Friday, September 30, 2016

Bonus while they bone us

The largest executive bonuses c. 2009

This is seven years ago so not an accurate indicator of the current climate but suffice to say, it is still staggering. The top bonuses of all time at that time were paid to the same chief executives: 

Image result for larry coss

ExecutiveCompanyAmount(s) (millions)Year
Lawrence CossGreen Tree Financial Corp69,65,28.51996,1995,1994
Steve JobsApple432001
Bob R.SimpsonXTO Energy35.5,31x22007,2006,2005
Robert TollToll Brothers30.4,272004,2005
Sheldon AdelsonLas Vegas Sands302004
Lloyd BlankfeinGoldman Sachs27,26.92006,2007
Kenneth PasternakKnight Capital Group262000
Stuart A. MillerLennar21.52005
William P. Foley IIFidelity National Financial212006
Rupert MurdochNews Corp212006

Thursday, September 29, 2016


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Our Local

Australian Stock Exchanges

Australian Securities Exchange (ASX)
Bendigo Stock Exchange (BSX)
NSX National Stock Exchange of Australia


Capital Markets Development Authority
South Pacific Stock Exchange (SPSE)

New Zealand


Papua New Guinea

Port Moresby Stock Exchange (PoMSOX)

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Monday, September 26, 2016

Stock Exchanges

  1. New York Stock Exchange (NYSE)
  3. Tokyo Stock Exchange
  4. London Stock Exchange
  5. Shanghai Stock Exchange
  6. Hong Kong Stock Exchange
  7. Toronto Stock Exchange
  8. BM&F Bovespa
  9. Australian Securities Exchange
  10. Deutsche Börse
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No Exchanges

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Countries served by the Eastern Caribbean Securities Exchange (ECSE)

Saturday, September 24, 2016

Small (Ex)change

We get to used to asking "How's the stock market looking?" or "How is [] doing on the stock market?" but there are some sixteen stock markets. According to the Investment Frontier, the smallest are:
Stock ExchangeCountryMarket cap
Cyprus Stock Exchange (CSE)Cyprus$2.54B
Bolsa de ValoresMozambique$1.5B
The Lao Securities Exchange (LSE)Laos$1.4B
Damascus Securities Exchange (DSE)Syria$660M
Rwanda Stock Exchange (RSE)Rwanda$480M
Douala Stock Exchange (DSX)Cameroon$317M
Cambodia Stock Exchange (CSX)Cambodia$176M
with an honorary mention to Yangon Stock Exchange in Myanmar, due to start trading this year

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I Tell All the Stockbrokers

So tracking all this, possessing a familiarity with these terms and what they mean, is the province of the stock market analyst.
It's hard to get a clear bead on stockbrokers or on traders, and traders in this market are not like your fur traders or traders at physical markets. For that matter, the stockbroker has become virtual.
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Thursday, September 22, 2016

Trusts enough


I left those question marks in the table because I'd switched to who I figured should be the authority and, yes, their analysis is pretty exhaustive otherwise as my pilfered samples demonstrate. Maybe they don't do foreign banks and trust funds. How then to explain Volkswagen and Yamaha?

Our four shares in Volkswagen that we bought in 2011 would have returned dividends of 3.168 + 3.64 + 4.384 + 4.352 + 0.1 or, in other words, $15.64
That is, for Volkswagen AG

I could go and compare the other subsidiaries but I can't be arsed. The point is, a large company that can shrug and say "Hmm, we've had a bad year" after losing a few billion has still performed in the market in such a way as to affect returns for shareholders. Charging along on that scale has put the investor who plunked down four hundred and forty dollars in 2011, fifteen dollars sixty four in dividends in front and, if he or she sell them in disgust will nett $76.20. A grand total then of US$91.84 in profit. 20.8% of our investment which is more than you'd get in a savings account. True, you'd have to sell all four shares to get that but investors do this all the time.

What about our sixty five shares in Yamaha? They've made this easy
+   650
+ 1,690
+ 2,600
+ 2,860
   8,807.50 yen

this is just shy of A$114.50
or 23% of our purchase price

Add the A$1722.88 we've made in the shareprice rise and that $1837.38 has us celebrating by pumping out a tune on our Yamaha keyboard or going for a ride on our Yamaha motor-bike


VW would require a larger parcel of shares held for longer, Yamaha, with its jump in value is good over the shorter term.

Often investors hold onto stock for many years. This way they get the benefit of dividends and rise in value. There are ways to become rich doing this. And it's also about timing when it comes to selling. Or you may decide to continue to draw benefit. Even more recent stock can prove to have been a good buy.

The stock market doesn't hold interest to everyone. Some will have parents or grandparents who leave (a portion of) their portfolio and they can get by without knowing how an exchange traded fund works: does it have all these shares in other entities while having shares itself and is there an infinite regress?

ASX site asserts Exchange-traded products (ETPs) is the family name for the group of products comprising exchange-traded funds (ETFs), managed funds (MF) and structured products (SPs). There are over 100 ETPs accessible through ASX.

So, are we always dealing with one manner of Exchange-traded product or another? You might even have experience of managed funds and your own investments. Don't forget the structured products.
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Sunday, September 18, 2016

Funned out

So, without knowing what that percentage applies to, we know to take note of whether current dividend yield is low or high as that makes a difference to our returns.

Having a high or low indicated annual dividend, on the other hand, doesn't seem to make much difference. Your two shares in Public Storage give you the same return as your 32 shares in the Latin American Discovery Fund: fifty bucks
You might think so at first but those 32 shares cost sixty dollars more to start with and return 9.88% of our original investment. Still, this is nowhere near the disparity of the current dividend yield examples.

