Friday, October 5, 2007


What a day! The employment data was well received, and my portfolio balance increased by 4.3% today (6.92% ROI month to date). I made several trades, swapping out some positions, and increasing others. My most notable new addition was RIMM, which gapped up today. Sometimes a stocks price will fall after a gap up, but this is a Navellier pick, and I am confident that even if it does dip, it will continue to increase in value.

The stock that I really want to talk about today is MVO. In my opinion, MVO is a good addition as an income investment. Since I need to generate some income from this portfolio for living expenses, I keep a percentage of income investments. HTE has been my number one income producing position. I began purchasing shares in February of this year, and have had 30.9% ROI (45.6% annualized). I enrolled HTE into the DRIP program this week, up until now I had not been reinvesting dividends.

HTE is a Canadian Energy Trust. Trusts avoid paying taxes by distributing a minimum of 90% of their proceeds to shareholders. There is a possibility however, that this tax exemption could end around 2009, 2010. There is also the possibility that the tax exemption is grandfathered in for companies like HTE, but not allowed for newer trusts. Here is a link to HTE's website.

Anyway, that brings us to MVO. MVO is an U.S. oil trust. MVO went public in January of this year. So far distributions since going public have been

12-Jul-07 $ 0.657 Dividend
12-Apr-07 $ 0.533 Dividend
13-Feb-07 $ 1.012 Dividend

Today, MVO announced a 3rd quarter dividend of $.65383330 per unit to shareholders of record on 10/15/07, payable 10/25/07.

Despite this announcement units of this trust actually decreased in price, on news of lower oil futures. I used that as an opportunity to double my position in MVO.

Anyone telling me that they had a little money to invest this month in a stock over a long term (a few years or more) I would recommend this to. First, based on my my postive experience with HTE. Secondly, because it has the same benefits as the Canadian Trusts, without the uncertainty of the tax situation. Thirdly, having gone public just this year, I feel like it is a good opportunity to get in near the ground floor. My understanding of oil companies is that the make money, or they make a lot of money, and in this case, those proceeds are being distributed to unit holders. By investing a set amount each month, you will be purchasing more shares when price is low, and less shares when the price is high, creating a dollar cost averaging. At the current price, this stock has a 10.77% dividend yield.

Unfortunately, perhaps because of it is so new, this stock does not qualify at Ameritrade for the automatic dividend reinvestment, so I would need to do this on my own. That could be prohibitive at a place like Ameritrade, if I did not have a number of free trades that I can make each year. Sharebuilder does not currently provide for the purchase of MVO. I made a request for it today, and will keep you posted as to whether or not they add it.

The chart for MVO looked really good, up until the futures news today. I am expecting this to be only a minor set back, and predict the stock price to rise this next week once people start hearing about the upcoming dividend distribution.

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