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Thursday, May 7, 2009

Rough all Around down and out Day, New JPM Etf MLP and New Currency x-US dollar etf

Sorry haven't been on to do much of a post lately the wife was in hospital today all day and till tomorrow at least I hope. She had her gallbladder removed, which was a huge success. She was very drowsy and out of it I pray I can bring her back home tomorrow. Thanks to all those that sent their letters of encouragement much needed in times like this.

As far as yesterday's action I sold PMD all around ugly earnings report for sure dividend cut coming soon. This stock was purchased for the growth and dividend. I sold for a 21% gain and let is go.

I sold bvf on its dividend cut as well. I sold for 2.01% profit squeaked by on this one. Also sold span it was bought merely for capital gains purchased in march 09 around 7.85 and sold for $10.21 money made ring the register it done its job.

Wisdomtree launched a new currency non us etf that I will be buying soon as my broker can get some shares for me. WisdomTree Dreyfus Emerging Currency Fund (CEW) on the NYSE Arca with an expense ratio of 0.55%. The following quote form wisdomtree:

“Our new Emerging Currency fund fills an important void in the ETF landscape by giving investors the first currency basket product delivered in the 1940 Act fund structure. CEW should be attractive to investors interested in diversifying outside the U.S. Dollar or accessing a less correlated asset class.

“The ETF provides investors exposure to both money market rates across 11 Emerging Market countries, as well as movements in these currencies relative to the U.S. Dollar. Our clients asked us for a basket strategy to complement our individual country currency income funds and we are happy to deliver that today.”

Set to be equally weighted and rebalanced monthly, with no us dollar exposure.

Jpm morgan launched a new MLP etf, tyvm I can not stand getting all thos K-1 forms in the mail each year so this will play the mlp industry without all the hassle of K-1 forms. According to Avi Morris over at

"The ticker symbol is AMJ . AMJ has a limited track record, just over one month, which tracked the spectacular rise of the Alerian MLP Index in April. More information on the fund is available here.

This ETF tracks a portfolio of MLPs aimed at emulating the Alerian MLP Index. But it has advantages others don't because MLPs are master limited partnerships. Partnership ownership is measured in units, not shares. Their quarterly payments are called distributions, not dividends. Distributions are typically 80-90% tax free (which really means tax deferred bringing tax hassle). Some accountants handle the hassle better then others, although ordinary computer tax packages are supposed to do the tax work very well. MLPs send K-1 tax packages around March 15, but they are trying to speed up distribution of the statements.

However, an ETF is a corporation which issues shares. Taxable dividends are reported on 1099s, unless they are paid as stock dividends in which case there is no need for tax statements. As stocks, they are also IRA (retirement account) friendly.

The ETF gives an averaging effect of many MLPs. Those who want to invest in MLP growth but are afraid because of tax issues from distributions, may want to take a look at this ETF."

Tomorrow will be a big day in my roth I am buying a slight step into many new stocks and etfs. I plan to buy a super small take tomorrow approx. 1/20th of a full position then I can dollar cost average into them all in the new few months.

On the list to purchase are, IJH,IWB,PFF,RPV,VB,VOWE,VV, for my index fund folio.

Emerging markets folio is adding, CWI,EFA,GWL,JSC,MDD,SCJ,MEU.

Consumer goods Folio is adding, PM,VGR,KO,LEG and UL.

Commodities folio adding, GAZ,GSC,JJC,JJG,LSC and PTM.

Basic Materials folio is adding, CMC,CMP,NL and POT.

Bonds folio is adding CWB, CFT and EMB.

Financial Folio is adding, WFC,JPM,BAP,BRK-B,UBS and WBK.

This will all be real small starts to just sorta dip my toes in the water. I am pretty sure I am buying most if not all of these stocks on a higher than I would like to do basis. However being on 34 and having loads of time to dollar cost average my way in I am sure in 20 to 30 years I can produce sizable positions in each of these stocks.

Midweek portfolio check-up shows me with 194 holdings up 8.68% year to date, not including dividends. I have rung the register and locked in a profit from sales this year to date of 6.52% percent. So even if the rest of the year is a flop for me I can still come out smelling like a rose.

My dividends for the month of March Rose 130.1059 % try to get that at the bank.

Thats it for now gotta run to bed hope to post more soon. Thanks for your patronage.


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