To download the Monthly Portfolio Summary please click on one of the links below.
Gold fell 3.4% for October – ending the month at $1,719.90/oz. This is still a 69% gain on our 20% allocation to the metal.
AFP Provida shareholders qualified for another dividend during the month. The stock price is now up 37.2% since we recommended it in May 2011. And it has paid out 13.2% gross dividends – taking our total gross profit on this position to above 50%.
Cash earnings continue to grow strongly. But as this stock has now just 10% upside (margin of safety) to my fair value estimate I am changing it from a “buy” recommendation to a “hold.” If the price falls below $100 a share, it will become a “buy” again.
Our Singaporean REIT Suntec rose 8.1% in the month. Total capital gains and dividends are now 45% (in USD) since we recommended it in May 2010.
Suntec is now 15% below my fair value estimate. And it carries a 6% dividend yield. Any further strength could see us change this recommendation from a “buy” to a “hold.”
Our other “S-REIT,” Lippo Malls Indonesia Retail Trust (LMIRT), had a strong month too. It rose 6.5%. Total capital gains and dividends are now 23% since we recommended you buy this stock in October 2010.
LMIRT is roughly 10% below my fair value estimate…and carries a 6.5% dividend yield. So for now, it remains a “buy” in the recommended portfolio. But as with Suntec, further strength could lead to this stock also becoming a “hold.”
Our oil and gas giants Petrobras (preferred stock) and Gazprom remain under pressure. But both look extremely underpriced at current levels. Prices could fall further, as investors adjust to a weakening global economy. But these stocks remain wonderful long-term plays on rising global energy demands.
There is little change to our new Value Beta Portfolio. It is up 3.5% since we introduced it two months ago. The two Indian funds gave up part of their large gains from September…but both are still well up since we added them to the portfolio.
Good investing.[ilsig rmarstrand]Rob[/ilsig]