Month: July 2021

Top Cement and Concrete Stocks

Just one month ago, President Biden announced his support for the Bipartisan Infrastructure Plan. These expenditures should benefit the companies involved in the production of concrete and cement.

The first occurrence of cement took place 12 million years ago. Did you know that many thousands of years ago,cement was made out of cow dung, along with lime and mud. This cement was called ‘daub’. If you are looking for a good infrastructure play, maybe cement stocks could be a solid foundation for you portfolio. All of the following have market caps above $1 billion.

CRH PLC ( CRH ) is an Irish based cement and building materials manufacturer. The stock has a price to earnings ratio of 34 , and a yield of 2.37%.

Cemex ( CX ) is a Mexico based cement and construstion materials manufacturer. The company is currently generating negative earnings and does not pay a dividend.

Eagle Materials ( EXP ) is a Texas based manufacturer of cement and gypsum wallboard. The stock has a P/E of 17, and a yield of 0.73% .

James Hardie Industries ( JHX ) is another Ireland-based manufacturer of cement products. The stock has a P/E of 58, and does not pay a dividend .

Vulcan Materials Company (VMC) is an Alabama based producer of construction aggregate. It trades at 35 times earnings and pays a yield of 0.83%

US Concrete (USCR) is a Texas based concrete producer, which trades at 52 times earnings. It does not pay a dividend.

 

Disclosure: Author did not own any of the above at the time the article was written.

 

Funny Company Mergers

by Fred Fuld III

Time for some humor. These are the names that would result if the following publicly traded companies were to become involved in a merger.

If the following companies were to merge: Caterpillar, Gottschalks, Uranium Energy, Tongjitang Chinese Medicines, you would end up with Cat Gott Ur Tong.

Du Pont, YouBet.com, Bell Industries, Even Technologies, Magic Software Enterprises = Du, You, Bell, Even, Magic

Honeywell and Dewey Electronics = Honey Dew

Agfeed Industries, Pfizer, Fortune Brands, Fomento Econmico Mexicano = Fee, Pfi, Fo, Fom

Exxon Mobil, Markel Corp., The9 Limited, Spotlight Homes = Ex, Mark, The, Spot

Harken Energy, Herald Resources, Fallen Angels Income Fund and Singapore Fund = Hark, the Herald, Angels, Sing

Deckers Outdoor Corp., The9 Limited, Hallmark Financial Services = Deck, The, Hall

Apple Inc., Omega Navigation Enterprises, Intel = Apple, Ome, I.

For more stock market jokes, go to InvestmentTrivia.com.

Who Owns the One Letter Domain Names?

by Fred Fuld III

Domain names have become a hot investment over the last 20 years, with several selling for over a million dollars. In case you are not familiar with them, domain names are, in very simple terms, the website address. For example apple.com, facebook.com, and google.com are all domain names. The most common ones end in .com but some end in .net, .org. .biz, .co, and other top level domains.

Did you ever wonder who owns a.com, b.com, or c.com. There are only twenty six letter domains that are even possible, but getting those one letter domains is even more difficult to get than one letter stock ticker symbols.

To start with, the dot com letters ‘a’ through ‘p’, ‘r’ through ‘w’, and the letter ‘y’ are all controlled by the Internet Assigned Numbers Authority, also known as the IANA, the organization which oversees the allocation of IP addresses and domain names.

In case you were wondering about the zero dot com through 9.com domains, they are controlled by the Internet Assigned Numbers Authority.

Some companies were lucky enough to register one letter dot com domains before December 1, 1993 (or buy them from someone who registered them by that date), as the Internet Assigned Numbers Authority put a restriction on single character domains at that time.

But there are still a few that are owned by companies.

a.co is owned by Amazon (AMZN).

g.co is owned by Google (GOOG)

s.co is owned by Snapchat (SNAP)

o.co and o.info are both owned by Overstock.com (OSTK).

0.co (that’s a zero dot co) is owned by Overstock.com (OSTK).

