Update Your Status.
Over the weekend, I engaged in a little Empire Avenue Portfolio “Spring Cleaning.” I hadn’t sold anyone in, oh, I don’t know, 6 or 7 months, and let’s just say I was carrying around a lot of dead weight. Something drastic needed to be done. My goal: Trim my portfolio from around 750 players down to a number in the 500 neighborhood.
A great majority of the dead weight I was carrying around in the gullet of my Empire Avenue Portfolio turned out to be shares of players who had signed on to Empire Avenue and abandoned it, or influencers who had little to no activity across all of their connections, let alone in Empire Avenue. These dead weight stocks were producing very little value in terms of dividends, which is the name of the game in a lot of respects.
Identifying the abandoned and no-activity stocks was easy to do using the built-in Empire Avenue filters and I was able to shed a few pounds quickly. However, to really become the lean mean dividend producing machine I wanted my portfolio to be, I had to separate a few more bushels of wheat from the chaff.
In an effort to tighten my EAv belt further, I decided to base the determination on selling or holding any particular stock by looking at the Average Daily Dividend / Share stat in each profile. I picked an arbitrary number that I wanted to see in that stat as a minimum threshold, and decided to sell stocks that had earned a daily dividend below that figure. Empire Avenue Power Player, Honored Society Mafioso and #SocialEmpire Regular Omar Habayeb (e)OKMMH uses a similar strategy of only investing in players who maintain an Average Weekly Dividend of at least 0.34 per share.
The problem was, I was performing this Spring Cleaning on a weekend — a time when many folks have reduced activity simply because of the fact they are out enjoying “The Real World” and not hunkered down, glued to the glowing screen of their computin’ machine. As a result, the Daily Dividend figure may have been misleading. Folks with a low daily dividend reported on Sunday may very well skyrocket when they return to work and resume their normal routines on Monday (apparently there’s a lot of EAving, facebooking, and twittering going on when all you people are supposed to be workin’ for The Man, but that’s a whole ‘nother discussion altogether).
If I found that a stock was hovering right around my cut-off point and I had no strong inclination which way to go, the deciding factor became the status update. If you hadn’t changed your Empire Avenue Status in more than a week, you got the boot. In some cases, a recent status update even lead me to retaining lower performing stocks that I otherwise would have cut based on the Daily Dividend stat.
Keeping your status up to date is probably one of the easiest ways to let folks know your still active on EAv and haven’t dropped off the face of the earth. And if you’re active, you’re more attractive to new investors. And at least in this instance, it will keep you from getting sold.