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John D. Thomason

 
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  • Stocks, Options, Taxes: Part V - Options [View article]
    Thanks! I'm currently taking the H&R Block Basic Tax Course. I was pretty well informed on taxes & investments, I believe, but there are a lot of areas that had not applied to me personally that I was not well versed in. I am enjoying the course and learning a lot. I plan to come out with an update article (just one, this time) in January, focusing on changes since the original series came out. One change is that the basis reporting requirement on options has been delayed by a year, to tax year 2014, probably because brokerages needed more time to update their systems.

    John D. Thomason
    Nov 28 10:00 AM | Likes Like |Link to Comment
  • Don't Fight The Tape: U.S. REITs In Decline [View article]
    Excellent, thought-provoking article. It certainly has generated a lot of discussion. I have re-started or added to positions in O, HCP, HCN, and DLR during the recent swoon, as the yields became compelling. Actually, I had previously sold out of all except DLR (unfortunately) as the prices were getting up to ridiculous levels some months ago. I have gone back in as these names became available at more reasonable levels, cautiously and incrementally, which is a good thing, as the prices have dropped more than I expected. In fact, I'm only going to allow myself one more incremental buy on O, HCP, & HCN, and only upon a substantial decline below today's levels. I'll be ok with it if they never get there. As for DLR, I added at $50 and change, and then put a hold on adding more, too much volatility with that one. I plan to hold all these REITs for a very long time and collect dividends. But I will admit that, per your article, what seemed like tremendous bargains when they first became available don't seem so world-beating now. Live & learn.

    John D. Thomason
    Nov 27 01:44 PM | 1 Like Like |Link to Comment
  • Senior Housing Will Never Get Old [View article]
    I concur with your article. I had been concerned that SNH was too dependent on one tenant, Five Star, but with the somewhat symbiotic relationship between the firms, I don't believe it is as much of a factor as I had believed. SNH is definitely priced lower than peers HCN, HCP, and VTR. All REITs are definitely on sale these days, in a market where most quality names are over-priced.

    Long SNH, HCP, HCN, MPW, and O. I have initiated or added to positions in all five in the past two weeks.

    John D. Thomason
    Nov 13 09:58 AM | 3 Likes Like |Link to Comment
  • Seeking Alpha is back up and running! [View news story]
    Whew! What a relief. I thought perhaps I had been targeted for termination by SA. Glad to know it was a glitch & SA is back online. Even the greatest can slip up once in a while, so don't worry about it too much. Congratulations for a great site and content -- when it is not available, it is greatly missed!

    John D. Thomason
    Oct 4 10:43 AM | 4 Likes Like |Link to Comment
  • Linn Effectively Admits To Misleading Investors And Announces Key Accounting Changes [View article]
    I bought in on LINE right at $24, after the big drop, and only a few shares, as my conviction was lacking. I approached it as purely a trade. After the recent one-day surge to $28, I sold, after reading the news. My reaction to the news, that the Berry merger "might" still happen, was "so what", that didn't remove the clouds surrounding LINE. At this point, I'm staying away, LINE still has issues, as your article has pointed out. It will be interesting to see what happens from here.

    John D. Thomason
    Sep 19 12:22 PM | 2 Likes Like |Link to Comment
  • Stocks, Options, Taxes: Part I - Introduction, Investor Vs. Trader [View article]
    See my response to your comment at the other article. I plan to produce an update on the topic early next year, in just one article this time, outlining the changes that have occurred since the original series came out. I am also pursuing more knowledge on the topic, taking an H&R Block Tax Course. I have continued researching, and so far, I have not turned up any flat-out misstatements in the articles, which, if none turn up, would be a small miracle, considering the topic. If I do find something, I will post a comment after the relevant article.