0.info (that’s a zero dot info) is also owned by Overstock.com (OSTK).

q.com is being used by Quantum Fiber.

t.co is owned by Twitter (TWTR).

x.com has been owned by x.commerce, which was developed by eBay (EBAY). Current ownership shows up as being private.

x.co has been owned by GoDaddy to be used as a URL shortener..

y.co is owned by XBN Ltd., formerly YCO Group, a luxury yacht company, which is a subsidiary of Fifty Four Four Ltd..

z.com used to be owned by Nissan North America Inc., which is owned by Nissan Motor (NSANY), which trades on NASDAQ. It is now owned by GMO Internet, Inc. (GMOYF), a Japan based Internet services company which trades on the Tokyo exchange and the US OTC Market.

i.net is owned by Future Media Architects, a privately held company based in the British Virgin Islands.

c.tv, h.tv, k.tv, l.tv, o.tv, q.tv, s.tv, t.tv, w.tv, y.tv, and z.tv are also owned by Future Media Architects.

d.tv has been owned by Worldwide Media, Inc. publisher of  TheDomains.com.

u.tv is owned by ITV plc (ITVPY), a British media company. The company trades on the London Stock Exchange and the US OTC Market.

Want to know what companies have one letter stock ticker symbols? Here they are:

Agilent Technologies Inc. (A)

Barnes Group Inc. (B)

Citigroup, Inc. (C) formerly the symbol for Chrysler

Dominion Energy, Inc. (D)

Eni SpA (E)

Ford Motor Co. (F)

Genpact Ltd. (G) formerly the symbol for Gillette

Hyatt Hotels (H)

Jacobs Engineering (J)

Kellogg Company (K)

Loews Corporation (L)

Macy’s, Inc. (M)

Realty Income Corp. (O)

Ryder System, Inc. (R)

SentinelOne (S) formerly the symbol for Sprint Nextel Corp. and formerly the symbol for Sears Roebuck

AT&T, Inc. (T)

Unity Software (U)

Visa, Inc. (V)

Wayfair (W)

United States Steel Corp. (X)

Alleghany Corp. (Y)

Zillow (Z) formerly the symbol for Woolworth, now known as Foot Locker (FL)

 

Stocks Going Ex Dividend in August 2021

The following is a short list of some of the many stocks going ex dividend during the next month.

Many traders and investors use the stock trading technique called ‘Buying Dividends,’ also commonly referred to as ‘Dividend Capture.’ This is the strategy of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend.

This technique generally works in bull markets and flat or choppy markets, but you need to avoid the strategy during bear markets. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can’t sell the stock until after the ex date.

The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork.com has compiled a downloadable and sortable list of the stocks going ex dividend in the near future. The list contains many dividend paying companies, lots with market caps over $500 million, and some with yields over 2%. Here are a few examples showing the stock symbol, the ex-dividend date, the periodic dividend amount.

ConAgra Brands, Inc. (CAG) 8/2/2021 0.313 3.62%
Intel Corporation (INTC) 8/5/2021 0.347 2.47%
Starbucks Corporation (SBUX) 8/11/2021 0.45 1.51%
Walmart Inc. (WMT) 8/12/2021 0.55 1.56%
Southern Company (SO) 8/13/2021 0.66 4.20%
Target Corporation (TGT) 8/17/2021 0.90 1.41%
Molson Coors Beverage Co. (TAP) 8/27/2021 0.34 0.67%
Allstate Corporation (ALL) 8/30/2021 0.81 2.53%

The additional ex-dividend stocks can be found HERE . (If you have been to the page before, and the latest link doesn’t show up, you may have to empty your cache.) If you like dividend stocks, you should check out some of the other high yield stock lists at WSTNN.com HERE .

Dividend definitions:

Declaration date: the day that the company declares that there is going to be an upcoming dividend.

Ex-dividend date: the day on which if you buy the stock, you would not be entitled to that particular dividend; or the first day on which a shareholder can sell the shares and still be entitled to the dividend.

Record date: the day when you must be on the company’s books as a shareholder to receive the dividend. The ex-dividend date is normally set for stocks at two business days before the record date.

Payment date: the day on which the dividend payment is actually made, which can be as long at two months after the ex date.

