duc's 'Margin of Safety' investment

[ducati916]

Dividend paid $118.48

Buy 20 shares at $6.01
New total 1501 shares.

jog on
duc

 

[ducati916]

NEW YORK, April 18, 2019 /PRNewswire/ -- The InfraCap MLP ETF (AMZA) (the "Fund") has declared a monthly distribution of $0.08 ($0.96 per share on an annualized basis). The dividend will be paid April 30, 2019 to shareholders of record as of the close of business April 23, 2019.

jog on
duc

 

[ducati916]

So a little turmoil in the oil market today.

As this ETF is correlated to the oil market, should the POO fall [significantly] I would expect this ETF to follow it. If it should, I will look to replace [buy back] some of those shares I sold previously.

One eye open currently.

jog on
duc

 

[Value Hunter]

Ducati it looks like you are just engaging in speculative trading in and out of a stock.

 

[ducati916]

Ducati it looks like you are just engaging in speculative trading in and out of a stock.

I'll simply draw your attention to the last paragraph of post #1

The Target.

The target is a 1000% return in 5yrs. I'll state up front that anything approaching that will require perfect conditions, viz. a lot of luck.

However, I expect zero luck and therefore to manufacture returns through intelligent investing. This means that I have an expectation that the market will fluctuate. I will capitalise on those fluctuations. This will not be a passive sit and hold exercise. The intention is to grow this investment actively.

So, yes, I will be trading in and out of the ETF. But that trading will maintain a continuous holding in that ETF. I will also re-invest the dividends while they continue, or until I decide otherwise, which I will disclose.

If you wish in order to score brownie points, want to label it 'speculative', I'm fine with that.

jog on
duc

 

[Value Collector]

Reinvest dividend = $116.72
Buy 22 shares @ $5.81
New total = 1481 shares

jog on
duc

Keep in mind, I didn’t have to reinvest dividends back into czz to achieve the 10 bagger result, dividends were reinvested into other stocks as I went along.

So if you are going to include reinvested dividends, you will have to earn more than 10x to match CZZ, because czz itself was a ten bagger for me, but the dividends were invested into other things that produce further growth and dividends not accounted for in the 10x result you are trying to match.

Also, if you are ignoring the effect of the trading costs of your operation, You aren’t getting a true result, because I incurred no trading costs through my holding period, my dividends were also fully franked, where as I am guessing you are funding the tax on your dividends from a source outside this experiment, hence inflating the true compounded return of the dividends.

 

[ducati916]

1. Keep in mind, I didn’t have to reinvest dividends back into czz to achieve the 10 bagger result, dividends were reinvested into other stocks as I went along.

2. So if you are going to include reinvested dividends, you will have to earn more than 10x to match CZZ, because czz itself was a ten bagger for me, but the dividends were invested into other things that produce further growth and dividends not accounted for in the 10x result you are trying to match.

3. Also, if you are ignoring the effect of the trading costs of your operation, You aren’t getting a true result, because I incurred no trading costs through my holding period,

4. my dividends were also fully franked, where as I am guessing you are funding the tax on your dividends from a source outside this experiment, hence inflating the true compounded return of the dividends.

1. Accepted.

2. From what I remember, dividends from CZZ were not particularly high. I stand to be corrected on that point however. I chose AMZA, due in no small part to the [very] high dividend return. If I remember correctly, CZZ's dividend did not play a particularly significant part in your decision to purchase/invest.

3. My trading costs are [very] low, which is why I'm not really accounting for them on the thread.

4. That is a fair point. However, tax structures and their impact were not really at the forefront of the 'challenge', it was more about what is a margin of safety and generating returns. We can discuss the tax law and implications if you wish, but it is a technical area and dry for many.

jog on
duc

 

[ducati916]

Dividend paid $120.08
Buy 21 shares
New Total =1522 shares

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duc

 

[ducati916]

NEW YORK, May 17, 2019 /PRNewswire/ -- The InfraCap MLP ETF (AMZA) (the "Fund") has declared a monthly distribution of $0.08 ($0.96 per share on an annualized basis). The dividend will be paid May 29, 2019 to shareholders of record as of the close of business May 21, 2019.

jog on
duc

 

[ducati916]

Dividend paid $120.08
Buy 21 shares
New Total =1522 shares

jog on
duc

Dividend paid $121.76
New shares buy 22 at $5.36
New Total 1544

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duc

 

[ducati916]

Buy back my original 90 shares sold @ $5.40

Total Shares = 1634

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duc

 

[ducati916]

Dividend $130.72
Buy 23 shares @ $5.61

New total = 1657 shares

jog on
duc

 

[ducati916]

NEW YORK, July 19, 2019 /PRNewswire/ -- The InfraCap MLP ETF (NYSE Arca: AMZA) (the "Fund") has declared a monthly distribution of $0.08 ($0.96 per share on an annualized basis). The distribution will be paid July 30, 2019 to shareholders of record as of the close of business July 23, 2019.

jog on
duc

 

[jjbinks]

Hi Duc,

great to see that you have been continuing to update this.
We are now 6 months in and it looks like so far overall return on investment has been flat. (Correct me if I am wrong).
I know you initially mentioned you would be trading fluctuations. Since March it looks like price has trended down from $6 to 5.30. But I can't see any clear trading opportunities.

Curious to know what opportunities you see from here

Cheers
j

 

[qldfrog]

Thanks for alerting me to that stock,
Quite happy to have bought some, and as ethical as czz

 

[ducati916]

Hi Duc,

great to see that you have been continuing to update this.
We are now 6 months in and it looks like so far overall return on investment has been flat. (Correct me if I am wrong).
I know you initially mentioned you would be trading fluctuations. Since March it looks like price has trended down from $6 to 5.30. But I can't see any clear trading opportunities.

Curious to know what opportunities you see from here

Cheers
j

Well the return on investment has been +/- 9% [dividends] and a little capital appreciation, nothing worth writing home about. The full year will see the 18% yield.

On the chart, yes, flat and no trading opportunities. So far, very boring.

At some point, something will change and sentiment will change with it. We just don't know whether it will be good or bad. The stock will then move. This will provide opportunity. So for the moment, I'll simply sit tight and harvest the dividends.

jog on
duc

 

[ducati916]

Thanks for alerting me to that stock,
Quite happy to have bought some, and as ethical as czz

This is essentially an infrastructure ETF. Long term it should provide nice steady returns with the odd bit of excitement.

jog on
duc

 

[ducati916]

Bought 25 shares at $5.22

New total = 1682 shares

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duc

 

[willoneau]

hI DUCATI916, just curious why you didn't pick AU EFT ?

 

[ducati916]

hI DUCATI916, just curious why you didn't pick AU EFT ?

The only AU showing [for me] is Ashanti Gold.

Anyway, I picked this for a number of reasons:

i. ETF
ii. High dividend
iii. Potentially high volatility [not the case currently]
iv. Optionable [improving]
v. Anchoring [all time high is circa $27]

jog on
duc