Rocky’s Weekly Stock Picks
Another Holiday weekend! This is a normal one, so not as much of a surprise.
IVR - $15.38, ex-div 7/8, monthly payout of $0.90. Wow. It does appear to be declining, and the share price we also anticipate will decline.
Typically we don’t have issues with Invesco products, but IVR has not been the greatest experience in our amateur paradigm. That’s not surprising. 23% return tends to be a pretty big red flag.
IVR underwent a corporate action of some sort a couple weeks ago, a reverse split maybe. In any case, if there is a good time to buy a handful of shares, it’s probably now. That said, options do trade weekly.
A LEAP is probably not a great way to do it, as you’d miss out on that monthly $90, and the share price is almost certain to come down at least a few dollars before year’s end.ACVF - $28.96 - BUY! What a great price! There is a quarterly dividend that’s not very significant, and no options. The price is right, though. Before you think you’ll give this a pass, remember that American Conservative Values Fund invests in companies that share the fund’s values.
The real special part here is the performance. While many, many, other stocks have fallen significantly, ACVF has remained very stable. Buying into ACVF with call premiums and dividends has been a solid hedge.
UEC - $3.31 , Uranium Energy is showing signs of a run up to $4.50+. Options trade monthly. We see $3 as the floor and so are pleased to acquire more shares at $3.30.
We strongly support nuclear energy.
ECC - $11.86, ex-div 7/8, $0.14 a month, annualizing at 14.17%. There’s several PIMCO options going ex-div this week, as well. Eagle Point Credit is just a slight diversification, sort of. Most likely any situation in which PIMCO has issues, Eagle would as well. All the same, you never know.
OTRKP - Ontrak Inc, preferred shares, $3.00 a share. The annual dividend payout is $2.38. NICE! Obviously the year is half over, and that’s not a great sign. We also haven’t gotten last quarter’s payout.
Why buy, then? The preferred shares are cumulative, and they’re still paying common share dividends. There was also a change of CEO. The new CEO is the founder. What does that mean exactly?Pretty much nothing from where we sit. We can’t afford to go very deep in any one direction anyway.