Don’t forget to reconfirm the ex-dividend date with the company before implementing this technique.

Disclosure: Author did not own any of the above at the time the article was written; affiliate links are on this page.

Unusual Income Trust Stocks

by Fred Fuld III

The publicly traded trusts are different from regular stocks in that the earnings that are generated avoid double taxation. There is no taxation at the corporate level, only at the shareholder level. In addition, income that is distributed may be tax deferred. Most investors have heard of real estate investment trusts which invest in properties and/or mortgages, and oil & gas income trusts which receive income from gas and oil well royalties.

Oil income trusts have become so popular in Canada that the Canadian government has passed a law to end the pass through benefit in the next few years. The change in the trust law took place on January 1, 2011. What has happened in Canada is that other non-oil companies jumped on the trust bandwagon. So you ended up getting such stocks as a beer trust [Big Rock Brewery Income Trust], a trucking trust [TransForce Income Fund Trust], and a “parts and service support of mobile equipment, power systems and industrial components” trust [Wajax Income Fund].

Canada didn’t hold a monopoly over these trusts. There are several ‘unusual’ trusts that are traded in the United States, unusual being defined as non-REIT’s and non-oil & gas trusts. Here are just a few examples.

Mesabi Trust (MSB), founded in 1919, owns royalty rights in mineral properties in the United States. The Trust receives royalties based on the volume of shipments and the selling prices of iron ore pellets. Their properties are located in Louis County, Minnesota. The trust trades on the New York Stock Exchange and yields 5.28%. The trust does not pay corporate income tax. As such, in lieu of the Trust paying income taxes, the unit holders report their pro rata share of the various items of Trust income and deductions on their income tax returns.

Mills Music Trust (MMTRS) receives payments from a deferred contingent obligation payable to Mills Music Inc. for its catalogue of over 25,000 songs of copyrighted music. Some of the more famous songs in the catalog include “Stardust”, “When You’re Smiling”, “Sleigh Ride”, “I’m Getting Sentimental Over You”, “Who’s Sorry Now”, and “Little Drummer Boy”. Other songs include those written by Bing Crosby and Duke Ellington. Paul McCartney was reported as one of the major shareholders in the past. The company has paid consecutive quarterly dividends since 1965 [over 40 years] and currently yields 7.06%.

Check with your accountant before investing in any of these trusts.

Author owns MMTRS.

What’s With These Super High Yields? 25% !!!

by Fred Fuld III

If you look through the high yield stocks that are extracted by stock screeners, you will notice that there are some outrageously high yields, some more than 25%; but are they genuine high yields? You will also find that different screeners come up with different results. So let’s look at some of the high yield dividend stocks.

Orchid Island Capital, Inc. (ORC) is a specialty finance company that invests in residential mortgage-backed securities in the United States. The stock pays monthly dividends and currently has a yield of 15.45%. It trades at 5.7 times trailing earnings and has a market capitalization of $505 million.

Frontline Ltd. (FRO) is a shipping company involved in the seaborne transportation of crude oil and oil products. The stock has a yield of 25.22% and has a price to earnings ratio of 5.67. The market cap is 1.57 billion.

Cornerstone Strategic Value Fund (CLM), Inc. is a closed-ended equity mutual fund that yields 16.6%, trades at 8.86 time trailing earnings, and has a market cap of $899 million. Dividends are paid monthly.

Rules for Investing in Very High Yield Stocks

1. Check the consistency in the number of payments per year.
2. Check the consistency in the amount of the dividend from quarter to quarter.
3. Check to make sure the dividend payment doesn’t include capital gains.
4. Check to make sure the yield isn’t generated by a special high year-end distribution.
5. Check to make sure that the dividends don’t exceed the stock’s earnings per share.
6. Check to make sure that your stock information provider is calculating the correct yield.

Disclosure: Author didn’t own any of the above at the time the article was written.

Stock Earnings Calendar for July

by Fred Fuld III

We are now entering into earnings season, a time when companies will be reporting and the stocks of those companies may experience more volatility than usual.

