Steve McDonald: Earn 11% in This Bond Now . . . . . . Page 4 Retire Early... Retire Rich The Oxford Club Executive Committee James Boxley Cooke Honorary Chairman Baltimore, Maryland Julia Guth Executive Director Publisher Alexander Green Investment Director | january/February 2013, Volume 05, No. 02 Ain’t Nothing Goin’ On But the Rent... And It’s Going Up! by Marc Lichtenfeld MARC LICHTENFELD Associate Investment Director David fessler Energy and Infrastructure Specialist Matthew Carr Emerging Trends Editor Jeff Yastine Editorial Director Rocco Levitas Assistant Editor Chris matthai Director of Research Kate Murphy Member Services Manager k Retirement Advisory Panel Bob Carlson jeff winn evan belaga k Investment U ALEXANDER GREEN Chief Investment Strategist Advisory Panelists Carl delfeld david fessler marc lichtenfeld Dr. scott brown k Spiritual Wealth Alexander Green Editor Dear Member, The title of my column refers to the 1986 hit song by Gwen Guthrie, famous for its lyric: “You’ve got to have a J-O-B if you want to be with me.” And while I always thought Ms. Guthrie should get her own job rather than rely on handouts from someone else... The song title is more than appropriate for this month’s recommendation. Marc Lichtenfeld In most markets in the country, housing has clearly bottomed. Home prices, even in the hardest-hit areas, have started to rise. For example, south Florida’s real-estate market – one of the epicenters of the mortgage meltdown earthquake only a few years ago – is once again hot. With home values (including distressed properties) up a robust 7.4% over last year, affordability becomes an issue for potential buyers. Add in the difficulty of getting a loan (unless your credit history is spotless)… and home ownership may be nearly impossible for many. Yet, we’re not talking about a bunch of hobos here. We’re talking about productive people with, as the song says, J-O-Bs… People who want a nice place to live, but simply can’t afford to purchase a house. So it should come as no surprise that demand for rentals is up, huge: • The national apartment vacancy rate dropped in the last two quarters of last year from 4.7% to 4.5%... its lowest level in 11 years. • 2012 marked the third straight year of vacancy declines. Over, please... D IN V EI D E D E N HD E A PA D YE ER R S • Of the top 79 metro areas, only nine saw vacancies increase in the fourth quarter. Associated Estates Realty Corp. (NYSE: AEC) And with so much demand in the market, landlords have carte blanche to jack up leasing rates: AEC: One Sweet REIT... 17.25 • The average renter now pays $1,097 a month, up nearly 5% from year-ago levels. 16.50 • Rents have risen for 12 consecutive quarters. 14.25 12 20 Jul 15.75 15.00 Clearly, the owners of leasing communities are in the driver’s seat, which brings me to this edition’s new recommendation… Sep 12 20 v No 12 20 3 01 2 Jan Quarterly Funds from Operations FFO per share $0.35 Take Home This Apartment REIT and a 4.7% Yield Associated Estates Realty Corporation (NYSE: AEC) owns 52 properties in 10 states. It has apartment communities in markets like Dallas, West Palm Beach and Raleigh-Durham. In many of its markets – particularly in the Midwest, like in Indianapolis, and Columbus, Ohio – there’s “absolutely no new supply” of housing, according to Associated Estates CEO Jeffrey Friedman. $0.30 $0.25 $0.20 $0.15 Q1 10 11 11 10 12 12 20 1 20 3 20 1 20 3 20 Q Q Q3 Q Q 20 2.7% is, not surprisingly, sharply below the national average. The key figure to watch with REITs is not their earnings. Rather, it’s their funds from operations (FFO). FFO more accurately represents the cash flow that a REIT generates. And for us, that’s what matters most – whether a company continues to pay or raise its dividend. Real estate investment trusts (REITs) like Associated use “same-community property growth” as a way to measure how well each of its apartment complexes is growing (much like same-store sales in the retail industry). At Associated, property growth was up an impressive 5.9% last year – higher than the industry average of 5.6%. And the REIT commands a premium for its rents, which are 17.5% higher than the average in its market. Now, management is smart about investing. Associated picked up eight properties in the past three years, while prices were still cheap. Those properties are already up more than 17% in value, compared to their purchase prices. And since properties are up, that can only mean good things for