Introducing Justin’s Stock Portfolio

By:  Justin Holden

 

  • This article covers my assets that are being held in an individual brokerage account through TD Ameritrade.  I have a separate Roth IRA account through Charles Schwab as well.
  • A brief background is provided on each company I have a long position in.
  • I discuss my ever-evolving investing philosophy.

 

I first got interested in investing when I was a junior in high school.  I took an honors economics class where they had us do a stock trading simulator competition.  Even though my partner and I didn’t win the competition, I was fascinated by the project and learned some valuable lessons from that initial experience alone.

Once I got to college, I opened an individual brokerage account with Sogotrade and made my first investments in the stock market.  Back then I had no idea what I was doing, and basically just bought stocks that were at 52 week lows hoping they would rebound for a profit.  Needless to say, I got burned a few times by taking this approach.  I closed my Sogotrade account once they changed management and were trying to get me to re-send my financial information through the mail.  Overall, I lost a small amount of money on that account, but I learned more lessons about what not to do when investing in the market.

My approach to investing now centers heavily around value, fundamentals, and a preference for companies that control assets people either need or have a proven historical demand for (i.e. water, consumer staples, alcohol, cigarrettes, etc.).  When I fully flesh out my Roth IRA, I expect a lot of those investments to revolve around companies that control fresh water resources.  But today, I want to introduce my long positions in my individual brokerage account.  I haven’t set any official rules for myself as far as what I will and won’t allow myself to do with this account.  I’m viewing it as my “play money” at the moment.  But having said that, I seem to be using it right now for practice in value investing.

My Positions:

China Mobile (CHL) is my most recent stock purchase.  I’m going long on this company because it is China’s largest telecommunications company and highly profitable.  I also believe it trades at a value and have no concerns over the balance sheet.  I’m getting good foreign exposure through this company.  The biggest risk seems to be the high Chinese government ownership within the company.  You never know what foreign governments might do with the assets they own.

Crown Crafts (CRWS) is a US micro-cap stock that I purchased shares in roughly one year ago.  This company focuses on manufacturing baby products.  I invested in this company because of the strong balance sheet, reasonable valuation, and competent management team.  I am currently underwater a bit on my investment here, but because the company has little to no debt on it’s balance sheet, I am not overly concerned and willing to wait things out.

Kimco Realty (KIM) was another recent purchase of mine.  This company is classified as a REIT.  The company owns real estate and leases their properties out to retailers in order to generate revenues.  I invested in this company because of a low P/FFO ratio and an opportunity to make a contrarian play on the “retail-apocalypse” market overreaction.  I am not expecting a quick turnaround here in terms of rising share price, but the company fundamentals are strong and I’m getting paid a solid dividend to wait.

Mind C.T.I. (MNDO) is a foreign micro-cap stock.  The company is headquartered in Israel.  Mind C.T.I. is part of the technology sector and trades at an attractive P/E ratio.  Strong balance sheet with little to no long-term debt.  I also invested in this company for a stable double-digit dividend yield.  It has been a core holding in my brokerage account for a few years now.

Sturm Ruger (RGR) is a US small-cap stock.  The company focuses on manufacturing firearms.  I consider Sturm Ruger to be the most ill-timed purchase of all stocks currently held in my individual brokerage account.  The current political climate has drastically reduced demand for guns when compared to the Barack Obama years.  Still, there is potential upside in this name should any gun control measures be implemented in the future (because fear of gun control spikes demand for the company’s products).  I’m getting paid to wait with a modest dividend and I don’t expect much further downside given that Sturm Ruger is a debt-free company.

Disclosure:  Justin owns shares in the following –  CRWS, CHL, KIM, MNDO, RGR.

Additional disclosure:  Justin is not a registered finance professional of any kind. Readers are expected to do their own research and due diligence before making any investment decisions.

Advertisements

Another Monday, Another Government Shutdown…

geraldBy: Gerald Royster

Another Monday, Another government shutdown has come…

Once again we see that the two party system is not working in this country. This current historical shutdown is brought to you by a government that is controlled by one party through the Presidency, House of Reps, and Senate, which in itself looking at it at face value seems almost daunting to say the least.

IMG_1024I was texting fellow LitTube members  Justin and Mario this morning, nothing out of the ordinary honestly, but then it hit me as I was watching the news from my Tablet, how is it with all this technology the people don’t have more of a voice, how is it with all this technology that we have these government shutdowns?

