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  • Dividend Stocks Are Not In A Bubble, But Many Of Them Are Pricey [View article]
    Dividends stocks are not in a bubble.

    Ownership of the same top 50 stocks by market cap thanks to the media, fund managers, asset gatherers, etc. (most of which are coincidentally everyone's favorite dividend stocks) are most definitively in a bubble. When the end comes, oh and it will come, the capital loss will be spectacular.

    Granted there are many people who own these stocks who own them for the income only. They understand the risks and would never sell. They understand their dividend stream and have the physiological understanding to weather any downturn even if it were to be severe.

    But as studies have shown, 75% of investors, invest based on emotion. The capital losses will be rationalized for the first 15% down. The next 15% down the fear and doubt will really kick in as they will look at the dividend yield and wonder how it is going to make up for the capital loss. Of course the real end comes when they pain becomes to great and they do what most Americans do...they sell...and typically at the bottom of the cycle. That is what happens when they are sold the same Wall St stocks over and over and over again. You know the names... the usual suspects.

    So while the true dividend income investor will take advantage opportunity during market dislocations, move investors will panic out and when they get some cash together will buy into the market again....after it has risen the usual 200% off the lows.
    Nov 21, 2014. 09:07 AM | 4 Likes Like |Link to Comment
  • The Passive DGI Portfolio: Quarterly Portfolio Update [View article]
    Not enough yield here considering this combination of stocks is nothing more than an S&P 500 benchmark.

    More than likely you could accomplish the same if not better long term investment returns by holding the cheapest S & P 500 ETF out there and perhaps a higher yielding closed end fund bought at a nice discount that is not related to the S&P 500.

    I do wish you the best.
    Nov 18, 2014. 04:28 PM | 1 Like Like |Link to Comment
  • Keystone XL vote near, but economic viability thrown into question [View news story]
    Economic viability?

    I guess oil has out lived its usefulness.


    Many people do not know the following so I will give you the hint of a secret:

    A close relative of mine has worked over at the Comex for 2 decades now. The price of oil has nothing to do with supply and demand.

    That's as far as I am willing to comment on the subject.
    Nov 13, 2014. 02:54 PM | 4 Likes Like |Link to Comment
  • Building A Core Investment Portfolio For The Next 20 Years: Lockheed Martin [View article]
    RAKJ:

    No need to apologize. With regards to your other comments:

    I agree 100% . I just turned the big Five O this year.

    This current country called the US in no way resembles the country I used to know.

    Sadly, government is corrupt and way to many of it's citizens have come to accept mediocrity as a permanent way of life. Illegals....yep agree. The mindset of the country has been forever altered.

    Every single great empire throughout history has collapsed. Every single one. No one has yet to learn from history. For those of us who understand this we can only sit back and watch.

    Best to you.
    Nov 13, 2014. 01:17 PM | 2 Likes Like |Link to Comment
  • Building A Core Investment Portfolio For The Next 20 Years: Lockheed Martin [View article]
    RAKJ:

    I just wanted to apologize if my tone was abrupt. Sorry if it came off that way. Was not my intention to insult you. Thank you for taking the time to help others with some investment suggestions.

    I just wanted to help put some real facts out there because it always offends me at the lengths that CNBC, the media and the investment industry goes to in order to deceive the American public.

    I wish you continued success in your investing.

    Best to you.
    Nov 13, 2014. 12:29 PM | 6 Likes Like |Link to Comment
  • Building A Core Investment Portfolio For The Next 20 Years: Lockheed Martin [View article]
    "I think that the funds coming that will really drive this market will come from the "Boomers" coming on board at the rate of 10,000 per day for years to come that will wish to move their 401K plans into more attractive investments"

    RAKL:

    Hi man. I hate to burst your bubble (you need to turn off the deception that is CNBC & the main stream media) but the majority of baby boomers liquid net worth heading into retirement is not even over six figures. As a matter of fact:

    The Employee Benefit Research Institute (EBRI), workers aged 55 and older said the following about their retirement savings:

    60% have less than $100,000 in retirement savings
    43% have saved less than $25,000
    36% have saved less than $10,000
    As a point of reference, of all workers surveyed:
    76% have less than $100,000 saved
    57% have less than $25,000 saved
    46% have less than $10,000 saved.