Associated’s FFO – the As you can imagine, the company’s properties are highly desirable. Its vacancy rate of 2 D IN V EI D E D E N HD E A PA D YE ER R S Meanwhile, despite its healthy 4.8% yield, it has a payout ratio of 64%. That’s the third-largest payout ratio based on FFO in the industry. It suggests the company should be able to increase its dividend, as long as FFO continues to grow. more valuable their rentals, the more money they get. Making All the Right Moves In Associated’s case, the company generated $0.96 per share in FFO in the first nine months of the year. Compare that with $0.77 last year. And for 2013, the consensus FFO is $1.26. That’s important because the company says its goal is to pay out 65% of its FFO in dividends. I’m also impressed with management’s attitude on dividends. Some companies like to use their cash (their shareholders’ cash, mind you) to make acquisitions – instead of using it to pay dividends. If it does in fact hit Wall Street’s expectation of $1.26, a 65% payout ratio would suggest an annual dividend of $0.82 per share. But CEO Jeffrey Friedman, in Associated’s third quarter conference call, clearly understands his fiduciary responsibility. He says: That would be a 7.8% increase from the current level of $0.76. “...our policy is to continue to grow that dividend in a very measured way. We think Continued on page 8... Checking it Out “In Person” Associated Estates has two communities within a half hour of my office in Florida. So I took a ride out to West Palm Beach to take a look at the Vista Lago Community... The property manager, Luz Medina, said Vista Lago is pretty representative of Associated Estates’ communities. It’s a nice place to live for the many middle-class residents, including teachers, nurses, restaurant workers and policemen and women. I saw one- and two-bedroom model apartments. The onebedroom has a sun room, while the two-bedroom has a patio instead. They have a typical Florida feel insofar as the ceilings are nine feet high, there’s an open and airy floor plan and plenty of sunlight. The clubhouse features a gym, computer center, quiet room with Wi-Fi, swimming pool and common area. Ms. Medina told me rents were trending higher. They are at the highest levels since 2006, which was the top of the market. Occupancy is also at highs, with very few apartments available. In fact, of the 316 units in the community, there are only seven currently vacant. 3 TR A D I N G B O N D S Earn 11% in a Zero-Percent Market by Steve McDonald, Bond Expert, The Oxford Club OK, you’ve heard me say all this a maturities. million times before: It’s pathetic – absolutely pathetic – what most interest-bearing investments pay… Why? Because when rates finally move up to more normal levels, a fiveyear corporate bond will drop in price only about one fifth of what a 20- to 30-year bond will. You’ll still see a little fluctuation, but nothing like what longmaturity bonds have. Fortunately, we do have alternatives – if you know where to look, and buy them correctly. And I have a particular type of corporate bond paying as much as 6% to 12%, all with the safety and stability you expect. The smaller the price fluctuation, the less likely an investor will sell at a loss. It’s that simple. That’s how you make money in bonds… Stay put! Get Short... Or Get Called Out on Strikes Can you hold long-maturity bonds through the coming price volatility? Yes. Is it a good idea? No! First of all, in this market, you must buy and own only ultra-short maturities, less than seven years in maturity. This is an absolute requirement. There is no latitude here. Ignoring this advice will cost you a small fortune when rates turn around. Here’s why: As rates increase, the yield on newly issued bonds and existing bonds will take off. If you’re stuck holding a bond for the next 10 to 20 years at below-market rates, you will in all likelihood sell at a loss. Here’s why: All bonds drop in price when rates move up… all bonds! But, no matter how far their market price drops, all bonds pay their interest every six months and return $1000 in principal at maturity. Strike two! It’s really very simple. If you want to make money on bonds in this market, buy ultra-short maturities. They’ll limit price fluctuations, keep you in the bond when rates move up, and get you your principal back a lot sooner. Despite this fact, the moment bond holders see a drop in market price, they sell at a loss. It’s ridiculous! But it’s the nature of investors, and