If you are interested in doing some earnings plays, the next few weeks will be the time to look for opportunities.

The following are some of the major companies that will be announcing their earnings.

July 14, 2021 before open

BAC, C, DAL, WFC

July 15, 2021 before open

MS, USB

July 20, 2021 after close

CMG, UAL

July 21, 2021 before open

JNJ, KO, VZ

July 22, 2021 before open

AA, LUV, T

July 23, 2021 before open

AXP, SLB

July 27, 2021 before open

GE, UPS

July 27, 2021 after close

AAPL, V

July 28, 2021 before open

MCD, PFE

July 28, 2021 after close

FB, PYPL

Of course, there are many other companies reporting for the month or July, and these dates and times may be subject to change.

Happy Trading and Investing!!!

What is This ZBZZT Stock That Sells for $200,000 a Share

Uf you enter the stock symbol, ZBZZT, into various financial web sites, you will find that this so-called stock sells for $199,999.99 a share.

As a matter fo fact, one web site predicts that this stock will be  280,620 per share in one year and 563,219 in five years.

So what the heck is this ZBZZT?

It is actually a test symbol, used by NASDAQ. The official name for then “stock” is Test Pilot Test Stock Class B Common Stock.

PINES and QUIBS and PD’s Oh My! How About Minibonds for Income Investors?

by Fred Fuld III

Have you ever considered Minibonds™ for an income portfolio or your retirement plan? (Not muni bonds, mini bonds.) These are bonds that are traded just like stocks on the New York Stock Exchange, American Stock Exchange, or NASDAQ for around $25 per share.

They are almost like preferred stocks except that they pay interest instead of dividends and they generally have a specific maturity date. In addition, they usually pay interest quarterly instead of semi-annually. Sometimes they are referred to as PINES (Public Income Notes) or QUIBS (Quarterly Interest Bonds) or QUICS (Quarterly Income Capital Securities) or QUIDS (Quarterly Income Debt Securities). There are even a few that are issued as Perpetual Debt, which means that there is no maturity date.

The advantages of Minibonds to the corporate issuers are that the interest is deductible to the corporation (unlike dividends which are not deductible).

The advantages to the investor are as follows:

  • The bonds are ‘safer’ than preferred stocks (in other words, if the corporation goes out of business, the bonds are generally paid off first before the preferred or common stock).
  • The Minibonds (with the exception of the perpetual debt bonds) have some limited protection against inflation versus preferred stocks in that if interest rates go up, their value will drop, yet the par value (usually $25) will be still paid back at maturity. Whereas, preferred stocks have no maturity.
  • The small denomination is a benefit, especially when looking at an annual IRA investment.
  • A fourth benefit is that since they are traded like stocks, there is more liquidity than buying or selling a $5,000 bond. However, these are still very illiquid investments. Most have a very low daily volume.

Here are a few worth reviewing in no particular order. Keep in mind that the stock ticker symbol shown may differ depending on which financial website you are looking and and which brokerage firm you are using. When you enter a quote on these with your broker and it doesn’t look right, you may need to call them to make sure you are using the correct symbol. For example, I found three different symbols for the Ford note, depending on the web site and broker.

Ford Motor Company 6.20% Notes due 6/1/2059 (F-B) (F-PB) (FpB)

Duke Energy Corp., 5.625% Junior Subordinated Debentures due 9/15/2078 (DUKH)

Chicken Soup for the Soul Entertainment, Inc. 9.50% Notes Due 07/31/2025 (CSSEN)

Bank of America Corp, 6.45% Income Capital Obligation Notes ICONS due 12/15/2066 (MER-K) (MER-PK)

AT&T Inc., 5.625% Global Notes due 8/1/2067 (TBC)

Pitney Bowes, Inc., 6.70% Notes due 3/7/2043 (PBI-B) (PBI-PB)

QVC Inc., 6.375% Senior Secured Notes due 9/13/2067 (QVCD)

Just remember, even though these muni bonds are exchange traded, they are not anywhere as liquid as the stocks of the companies that issued them.

Happy investing!

 

Disclosure; Author didn’t own any of the above at the time the article was written.