Tuesday, May 31, 2011

ARR announces offering, after market .

ARR is trading at $7.34 aftermarket. It came a little sooner than I expected. I was expecting them to wait for prices to go higher, I was wrong.

8:55pm  John day a Director  (insider) of IVR bought 2500 IVR on May 26, 2011.

I do not expect silver to keep going up this summer, this summer may be a good time to enter the market if you got left behind earlier when it went up.  There could be another drop in price, oil should also be down.

Friday, May 27, 2011

GNT closed end fund

The closed end fund is called Gabelli Natural Resources, they invest in gold, and other commodities with an emphasis on gold. Basically they trade the Etfs and may do mining stock and generate a dividend- something bullion cannot do unless you physically buy and sell it which is a lot of work.  GGN has been around for years, they did take a beating for stock value in 2008 but it did not effect the dividend at all.  GNT is a new version of the same type of business. GGN is AMEX and GNT is new since January of 2011 and is NYSE traded. NAV is the value of the assets they hold, similar to book value but not the same. It changes from day to day.  I find that this GNT, which is presently trading at $18.86 whichn is $.20 over NAV presently, lowers your risk grade on your portfolio. It has a risk grade of only 21 where AGNC has a risk grade of 168.

SLV-  silver ETF   risk grade  218

AGNC  REIT stock                168

ARR      REIT stock                106

GNT  closed end fund                21

Both silver ETF and the GNT bring down the risk of the portfolio, the silver due to diversification, and the GNT because of lower risk and diversification. I trade with Etrade.  GNT just declared monthly dividends for June, July, August, and September. The record date is June 16th, have it by the ex dividend date, they dont list it but it is usually 2 or 3 days before the record date. each month will have it's own record date just like ARR has. GGN is somewhat more overbought than GNT right now and the price for GNT is closer to NAV right now.  GNT's RSI is 49  while GGN is overbought, so I favor GNT but GNT is new. Both of these work with gold.

What GNT is invested in:
            50.4% metals and mining
            20.8% Energy and energy services
            12.1% Specialty chemicals
            6.2%   agriculture
            2.3%   machinery

A drop in the price of gold could impact GNT stock performance.

Thursday, May 26, 2011

shorting ARR but losing?

ARR is up$.125 at 12:46pm today. people were shorting ARR thinking there would be an offering. I do not believe there would be an offering at this price. Now they are covering their shorts-they have to buy the stock at the higher price to pay the bank off. This is possibly driving the price higher.   These kind of things go on with penny stocks, it is kind of silly. ARR may not do the offering for another year, they do not have to do it within a month or anything.  Other REIT stocks are only up modestly at this time.  I do not recommend playing with these kind of stocks, the whole idea of holding them is the cash dividend. People were selling ARR just before the ex dividend this last few weeks and the stock went up and they lost the cash dividend. Now if they want to get back in they get a smaller dividend because the price is higher. 

Wednesday, May 25, 2011

Fractional Reserve banking

Zeitgeist has a video that is quite long but at the beginning discusses the Fractional reserve system.  this has a bearing on REIT stock as well as silver and gold. basically it says the monetary system we have now is un-sustainable. I say in my commentary we should all have some silver and or gold in our portfolio to protect our value. Here is a link to the video:       http://www.zeitgeistaddendum.com/    ( click on the eye)

I am not associated with the makers of this video but it is thought provoking.  There are some things we do in society that are unsustainable:

1. Eating meat- uses up resources needed by the starving and is unethical-raises commodity prices

2. a monetary system based on debt or money not backed.

3. our transportation system and energy usage

4. The way our religion is run and imposed on people as fact when it is frequently not.

5. Industry  does not produce economical products and wastes resources.

I do not advocate tha the end of the world is coming or that there will be a crash or disaster but being the population of earth is so great we will have to address these problems or else our quality of life will deteriorate.  The longer we wait the harder it will be to fix the problems--I think people will wake up though.

Monday, May 23, 2011

REIT stock Bedford report

Some preassure on the stock prices came today due to the possibility of future interest rate hikes. ARR is down $.09 but AGNC was not affected. The ARR portfolio may actually be somewhat less affected due to the adjustable ARM mortgage backed securities they have. If you have a fixed rate mortgage but have to pay more for the short term loan then the spread earned will be less unless leverage is raised. ARR has a thinner trading market and less time on the market with dividends.   CIM $3.94 +0.00,  ARR $7.58 -$.09,  AGNC $30.00 +.03, IVR  $22.83 -$.12.

Thursday, May 12, 2011

CIM insider buys, Market still hemoraging silver.

Officer Woschenko, Christian bought 20,000 CIM  at $3.94, presently holds 158,973 shares 2011-5-6

Lambiase, Matthew, Chief Executive Officer, bought 50,000 CIM at $3.92, has 465,000 shares 2011-5-6

10:46am silver is down $1.86 to $33.17, gold $1498
Hearing stories on blogs that ARR has not fully deployed the last offering cash yet, they think there will not be another offering since they still have cash. I called them, all cash was deployed back in April, as soon as they get the money they can invest it. They do not want to offer shares below book value, personally I do not think they will do an offering in the next several days. I think it will have to go above or near $8 before they do an offering. IVR beat earnings estimates by $.01 a few days ago.

Sunday, May 8, 2011

News on silver, gold, and REIT dividend stocks

REIT stocks are Real Estate Investment trusts that you can buy shares in on the stock market.

Silver Kitco.com chart showing recent drop from $49 range to mid $30s see details on page 1. bottom of page.

Dollar Index Link: