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Posted by MartZee October 11, 2010
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Dividend Investing Myths


Many investors ignore dividend investing, because they associate them with boring unexciting investments which are destined to fall into oblivion.

Some investors believe that rather than wait for a whole year to collect a 3%-4% dividend, you could make 3-4 % per day in the market trading volatile technology stocks. The fact of the matter is that few if any investors could accurately forecast stock market moves in order to profit from large daily swings in some of the most volatile stocks in the market today. Dividend payments on the other hand are much less volatile than stock prices, which is what makes them ideal for investors who plan to live off their investments. The stability of the payments makes them a reliable source of income in virtually any market, without having to sell a portion of one’s portfolios and exposing yourself to market fluctuations.
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Posted by MartZee October 11, 2010
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5 Most Undervalued Stocks in the S&P 500


Dividend-paying stocks are appealing because they have a track record of beating the broader stock market. Focusing on the most undervalued names of the S&P’s so-called dividend aristocrats means investing in the most undervalued companies.
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Posted by MartZee October 04, 2010
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Portfolio monthly review – September 2010


Monthly review of my Trading account, Roth IRA account and Lending Club account
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Posted by MartZee September 13, 2010
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BDT added to portfolio


I need to rebuild this portfolio, accumulate some funds and start investing into more save securities to stop losing money here. Therefore I decided to change my strategy a bit and use dividend investing the same way as I do in my ROTH IRA account to accumulate. One of the investment I had in my watch list was BlackRock Strategic Dividend (BDT) which I want to buy in my ROTH IRA account. I liked this ETF for quite a good dividend, large discount and its strategy it seeks to invest. I think it may be a good investment. On the other hand with this ETF I can keep the money available for another trade (unlike with HSTIX which is a NO-Transaction-Fee mutual fund and thus can be sold after 180 days to wave fees). So, if I see better opportunity, I can sell and buy.

09/13/2010   12:24:35  Bought  100  BDT  @  9.399




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Posted by MartZee September 13, 2010
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The market is trending up again, will it sustain?


It seems like investors are finally realizing that nothing goes down forever (as well as nothing growths up forever) and start buying stocks again. However I still would be cautious. This rally may not sustain if more bad news and panicking comes in. It is OK buying stable stocks such as large cap companies (which are not so volatile), dividend paying companies, or mutual funds. Buying highly speculative stocks, or small caps would be still dangerous. It depends on your strategy.

In my ROTH IRA I will be still buying during this time since I am buying large caps, good quality value stocks. In my trading account I am postponing all trades as long as I find a good opportunity to buy.

I am also changing the market status into “Rally Attempt” and let’s see the following weeks if the market starts running up again for longer period than just a few weeks.




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Posted by MartZee September 13, 2010
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Visa sold on stop loss


Last Friday Visa has been beaten down by bad news (still boo boo news in my opinion) about impact of regulatory act and Fed creating the new fee rules or whatever they are going to mess with the free market (which seems to be free no more). Investors were selling like crazy and I sold my shares on stop loss order.

09/09/2010   11:20:39   Sold  20  V  @  67.2806

Today morning Visa lost another 3.30% on downgrades and it seems it will be heading further down. I am definitely postponing any buybacks of this stock. However, as soon as this stock finds its bottom we may expect quite great run up, for which I am planning to keep some money available.

Also I am starting the accumulation process and parking my free money into more conservative investments. I decided to buy HSTIX mutual fund as my savings vehicle and I will buy some dividend ETFs to help recuperate my portfolio.

09/09/2010   20:43:20   Bought  60.606  HSTIX  @  8.25

 




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Posted by MartZee September 07, 2010
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Portfolio monthly review – August 2010

Portfolio monthly review - August 2010

I decided to change frequency of reviewing and posting my portfolio reviews from weekly to monthly. Weekly reviews are not as important as I thought originally and due to time issues I am not able to keep up posting in such frequency. So here is the review of August 2010 of my Trading account, which is my aggressive portfolio where I buy individual stocks, my ROTH IRA retirement account which is my dividend investing portfolio (to which I am focusing the most right now) and my Lending Club account, P2P lending investment which is growing very well.
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Posted by MartZee August 23, 2010
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Visa was dropping as one mutual fund was selling and investors panicking


Marsico Capital Management was among the biggest sellers in the second quarter of Visa Inc., the worldโ€™s largest payments network, and Vanguard Group Inc. added to its holdings, as the stock posted its steepest decline in almost two years.

