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Portfolio Update
AMM Dividend Letter
Portfolio Update

Dear Reader,


Usually these emails are used to detail a current position in your portfolio. Something new we want to try is sending out an update when we sell a position. Our goal is for you to gain even more insight into our portfolio management.

On Thursday, October 16 we sold two positions, Navient Corp. (NAVI) and SLM Corp. (SLM).

You may recall from the very first AMM Dividend Letter that we bought SLM Corp. because of its upcoming corporate restructuring. The company was spinning off its student loan portfolio management business from its personal banking business. The split occurred in April of this year creating Navient Corp. (NAVI), the student loan portfolio, and SLM Corp. (SLM), the small personal banking business.

One of the major reasons for us to sell an existing position is because we see a better opportunity. Recent market activity brought Blackrock Inc. (BLK), a company we've been watching and previously owned, back down to our buy price.

Navient Corp still offers decent future total returns but it is trading at our fair value price of $18 per share. At today's prices we see a better opportunity for capital appreciation and, more importantly, dividend growth in Blackrock.

SLM Corp. is still below our fair value of $10 per share. However, SLM was a very small position after the spin-off and it did not pay a dividend post spin-off either. We usually like to hold spin-offs for at least a year but we think the opportunity in Blackrock merited the early sell.

As always, feel free to reach out to us if you would like to discuss anything further.

Sincerely,
Your Portfolio Management Team


 

The opinions expressed in "The AMM Dividend Letter” are those of Gabriel Wisdom, Michael Moore and Glenn Busch and do not necessarily reflect the opinions of American Money Management, LLC (AMM), an SEC registered investment advisor who serves as a portfolio manager to private accounts as well as to mutual funds. Clients of AMM, Mr. Wisdom, Mr. Moore, Mr. Busch, employees of AMM, and mutual funds AMM manages may buy or sell investments mentioned without prior notice. This newsletter should not be considered investment advice and is for educational purposes only. The opinions expressed do not constitute a recommendation to buy or sell securities. Investing involves risks, and you should consult your own investment advisor, attorney, or accountant before investing in anything. Current stock quotes are obtained at http://finance.yahoo.com. Prices are as of the close of the market on the date for which the price is referenced.

About American Money Management


American Money Management is a Registered Investment Adviser located in Rancho Santa Fe, California. American Money Management may only transact business in those states or countries in which it is registered, or qualifies for an exemption or exclusion from registration requirements. For non-clients of the firm, American Money Management's web site is limited to the dissemination of general information pertaining to its investment advisory services.


Please contact Gabriel Wisdom or Michael Moore at 888-999-1395 to find out if we may conduct advisory business in the state or country where you reside. Accordingly, American Money Management does not, and will not, effect or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, through this website. Any subsequent, direct communication with a prospective client shall be conducted by an American Money Management representative who is either registered or qualifies for an exemption or exclusion from registration in the state or country where the prospective client resides.

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