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To
OTC Journal Members:
There were two new BLOGs posted
earlier today. First- some comments on the harsh reality that Southland
Health Services aka Bad Toys aka Paladin Holdings is officially dead.
In my view, all of our dividend shares in Southland are simply worthless,
and will never have any value. Read up on it. Second problem child- Titan
Global (OTC BB: TTGL) has undergone a temporary symbol change to TTGLE-
comments in the BLOG.  The
BLOG
is your opportunity to ask questions and offer comments. I will make an
effort to answer every legitimate question. If I don't know the answer,
I will contact the management and get the answer. Alternatively, if you
have questions you don't want publicly displayed, you can always email
me directly at editor@otcjournal.com.
If you submit a comment or question, it will not appear on the site until
I have responded.
To use the BLOG, simply go
to the home page at www.otcjournal.com
- the BLOG scrolls down from the upper right hand corner. The most
current journal entries appear on the right hand side of you screen. Check
back frequently for updates particularly when stocks are moving to overbought
or oversold levels in volatile markets.
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Some Income
Ideas For A Bear Market |
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Yes, I'm prepared to say it: Bear
Market- loosely defined as more than a 10% correction from the
recent cycle highs, by that definition we are now officially in a Bear
Market: From the mid November highs, the DOW is down 13%, The
S&P 500 is down 15.5%, the NASDAQ Comp is down 16%, and
the Russell 2000 is down 17.6%. The smaller the stock, the bigger
the drop.
Does this mean we can't make money
from current levels? - no way- in fact, it's time like these when the risks/reward
ratios tip themselves very much in favor of individual investors- Why?
because a full blown recession is already priced into stocks, and there
is a lot of upside from current oversold levels.
I believe next week's FED meeting
could go a long ways towards setting the stage for a rebound in the markets.
The futures are pricing in a 74% chance the FED will lower interest rates
by 1/2 point in next weeks' meeting. This would bring about an unprecedented
1.25 point cut in short term rates in two weeks. One analyst I read noted
it makes about 1/2 the mortgages in the US "refianancable" at a lower rate.
This might get money moving around, and the economy back on track.
The new all time highs in Gold signal
inflation is still a problem- as I have said before- that's the FED's dilemna-
if you eat, drive a car, or heat your home, inflation is a problem. If
you get your home appraised, deflation is a problem. A real conundrum.
I am very busy look at some International
emerging market ideas- especially in energy and green. There's no Bear
Market in my #1 green idea- CREE (NASDAQ: CREE)- currently trading
at about $30 on its way to $50 someday (picked at $25 in
October). I just don't know when or where it's going between now and then.
If you're looking for a reasonably
safe place to park some capital for a good dividend yield while awaiting
the completion of the bottoming process, here are 2 ideas I got from a
resource I consider very sound:
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Advantage
Energy Income Fund (NYSE: AAV) |
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This a Canadian Trust created for
the sole purpose of generating dividends from its resource properties north
of our borders. 55% of their production comes from natural gas- the remaining
45% comes from oil producing properties.
The Income Fund recently announced
2008 operating metrics. As you can see from the chart, this issue has been
under substantial pressure of late- coming down from a high of nearly $13
to its current level of $9.31.
Their monthly dividend came down
from $.15 CDN to $.12 CDN as we made the turn into 2008, which probably
explains the weakness in the price. However, the company indicated in its
most current press release that it believes it can maintain that monthly
cash dividend throughout the course of 2008.
$.12 monthly CDN, which is pretty
much the same as US dollars these days, the stock yields $1.44 in annual
income- a 15.4% yield based on Friday's closing price.
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Pengrowth
Energy Trust (NYSE: PGH) |
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Pengrowth Energy Trust
is similar to Advantage Energy. Also a Canadian Oil and Gas Royalty Trust,
this is a collection of Canadian producing properties managed to spin off
income to shareholders.
Over the past 12 months, PGH
has paid cash dividends of $2.875, which equates to 16.7%
based on Friday's closing price.
The current monthly cash dividend
stands at $.225 per share- $2.70 per share, or 15.7% based on Friday's
close just above $19 per share. All of the Canadian Royalty Trusts were
beaten down pretty badly when the Canadian Gov't changed their tax status
in 2007.
I won't be providing any ongoing
following for these ideas. If you are looking for a moderately safe haven
to park some capital during these turbulent times and get a great yield,
you should look at these two ideas. Both trade just like stocks on the
NYSE, and both pay a monthly cash dividend which comes out of revenues
generated by their oil and gas properties in Canada.
Both securities could go up or down
with energy prices and developments in their monthly cash distributions
to the positive or negative.
Again- don't look for updates. Do
your own research. These could both be great sources of income if you want
to take a little risk for a strong yield.
Coming Soon: Updates on EFSF
and NIHK, BLOG coverage of the pending quarterly results
out of TTGL(E), further developments out of SPKL, and a couple
of new ideas.
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