most of it is driven by the money press and media. When rates move back up, you’ll be able to move out on the maturity curve to lock in higher rates for longer periods, but not now! That’s strike one! Short-maturity bonds typically pay less than long maturities. That’s why so many folks get stuck on the long end of the curve. They buy on yield only and ignore what’s on the horizon. The only way I find possible to keep bond holders in place, while still making money, is to limit price swings. And the only way to do that… is to buy ultra-short 4 T R A D I N G B O N D S My response: If they have good fundamentals, buy as many as you can find. They’re cheap, and the companies themselves are going to be around for a long time to come. Strike three! With a little leg work you can get both short maturities and high yields. Just go where other folks aren’t… In just the last few weeks, we took annual returns as high as 45% on both bank/financial and coal company bonds. The holding time for some was as short as two months. How to Find Bond Bargains Since last summer, shares of banks and energy companies – especially coal miners – have been under pressure. Banks weren’t showing the earnings everyone expected, and coal companies have been under attack by the President. That’s what buying bonds – when others are selling them – does for your bottom line! Neither industry is going away. Both still pay their bills, but their bond prices dropped on the bad news. The best part, we were earning current yields as high as 10% while we waited for the bonds’ prices to move back up. Here’s where bonds are very different from stocks: As I said, this strategy requires some leg work. It means looking beyond the negative headlines, but it’s worth it. When stocks get bad news, they drop in price – and you never know when they’ll Charged Up for Yields! come back. That’s a problem unless it’s a Here’s an out of favor bond I’m looking dividend paying stock at now: with the resources to keep paying during a Exide Technologies has “…you must buy bad economic cycle. a bond that matures in and own only ultraFebruary of 2018. That’s But bonds keep right around a five-year paying their interest short maturities, less maturity. – and return their than seven years in principal at maturity Its coupon is 8.625%. – in all cases (except maturity. This is an That means it will pay, in a default). And the in two equal interest absolute requirement.” current default rate, payments each year, $86.25 even for junk bonds, per bond. is around 3%. That means 97% of all junk The current price of the bond is 88.9, bonds pay exactly as promised. or $889. So, the real interest rate you earn Those are very good odds... on the $889 is the coupon rate (8.625%), divided by the price, for a current yield of During the down time for banks and coal 9.7%. bonds, I recommended so many my readers complained. Too many in one portfolio, they That’s how much interest you earn on said. the amount you invested. 5 Continued on page 9... CL U B S T R AT E G I E S Garage-to-Riches Startups? Now You Can Invest in Those, Too by Marty Biancuzzo, Guest Political Columnist, The Oxford Club They say you cannot lead from the crowd. It didn’t take long for the SEC to shut down Michael’s social experiment. Well, I’m here to tell you – in 2013, get ready for the biggest shake-up in 80 years of U.S. investment policy. And when it’s through, you’ll be able to lead because of the crowd. The reason is simple… His means of generating capital was illegal. The method? Crowd funding. Let me explain… Artists Become Capitalists... I’d like to begin by bringing you back to 2008. I know, I know. I still have my scars from that year too. I want to be clear here, crowd funding isn’t a brand new concept. Chances are you’ve been part of a collective effort yourself. Have you ever donated to a campaign? Disaster relief? Helped fund an independent movie? People have always pooled money to support different ventures, but it wasn’t until the late 1990s that crowd funding took hold, usually in support of musicians and other artists… But I want to bring you to the start of a very important dialogue. And like most great conversations, this one started off with beer… A few years ago, a “For Sale” sign went up at Pabst Blue Ribbon (PBR). An advertising executive, Michael Migliozzi, decided to put his social media marketing skills to the ultimate test – well... more like experiment. Flash forward to 2004 where the Japanese