Comparison Between PCTI Investment and Cash's Portfolio

Ladies,

As I sit here on G-Chat wasting away my day with my boyy Anthony Hopkins, I asked him what I could write of relevance. His response was "How the investment of the weekend will ultimately pay dividends." It's funny he brought that up because lately I've been meaning to write up a little investing article as a change of pace, since one of my favorite pastimes is owning companies (That's my lingo for buying stock). That being said, I'm going to give everyone a little write up about each PCTI cost, it's relation to a stock in my portfolio, and how it's going to pay off as a long term (Or maybe short term) play.

1. Van for Transportation. Portfolio Comparison-General Electric (GE)

Ugly, old, boring all come to mind when thinking about a van. Who is going to get excited about this new cost? No one. Who gets excited about the idea of buying GE stock? Definitely no one. However, without a means of transportation, there is no weekend. That relates to GE in the sense that without GE, you can't really accomplish any day to day activities. Chances are good every appliance in your home/apartment/etc. are made by GE. How would you eat without their goods? Well, you would probably buy a different brand. BUT, GE got in on the ground when houses were actually being built (And bought for that matter) so they are a staple everywhere. Additionally, they used to own WCW Wrestling, which further proves my point that GE makes everyone's lives go. I'm bullish on the van, just as I am bullish on GE's long term growth potential, in addition to their 3.60% dividend yield.

2. Score/Stat Keepers. Portfolio Comparison-Apple (AAPL)

This is a classic example of a company and a service that although should not be considered a need, are. What seperates PCTI from a regular pickup game? Stats. Without it, we are a glorified pickup game. That's why the addition of stats and a scorekeeper play such an intrical role in making our weekend what it is despite the fact that few in this group really care about stats, therefore making me wonder the purpose. There is a striking similarity to Apple in that regard. Apple is a company that makes computers, iPad's (Which is a light weight computer), iPhone's (Which is a light weight iPad), and iPod (Which is a light weight iPhone). Don't get me wrong, I love Apple. However, I can't for the life of me understand the purpose of having all four. The funny part about that, is that in my household, we have all four. It's getting to the point where it's almost frowned upon if you not only don't possess all four, but don't get every new version of the item they put out (Which is like 6 a year). Apple has gone the extra mile to improve technology, similar to how we have gone the extra mile to improve pick up basketball. Apple is trading at $423/share. They currently are not paying dividends because they are re-investing everything they make into their business. This will be an $800 stock in five years. Don't get alarmed with only buying one share, because that $423 will be doubled in half a decade (That's assuming they don't start paying dividends anytime soon). Apple makes more money then the entire United States (Amazing). There is a chance they have an app for keeping stats, in which case we will probably use and therefore make this reference even more credible.

3. Gym. Portfolio Comparison-Howard Hughes Corporation (HHC)

When you figure in the cost of the gym, you really wonder what you are paying for. How much could renting a gym possibly cost? The lights are already going to be on, we are not requesting any help, etc. Can't we just slip the guy that runs the gym a $20 for his efforts of unlocking the door and move on? Sadly, no. Like with Howard Hughes, a Real Estate Investment Trust, you lose track of all the pieces that go into building, managing and leasing real estate. Headquarterd in Dallas, TX, HHC's claim to fame is that they own all the land on the Riverwalk in San Antonio, a national headliner that in my opinion is one of the most grossly overrated properties of all time (Next to the Alamo which is only steps away). HHC's IPO (Initial Public Offering) was at $40/share in November 2010. During 2011, it shot up to $76 based off excitement but has since come back down to Earth, hovering around $44/share. One of my favorite things to track about a company is insider transactions, and this company has repeatedly shown insiders buying buying buying, and to date not one insider has sold. STRONG buy and a great real estate play. Who knows, HHC might own the land our gym is on, therefore the money we pay to rent goes straight into the companies profits, which goes into my bank account. Thanks guys!

4. Refs. Portfolio Comparison-Verizon Wireless (VZ)

Chaos. That would be our lives at this point without a cell phone service provider like VZ. The days of setting a time to meet someone a day in advance and trusting that person to be there without confirming a thousand times via text have come and gone. Verizon is the top cell phone company on the planet, helping all of us communicate better. The blackberries and connection to email makes everyone significantly more productive. Although controversial, having referees in PCTI is crucial to putting together productive, non-bias games. Could you imagine a no ref PCTI game with Sabin on the opposing team as Thompson and Pitto? Refs are also like VZ in the sense that you can do many more sexy things with the money, but you know even at it's worst (Verizon claiming they were going to add billing charges/Refs when they T up Thompson) they are going to be providing value (VZ with it's outrageously high 5.20% yield/Refs with their power to control the games and stop them from being bias). Both are buy and holds.... For the long, long term.

5. Marriott Shops of Legacy. Portfolio Comparison-Procter and Gamble (PG)

This is a classic example of paying for a premium product. Marriott is typically considered the highest end, low cost hotel chain (If that makes sense). In a historical area (Only because I consider it the birthplace of PCTI)in Plano, TX, we are abandoning the if it ain't broke don't fix it model that has been successful for us in years past, no longer pricelining a hotel to get the best rate last minute in an effort to secure a great spot. Why are we doing this? Because walking solves problems. Procter and Gamble is the perfect stock to go with that philosophy. With products like Gilette, Head and Shoulders, Febreeze, Mach 3, Pantene, Dawn and Pampers, there is no doubt you can find MUCH cheaper products at the store. Why do we pay double for P&G's products? Because they solve problems. This stock pays a 3.20% dividend and has so much cash on hand it could buy three huge companies in the next decade. However, look for them to grow organically through their unbelievably impressive innovation (Sorry Scotty), and slowly grow their stock price each year, all the while consistently adding pennies to their dividend... Kind of like we will each year we start making more money, getting nicer hotels in prime locations.

6. Rental of Deuce. Citigroup (C)

Short term cost of this stock (and DVD) is a backbreaker. Most people look at Citi as one of the worst companies of all time. People look at the tapes (Depending on how they played and/or looked of course) as one of the worst videos they have ever watched. However, the long term benefits of this stock (And videos) greatly outweigh the short term risk. Citi is a company on the rise, a company with a market cap of $87 billion that is clearly going nowhere but up. For as long as we are alive, Citi will never have to pay taxes. Think about how much dough that is that they will never pay because of how much money they lost? The good news for investors like us is that the amount they lost never effected us (Well, outside of the bailout which was taxpayer money). It's currently trading at $30/share (Probably $20/share less than it should based on book value and fundamentals) and will continue to rise for the next 30 years. There is NOT ONE great investor out there that does not own a portion of Citigroup. The long term investment of this stock will pay great dividends someday to the patient, sound investors who can think big picture, and can handle losing some money here and there on the short term... Kind of like when we watch videos 15 years from now and see ourselves looking young, fit and energetic. You just can't put a price on it.

Stock Suggestions (1 being the strongest buy):

1-Citi
2-Apple
3-Verizon
4-Howard Hughes
5-Procter & Gamble
6-ConAgra
7-General Electric

Thank you to anyone who read this and made my hour spent writing it worthwhile.

The Motley Foolette