UNIVERSAL INSURANCE HOLDINGS INC

Had some extra cash from dividends in my money market account and decided to put it to more profitable use. So I put in an order and picked up more shares of Universal Insurance (UVE: AMEX). I'm currently long on UVE although I have traded in and out in the past. I especially like their dividend yield right now of 9.60%, which beats the you know what out of the return I was drawing from the money market account. They're currently trading near their 52 week low, most likely due to hurricane season, so I'm taking advantage of the low price to increase my stake and boost my return from dividends. I've noticed it's not unusual for the price to drop during spring and summer months and rebound when hurricane season ends in September.

I'm currently sitting on some nice paper profits, but haven't decided to pull any cash out at the present time. I'd like to make a couple more trades where I pull out my initial investment and keep the remaining shares, in effect gaining "free" shares. While I am in a position to do this with a few of my current holdings, I haven't found any new investments that I prefer over the ones I already own. So I'll sit tight for now and keep my eyes open for a good opportunity.

Bought a commercial carpet cleaning machine for $700. I've made a deal with my apartment complex to clean all their carpets as tenants move out. I figure that I can easily earn a 40-50% return on dollars invested in the machine by doing 8-10 apartments per year. But if I only do enough to earn 20% on dollars invested, I'd still get my money back in 3.6 years and everything after that is pure profit. Not to mention that I can clean my own carpets without paying for a rental machine. So I think this may actually be one of my best investments of the year.

Upping My Investment in UVE

Over the weekend I reviewed my portfolio and decided to up my stake in Universal Insurance Holdings (UVE-AMEX). The Group's principal activity is to provide property and casualty insurance. It performs various aspects of insurance underwriting, distribution and claims. It markets and distributes its products and services, primarily in Florida.

I've written about UVE before and have been a long time shareholder for quite some time. Not long ago I had sold some of my shares for the capital gains, but now that I've reviewed the stock, I've decided to buy more. I've always liked their dividend payout and currently it is running at 12.94% on the recent share price of $6.19. Not too many places right now you can get a 12% plus rate of return.

Another factor in my decision was an article I read recently which argued that one of the most important metrics for stock picking, is insider ownership. I thought the author made a very good argument for investing in stocks with high insider ownership. That being said, UVE, which has been a great investment for me so far, has inside ownership of over 50% on top of their high dividend payouts. They have also expanded operations outside the state of Florida, which could indicate prospects for future capital gains.

Bottom line, if the insiders are willing to tie up so much of their money in the company, then I'm thinking it probably wouldn't hurt for me to keep some money working with them.

This Week's Trades

Decided to take advantage of Universal Insurance (UVE) 11% dividend yield and pick up some more shares for my taxable portfolio. UVE is a long term holding in my regular portfolio and my IRA. Also decided it might be time to have a look at REITs again. With real estate turning around and several companies gearing up to pick up distressed real estate investments, thought it might be good to shop around. I've decided on Capstead Mortgage (CMO), one of the real estate trusts that has survived the turmoil of the past few years and seems to be on track for recovery. Their dividend yield is currently 16.30%, which is enticing in its' own right, but I chose them mainly for their experience. They've been in business for quite some time and I figure if they could survive the past year and keep their dividend intact, then they're likely a pretty good bet going forward.

Still building cash, but things are looking up on the job front, so I may soon be deploying excess cash in my stock portfolios. Even though I'm not happy with things on the political front, I believe that the stock market and the American economy can overcome a lot of idiotic moves by our nations politicians. And there's always the hope that they'll be voted out and replaced with people who have show a little more fiscal responsibility.

Hurricane Bill

I have to admit to feeling a bit slighted by the fact that no one, in my rather extensive family, has ever named one of their children after me. But I'm happy to say, I'm over all that now, since the National Weather Service has named a hurricane after me. O.K., so I know hurricane Bill is not really named after me specifically, but it's pretty cool anyway.

Glad to know it's most likely headed away from the U.S. mainland. Wouldn't want my namesake doing any real damage. Especially since I have money invested in Universal Insurance (UVE), who insure property in Florida and some of the other southern coast states. Would hate to see them get hit with big casualty claims.

Although the market was up today, traders seem convinced that there will be at least another 10% correction before the market can really start to move higher. Jim Cramer seems to think the correction is over:

“Every argument the bears had for selling,” Cramer said, “has been totally rebutted by this great market.”

Read more of what he had to say at:

http://www.cnbc.com/id/32463065

Finally, as I've suspected all along, a recent report says: "Less than one in ten tweets have any real "pass-along value" and more than 40 percent of tweets are “pointless babble,” a study by the research firm showed." If this is the case, and the posts are called tweets, does that make the people who read them twits?

http://www.cnbc.com/id/32446935