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Greg Group  

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  • Have Your Gold ... and Dividends, Too [View article]
    <IMG class=authors_reply src=""> A great discussion here. Obviously, GGN is not intended to be a substitute for the physical metal. GGN offers the income investor a chance to generate income while being exposed to precious metal stocks that move with inflation. A couple of points to consider:

    1) There has not been any return of capital in 2009 - according to CEFConnect;
    2) This fund owns gold and natural resource stocks so it will still have systemic risk;
    3) This fund sells calls against its position to generate income;
    4) Holding physical gold does not pay your monthly mortgage or buy groceries so you will be subjected to the price fluctuation of gold when you sell your hard assets (your gains are still paper gains until you sell but dividends from GGN are delivered today to be reinvested).
    5) What is your exit strategy if you hold physical gold? How long will it take to exit your position and how efficient is the pricing? Equities have systemic risk like we saw in Sept 2008, but you can exit in seconds if you have a great exit strategy (trailing stops, moving averages, etc.);
    6) Think about what may happen if the herd or foreign govts decide to start selling the physical metal. Prices can drop rapidly with a flood of supply hitting the market all at once (early 80s) and may stay low for decades. For example, the holders of physical gold coins will be subject to the dealers who buyback your gold. Gold, unlike silver, does not have much industrial usage. If you want to hedge inflation, you can buy TIPS. If you think paper currencies will become insolvent, then there really is no good alternative (unless you live off the land in some secluded spot on this planet where robbers/murderers can't take it away from you).

    Thanks for reading and commenting on this article.

    Greg Group -
    Jan 1, 2010. 11:49 PM | 4 Likes Like |Link to Comment
  • The Best Dividends for 2010 [View article]
    I wrote this article following my research on these stocks. I started with a list of individual stocks with good yields but went further by identifying which stocks were strong buys based on a number of criteria.

    I did not want to be seen as pumping up a stock that I already owned. The analyst on the street do not own the stocks they follow for this reason. I presently own several ETFs that pay monthly dividends. This will be the focus of a future article. I have several trading accounts as I generate income from option selling.

    Thanks for reading and commenting on this article. I am open to any questions you may have in the future. What topics would you suggest for future articles? I love to research stocks and write about investing opportunities.
    Dec 29, 2009. 09:25 PM | 4 Likes Like |Link to Comment
  • 2 High Yield Investments With Growth Potential [View article]
    Thanks for your comments. TCLP has a debt to equity ratio of 0.56 with only $750 million in debt compared to D/E ratio of 133.29 for EPD which has $15.4 billion in debt.. TCLP is a better pick in my opinion.
    Nov 20, 2011. 11:51 AM | 2 Likes Like |Link to Comment
  • 5 More Reasons to Avoid [View article]
    Apparently you are a Google fan. BIDU is listed as an outperform by Thomson, Smart Consensus and Second Opinion. BIDU is up 27% in the last 3 months compared to -7.7% for the SP 500. BIDU is a momentum play that cannot be measured by PE. I will take a 128% return in a year - anytime I can get it,

    Good investing.
    Jun 9, 2010. 09:37 AM | 2 Likes Like |Link to Comment
  • Glass-Steagall: Be Careful What You Wish [View article]
    I believe the removal of Glass-Steagle lead to the elevated risk taking as traditional banks started chasing profits like traditional Wall Street firms. The proof is in the bank cap rates as post-GS and bubble time they were at a low of 5-8%. Following TARP, they were increased to 20% with the TARP money sitting on their balance sheet.

    The role of banks within the economy was changed post-GS as they levered their investments to compete for a higher return. This led to the risky CMOs as banks changed how they selected appropriate borrowers such as FICO scores instead of ability to make payments, etc.

    I am not a Volcker supporter. I can tell you that Larry Summers should have to answer for what he has done to the financial markets through his touting of these regulatory changes. No single person has been more instrumental in damaging the U.S. Economy.
    Jan 22, 2010. 12:57 PM | 2 Likes Like |Link to Comment
  • 'Trend Trading for a Living' Doesn't Disappoint [View article]
    I am interested in knowing if any readers have used this trading system and what results they achieved?

