wearmanyhats

It’s good to know there are stocks that don’t obey my desire to move upward like I command them to otherwise I’d my head would have to be hauled around in a truck.  Arbor Realty gave me an eye-popping $248 dividend recently, but shortly after I recommended it, the company released information about the restructuring of the loans it has out there.  It’s hit the stop loss area, so with a tearful goodbye, we must wave it on its way. When we see it head north, we can give it a grab.

After bidding a fond farewell to ABR, we turn our sights south to where Hurricane Gustov is inconveniencing the residents of New Orleans. Ever mindful of history , let’s examine an oil trust called Ted Offshore Trust (TELOZ), which has its off-shore drilling operations in the path of this newest hurricane menace.

I have watched TELOZ for years, and for many of those, the trust didn’t really move out of a certain price range, so jumping in and out on lows and highs made no sense.  Then one day after hurricane Katrina, TELOZ dropped to well under $10, which made it a screaming deal.  The rigs had been damaged in the storm  but investors had no idea how long it was going to take before it was fixed, nor how much those repairs would cost.  Then there was the dividend to consider. How would all this affect the dividend?  Investors bailed like crazy. At the time, I had no experience with how the TELOZ folks would respond to this kind of crisis.  They came through famously.  Everything was fixed quickly and within six months the healthy dividend was restored.

Fast forward toward today.  TELOZ reached a new 52 week high of $42 in late June when the price of oil was so high.  It began naturally correcting after oil took a dive, but now it’s dropping like a rock.  This is one stock that deserves to be grabbed soon, as its dividend yield is already a wonderful 14%.  If we have a repeat after any big storm, we need to buy with both hands, because the bounce upward and the high dividend yield will be tremendous.  I will be watching for you.