Fidelity’s format.LTC - $33.11/share, ex-div 12/20, annualized return of 6.85% paid monthly. Speaking of REITs, we were super bummed when the share price hit $40 and we hadn’t bought more. The price appears to be headed back up, having spent some time in the near-$30-range.
Even not counting the dividend, our holdings have still increased in value despite having bought in at less-than-ideal times. Can’t complain there!
(Then again, maybe our timing wasn’t “less-than-ideal”, but try telling that to the rest of our pre-Covid-era portfolio!)F - $11.03/share, quarterly dividends of $0.15/share, last ex-div was 10/31. Ford is a solid and reliable stock (much like the Ford F-series of trucks). The dividend is a flat-rate regardless of share price (up from $0.10!), and the price doesn’t fluctuate too much.
We really like that Ford is pushing back on the push for EVs. Not because the whole thing is retarded and ass-backwards; but because they are outright stating that they cannot profitably manufacture EV’s (even with heavy federal subsidies!). There’s enough foresight, at a bare minimum, to want to keep the company operating successfully. Now that, I’d buy for a dollar (or eleven).HYZN - $0.995/share, options trade monthly. Speaking of EV’s, this company produces them.
Hold on, hold on! These are hydrogen fuel-cell EV’s. So calm down.
Why Hyzon Motors? Well, for one, we might as well average down our current holdings, as this week one analyst upgraded from SELL to HOLD.
More than that, we’re huge huge fans of hydrogen as a fuel. We’re also huge fans of hydrogen-powered cars. Additionally, hydrogen power is getting a boost in the pants (but you won’t hear about it on the TV). A major plant is under construction by…some company in Florida? We didn’t take many notes…. ANYWAY, the plant is being built along its proof-of-concept facility which is running and producing clean, renewable, energy.
You know what else we love about hydrogen energy? The most efficient production still involves using a little bit of natural gas! Huzzah!
TDLR - HYZN is a reasonable risk. Don’t bet the farm, but don’t be scared to take a chance!
