Tough Day – 1/2% Lost in Model
By: Tim McPartland,
Today took a 1/2% off of the performance YTD in the 2014 Model–the majority related to a couple oil/gas related preferred issues that took a heavy hit. For the time being we are holding those offending issues and moving forward with operating the balance of the portfolio.
We have determined that there are a number of areas that need higher attention in terms of digging out potential investments and that is the REIT and Canadian Income Issues areas. Both are represented to a moderate level in our portfolios and they have performed quite well–but better yet we are ‘comfortable’ with most of the issues (although not every one of them). Given our level of ‘cash’ we will search harder for issues to add to the model. We have to remind ourselves constantly that you have to be in the game to win the game and after the difficult week that the MLP’s have had it tends to remind one of the pitfalls awaiting all investors if your eye is taken off the ball.
1 Canadian issue we hold in the model and in our personal accounts is Leisureworld Senior Care (ticker:LWSCF). This operator of assisted living, nursing homes and independant living facilities in Canada is VERY well run and we believe it has great long term potential. Additionally it has a 7.1% dividend–paid monthly (note that you may incur a 15% Canadian withholding on your dividend which may or may not be refundable). We look at this as a decent yield with capital gains potential. Newer CEO Lois Cormack has moved the company ahead and net operating earnings released last month were up 32%–we think a dividend increase is possible soon. Be AWARE that this trades on the Pink Sheets in the U.S. so volume is very thin and limit orders are absolutely necessary–patience is also required as it could take a day or 2 to execute your order.
You can check out Leisureworld here.