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  • American Capital Agency Attracts Income Seekers [View article]
    Bruce Bohannon,

    I believe you are missing the big picture regarding investing in AGNC for an income stream by building the position over many years.

    I have been building a large position in my ROTH IRA since 2011.

    I am very happy with my share count and each month it increases as I continue to reinvest ALL the dividend payments. AGNC will eventually raise their dividend and you will miss the days when AGNC goes from unfavorable to favorable.

    AGNC has been out of favor since 2013. One day it will be in favor again.

    You are quoting Buffett regarding his rules of not losing money.

    No one has lost a dime on AGNC if they have not sold.

    Remember Buffett said to know what you invest in and have conviction. He said to buy a company when it is out of favor. He also said to buy and pray it goes down in price and buy more because one gets it on sale ( value investor).

    Now is the time to buy AGNC, not sell. I recently bought 2,000 more shares at $18.76 in my taxable account.

    I have over 30,000 shares total.

    I would like 50,000 shares before I start to collect my dividends!

    I have no complaints.

    Life is good!

    PS: AGNC will continue to buy back shares if the discount to BV can't be passed up. This is a good sign for shareholders.
    Aug 1, 2015. 10:24 PM | 1 Like Like |Link to Comment
  • American Capital Agency Attracts Income Seekers [View article]
    Hi Rob,

    It feels good to have a smart person like you agree with me.

    Be well my friend.
    Aug 1, 2015. 10:14 PM | Likes Like |Link to Comment
  • Altria's Future Is In Cannabis [View article]
    The relationship they currently have is very favorable. I like the agreement they have.
    Aug 1, 2015. 05:20 PM | 1 Like Like |Link to Comment
  • American Capital Agency Attracts Income Seekers [View article]
    tstreet and COBeeMan,

    A 5% decrease YTD is NOT the terrible result you guys make it out to be.

    Anyone who has averaged down intelligently in their buys over the last 3 years and did NOT buy too many shares above BV in 2012 has a positive total return.

    The only investors who have large unrealized losses are the ones who bought above BV and did not increase their positions in 2013 when AGNC was well below BV.

    Now is the time to buy not complain.

    Anyone who bought at $31 -$36.77 a share and then sold after AGNC tanked had no business buying in the first place.
    Aug 1, 2015. 05:15 PM | Likes Like |Link to Comment
  • American Capital Agency Attracts Income Seekers [View article]
    AGNC closed at $21.83 on 12/31/2014

    AGNC closed at $19.26 on 7/31/2015.

    Therefore price wise it is down 11.77%

    AGNC has paid $1.28 in dividends and owes $0.20 for a total of $1.48.

    So $19.26 + $1.48 = $20.74 which means AGNC is down 5% YTD.

    However, If one has been reinvesting their dividends ( as I have) at these cheaper prices relative to their history, it is NOT nearly as bad as most here at SA write about!!!
    Aug 1, 2015. 10:39 AM | Likes Like |Link to Comment
  • Altria's Future Is In Cannabis [View article]
    Sunshine123,

    MO and PM one company again? Why? A report that gmansour mentioned that he can't even remember or has not responded yet on where this so called report originated?

    MO is doing just fine!!!

    There were reasons for the spinoff.

    I googled a potential merger between MO and PM and there is nothing that I found, no reports, etc.

    PM has too many issues that MO does not need to deal with.
    Aug 1, 2015. 09:39 AM | Likes Like |Link to Comment
  • Altria's Future Is In Cannabis [View article]
    gmansour,

    A report from whom?

    It seems like a merger would complicate the company and the initial reasons for the spinoff have not gone away.
    Jul 31, 2015. 05:22 PM | Likes Like |Link to Comment
  • Altria beats by $0.03, beats on revenue [View news story]
    AU Tiger1970,

    Thanks for the recognition, I appreciate it.

    Your strategy is solid.

    Buyandhold2012 owns mostly Dividend Aristocrats, http://tinyurl.com/o44...

    He has a tremendous track record of success. He has done a tremendous job as an investor.

    Best of luck and health to you.

    PS. I fully agree with your comment which I quoted below:

    "The successes I have enjoyed in life are the products of the efforts of many people on my behalf; the failures are mine, and mine alone. The SA community has been a great benefit to me for the knowledge shared by folks that know far more than I."
    Jul 30, 2015. 11:31 AM | 1 Like Like |Link to Comment
  • Altria beats by $0.03, beats on revenue [View news story]
    Wilco1

    AU Tiger1970's answer is excellent.

    If you do not own any MO, buy some!

    MO will double over the next 3 - 5 years!

    They will announce a dividend increase on 8/21/2015. Do not miss it!

    http://tinyurl.com/p9b...

    PS: MO is trading at $53.53 as I type! If I were you I would buy 25% of my position NOW!!! Just a suggestion. You must do your own due diligence.
    Jul 30, 2015. 09:32 AM | 2 Likes Like |Link to Comment
  • Assessing American Capital Agency's Results For Q2 2015 [View article]
    Hi Scott,

    Great article.

