Thursday, September 30, 2010

RSY: Buy 400 shares CODI at $16.24

As expected last week, Rock Solid Yields {RSY} portfolio was a little over bought and was ready for a correction. IVR took the biggest loss for the portfolio. That is expected to some degree since just past ex-dividend dates theoretically drop by their dividend amount at least, and IVR had a dividend of $1.00 on the ex-dividend date of the 28th.

Compass Diversified Holdings {CODI-Services: Business Services} recently ranked highest in a modified RSY search using MyStockFinder stock search tool. It provides an excellent dividend yield of around 8.5% and that is projected to continue. It has a great ranking for insider buying which makes it eligible for inclusion in our "Top 10 Insider Buying Stocks" {available for silver level members}. The forensic accounting scores are conservative and have a consistency over the past year. The next ex-dividend date should come around the middle of October as they have consistently done that for the past 4 years. It's Sabrient's earnings score is nearly twice it's industry score and well above the S&P score which is based on past performance as well as expected earnings growth going forward. This looks like a good one to add to the RSY portfolio and the portfolio will put in a limit order of 400 shares at a limit price of $16.24 {GTC}. This is above the closing price but avoids any surprises to the upside that a market order could do.
Buy 400 shares CODI at $16.24.

Unknown Dividend Plays

Compass Diversified: Dividend Is Okay, But for How Long ? -- Seeking Alpha
Seeking Alpha Article

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