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Darren McCammon  

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  • Straight Path Communications Is (Significantly) Undervalued At Current Levels - After Recent Spike, Will Continue To Appreciate [View article]
    Brian Smith Jr.,

    I can occasionally see the future. For instance, In the near future, I see you being vilified on a popular investing website.
    May 22, 2015. 10:09 PM | Likes Like |Link to Comment
  • Proposal To Improve The Economy And Provide Jobs: Allow All Corporations The Option To Elect Pass-Through Status [View instapost]
    Hi Emily,

    Thanks for the response. Regarding tax receipts, my thinking is large corporations pay very little in taxes anyway due to the machinations you indicate so there wouldn't be a great loss in receipts there. The bigger losses of tax revenue would be the small businesses who suffer from the corporate tax rate but aren't big enough to take advantage of some of the oversea's games the large corporations can (assuming they chose to convert to pass-through status, I do recommend the conversion be elective not mandatory). They too now would no longer have to pay corporate taxes (but remember they also provide the majority of jobs and will still be paying out via the distributions their individual owners must take and report on their income taxes. More importantly, this lost corporate tax revenue would likely be completely offset by the much higher revenue from individual tax returns. As 90% of all taxable income has to be paid out paid out as distributions and those distributions are taxed at marginal tax rates (not 15-20% but instead 33-43%) tax revenue from individuals, particularly rich individuals who typically have the majority of income differed and then taxed at capital gains rates, would be much higher. That plus the growth in GDP caused by the change over time should add up to more gross tax revenue for government (and more jobs) over the long run.
    May 22, 2015. 09:53 PM | Likes Like |Link to Comment
  • Linn Energy: The Public Offering Signals A Higher Chance Of A Future Distribution Cut [View article]
    Well done article, it shows insight and backs it up with logical reasoning.

    However, it is possible there could be some other explanation. For instance while the change in leverage ratio's is not very significant, is it possible it gets them over some key ratio for Moody's ratings or the banks?

    Has the author or anyone else called the CFO to ask?
    May 22, 2015. 04:02 PM | 1 Like Like |Link to Comment
  • Easy Money Policies Distort Markets & Must Cease; But Yellen Unlikely To Act [View instapost]
    Interesting read, I suspect we are just going to agree with each other. However if you have a clue how this all ends, more detailed than badly that is, you are one up on me.

    Here's a blog I did on a the will they or won't they subject: http://bit.ly/1x1mMLH

    and what I think would be a good start on getting us out of this:

    http://bit.ly/1Fb8kjB
    May 21, 2015. 12:12 AM | Likes Like |Link to Comment
  • The King Of Bonds Is Shorting Bonds [View instapost]
    Oh that I had the conviction to short along with him. Talk about good timing! He must have made a killing in the last month.
    May 21, 2015. 12:09 AM | Likes Like |Link to Comment
  • Why You Shouldn't Put Too Much Weight On Dividends [View article]
    You may be interested in this study which indicates dividend paying equities tend to have not just higher total return but also higher risk adjusted return:

    http://bit.ly/1el5MVh

    or maybe this one:

    http://bit.ly/12kkjN7
    May 20, 2015. 09:21 AM | 2 Likes Like |Link to Comment
  • Making Promiscuous Profits With RCI Hospitality [View article]
    I understand your comment and article and generally agree with it. Our difference is I think they can use Bombshells to leverage debt both at cheaper prices and potentially to take cash out of the real estate. One issue with RICK has been that the assets tied up in real estate mask the true profitability and growth potential of the business. A REIT could have been a very good solution but unfortunately it does not appear like that is in the cards. However, if they can refi their real estate into 5-6% interest debt that will greatly increase cash flow. The true profitability will still be masked but the greater cash flow will support greater growth. Additionally, if their is cash to be pulled out of the real estate (maybe $40-50 million?) that would be also support more club and equity purchases. The issue of how to leverage a strip club business is significant to growth and I think bombshells could, maybe, help them solve that. Plus franchising can be a great business.
    May 19, 2015. 10:13 PM | Likes Like |Link to Comment
  • Round 2 - Miller Energy Resources Is Down, But Not Out Yet [View article]
    PawnPower,

