Thursday, July 26, 2012

New Purchase - OMI

I purchased 44 shares of Owens & Minor at $27.96.  Including commissions this amounts to a yield of 3.13% and will pay me $38.72 per year.  OMI is one of my favorite stocks from the healthcare sector.  It runs a profitable business distributing medical supplies along with other hospital/medical related services.  OMI recently reported a softer outlook for the rest of 2012 which seems to have triggered a sell off.  Fine with me, I'm happy to add to my position although I paid a tiny bit more this time.  They also announced plans of a sizable acquisition which will be their first venture in the European healthcare market.

I've had a number of limit orders the past week which weren't filled including MCD, APD, and INTC.  Since I'm now 13 hours ahead of Eastern time, it's difficult to jump in quickly if something favorable happens.  I set limit orders before going to bed and check in the morning to see if anything triggered.  I'm still hoping the stock market drops a bit lower for better entry prices.

10 comments:

  1. Nice purchase! I noticed that drop in OMI and also read about its recent acquisition.

    Healthcare still makes up about 20% of my portfolio, so I'm not overly eager to buy more at the present time. However, I will keep on the lookout for any good opportunities in the sector.

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  2. Nice Purchase. I own OMI and BDX, they are both at the top of my list to add to soon, hopefully. I need to increase my healthcare exposure.

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    1. I'm going to add BDX to my watch list. All it would take is a dividend increase and a slightly lower price to reach a yield I look for. I plan to add one more healthcare position. MDT and BDX both look good.

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  3. I have been contemplating pulling the trigger on OMI as well. I don't have exposure to health care and want some. I know you've read my post on my fear of pharmaceutical stocks, so I like the idea of medical equipment.

    Unfortunately, I got scared away by OMI's latest shareholder call. IMHO, there didn't appear to be any good reason for the recent weakness or any indication that they were doing anything to stem the losses. I think it falls further before things turn around for them.

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    1. We will see what happens, it's hard to know for sure. While the report I read showed OMI had smaller margins Q2 this year, it also showed the company reeled in expenses and had greater revenues. Overall EPS was up (although not by much) compared to Q2 last year which bodes well for continued dividend growth. We'll have to see how the latest acquisition plays out. The deal is almost 10% of OMI's market cap, it will be a factor.

      If OMI goes lower I might buy more, it's one of the better deals out there right now IMO. The DOW is over 13,000 again. Value is hard to find.

      Thanks for the comment,

      CI

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  4. I like the buy here. OMI is a company I've had on my watch list for some time now, but never pulled the trigger for one reason or another. So many stocks, so little capital.

    Right now MDT fills the slot in this space for me, but BDX and OMI also appear to be suitable candidates.

    You are doing a great job building that compounding income machine. Keep it up!

    Best wishes.

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    1. Good to hear from you Mantra! I miss your blog, it's the best one. Hope you're doing well!

      I also miss Dividends4Life's pocket change portfolio ever since he stopped updating the holdings. I used to get a ton of ideas from that portfolio, now I rarely visit his site.

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    2. CI,

      Thanks for the kind words about my blog. I've been tinkering with the idea of bringing it back online in the next month or so. We'll see.

      I agree with you on D4L's PCP. It was great to see the updates, and I found a lot of the time I was buying the same exact stuff at similar prices. Certainly reassuring if nothing else. Too bad he doesn't update it any more. I wonder if he was getting flak for how much money he was making online?

      Best wishes!

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    3. Take your time, you will have plenty of interested visitors when you're ready.

      http://www.dividend-growth-stocks.com/2007/10/pocket-change-portfolio-holdings.html

      This is last update of the pocket change portfolio that I know of. I'm sure it's well over 200k by now, prolly closer to 250. I don't blame him for taking it down, I wouldn't want my subscribers to know how much I was raking in. "pocket change portfolio" became a silly name for a portfolio like that. I remember when it was "only" around 50k. I think D4L picked a great time to start a service like he provides. With interest rates being what they are investors have gravitated towards dividend equities. Right time, right place and he's very knowledgeable.

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