tag:blogger.com,1999:blog-6097510160054715524.post24112071015597504..comments2024-01-03T21:42:28.979-08:00Comments on DivGro: Confessions Of A Recovering TraderFerdiShttp://www.blogger.com/profile/05008021146951839361noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-6097510160054715524.post-91991965899595368092016-09-01T22:59:16.330-07:002016-09-01T22:59:16.330-07:00Hi Mike A -- thanks for your kind words of inspira...Hi Mike A -- thanks for your kind words of inspiration!<br /><br />I can safely say that PNNT was a mistake. Not because its share price dropped some time after I bought it, but because I used shoddy analysis to convince myself the high yield was worth the risk. I bought my first batch of PNNT shares in September 2013, just 9 months after starting DivGro. It is interesting to go back an read some of the stock analyses I wrote in my first year... I think I've learned a lot since then! I wonder if, 4 years from now, I'm going to say the same thing about what I'm writing now...<br /><br />The important thing for me is to learn from my mistakes. Sure, everybody makes mistakes... but I don't think everybody intentionally learns from their mistakes. By writing this "confession", I wanted to own up to my original mistake and (playfully) admit to trying something counter to the DGI philosophy in order to "fix" the mistake. <br /><br />I can't really answer your question if I would have confessed to this trade if it had gone terribly wrong. I definitely would have been even more embarrassed to admit it! On the other hand, I did confess to my disastrous SDRL buy... so maybe I would have. <br /><br />So far, despite the horrible performance of the stock, PNNT has continued to pay its frozen dividend. I lucked out. I'm hoping to grab a few more of these payments, then bow out of my PNNT position with some extra cash to spend. I'm up a few percentage points as it stands, considering that PNNT has paid back nearly 9% of my total capital outlay as dividends. Should the share price start to tank, I'll get out at about breakeven and call it a day!<br /><br />Cheers<br />FerdiSFerdiShttps://www.blogger.com/profile/05008021146951839361noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-46022304317690854542016-09-01T18:26:05.673-07:002016-09-01T18:26:05.673-07:00Hi FerdiS, you know how I feel about the blog (lov...Hi FerdiS, you know how I feel about the blog (love it) so won’t go into that here.<br /><br />“It took me a while to own up and write this confessional and now I can carry on being the dividend growth investor I know I can be!”<br /><br />The question is – Would you have “owned up”, confessed as you say, if shortly after your second buy at $7.22 ---PNNT slashed the dividend to zero and the price plummeted to less than a dollar? Would you have posted that dreadful second buy? No need to really answer, because none of that happened so neither you-- or us-- will ever know that altered reality. <br /> <br />To me your portfolio is transparent. You post your basis and current value for all your INDIVIDUAL companies. You post your buys and sells---And you have a “search” key that allows us to search past buys/sell. Those things are big. Most blogs don’t have this. Oh yes, they may post a list of companies and the value and call that their portfolio, but that is meaningless unless you can see the performance. I really don’t mean performance in the way most think about it. I look mainly at my dividend income—same as any DGI-- and not performance, but performance comes to play at the “buy price”. I want to look at buy prices and see if they are hunting down good values. Deep discounts on quality companies is the way to Alpha in my opinion. <br /><br />You and I have even had some discussions about buying too high (AAPL). As I get to know a blog and blogger I research their buy prices and rationale.<br /> <br />1. If they are buying high just to get a name in their portfolio, I don’t want to follow<br /><br />2. If they are buying just because all the other DGI blogs are buying, I don’t want to follow<br /><br />3. If they admit they are buying high, but disclaim that because they have a long time horizon, I don’t want to follow.<br /> <br />Believe it or not I see instances of this ALL the time. Numbers 1 & 3 are generally admitted to in the post, and # 2 is very easy to spot. <br /><br />Personally, I had not even heard of PNNT until your post so that is how far of my radar it is. Doesn’t matter, I am not hear to talk about the stock.<br /> <br />PNNT is an investing mistake right? I think you are admitting that. You want to sell even if it comes up in price. Well, guess what, we all make mistakes. I think it is just as good to talk about those as it is the winners. Even with this “mistake”, if it is one, your total portfolio is a winner so why worry over one mistake?