    You are taking assets as stated on the balance sheet I assume? Wouldn't it be better to adjust assets for current value or current value in a bankruptcy situation? Even if one knows they are estimating, that estimate is likely to be better than the accounting fiction on the balance sheet.
    May 19, 2015. 10:06 PM | Likes Like |Link to Comment
  • Making Promiscuous Profits With RCI Hospitality [View article]
    I disagree with you on the bombshells expansion. Though less profitable than strip clubs, it can be expanded much more quickly than the strip club business. Additionally, the name change and bombshells division could be partly responsible for the recent availability of lower interest rates. It's much easier for a loan officer to submit and underwriting approve a real estate loan for RCI hospitality than Rick's strip clubs, the loan officer doesn't have to worry as much about it raising eyebrows with his superiors. So you have to give bombshells some credit not just for their earnings but also for facilitating lower costs and more availability of debt.
    May 18, 2015. 09:12 PM | 1 Like Like |Link to Comment
  • Noble-Rosetta Deal: A Harbinger Of The Upstream Consolidation Wave? [View article]
    Thanks Raw Energy I appreciate the effort, however the link did not work for me. I'll try going directly to your Instablog.
    May 17, 2015. 05:02 PM | Likes Like |Link to Comment
  • Prospect Capital: Why A 22% NAV Discount Won't Trigger A Buyback [View article]
    While I do short stocks, I don't think PSEC is a very good short candidate because it trades at a 20%+ discount to NAV with a 12% yield. I don't want to pay that kind of yield on something without a well defined near term short trigger. Additionally, PSEC could spike 20% any day simply by changing their management fee's to something more reasonable. While I don't want to own PSEC long, I'm also surprised the 7% short position is that high.
    May 17, 2015. 04:58 PM | 1 Like Like |Link to Comment
  • BDCs And Prospect Capital Make Me Optimistic About High Yield Investing [View article]
    A portfolio consisting of various pass-through securities (REITs, mREITs, BDC's, MLP's, etc.) can have some very interesting characteristics. While the price volatility of the portfolio is no better than the market, the income stream volatility tends to be both high and much less volatile: http://bit.ly/1yllLOD
    May 17, 2015. 04:39 PM | 2 Likes Like |Link to Comment
  • The CFO Of DDD Left Today... [View instapost]
    Regarding the UPS CFO change, thanks for the example. From the press release on that CFO change:

    UPS ® (NYSE:UPS) today announced Richard Peretz, 53 has been named Chief Financial Officer, replacing Kurt Kuehn, 60, who has elected to retire after 38 years with the company. Kuehn will continue his existing duties while ensuring a smooth transition of responsibilities to Peretz.

    In the other DDD negative article you also gave Google as an example of a recent CFO transition. From that press release:

    Google said earlier this month that Pichette, 51, who joined in 2008, is retiring and would remain at the world’s biggest search-engine company to assist with the management change. “I’m at a point in my life where I no longer have to make such tough choices anymore,” Pichette wrote. “I wish to transition over the coming months but only after we have found a new Googley CFO and help him/her through an orderly transition, which will take some time.”

    In these two examples which you provided I see: long tenure, emphasis on an orderly transition period, a calming statement and reasons for leaving being made by the outgoing CFO, notification made to the public in advance of the CFO actually leaving, etc. These two CFO changes which you pointed out both come across as orderly CFO transitions. In contrast the transition at DDD had few of these characteristics. It was surprising to the public; an immediate replacement of the CFO by his Controller. This difference in how CFO transitions are handled may signify nothing, but it could also be something the investor might want to be aware of.

    How about we just agree to disagree?
    May 17, 2015. 04:18 PM | Likes Like |Link to Comment
  • One More Reason Why I Remain Long 3D Systems [View article]
    Thanks for providing two examples of how a more typical CFO transition takes place. From press releases on the two CFO transitions you mentioned:

    Google said earlier this month that Pichette, 51, who joined in 2008, is retiring and would remain at the world’s biggest search-engine company to assist with the management change. “I’m at a point in my life where I no longer have to make such tough choices anymore,” Pichette wrote. “I wish to transition over the coming months but only after we have found a new Googley CFO and help him/her through an orderly transition, which will take some time.”

    UPS ® (NYSE:UPS) today announced Richard Peretz, 53 has been named Chief Financial Officer, replacing Kurt Kuehn, 60, who has elected to retire after 38 years with the company. Kuehn will continue his existing duties while ensuring a smooth transition of responsibilities to Peretz.

    As we can see, long tenure, emphasis on an orderly transition period, calming statement and reasons for leaving being made by outgoing CFO, notification to the public before they leave, these are characteristics of the two orderly CFO transitions you point out. There is not for instance a surprising (to the public) immediate replacement of the CFO by the controller. This difference in how CFO transitions are handled may signify nothing, but it could also be something the investor might want to be aware of.
    May 17, 2015. 03:44 PM | 1 Like Like |Link to Comment
  • Terra Tech: A Natural-Born Capital Killer [View article]
    "But this one was just more sensationalism than bravo worthy. The real issues with TRTC weren't even brought up/discussed (except for maybe one)."

    You make a good point.
    May 17, 2015. 03:23 PM | 1 Like Like |Link to Comment
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