    Reality: The massive deception that is the main stream media coupled with the investment banks and the insurance industry in an attempt to convince people that everyone around us wealthy and flush with cash, ready for investment, is frankly complete and utter nonsense.

    There is going to be no "baby boom" investors money flowing into equities over the next 2 decades. That has been completely made up by the media. As a matter of fact many, many baby boomers are drowning in debt because just like others, they too decided to use their house like and ATM from 2003-2007 and now owe boatloads of money for home equity extractions, etc.

    It's a nice thought RAKJ but the reality of the situation is just not so.
    Nov 13, 2014. 11:15 AM | 11 Likes Like |Link to Comment
  • Wal-Mart beats by $0.03, beats on revenue [View news story]
    Beat or just more mega cap manipulation to keep the sheep investing in what the other 90% of sheep own as well (Thanks to Wall St. & the media marketing machines)

    http://bit.ly/1GSePtS
    Nov 13, 2014. 08:20 AM | Likes Like |Link to Comment
  • The Tax Inefficiencies Of Dividends [View article]
    I get what you're saying owner and I agree.

    I only own dividend paying stocks. All monthly payers.
    Each time the dividend is paid the stock price drops by that amount.
    And what happens? By the time the next dividend payment comes around the stock has gained all the so called "lost" dividend payment back and then some.

    I look at all the stocks I have owned for over a decade already, that have paid dividends over that decade and I see huge capital appreciation as well as dividend payments = massive total return on investment. I guess all that poor capital allocation by the companies I own has really hurt them and me? LOL.

    I typically ignore all these articles that people write that try to malign dividend investing with whatever excuses seem to sound good at the moment.

    And Taxes? What taxes? Some of us are smart enough to know: We hold all our dividend paying stocks in our Roth Ira's where not only are the capital gains and dividends growing 100% tax free, they are coming out 100% tax free as well.

    Best to you.
    Nov 12, 2014. 08:49 AM | 2 Likes Like |Link to Comment
  • Inter Pipeline: A Record Q3 Leads To The Largest Dividend Hike In Company History [View article]
    Bortoni:

    That is an interesting point you bring up. I know from investing in Canadian Corps for years already that:

    Stock of Canadian Corporations held in a qualified US retirement accounts such as:
    * Roth IRA
    * Traditional IRA
    are not subject to the 15% withholding tax (does not apply to Reits & Income trusts however- they still get taxed the 15% regardless)

    I wonder about the 401K. Technically a 401K, though tax advantaged is not listed as a Traditional IRA or Roth IRA.

    Just thinking out loud here.
    Best to you.
    Nov 11, 2014. 12:45 PM | Likes Like |Link to Comment
  • Inter Pipeline: A Record Q3 Leads To The Largest Dividend Hike In Company History [View article]
    I'll be the first.

    What can I say? I follow you and continue to agree with your analysis.

    Long $IPPLF, $PBA and a few other Canadian Corps.

    Thank you for your thoughts and analysis.
    Nov 11, 2014. 08:15 AM | Likes Like |Link to Comment
  • Pembina Pipeline's (PBA) CEO Michael Dilger on Q3 2014 Results - Earnings Call Transcript [View article]
    $PBA technically should not trade based on the price of oil. However it does because it trades on investor sentiment. Over and over it is written about how pipeline companies are not affected by oil prices (Granted $PBA has a number of segments beyond traditional pipelines). However as I have told people over and over: in the end regardless, stock prices move on sentiment and perception. So if oil is going lower, and energy related names are going lower: Investors are gonna sell anything energy related lower.

