Rocky’s Weekly Stock Picks
Well now, who saw last week coming? We did. Two years ago.
That’s besides the point and probably not going to prove to be factually accurate. What is factually accurate is that a wide swath of the market is down. Or so it would seem. Remember, many of these companies experiencing heavy drop in share price are also heavily invested in other S&P 500 companies and/or ETFs.
Analysis and interpretation of the underlying mechanics is beyond the scope of our purpose here. Our purpose here, today, is to pick 5 stocks.
Given the circumstances that two weeks ago we realized losses, and last week we saw our portfolios decline sharply in value, we won’t be looking for particularly green pastures. Averaging down, especially if we can round off another 100 shares of a stock, would be ideal.
RIOT won’t be on this list, even though we’re a strong buy on it. I’ll take $16 all day. Hell, let it go back to $4. That said, it’s one of those things that we can’t recommend in good faith to the hypothetical reader of our site.
ORC - $3.87 a share, ex-div on Friday the 28th. The yield is looking kind of ridiculous, but typically it’s more like 14.5% at a $5 share price. While ORC does raise a few red flags on its face value, it has a great name and is a REIT. It’s Florida real estate, for those of us who care. We’re going to double down (well, not double…we don’t have enough money do that) and buy heavy into ORC.
YCBD/PRA (Preferred Series A) - $6.18, 8% Cumulative on $10 face value. Call date October 16, 2023. Callable exclusively into cash.
Ladies and gentlemen, what better time to add some security to our high-yield dividend holdings? If things go sideways we’re prioritized common stock holders. If the shares are called we get nearly a 60% return, on top of any unpaid interest that has accumulated. And if nothing changes, we just keep getting that 8% return.
Pretty much we can’t lose here. Except maybe because of the extraordinary call option. From what we can tell, however, the scenarios required for mandatory call or conversion (oh yeah, these shares are convertible) are such that we still see profit. So…really, we can’t lose here.NOK - $5.51 per share, with weekly options. The price doesn’t really move. It does, but…the volatility is so low that you get about $2/week rolling calls. The stability of the price, with $2/week for every 100 shares…it ain’t bad. We could do a lot worse.
We fully expect the price to continue, slowly, to climb over time. Frankly we don’t really care that Microsoft apparently now owns Nokia. Maybe we’ll re-assess that in a year or two, but for right now, this is a solid place to park some money.
AM - Antero Midstream, $9.93/share, 8% dividend yield, ex-div on Tuesday. It’s hard to go wrong with anything related to fossil fuels.
KNOP - $15.20, 12.85% , ex-div Thursday. This is one high-yielder that doesn’t raise any red flags. While we won’t be surprised if that yield has to shrink in the future, we don’t expect to see it going away before the widespread adoption of nuclear energy occurs. Even then, it takes like…what, almost 10 years start to finish to get a nuclear plant up and running? In ten years we’ll already have ROI’d and be generating free money.