    As usfloraldan stated above, the point that jumped out at me was the same.

    I copied and pasted every word because I thought your entire thoughts on the matter were important.

    QUESTIONS :

    1) Why do you think AGNC did NOT convert their interest rate receiver swaptions. Why did they not exercise the company's receiver swaptions ?

    2) AGNC must have felt NOT converting was beneficial in some way. Did it help BV at the expense of dividend sustainability?

    " However, I was discouraged by AGNC's actions regarding the company's interest rate receiver swaptions. As I have stated in prior articles/comments, since I believed LIBOR would remain suppressed over the next several quarters, I wanted to see AGNC start exercising the company's receiver swaptions to have some interest rate receiver swaps. Interest rate receiver swaptions are options to enter into underlying interest rate receiver swap contracts. If this type of option is exercised, AGNC would have interest rate receiver swaps where the company would pay a variable interest rate based on LIBOR and receive a fixed pay rate. As of 12/31/2014, AGNC's interest rate receiver swaptions had a weighted average of five months until expiration with a variable pay rate of three-month LIBOR and a weighted average fixed receive rate of 1.78% with an underlying swap tenor/maturity of 6.4 years. These interest rate receiver swaptions, when exercised, would have materially lowered AGNC's periodic interest cost on interest rate swaps expense thus increasing quarterly estimated REIT taxable income ("ERTI").

    I also mentioned even if 3-month LIBOR increased to say 1.50% by the end of 2017, AGNC's fixed receiver rate as of 12/31/2014 would still be 0.28% higher than the company's variable pay rate. This would still be materially more attractive then AGNC's net pay rate of 1.82% as of 12/31/2014. As such, even with a modest increase in LIBOR, AGNC's receiver swaption portfolio could have increased quarterly ERTI over an extended period of time, especially when compared to current figures.

    However, when AGNC reported results for the first quarter of 2015, the company disclosed management did not convert any of its receiver swaptions and also terminated/let expire ($3.5) billion of receiver swaptions. This left AGNC with only $0.8 billion of receiver swaptions as of 3/31/2015 which only had a remaining option term of 0.2 years. When AGNC reported results for the second quarter of 2015, it was disclosed the company let expire the remaining ($0.8) billion of interest rate receiver swaptions. In other words, AGNC never exercised any the company's interest rate receiver swaptions. In the past, I stated if AGNC did not convert any of the company's interest rate receiver swaptions and LIBOR continued to remain suppressed over the foreseeable future, then I believed the "non-conversion" should be seen as a negative factor regarding dividend sustainability.

    Therefore, I disagree with AGNC's non-conversion of any interest rate receiver swaptions since this would have immediately lowered the company's periodic interest costs on interest rate swaps expense which would have directly increased quarterly ERTI. I will discuss AGNC's dividend sustainability in a future article due to the fact this topic involves its own detailed analysis/discussion."
    Jul 30, 2015. 09:18 AM | 4 Likes Like |Link to Comment
  • Altria's Strong Performance Continues [View article]
    walterrn,

    You state MO is not a hold forever stock. Which stock do you own that IS a hold forever stock?

    Personally, I have looked at every other dividend stock (and non dividend stock) that I am aware of and NONE are better than MO!!!
    Jul 30, 2015. 08:40 AM | 2 Likes Like |Link to Comment
  • Altria increases Marlboro market share in Q2 [View news story]
    Retired One,

    Thank you.

    You are also a smart investor and we are fortunate. I am sure you have also worked hard to achieve your success.

    We might not be super rich, but from reading your posts and knowing my financial situation we have what we need plus more, we are comfortable.

    I do believe MO will enable me to live a very comfortable life as the years pass.

    Be well and the best of luck and health to you!
    Jul 29, 2015. 11:38 AM | 4 Likes Like |Link to Comment
  • Altria increases Marlboro market share in Q2 [View news story]
    PM USA’s reported domestic cigarettes shipment volume increased 3.1% in the second quarter and 2.4% for the first half of 2015, benefiting from industry volume improvement, trade inventory movements and retail share gains. The benefits from these trade inventory movements are expected to moderate going forward.

    When adjusted for trade inventory movements and other factors, PM USA estimates that its domestic cigarettes shipment volume increased 1% in the second quarter and 0.5% for the first half. PM USA estimates that total industry cigarette volumes were unchanged in the second quarter and decreased 0.5% for the first half.
    Jul 29, 2015. 10:34 AM | Likes Like |Link to Comment
  • Altria increases Marlboro market share in Q2 [View news story]
    Retired One,


    I am happy to say that I have almost 50% of my retirement money in MO!!!
    Jul 29, 2015. 10:31 AM | 2 Likes Like |Link to Comment
  • Altria beats by $0.03, beats on revenue [View news story]
    Question: What's the rationale behind the drop?

    Answer: Dumb sellers!!! Sellers willing to sell at a particular price.

    MO will double over the next 3-5 years!!!
    Jul 29, 2015. 10:26 AM | Likes Like |Link to Comment
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