Now you’re probably sitting there wondering What the hell I’m talking about, which is find, allow me to explain…

Before I begin and go in depth how about a little back story. As most of our regular readers and fans know I work in the tech industry for one of the biggest tech giants in the game! In the last half a decade since I was hired, I’ve seen advances in technology that have blown my mind, I’ve seen how much our society relies on technology. More importantly I’ve seen just how accessible technology is. I was born in 1989, and my house did not have internet until 2001. There wasn’t that much of a dramatic need for it until then honestly. It is now 2018 and those days have changed, where internet, technology, and data has virtually been fully integrated into our society. We do so much on the web and through our technology, which is why the FCC trying to deregulate internet is such a big issue for us. Even as you read this, you’re probably on your smartphone, on a tablet, or on your computer. You probably accessed this very article from the WordPress, Facebook, or Twitter app where this very post has been shared. You are the biggest evidence in my following point.

So lets get down to business…

As I prowl social media, engaging with the public, and researching, I’ve heard one common denominator from all sides: Lack of trust in the way our government is ran. Youimg_8954 can’t go more than one political Facebook post without someone complaining about how corrupt a politician is, or about how they just can’t get along, or how they personally don’t feel heard. It’s something that I even feel personally.  We vote out of necessity and hope for a better tomorrow. We vote hoping that the suit that’s elected to office will give a damn about our individual needs and do what’s best for us. We are selfish and honestly that’s fine! When it comes to the law of survival, self-preservation is key! I want someone in government to represent me and to do what’s best to my personal beliefs, and in hopes it makes the Country a better place. That’s all fine and dandy. Now this is where my article travels down the fantasy path so let’s strap in.

img_8959          Most of you have iPhones, or Android. Some have Microsoft phones; other may just have a tablet or a basic computer. Nonetheless most have technology. Imagine a world where you did have an actual voice. What if your actual vote mattered? Not saying your vote does, but what if the vote you casted had a direct impact on what happens. That’s the world I dream of: A full democracy.

Now we’re at the point of the article where you’re starting to think I’ve gone mad. Most of the people in this country have some type of device. Something that connects to the internet, let’s be honest, most of these devices are overpriced, so if need be img_8958subsidized devices could even be given to the less fortunate. Imagine an app, and we’ll call it “AmeriGov”. It’s an app in this imaginary Democracy where every issue is posted. Polls are open for a particular period depending on importance and issue. Citizens would use their fingerprint, or social security number, or some type of identifier to let the app know they are a registered citizen to cast a vote on key issues in this country.

img_8962Personally I believe it would cut out a lot of corruption that goes on in our system of government. By using a full democracy, and putting the power into the literal hands of the people, corporations, and businesses would have to respect people. For example, if an oil company wants to run a pipeline through a town out west, due to the power of the people, that company would have to meet with the citizens of that state or town and come to an agreement, then that agreement would be voted on. End of the story.  Another example would be the case for legalization for marijuana. Why not have a national vote to see what if that’s what the people want.

img_8975To a lot of people this can be an intimidating process, and to those in power this may never happen… But I see polls on television all the time on social issues ranging from subjects of Abortion, to Marijuana Legalization, to the death penalty. And in a lot of issues I may not always img_8977agree with what the public result of that poll is, I honestly respect it a lot more then when a majority of the People of this nation agree on something, but when Congress passes something, or decides on something in a different direction. It feels like a slap in the face and can leave a lot of people disenfranchised, and feeling like their votes don’t count. How many times have we seen just in our lifetimes, the popular vote go one way, and the Electoral College go another way.

The point I’m really trying to make is simple… Even with this most recent Government img_8955img_8956shutdown soon coming to an end, it’s an indication that this country has serious issues in the way it’s run. It may be a pipe dream to envision a nation ran by the voice of the people, and not by the wallets of corporations. We have people who represent us that have been in office since the img_89611970s and earlier. It was never intended for a seat in the House of Representatives, or Senate to be a job you can retire from. That to me seems like a slap in the face of the Constitution. If Presidents have term limits, then no doubt our Congress should as well. No we don’t have a full democracy, it’s a beautiful dream and definitely would force people to pay attention to the issues, but we do still have an obligation to vote…

img_8979The last government shutdown happened in 2013… It’s now 2018, and there are still on both sides too many familiar faces…

Edited by: Mario Meza