I’m Pat Rosenheim, a.k.a. the PandA Trader.
I am often asked to give advice on investments and investing, and of course I DO NOT GIVE ADVICE!
I do want to help, though, so I show what I do, and sometimes, how I do it.
FAIR WARNING: This post is link-heavy, with an embedded video, and some graphics.
This post is all about
that bass, no treble how I find investments.
First, a little (very little) history about my stock screening. I used to use sites like finviz.com, barchart.com, dividend.com, yahoo.com, google.com, etc. to find stocks that I thought would serve me well in my quest for alpha, or risk-adjusted return. At first, this did not work out so well. I’m still learning, and working on it, but I’m fairly comfortable with what I have right now.
And so, I’d like to share a little about what my current methodology is and how it is working out. For a quick and dirty synopsis, refer to a couple of my past posts about screening and portfolio review.
I’d like to add that while I presently have no preferred shares because I recently sold all of them, there are some truly wonderful resources for anyone interested in preferred shares. One is quantumonline.com, and the other 2 are actually Google spreadsheets linked in my “blogroll” on the right side of my blog. There’s also a screener on preferredstockchannel.com, but I don’t use that so much anymore.
Now, as for common stocks like REITs and BDCs, there are a couple of what I’d consider worthy resources.
For REITs you could do a simple search and get some results like this. I prefer to follow people who invest in REITs on StockTwits.com, SeekingAlpha.com, and twitter.com. I find that people who have some “skin in the game” and aren’t trying to sell you a service are the best resources.
The same is true for BDCs, but there is one resource I’d like to focus on, and that’s the Business Development Company (BDC) Universe. This is another FREE resource, and they have several others listed on their Investor Resources page. NOTE: The link on that page to Business Development Company (BDC) Universe is bdcuniverse.net, but I am unable to connect to it so I use the link above.
So, using that site, I can sort by several key factors to help me decide where to invest, such as; Market Price, NAV, Discount/Premium, Market Yield (my mantra: if they don’t pay, they don’t stay!), NAV & Price Total Return (YTD, 1yr, 3yr), Expense Ratio, etc.
This site is a veritable treasure trove of information!
So, once I have selected some issues that warrant some further due diligence, I add them to my “Watch List” and look for a good entry. At least, that’s the way it’s supposed to happen!
There are sites that let you perform a kind of automated due diligence, like; Louis Navellier’s Portfolio Grader, finviz.com, barchart.com, etc.
Another site that I like but requires you to register (like seeking alpha) but is still FREE (to a point that I have yet to exceed) is chartmill.com. Great site, and gives trading setups, also. I’m not a “trader”, per se, as I am looking for monthly and/or quarterly income. Hey, I’m retired, it’s what I do! But, I still like it and use it.
One thing I do like to do is compare any buy candidates with some current holdings on a 200 day PerfChart on stockcharts.com, which allows me to compare up to 10 different issues on Total Return, which is KEY (to me!).
Here’s a look at a PerfChart that compares 2 “buy candidates” (GLAD & WHF) with some current holdings;
PLEASE TAKE NOTE AND REMEMBER THIS!
I’m not telling anyone to buy anything or giving anyone any advice, because that’s illegal. You see, I have no letters after my name, like RIA, CFA, etc. I SIMPLY DO NOT GIVE ADVICE. I only tell (and show!) what I do. You, like me, are all alone in this.
And remember, always do your own due diligence!