The fourth quarter of 2010 was surprisingly rewarding for our selection criteria. The stock performance for the Income and Investment portfolio that was published on Seeking Alpha was outstanding. For the fourth quarter, the portfolio was up over 22% percent compared to the S & P 500 which was up a very respectable 9.92%
Our Income and Investment Review portfolio is based on high dividend paying, very low or negative enterprise values while still including our established criteria of strong increases in cash flow, earning, and a selective qualitative review ensuring they have a good business model. The goals are to select, purchase, monitor, and sell companies in an effort to obtain outstanding performing investments while minimizing risk by finding low values for our clients doing all on a very low cost basis.
|Time||Income and Investment.||S& P 500|
|Fourth Quarter 2010||22.65 %||9.92 %|
Fourth Quarter 2010 performance on our Seeking Alpha listed stocks:
|Company||Fourth Quarter 2010|
|Adams Resources (AE)||*28.73 %|
|TrustCo (TRST)||*16.64 %|
*Dividends not included but currently average 4.65% annually
Thing things investors should keep in mind
1) The current average dividend based on our recommended price currently is:
|Company||Current dividend rate is based on review price|
|Adams Resources (AE)||3.20 %|
|TrustCo (TRST)||6.10 %|
|Income and Investment Average||4.65 %|
2) This is a very small sampling over a very short time
3) The performance is tracking very close to the longer, larger and strong performing sampling of High Cash Stock review with similar criteria excluding the dividend.
4) Adams Resources raised their dividend payout rate 8% in the fourth quarter.
The very low or negative enterprise values in the reviews are designed to provide protection from a market sell off. The positive earning, improved cash flow, profit increase and possible stock price expansion helping to increase the often very low values that were identified. So far, it has Income and Investment portfolio has done exceedingly well and well beyond our forecast by such a wide margin that we are very excited to help others. One must realize that this is a short indicator of performance and there is no guarantee of future success.
Updated portfolio review:
Electro Rent (ELRC) was added to our clients portfolio along with this published review during the fourth quarter. Even though Electro Rent has provided a strong stock performance since our article, but was not included in our performance numbers since it wasn’t in for the entire time period for the quarter.
Universal Insurance (UVE) was also added and it to portfolio with this published review in the fourth quarter and Universal also did not qualify due to the same reasons as Electro Rent.
No positions were sold during the quarter.
Disclosure: Both Durig Capital and its clients have positions in all the above positions. The returns were based on equally weighted Investment and Income Reviews recommendations that we published, invested into our client’s portfolios and were held for the entire time period.
Performance is bases on a written reports published as
1) High Cash Stock Review or
2) Income and Investment Portfolio.
These both are hypothetical portfolio illustration and no money was invested by clients or Durig Capital in this enclosed published manner. Hypothetical only takes into consideration all High Stock Reviews or Investment and Income stock position that were written and publicly published plus held for the entire quarter. Any new position or liquidate position that occurred in the published quarter were not included in the performance. This assumes all positions have an equal investment value at the beginning of each quarter. This is purely a hypothetical account and actual performance of individual active accounts have preformed both above and below the hypothetical returns in the past and most probably will in the future. Past returns are no way indicative of any guarantee of any possible future return. Individual suitability and advice should be sought about any particularly matter or circumstance.
To know more about this Investment call our specialist at 971-327-8847