<br /><br />You are OK in my book FerdiS. <br />Unknownhttps://www.blogger.com/profile/10109778105179617546noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-22839710805072440492016-09-01T14:24:31.684-07:002016-09-01T14:24:31.684-07:00You're right... based on what I've read, l...You're right... based on what I've read, lots of people sold at the lows of the last recession and are still in cash. They've missed out on the recovery. FerdiShttps://www.blogger.com/profile/05008021146951839361noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-92154984118274041742016-09-01T14:21:55.296-07:002016-09-01T14:21:55.296-07:00Thanks Pursuit 2 Freedom -- yes, we'll see how...Thanks Pursuit 2 Freedom -- yes, we'll see how it goes. I'm tempted to keep PNNT around for a while to collect more of the dividends. FerdiShttps://www.blogger.com/profile/05008021146951839361noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-17137250934672964362016-09-01T10:17:17.127-07:002016-09-01T10:17:17.127-07:00It tough to see a company drop and then keep dropp...It tough to see a company drop and then keep dropping. It's very emotional. <br /><br />Normally, people will sell at the worst time and take the largest realized loss possible.Divi Centshttps://www.blogger.com/profile/11414779401684175087noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-72551884818606242942016-08-31T00:05:42.507-07:002016-08-31T00:05:42.507-07:00Nice story! And I really hope it ends well for you...Nice story! And I really hope it ends well for you. At least with dividends included you are already in the green.<br /><br />I don't know if I would have bought more in your case, but I do understand the reason behind it. <br /><br />Good luck!Pursuit 2 Freedomhttp://www.pursuit2freedom.comnoreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-28738718748682352812016-08-30T22:19:29.100-07:002016-08-30T22:19:29.100-07:00Thanks for visiting and commenting, Janet! I'm...Thanks for visiting and commenting, Janet! I'm concerned about the fundamentals of PNNT. Another reason I'll be selling my shares at some point is that I'm preparing my portfolio for options trading. I need the cash to raise the number of shares of my other holdings to at least 100 shares each.<br /><br />If you bought at 6 dollars, you've done quite well -- congratulations!FerdiShttps://www.blogger.com/profile/05008021146951839361noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-86270354823956510952016-08-30T19:52:05.940-07:002016-08-30T19:52:05.940-07:00I believe PNNT continued to pay the dividends all ...I believe PNNT continued to pay the dividends all the way through the 2008 crisis even while hitting lows of $3.00. It goes up and down but pays out a high dividend. I bought shares earlier this year around six dollars. Might be one to keep long term.Anonymoushttps://www.blogger.com/profile/03468589383811107683noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-77714164981050424112016-08-30T12:40:26.566-07:002016-08-30T12:40:26.566-07:00:-) thanks for the confession!
I hope you're ...:-) thanks for the confession!<br /><br />I hope you're now sleeping well at night -- I would be very stressed if I had millions at risk! Slow and steady wins the race...FerdiShttps://www.blogger.com/profile/05008021146951839361noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-78575613146162898302016-08-30T12:01:02.032-07:002016-08-30T12:01:02.032-07:00I used to check premarket NASDAQ every morning loo...I used to check premarket NASDAQ every morning looking for an opportunity to "fade a gap". I put millions at risk over several months to make about 3500 bucks. Now it is mostly selling options for income.Financial Velociraptorhttp://velociraptor.ccnoreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-66326524474971963332016-08-30T10:51:12.444-07:002016-08-30T10:51:12.444-07:00:-) thanks for the confession!
I wish I could se...:-) thanks for the confession! <br /><br />I wish I could sell covered calls on these -- PNNT options are very thinly traded and probably not worth pursuing. Even if it were, I can't trade options in the account that hosts my PNNT shares. <br /><br />I see PNNT is getting close to $8.00 now. Not much more to go!FerdiShttps://www.blogger.com/profile/05008021146951839361noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-90834692683498463832016-08-30T10:00:45.899-07:002016-08-30T10:00:45.899-07:00Great post Ferdi. I would've done the same thi...Great post Ferdi. I would've done the same thing as you. Reset my cost basis to break even. Maybe you can sell covered calls on some of these to make side money. Anonymoushttps://www.blogger.com/profile/15330040244289368427noreply@blogger.com