Sunday, February 05, 2012

RSY XXXXVI: Buy ACNB, Update

It's about time to add to our positions and provide an update to the RSY portfolio.

ACNB Corporation (ACNB) looks like a strong candidate to add to our dividend producing portfolio and now is opportune as the next ex-dividend is on February 28th for 19 cents. ACNB has very conservative accounting practices with below average market risks. Last year showed the insiders eagerly adding to their positions. Since it is a lightly traded stock, no big purchases were made and we will have to consider this when deciding how many shares to invest. Sabrient Systems rates ACNB a strong buy for its outstanding value profile at 86.1 even though it was weak in momentum. (Scores out of 100 with 100 best.) The RSY portfolio considers value the most important aspect but also it has marks for the Fundamentals Score at 78.6 and above average Balance Sheet Score at 66.

Other than being a Micro-Cap stock, we also need to be concerned about sector concentrations in the RSY portfolio. Although the individual portfolio positions in the Financial Sectors are small, we do have a couple in the Regional Banks industry as ACNB is also. Depending on your current positions, you may or may not want to add to your portfolio with ACNB. RSY recommends a buy limit order of 200 shares at $14.01 (GTC). Odd size lots are OK since no options are available.

Updates:
The table below shows transactions since inception of the portfolio. It is interesting to note that dividends account for over half the gains in the portfolio currently. RSY also sold (wrote covered calls) 4 options that the notional value is $2276 after transaction costs. (Click images to enlarge.)

Below is a table of the current RSY model portfolio with options included. It is worth remembering that the FL option is going to expire this month. Hopefully your position was not called out before the most recent dividend on January 11th and you had a chance to roll over the option. RSY will consider it closed after the expiration date. There is plenty of opportunity to reap some of the gains so far, but RSY will hold onto the present positions for now.






ACNB:
Div: 2-28 for 19 cents Yield 5.5%
Audit Integrity Score: 84 down from 95 -- very conservative
Stock Scouter: 5 mediocre but low risk
Sabrient:
ACNB's excellent value profile earns it a Strong Buy rating, despite the stock's current lack of momentum.
high value score of 86.1
Earnings Score low at 35 but
Balance sheet at 66.2
Fundamental at 78.6

Last portfolio update: August 11, 2011

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