Sunday, January 30, 2011

RSY XXVII: Update, Sell FL 200 @ $17.89

Let us update some of the cash transactions since our post on January 12th. On the 13th, Alliance Resource Partners (ARLP) dipped down to $70 at the opening bell (The RSY portfolio recorded the buy as 100 shares at $70 exactly.) but has since dropped to below $62.50 on January 20th. Most of this drop has been attributed to a short mine closer by Warrior Mine which is a wholly-owned subsidiary of ARLP. Given that all operations are back to normal and Sabrient still has ARLP as a Strong Buy, RSY recommends to continue to hold this position. Obviously there was an opportunity to "buy on the dips" -- or dives, but to maintain a balanced portfolio RSY did not consider this move. Today, it hit a high of over $72 but settled back to $70.25, slightly over entry price.

The bright side of the portfolio is our continuous stream of dividends. As the chart below shows, RSY recorded dividends of $40 for MRH, $194 for IVR, $60 for FL and $68 for CODI, for a total of $362. I added the two right most columns to show the number of stocks in the transactions and prices of the dividend per share. (Click on tables for clearer images.)

No lumps of coal to sell, but time to sell some of our smelly sneakers.
Foot Locker (FL) has been downgraded to a hold by Sabrient. Just like when other ratings changes are dropped to hold, RSY recommended a reduction in exposure. RSY recommends a limit order sell of 200 shares (out of the original 400) at $17.89 (GTC). This will result in a loss of around $250. And now for a look at the current holdings:

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