Gafisa is just really good value, as I imagine are the other companies on the cheap stock list
Company/TickerNumber of sharesDividends seen since 2011
Alexander's Incone190
Apple Incone6.99
China Construction Bank980?
CocaCola Co.45628.42
Cooper Companies16,6664,999.80
Institutional Financial Markets, Inc.192?
Qatar National Bank3?
Sinopec Corp71208.68

Saturday, September 10, 2016

Dividend in sight

Gafisa SA

Key stats and ratios

Q2 (Jun '16)2015
Net profit margin-8.00%3.09%
Operating margin-6.84%5.07%
EBITD margin-10.48%
Return on average assets-2.28%1.02%
Return on average equity-5.10%2.42%
Market capitalisation of $289 million
We buy a whopping 393 shares in Gafisa, entitling us to dividends of 
0.259674 x 393 = $102.05
0.068639 x 393 = $26.97
0.026695 x 393 = $10.49
Not paid every year and the amount has dropped considerably but we still pocket approximately $139.52 or 35% of our initial outlay in our first five years of trading

Public Storage

Key stats and ratios

Q2 (Jun '16)2015
Net profit margin56.51%55.33%
Operating margin53.12%51.73%
EBITD margin-69.61%
Return on average assets14.33%13.45%
Return on average equity22.27%20.50%
Market cap of $36.6 billion
and let's say we were able to buy two shares totalling $437.16
We'll get $57.70 or 13% paid in dividends

Latin American Discovery Fund, Inc (The)

Market capitalisation $69.06 million
$15.55 per share in 2011 (now $10.16) so we buy 32 shares for $497.60
13.34 + 1.36 + 12.85 + 3.95 + 12.51 + 1.17 + 4.03 + 1.03 + 0.10 = $50.34

Dividend conquer

Image result for ennis inc
The next thing I would concern myself with if I was investing the family savings in August 2006  or August 2011 and had my seer with me is

  • Are those figures gathered for current dividend yield and indicated annual dividend of much use?
    • if the value - and amount paid - is dependant on company performance, any percentage will vary accordingly
    • if it is dependant on stockholder whim the amount will also change, only on a different measure
    • the funds and such that appear in these lists may be middling, just offering high or low percentages for what is payable
  • I don't think it hurts to know of Taitron Components even if you're not going to base any of your share trading on this knowledge
  • So if I have shares in a company or as part of a Fund, does that figure translate straight out as a monetary figure i.e. I receive the amount of shares I hold x the dividend payment?
Let's say I have 32 shares in region (MORL), no, wait, 28 shares in Ennis, Inc. Market capitalisation is $440.75m 

Key stats and ratios

Q2 (May '16)2016
Net profit margin7.39%6.28%
Operating margin11.74%9.89%
EBITD margin-13.59%
Return on average assets7.07%8.44%
Return on average equity9.10%12.25%
37.94% x [figure used in calculation] x 28 each time there are dividends paid gives us a definition of Dividend Yield "Dividend Yield is a stock's dividend as a percentage of the stock price"

Dividend Yield = Annual Dividend / Current Stock Price

So, OK, what's the Annual Dividend?

We've bought shares in August so we're too late for the seventh of July payment. In October 28 x 0.155 = $4.34
Breakdown of dividends to July 2016

(0.155 x 28) x 2 = $8.680
(0.175 x 28) x 15 = $73.50
(0.35 x 28) x 1 = $9.80
(1.675 x 28) x 1 = $46.90

Stock has held its value hovering around the fifteen dollar value and there's $138.88 in the coffers. This may not help definitionally but at least we know that our initial outlay of $493.36 is holding steady and we've pocketed a third of that again in a short space of time (if the minimum holding is five hundred, I imagine there would need to be shares held in some other venture to take us over the line or, of course, we could have bought 29 shares at that price taking us to a total then of US$510.98)


At the lower end of current dividend yield, we survey PowerShares VRDO Tax Free Weekly Portfolio (PVI). Let's assume we bought at current price and have secured 20 shares to a total of $497.80
Image result for PowerShares VRDO Tax Free Weekly Portfolio
Market value is $62.3m according to one source. Google Finance (where we found the figure for Ennis) has market capitalisation of $63.48m

The next section doesn't apply as it's a Fund not a company

The amount paid in dividends, though, is certainly different.
(0.01778 x 20) x 1 = 0.3556c
(0.01607 x 20) = 0.3214c
(0.00999 x 20) = 0.1998c
(0.00887 x 20) = 0.1774
(0.00921 x 20) = 0.1842
(0.00984 x 20) = 0.1968
(0.00443 x 20) = 0.0886
(0.00317 x 20) = 0.0634
(0.0038 x 20) = 0.076
(0.00589 x 20) = 0.1178
(0.00332 x 20) = 0.0664
(0.00333 x 20) = 0.0666
(0.00219 x 20) = 0.0438
(0.0018 x 20) = 0.036
(0.0005 x 20) = 0.01
(0.00203 x 20) = 0.0406
(0.00114 x 20) = 0.0228
(0.00052 x 20) = 0.0104
(0.00066 x 20) = 0.0132
(0.00054 x 20) x 2 = 0.0216
(0.00012 x 20) = 0.0024
(0.00001 x 20) x 14 = 0.0028
(0.00005 x 20) x 17 = 0.017
(0.00148 x 20) = 0.0296
(0.0004 x 20) = 0.008
(0.00012 x 20) = 0.0024

A total of US$2.1746. Frankly, I'd rather deal with Buffett's Berkshire. He doesn't pay dividends; a lot less effort for greater reward. Keep your stinking two dollars seventeen.