Allan Coleman's "GNMA Table" & Junk Bond Fund (VWEAX) Update

Allan Coleman posted on our Facebook Forum Sep 23, 2007 at 3:39 PM:

Here is your purchase , Tom , along with miine of the Vanguard GNMA fund on Friday at $10.17 a share .

For the Record :

$9.91 - " codfish " , and " hoover26 "

$9.93 - Capt. Kirk , " codfish " , " Moonlight " for a substantial purchase , " retiredinprescot " , " runner26 " for a definite second purchase , and myself for a second purchase

$9.94 - " destroyerman " , " Moonlight " , " runner26 " , " somedude3 " , and myself

$9.95 - " unnamed friend "

$9.96 - " cpa111 " , " jnosm " , " Moonlight " , " runner26 " , " somedude3 " , " and " AL_W " bought into the overall bond market when GNMAs were at this price

$9.98 - " Moonlight " , and " somedude3 "

$10.00 - " Icha " , Mary " mapgal " , " Moonlight " , " retiredinprescot " , " runner26 " , " somedude3 , and myself

$10.01 - " CGM64 " , " and " unnamed friend "

$10.08 - " runner26 "

$10.09 - " cpa111 " , and " unnamed friend "

$10.10 - " codfish "

$10.13 - " davey52 "

$10.14 - " cpa111 " , and " runner26 "

$10.17 - " Tom " , and myself

$10.19 - " Tom " , and myself

$10.20 - myself

$10.35 - " unnamed friend "

My average purchase price is $10.05 with my highest price paid is $10.20 . These are the figures I need to calculate when I can sell my GNMAs in the future as as to NOT have a principal loss in my GNMA investment . As long as I keep my sale when GNMA prices are at or above $10.20 a share , I'll have principal appreciation . And if I want to get into more detail than that , my average purchase price is $10.05 .

In addition , I also made my second Vanguard High - Yield ( junk ) bond fund ( VWEAX ) at $6.04 a share . With my first purchase of this fund at $6.00 , that puts my average purchase price for this fund at $6.02 a share . I also need this data in order to figure out when it may make sense to sell this fund later too .

Allan Coleman's Sept 11, 2007 GNMA Update

Posted on our Facebook Forum by Allan Coleman

Allan Coleman wrote:

As expected , the navs of our favorite Vanguard GNMA funds ( VFIIX & VFIJX ) DROPPED to $10.24 share price at the close today . The bond market traders may be finally getting the message that Bernanke and the Fed may ONLY cut rates by a quarter point next week and started pricing treasuries accordingly taking some profits now before having to unwind larger positions next week .

Observations :

VFIJX = 4.09% ytd with a 5.25% yield

VMMXX = 3.61% ytd with a 5.06% yield as market money returns also possibily consider next weeks unwinding with a lower Fed funds rateVFIJX = 0.89% ytd with a lower 8.20% yield . Price on this Vanguard High - Yield ( junk ) bond fund has remained unchanged for the last four trading days and really hasn't moved much off $5.94 / $5.95 for the last 13 trading days while GNMAs have moved mostly up a dime .

Personally , I'll do further research tonite on buying this junk bond fund this week , well before the Fed acts next week and possibily making a second buy in this fund on the Fed decision announcement next week .

On GNMAs , looking to get another buy in this fund below $10.20 a share price . A fifth $101k purchase at $10.20 a share price would give this old surfer a average price of $10.00 a share since I made my first buy in June 22nd of 2006 .

P.S. Tom , my specific advice to you on your GNMA purchase is :

IF you think the Fed's going to CUT rates next week , you might consider making your GNMA buy BEFORE the Fed meeting announcement or the day of the announcement and take the closing nav price you'll get that day .

IF you think the Fed is going to HOLD , wait until AFTER the Fed announcement to make your purchase .

Allan Coleman's Sept 10, 2007 GNMA Update

Posted on our Facebook Forum by Allan Coleman

Allan Coleman wrote:

As expected , the navs of our favorite Vanguard GNMA funds ( VFIIX & VFIJX ) went UP to $10.26 today .

Observations :

• VFIJX = 4.28% ytd with a 5.24% yield
• $404k of GNMAs purchased at an average price of $9.95 since June 22nd of 2006 is now worth $426,710.36
• VMMXX = 3.60% ytd with a 5.09% yield
• On my radar screen is the Vanguard High - Yield ( junk ) bond fund ( VWEAX ) that closed UNCHANGED today at $5.96 a share that I'm waiting to either break through the 50 day moving average and show a turn to the upside or to decline to a lower price . Either way , I feel a purchase price below $6.00 a share is a good value . Especially IF the Fed cuts rates next week .

Allan Coleman: GNMAs UP today

Posted on our Facebook Forum by Allan Coleman

Allan Coleman wrote on Sep 7, 2007 at 3:21 PM

GNMAs UP today :

The nav prices of our favorite Vanguard GNMA funds ( VFIIX & VFIJX ) closed UP to $10.25 today . This is an 8 cent increase and the biggest increase I've ever seen before in one day was 7 cents several times in the past .

• Recent obeservations : VMMXX = 3.55% ytd with a yield of 5.10%
• VFIJX = 4.13% YTD with a yield of 5.27%
• $404k of GNMAs purchased since June 22nd at an average price of $9.95 with dividends reinvested is now worth $426,294.47
• VWEAX with a yield of 8.22% has a nav price of $5.96 at the close today , unchanged from yesterday