    Of course that's when I buy or add and make the real money over time.
    Nov 6, 2014. 10:19 AM | Likes Like |Link to Comment
  • We've Become Very Interested In Kinder Morgan [View article]
    "Master limited partnerships are dangerously risky structures for wealth creation"

    LOL. Sorry for the laughing. I mean really? I remember long, long ago when I bought my first MLP. Kaneb Pipeline Partners. Long before the average investor was in this sector I was there. Made so much $$ owning this sector over the years.

    You know what? Investing in stocks in general is risky and dangerous. So is driving to the office everyday.
    Nov 6, 2014. 10:10 AM | 10 Likes Like |Link to Comment
  • Avoiding The One Dangerous Mistake: Stocks, Bonds, And Real Estate Part 1 [View article]
    "over the long run a similar house on similar types of land in one area should cost a similar amount in another area." You're kidding, right?

    Yeah he must be kidding.

    My house, in my area, on a 1/2 acre is worth a pretty penny.

    The same house on the same 1/2 acre on another part of Long Island is worth about 1/2 as much. Why?

    Location, location, location. They are surrounded by an immigrant hell hole that looks as if Central America has been transported to Long Island.

    Many factors determine house pricing besides similar house size and land type.
    Nov 5, 2014. 02:16 PM | 1 Like Like |Link to Comment
  • Apple: Breaking The Law (Of Large Numbers) And Getting Away With It [View article]
    Thank you to the author for the article.

    "Apple investors have been enjoying outsized market returns for several years now, despite it being an extremely large, well-followed company."

    Actually AAPL stock has returned just 27% over the past 26 months. Ok a bit higher with the dividend. A far cry from the 1000% return per year investors were received before the market cap got to this size.

    "The explanation for the mispricing is partly a pervasive but fallacious market belief in a "law" of large numbers."

    Actually I think it is still way to early to make a final judgement on that issue. With AAPL at just over 600 billion in market cap I think a 10 year time span / assessment would have to occur before a final decision in issued.

    "Apple keeps breaking the law of large numbers, and there is a clear path for it to continue breaking it at least for the next ten years."

    Actually AAPL has really only now just entered the realm where the laws of large numbers begins to take affect so again I think final judgement must be reserved for at least a decade.

    The real question for those investing in AAPL stock: What is an investor's expected return from AAPL stock say over the next 10 - 20 year time frame?

    When a stock is 1 billion in market cap and adds another billion in market cap that is a 100% return.
    When a stock is 10 billion in market cap and adds 100 billion in market cap that is a 1000% return. What happens when a stock is 100 billion in market cap and adds the same 100 billion in market cap? Only a 100% return. Not the same 1000% return on just experienced.

    As a stocks market cap grows and grows the stock faces "declining returns" because the amount of money necessary to grow the market cap becomes more and more.

    The laws of large numbers is very real and will absolutely affect AAPL stock going forward as it relates to overall investor returns. Now if an investor in AAPL stock were to say "Hey man I am totally happy with 8% returns from the stock going forward", then I would say you are being every realistic in your expectations.

    However if the same investor truly thinks that AAPL is just getting started and that the same +8000% returns as experienced in that past decade are right around the corner for the next decade: I have a wonderful bridge I would like to sell you.

    The author absolutely makes the case and lays out the next 10 year growth opportunity. No question. However what the author does not understand is there comes a point where all those wonderful things listed divorce them self from the reality of how much money exists out there in the investing universe to exponentially expand the market cap of a single company. In order for AAPL lets say to expand their market cap by 8000% over the next decade most of the entire US bond market would have to be sold off and put into AAPL stock.

    The larger the market cap becomes the lower the rates of stock price return and investor can come to expect from that stock.

    I would be curious from other investors as to what their expectations for AAPL stock returns they are hoping to receive over the next 10 & 20 year time period.

    Again thank you to the author.
    Best to you.
    Nov 3, 2014. 09:49 AM | 4 Likes Like |Link to Comment
  • Why The Correction Didn't Become A Crash [View article]
    copa:
    Agreed. However overall as a country that can only go on for so long and is not how healthy economies / countries operate over long periods of time.
    Nov 2, 2014. 09:47 AM | Likes Like |Link to Comment
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