Posts Tagged ‘CSE’

Any better stock ideas?

Monday, August 25th, 2008

I am curious what others who invest and follow the market are investing in or liking these days. I will mention a few of my own and would like to hear your ideas.

1) I know it has become a joke but I have Apple. It has been fantastic. I am not buying any more because with the stock price going up as much as it has, it has become too big a portion of my portfolio to add more. I have sold some and of course been sorry. I have never seen a company hitting on all cylinders like that company is. I am holding my shares and occasionally writing covered calls.

2) Devon Energy this is a good oil and gas producer. Of course it has done well with the energy complex but it has the wild card of the potentially enormous discovery in the Gulf. It holds a 25% stake in what might be another Prudoe Bay. Of course we had a thread on this earlier. In any case the big money has been made there although I think there is more. I actually lightened up my energy holdings a few days ago, selling my energy share mutual funds in my IRA.

3) Two financials
a)CSE a beaten down financial. It has not suffered major credit losses but it’s stock price got down to $10 where it was yielding over 20% on it’s dividend. I bought at 10.6 and it is now over $15. The yield is still very good. They announced plans to buy the branches of Fremont Investment and Loan. I know that company from my days in the banking industry. They are high priced deposits but cheaper than repo agreements or other collateralized agreements used and certainly more stable. This is a case where I kind of caught a falling knife, which I don’t recommend but it has worked out.
b) USB a very well run bank out of Portland. They have largely escaped the blood in the financial industry. They have a dividend yield of 5%. I have owned shares for 8 years and bought more today.