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Albert Alfonso  

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  • Ellington Financial: Righting The Ship [View article]
    mikelp,

    EFCs get lumped in with the mREITs, though it is mostly invested in non-agency assets. They use a lot less leverage to get similar results -- credit-risk versus interest rate risk. Nevertheless, the market does not understand this nuance.
    May 7, 2015. 08:33 PM | Likes Like |Link to Comment
  • BreitBurn Energy Partners - Is The Worst Over? [View article]
    Futures contracts for oil are bought/sold by traders looking to make a gain by selling the paper, rather than those looking to use the product. Traders have no intention of taking delivery and are only there to speculate on the price action.

    http://bit.ly/1F2exAw

    A few years back traders (like Goldman Sachs) caused havoc worldwide by raising the price of food. It is likely some people starved due to the market manipulation.

    http://bit.ly/1F2exAy
    May 7, 2015. 08:29 PM | 1 Like Like |Link to Comment
  • Annaly Capital Deserves The 20%+ Discount [View article]
    Hemingway25,

    O fits that description as well. They are a long-term keeper, in my opinion.
    May 7, 2015. 07:14 PM | 7 Likes Like |Link to Comment
  • Strong Hedges Protect Memorial Production Partners During A Volatile Quarter [View article]
    AlanHHI,

    You'll need to run the numbers on page 16 of the following presentation:

    http://bit.ly/1EezC71

    With $185M in DCF, coverage ratio would be 1.00x based on ~84M units outstanding. DCF per unit would be $2.20. Difference was that I was using the wrong unit count.
    May 7, 2015. 05:24 PM | Likes Like |Link to Comment
  • Prospect Capital Has Become Absurdly Cheap [View article]
    superyielder,

    Get to the chase. Are you suggesting accounting irregularities? The CLOs are independently valued by 3rd parties and PSEC. If their value changes, it would be reflected in the NAV.

    From the 10-Q:

    In determining the range of value for our investments in CLOs, management and the independent valuation firm used a discounted cash flow model. The valuations were accomplished through the analysis of the CLO deal structures to identify the risk exposures from the modeling point of view as well as to determine an appropriate call date. For each CLO security, the most appropriate valuation approach was chosen from alternative approaches to ensure the most accurate valuation for such security. A waterfall engine was used to store the collateral data, generate collateral cash flows from the assets based on various assumptions for the risk factors, distribute the cash flows to the liability structure based on the payment priorities, and discount them back using proper discount rates.
    May 7, 2015. 02:50 PM | 1 Like Like |Link to Comment
  • Prospect Capital Has Become Absurdly Cheap [View article]
    superyielder,

    I know your being facetious. However, unlike ARR, PSEC is actually making money Q/Q, not losing.

    You can read more about my thoughts on ARR in the following article:

    http://seekingalpha.co...
    May 7, 2015. 02:26 PM | 3 Likes Like |Link to Comment
  • What Williams' Dividend Guidance Could Mean For Returns [View article]
    No fundamental analysis of what makes WMB "tick" -- WPZ. That MLP is the growth engine for Williams.
    May 7, 2015. 11:05 AM | 2 Likes Like |Link to Comment
  • Prospect Capital Has Become Absurdly Cheap [View article]
    Mike,

    That makes much more sense. Thank you for the expanded comment.
    May 7, 2015. 10:59 AM | 1 Like Like |Link to Comment
  • Prospect Capital Has Become Absurdly Cheap [View article]
    losbronces,

    I think the market is wrong. However, it can take a long time for a stock to return to its fair value if sentiment is this bearish.

    What keeps me in (and adding) to PSEC is that they are making money. Still only at 3% of my portfolio, only reinvesting the monthly dividend, so no "new capital" going in.
    May 7, 2015. 10:31 AM | 2 Likes Like |Link to Comment
  • Prospect Capital Has Become Absurdly Cheap [View article]
    Mike,

    But even poorly run companies have some value. PSEC made money during Q1 2015 and the stock has reacted as if a major loss was posted.
    May 7, 2015. 10:27 AM | 3 Likes Like |Link to Comment
  • BreitBurn Energy Partners - Is The Worst Over? [View article]
    Or, oil could go up in a flash. We were at $45 a few months ago, now at $61. You can thank traders and speculators for the increased volatility, they outnumber investors 20 to 1 in the futures market.
    May 7, 2015. 07:40 AM | 3 Likes Like |Link to Comment
  • JP Energy Partners: A Small Midstream MLP With 50% To 80% Upside [View article]
    Jion,

    Yup, JPEP is under-levered. But that is mostly due to them wanting enough dry powder to finance the Republic dropdown.
    May 7, 2015. 07:35 AM | 2 Likes Like |Link to Comment
  • Ellington Financial income rebounds, still shy off dividend; getting into auto loans [View news story]
    EFC posted a 10% annualized ROE and people are still bearish? Last quarter they posted a 1% annualized return. If you ask me, they were able to right the ship pretty fast.
    May 7, 2015. 07:32 AM | Likes Like |Link to Comment
  • Prospect Capital Has Become Absurdly Cheap [View article]
    Founder,

    The spin offs should trade at a premium valuation compared to PSEC, unlocking hidden value. That is is the theory at least.
    May 7, 2015. 07:21 AM | 2 Likes Like |Link to Comment
  • BreitBurn Energy Partners - Is The Worst Over? [View article]
    Yankee John,

    Iran has been smuggling their oil into China for ages. They did not stop producing due to the sanctions, they only loss a few European customers.
    May 6, 2015. 07:46 PM | 5 Likes Like |Link to Comment
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