rock band, Electric Eel Shock, became the fastest unsigned band to raise $50,000 – all of it crowd-funded – so it could record a new album. The resulting effort, “Sugoi Indeed,” was a hit. You see, Michael wanted to buy PBR. But he didn’t have the capital needed to even humor the idea. So with the help of a partner, he started a website where he collected “small commitments” – pledges for money – from as many individual investors as he could rally. When all was said and done, he had an overwhelming $282 million in committed funds to buy Pabst Blue Ribbon outright. The group followed that up with a second fan-funded project, which included the words every capitalist loves to hear: return on investment. In the fans’ case (the first 100 anyway, which the band coined the “Samurai 100”), the payoff was a lifetime of free concerts and backstage passes. Sounds too good to be true, right? Well… It was. 6 C L U B S T R AT E G I E S TIME FOR THESE “SPEC” BIOTECHS “ “ If crowd-funded investing was a fringe activity in 2004, the “Jumpstart Our Business Startups” Act of 2012 turned it into something with mainstream potential. The era of crowd-funded investing (CFI), from those humble origins, was on… process (think of Facebook’s IPO)... Or two, seek an exemption and sell unregistered securities – but the startup’s pool of potential investors would remain limited to a select group of “qualified” (meaning, wealthy) individuals. Crowd Funding Goes Mainstream Of course, it’s one thing to ask for money from rabid fans to create an artistic work. It’s a whole other beast when you’re soliciting for business investment that, by its very nature, involves the exchange of securities and/or debt. And that’s a beast the SEC didn’t exactly want roaming the wild until it could fully dissect and examine every single component. The JOBS Act implements a third, brandnew registration exemption – specifically for scenarios like Michael Migliozzi’s proposed buyout of Pabst Blue Ribbon... • Funding is capped at $1 million per year. Enter the federal government’s JOBS Act, signed by President Obama last year... • If you, as an individual investor, have an income of less than $100,000, you can invest no more than the greater of $2,000 or 5% of annual income or net worth. If crowd-funded investing was a fringe activity in 2004, the “Jumpstart Our Business Startups” Act of 2012 turned it into something with mainstream potential. • If your income is over $100,000, your investment limits jump to 10% of annual income or net worth (to a maximum of $100,000). How? By changing the nature of securities regulations in place since the Great Depression era... • The startup’s offerings must be issued through a registered broker or a “funding portal.” (That means an SECregulated website. Startups are not allowed to solicit through their own websites.) Before the JOBS Act, an entrepreneur had two paths when it came to issuing securities for his startup. One, register its securities with the SEC in a tedious and expensive 7 C L U B S T R AT E G I E S The Devil in the Details financials. A straightforward document could lay it out in five pages. But a wary SEC might require startups to submit a 50-page document instead... Those are the broad brushstrokes to the new era of government-sanctioned crowdfunded investing. Sounds simple, right? So... Despite being passed nearly a year ago, crowd funding is still very much illegal until we get the SEC’s official nod of approval. But once that happens, it’s full steam ahead. Ah, but with the government, it never is... See, when the JOBS Act passed, the SEC was given 270 days to iron out all the details. 270 days from April 2012 is… well… now. Look at it this way, Steve Jobs and Steve Wozniak started Apple out of a garage. Imagine if you had the opportunity to give them your money when they needed it most. And that’s what has me worried. Leave it to bureaucrats to take something meant to be cheap, fast and simple, and make it expensive, slow, and complex... With crowd funding, you have the opportunity to invest in hundreds of potential Apples at the ground-floor level – with all the potential gain and risk that entails. OC For example, the legislation required entrepreneurs to submit a “description of business,” outlining business plans and Ain’t Nothing Goin’ on But the Rent... Continued from page 3 • At two times book value, it trades below the industry average of 2.8. using that money internally is a great source of capital, but also [because of] the message that we send to our shareholders and are confident in our future expectations.” • It also trades at 12 times FFO. (Remember, we look at FFO for REITs instead of earnings.) The industry average is 17.1. In other words, Friedman understands that a dividend growth policy broadcasts a strong message to shareholders and Wall Street: Our future prospects are strong. Associated Estates is in a great position to continue to grow FFO from higher rents due to the macro environment, as well as the lack of supply in its market. The stock is cheap compared to its peers and offers a solid yield that should continue to rise in the coming years. Bargain Valuation Value is harder and harder to find in the income space. But Associated Estates offers plenty: Action to Take: Buy Associated Estates Realty Corporation (NYSE: AEC) at the market. Place a stop 25% below your entry price. OC • Its 4.7% yield is the highest in the apartment REIT sector, and is significantly above the average of 3.1%. 8 U LT I M AT E Earn 11% in a Zero-Percent Market I N C O M E L E T T E R Continued from page 5 teries for computers and smartphones are the “in” thing now. But here’s where it really gets good! We are only paying $889 for a bond that will mature at $1000. So we also get the capital gain at maturity of $111 per bond. But, lead acid batteries aren’t going anywhere. Cars and smaller, less expensive applications are not going to foot the cost of lithium ion batteries. We are able to buy at a discount because it’s had some bad earnings reports and is out of favor. The company is expected to increase its earnings from -$1.41 per share to a positive $0.76 between now and 2014. It also has a growth rate for next year of 152%, and a five-year average growth rate of 10%. This bond also has a call date of February 1, 2015. That means the company can buy it back before maturity, but they have to pay us 104.31 ($1043.10) per bond to do so. Double-digit long-term growth and improving earnings! If it is called, our yield to the call will be 17.16% per year. 17.16%! This company will pay its bills and will be there when it’s time to return the principal in 2018. And that’s all that matters to a bond holder. If we hold the bond to maturity, our yield is about 11.5%. Exide is the largest manufacturer in the world of lead acid batteries for all sorts of applications, from cars to airplanes. Lead acid batteries are not the darlings they once were. Lithium ion bat- Ultra-short, out of favor, improving numbers going forward and an improving long-term picture, that’s how you get 11% in a 0% interest rate environment. OC Is This The Holy Grail of Safe-Haven Income Opportunities? If you’re not familiar with Senior Analyst Steve McDonald’s new Oxford Bond Advantage research service, now’s a good time to find out about it. Oxford Club member Adam Felt, a retired dentist, says this strategy “will help my wife and I maintain our income stream for many years, with less risk.” Club member Jim Scott adds, “I am 62 years old... And if this would have been available ten years ago, I estimate that I would now be receiving almost $100,000 a year in income.” And John Gilliam from Chicago says, “I have been too heavily invested in stocks in the past, and this provides me the opportunity to invest with a much higher and consistent return potential.” To find out exactly how Steve – and regular investors like Adam, Jim and John – are doing it, just call VIP member services at 888.570.9830 or 410.545.0498 and reference code GNMTP101. 9 U LT I M AT E I N C O M E M A I L B AG Ultimate Income Mailbag We’ve received a tremendous response from members. We always believe it’s good to share these questions and clarifications of dividend investment strategies with all of our members. As always, feel free to send us emails at editor@ultimateincomeletter.com. Q: I recently joined The Chairman’s Circle, and I’d like to let you know that I sold all of my IRA account holdings and bought the stocks in the Ultimate Income Letter. Second, I’m concerned about the valuation of some of the recommended stocks. How do you determine the value of these stocks, and do you consider valuation as the stock rises in price? Then I found out that these aren’t the stocks that meet the 10-11-12 strategy you mentioned in your book! Why don’t you have such a system in your Ultimate Income Letter? – Tom Marc Lichtenfeld responds: I use valuation metrics such as price to earnings (P/E), price-to-earnings growth (PEG), price-to-cash flow (P/CF), etc. – Ronald Marc Lichtenfeld responds: Valuation is certainly a factor in the stocks I recommend, but there isn’t a specific threshold that will disqualify a company. You’re correct, not all of the stocks in the Perpetual Income Portfolio match the 10-11-12 system I wrote about in my book, Get Rich With Dividends. I look at its prospects, yield, safety of the dividend, likelihood it’ll get raised, management and so on. I try to understand the complete picture, where valuation is just one part of that. Because so many members have been asking for it, in just a few months, I’m going to launch a newsletter whose strategy will primarily be investing in 10-11-12 stocks. We mentioned this new newsletter (prematurely, as it turns out) in our August/September edition last year. As far as which stocks you should buy and in which order, I am not permitted to give personal advice. My suggestion would be to add all the “Buy” rated stocks if it makes sense. For those of you who have not read Get Rich With Dividends, the 10-11-12 system is a conservative strategy for obtaining either 11% yields in 10 years or 12% average annual total returns over 10 years. By that I mean, if you only have $1,000 to invest, it won’t make sense to spend $200 in commissions buying 20 stocks. But diversification is always a good idea. So however much you’re planning on investing, try to spread it out among the different industries, asset classes (regular stocks, REITs, MLPs, preferreds) and market caps that are in the portfolio. Q: I am just now starting to buy the recommended positions in the Perpetual Income Portfolio. I have two questions: First, how do I select which stock to buy, and in what order should I buy them? 10 U LT I M AT E I N C O M E M A I L B AG C O N ’ T Ultimate Income Mailbag Con’t We’ve received a tremendous response from members. We always believe it’s good to share these questions and clarifications of dividend investment strategies with all of our members. As always, feel free to send us emails at editor@ultimateincomeletter.com. Q: I read your recommendation on KKR. Sounds like a great opportunity, if the price were right. Please explain how you can justify a “Buy” recommendation at the top of the market? We didn’t do that by calling the tops or bottoms of the market. We did it by picking great stocks, and holding them until our stops are hit or there’s a fundamental reason to sell. – Betty Q: What’s the best way to find the ex-dividend date for each of the stocks recommended in the Perpetual Income Portfolio? Marc Lichtenfeld responds: How do YOU know it’s the top of the market? In August of 2011, Mark Arbeter, Chief Technical Strategist of Standard & Poor’s, said, “We believe we are seeing pretty clear signs that the 2009 to 2011 bull market is over and that the bear is just starting to get its claws into the market.” – Gary Marc Lichtenfeld responds: Here’s how to look up ex-dividend dates on stocks: The market’s rallied about 35% since then. 1. Go to Yahoo Finance. (The website is: http://finance.yahoo.com.) At the same time, Pete Boockvar, Equity Strategist at Miller Tabak & Co., said, “This is the end of the run.” 2. Type in your stock’s ticker symbol in the box on the upper-left section of the screen (next to “Get Quotes”). It wasn’t. Not by a long shot. Betty, you could be right and may have picked the top in the market. Or this market could rally another 100%. 3. Click the “Get Quotes” button. At The Oxford Club, though, we don’t time the market. And that has led us to a track record that is the envy of everyone in the newsletter publishing business. 5. Look in the lower-right-hand corner – almost to the bottom – and you’ll see “ex-dividend date.” 4. Look for the “Key Statistics” link on the left side of the page and click there. You can look up more ex-dividend dates from that page – just look for “Get key statistics for” on the upper right, enter a stock symbol, and away you go. Many other finance websites have the info, as well (such as MarketWatch and Morningstar). Everyone claims a great track record, but The Oxford Club’s track record is a perennial top performer in Hulbert Financial Digest’s (an independent newsletter tracker) top 10 for risk-adjusted returns over the past decade. 