    Thanks for sharing
    Jan 5, 2010. 10:12 AM | 2 Likes Like |Link to Comment
  • 2 MLPs With Increasing Dividends And Price Appreciation Potential [View article]
    CLMT's business consists of two segments: specialty products and fuel products. As a small refiner, CLMT would likely be significantly affected by price changes, a facility outage, or a market downturn.
    This is what happened to CLMT in the past. They are much bigger and more stable today but most stocks will be taken down with a significant market downturn.
    Sep 11, 2012. 07:06 PM | 1 Like Like |Link to Comment
  • 17 High-Yielding BDCs - Buy, Sell, Or Hold? [View article]
    You guys might want to check out EFC... This Stock Increased its Dividend 75% with a 13.2% Dividend Yield
    May 22, 2012. 11:09 AM | 1 Like Like |Link to Comment
  • Exxon Mobil: Dividend Stock Analysis [View article]
    Berkshire just closed their XOM position in 12/31/2011 report.
    Feb 15, 2012. 12:42 PM | 1 Like Like |Link to Comment
  • How To Buy Cheap Natural Gas Assets With A High Dividend Yield [View article]
    The article clearly explains: "The best trade on natural gas today is to buy cheap assets and wait until their value increases. The natural gas companies have dropped in price along with the market price of natural gas. However, you will be confronted with an uncertain amount of time for natural gas market prices to increase to normal price levels." The idea is to buy assets that are cheap and with for them to turn up. This is classic value investing based on low natural gas prices.

    The article also states, "Dividends will vary based on production, price and costs." This is not meant to be misleading to readers.
    Jan 25, 2012. 12:24 PM | 1 Like Like |Link to Comment
  • Earnings Update: Eaton Vance Buy-Write CEFs [View article]
    Eaton Vance released the 9 months ending 9/2011 earnings report in a press release. These are the numbers they reported for each of the listed funds by Eaton Vance. You can find the press releases at their website.
    Jan 13, 2012. 06:33 PM | 1 Like Like |Link to Comment
  • Can Your Closed-End Fund Sustain Its Distribution Rate? [View article]
    Option premium is not recognized until the trade has been completed as many things can happen to diminish open option premium before the trade is completed. By using net income, it is actual realized income not including unrealized option income that may or may not materialized at the trade close. As a covered call trader, I can tell you that the option premium from selling calls is not the same as my income at trade close.
    Dec 29, 2011. 03:14 PM | 1 Like Like |Link to Comment
  • For Dividend Income Investors: A More Tactical Approach To Covered Calls [View article]
    So you are setting a stop loss at $85. So MCD at $95 falls to $85, then you LOSE $10,000 since you could have sold MCD at $95. This does not lower your cost, it increases your lost by 10.5%. OK, so you keep the $270 from selling the call so your LOST is only $9,730 plus all future dividends with a cost to yield of 5.6%. So when did taking a LOST on a LONG position lower your cost basis? You are correct, this is not a perpetual income trade as it is a one-time LOSS of $9,730.

    So you are risking losing $9,730 with the stop lose to make $270 by selling a call at a 95 strike. I do not think any sophisticated investor will take those odds in such a volatile market event as November has been. The better trade would be to BUY a 85 strike MCD PUT for the downside protection instead of setting a stop order at 85. The 85 PUT will increase in value as MCD price falls.

    Thanks for sharing.
    Dec 2, 2011. 11:19 AM | 1 Like Like |Link to Comment
  • 2 Closed-End Funds With High Yield Distributions [View article]
    You are correct that these CEFs are trading at a premium to NAV. This is due to two reasons: (1) they have exceptional total returns in the last year; (2) the demand for high yield has push the CEFs prices into the premium level. Both of these CEFs are highly rated due to the performance of their management teams and their great results. Be careful, some CEFs are trading at a discount for poor results and other reasons. I suggest that you do not buy a CEF on the high yield alone as CEFs should be analyzed like a stock. The high yield should provide downside protection if you stay in these CEFs over a period of time. The other option is to dollar-cost average into these CEFs or wait for a pullback in this volatile market. Thanks
    Nov 19, 2011. 06:22 PM | 1 Like Like |Link to Comment
  • Basic, 5 ETF Portfolio with Which to Start the Decade [View article]
    This is good for an easy, basic portfolio. I would suggest including active management with trend following through a 100-day or 200-day average. There are times when you don't want to be in the market (4th quarter 2008).

    Nice work!
    Jan 5, 2010. 10:10 AM | 1 Like Like |Link to Comment