Marsico liquidated its remaining 10.4 million shares and also closed out its investment in No. 2 network MasterCard Inc., selling 5.21 million shares. Vanguard increased its stake to 17 million shares from 16.3 million shares, the company confirmed.

Visa and MasterCard both fell more than 20 percent in the three months ended June 30 as Congress approved limits on debit- card interchange, or โ€œswipeโ€ fees, charged to merchants. The companies and their investors are waiting for the Federal Reserve to determine fees that are โ€œreasonable and proportionalโ€ to the cost of processing debit transactions.

MasterCard and Visa continue to grow profit amid a worldwide consumer shift from cash and checks to plastic. Morgan Stanleyโ€™s Frisch is among 33 analysts surveyed by Bloomberg who recommend investors buy the companiesโ€™ shares.

Fundamentals โ€˜Solidโ€™

The stocks are โ€œrelatively cheap,โ€ Frisch said in his research note. โ€œFundamentals remain solid.โ€

Maybe investors were panicking when seeing the mutual fund selling shares, but we do not know the reason for it. Visa may no longer fit into the fund’s investing strategy and there fore unloading the position. If it was due to uncertain future, it may not show up as terrible as expected and the fund may potentially start buying back the same way as Buffet did with Johnson & Johnson (JNJ) recently and that may push the stock back higher. From the long term I think this stock has a great potential for its growth towards its $100 fair value.
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Posted by MartZee August 23, 2010
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Optimism in Visa rising, but will it be enough?


Recently we saw Visa (V) being beaten down and staying under a significant pressure as investors were trying to determine the impact of regulation act on the company. In my opinion, these expectations were too pessimistic and although CEO claimed in his press release couple months ago that the so called “finreg” will have very little impact to the company’s earnings investors seemed didn’t believe it. Later another boo boo news arrived claiming that Verizon (VZ) and AT&T (T) started planning on their own mobile payment network, while Visa a few days later announced its launching sent the stock to the south territory. Investors were irrationally panicking once again.

It seems to me as a great manipulation of the stock price since I couldn’t find anything wrong with the company and all the news which were predicting a fall of the stock and company’s dominance were a bit… well… off the wall. Someone is maybe loading up or the retail investors were panicking too much. Who knows. Maybe I am off the wall myself. However it seems that investors are realizing that all the predicted impact will not be as bad as expected and we can see some improvement. It may still mean nothing, since the crowd sometimes react weird way (which Contrarians like a lot) we can see the community improving on Visa.

We can see a big upgrade for Visa!

After spending more than a year locked at a mediocre three-star rank, Visa (NYSE: V) has impressed enough top-performing members of our 165,000-strong Motley Fool CAPS community to climb up to four stars. A total of 4,607 members have given their opinion on the payment firm, with many offering analysis and commentary to explain their recent optimism.

Shares of Visa and MasterCard (NYSE: MA) have come under pressure in recent months, as investors attempt to gauge the effects of financial reform efforts on their businesses. Both companies have yet to determine the effects of changing regulations on debit card payments. However, Visa’s CEO recently said he doesn’t expect changes to affect the growth of electronic payments in the U.S., and predicts only a modest earnings impact from the final rules.

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Posted by MartZee August 22, 2010
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Picks 08/16 – 08/20


My weekly review of my portfolios during the last week. You can review my Trading account, which is my aggressive portfolio where I buy individual stocks, my ROTH IRA retirement account which is my dividend investing portfolio (to which I am focusing the most right now) and my Lending Club account, P2P lending investment which is growing very well.
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