11 N E E D H E A D E R T h e perpet u al i n come P O R T F O L I O Companies and funds with the financial wherewithal to consistently deliver dividend payouts and a modest amount of capital appreciation to shareholders. Company/SYMBOL stocks Rec. Rec. CurrentDividendsCURRent RatingTrailing DatePrice pricecollectedyieldstop* Aqua America Inc. (NYSE: WTR) Feb-10 Associated Estates Realty Corp. (NYSE: AEC) REIT Automatic Data Processing, Inc. (Nasdaq: ADP) $16.67 $26.95 $1.75 2.6% Buy $20.21 Feb-13NewNew $0.00 4.7% Buy Use 25% TS Nov-10 $45.27 $59.96 $3.46 2.9% Buy $44.97 Bristol-Myers Squibb (NYSE: BMY) Aug-11 $28.48 $34.85 $2.04 4.0% Buy $26.55 Brookfield Infrastructure Partners (NYSE: BIP) MLP Dec-11 $25.65 $37.05 $1.50 4.1% Buy $27.88 The Chubb Corp. (NYSE: CB) Jan-10 $50.65 $80.90 $4.68 2.0% Buy $60.68 Clorox (NYSE: CLX) Mar-11 $67.94 $77.10 $4.87 3.3% Buy $57.82 Community Bank System (NYSE: CBU) Sep-11 $22.06 $28.78 $1.32 3.8% Buy $21.76 Genuine Parts Co. (NYSE: GPC) Nov-09 $37.15 $66.06 $5.82 3.0% Buy $49.54 Hasbro (Nasdaq: HAS) Nov-12 $36.17 $38.87 $0.36 3.7% Buy $29.26 Kimberly-Clark Corp. (NYSE: KMB) Jul-10 $62.40 $87.20 $7.08 3.4% Buy $65.40 Kohlberg Kravis Roberts & Co. (NYSE: KKR) Jan-13 $15.23 $17.08 $0.00 5.6% Buy $12.81 Main Street Capital Corp. (NYSE: MAIN) Jan-12 $20.68 $31.91 $2.23 5.6% Buy $23.93 Mercury General Corp. (NYSE: MCY) Sep-11 $36.72 $40.14 $3.05 6.1% Hold $32.71 Mobile TeleSystems (NYSE: MBT) Mar-12 $18.25 $19.39 $0.76 4.6% Hold $15.05 Omega Healthcare Investors (NYSE: OHI) Nov-11 $17.76 $25.85 $1.69 6.8% Buy $19.39 Jan-11 $69.34 $72.38 $6.78 4.8% Buy $55.97 SL Green Realty Corp. (NYSE: SLG-PI) Oct-12 $25.35 $25.54 $0.41 6.4% Hold $19.25 Southern Co. (NYSE: SO) Nov-09 $31.96 $43.85 $5.62 4.5% Buy $35.57 Tanger Factory Outlet (NYSE: SKT) REIT Nov-09 $20.21† $35.39 $2.40 2.4% Buy $26.54 $22.99 $27.12 $1.02 7.5% Hold $20.34 REIT Royal Dutch Shell (NYSE: RDS-B) ADR Bond/Income Funds GMAC Capital Trust (NYSE: ALLY-PA) Jun-12 Prices as of 1/22/2013. * Use a 25% trailing stop. Trailing stops are adjusted to reflect dividends collected. † Prices adjusted for stock split. ADR – American Depository Receipt. MLP – Master Limited Partnership. REIT – Real Estate Investment Trust. Oxford Financial Publishing, LLC provides its subscribers with unique opportunities to build and protect wealth globally, under all market conditions. We believe the advice presented to subscribers in our published resources and at our seminars is the best and most useful to global investors today. The recommendations and analysis presented is for the exclusive use of subscribers. Subscribers should be aware that investment markets have inherent risks and there can be no guarantee of future profits. Likewise, past performance does not secure future results. Recommendations are subject to change at any time, so subscribers are encouraged to make regular use of our website, www.oxfordclub.com. Publisher Investment Director Assoc. Inv. Director Editorial Director Julia Guth Alexander Green Marc Lichtenfeld Jeff Yastine Assistant Editor Member Services Mgr. Director of Research Art Director Rocco Levitas Kate Murphy Chris Matthai Jennifer Ross © 2013, Oxford Financial Publishing, LLC | 105 W. Monument St., Baltimore, MD 21201 | 800.992.0205 Protected by copyright laws of the United States and international treaties. This newsletter may only be used persuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Oxford Financial Publishing, LLC. Information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. You and your family are entitled to review and act on any recommendations made in this document. The Oxford Club expressly forbids its writers from having a financial interest in any security they recommend to their readers. All Oxford Club employees and agents must wait 24 hours after an internet publication and 72 hours after a publication is mailed before taking action on an initial recommendation. The Oxford Club does not act as an investment advisor, or advocate the purchase or sale of any security or investment. Investments recommended in this newsletter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Basic dues for membership in The Oxford Club are $149 a year. Membership includes The Ultimate Income Letter, which is published monthly by Oxford Financial Publishing, LLC, 105 W. Monument Street, Baltimore, MD 21201. Non-U.S. dues are higher and vary from country to country. Send address changes to The Oxford Club Ultimate Income Letter, 105 W. Monument Street, Baltimore, MD 21201. For questions regarding the status of your membership call Member Services at 410.864.2526 or fax to 410.223.2650. Our website is: www.oxfordclub.com.