    John D. Thomason
    Sep 19 10:44 AM | Likes Like |Link to Comment
  • Stocks, Options, Taxes: Part IV - Wash Sales, Short Sales, Constructive Sale Rules [View article]
    Hi, whatanorder,

    I will offer you what I THINK is correct, but be aware, I am a tax layman, not a certified guru. Regarding your first item, the oft-stated situation is a loss in a taxable account has occurred, and the same security is purchased within 30 days in an IRA -- the loss is still a wash sale, and cannot be taken on your taxes. Further, since whenever funds are drawn from the IRA, the proceeds are taxable income, you will never be able to use the loss. If, instead of re-purchasing in an IRA, you re-purchase in a taxable account within 30 days, the loss is figured into your basis in the new holding, so it is not wasted. I don't know of any scenario where you would pay tax on trades in a tax-advantaged account because of wash sale rules, or anything else, other than MLP UBTI in excess of $1000, as discussed at length by contributor Reel Ken in his article on the topic.

    Regarding your second point, if you have accumulated carryover losses on investment positions, you can still use them on investment gains after going MTM, just be sure to segregate your trading account(s) handled as MTM from your investment account(s), which are not MTM. As for accumulated wash sale losses as factored into your basis in open positions, I THINK you would effectively be able to use these losses at the point of making the switch to MTM, since these losses would be in the basis of those positions at the point of calculating the MTM status of the positions. Green & Co has a web site with a lot of info, you might get some help there, or just formulate a Google Search & see what comes up.

    Good Luck!

    John D. Thomason
    Sep 19 10:13 AM | Likes Like |Link to Comment
  • Ignore Mr. Market And Focus On Digital Realty's Fundamentals [View article]
    DLR is not the only REIT selling off hard today. Just look at HCN, HCP, O, VTR, to name a few. Other than interest rate concerns, I don't know what is behind it. I just added to my DLR position at less than $55. I'm a believer, but with DLR, I am very close to my maximum number of shares allowed for any one holding, a self-preservation safety rule that I follow no matter how much of a bargain Mr. Market is offering. If it continues down further, I will have to pass on buying more, even if the carnage is sector-wide, not unique to DLR.

    John D. Thomason
    Jul 31 01:22 PM | 2 Likes Like |Link to Comment
  • Ignore Mr. Market And Focus On Digital Realty's Fundamentals [View article]
    I wrote about DLR back in October 2012 and recommended the REIT at $65 or less, and nothing that has come out on DLR since then has changed my opinion. I added to my position on the Friday (7/26/2013) decline, seeing it as a rare opportunity in today's market to buy a stock at a bargain price. I am comforted by your analysis, with which I concur. One part of me wishes the volatility in DLR would subside, while another part of me is grateful for the opportunity to buy something, anything decent at a value price in this market.

    John D. Thomason
    Jul 30 11:01 AM | 3 Likes Like |Link to Comment
  • Enerplus Corp.: Legacy Canadian Assets May Boost Q2 2013 Results [View article]
    Excellent analysis! I went back in on ERF when it was in the low 20's and then high teens, possibly thinking of the Canadian Trust glory days, when ERF, "the grandaddy of the Canadian Trusts", was a $50 to $60 stock, paying out $0.35 per share or so each month. Short term, I was too early, and got burned by the recent dividend cut to nine cents, but I doubled down, and now I'm close to even.

    And just like those thrilling days of yesteryear, circa 2006, those monthly payments are nice to see coming in as regular as clockwork.

    Investors contemplating ERF should be aware that the nine cents per month is Canadian, which yields slightly less in U.S. dollar terms, at least for now. Also, ERF payments will be subjected to withholding of 15% unless held in an IRA, which avoids the withholding. Neither of these issues is a show-stopper. Still, as you imply, ERF was a great buy at the recent lows in the $12 to $14 range, but now, above $16, not so much.

    John D. Thomason
    Jul 17 02:36 PM | Likes Like |Link to Comment
  • Diebold: Is This Value-Priced Dividend Payer A Buy? [View article]
    Hi, All,

    In the interest of full disclosure, I want to let everyone know I sold out of my DBD position on Friday, 5/31/2013, early in the day (fortunately), at $32.65. I ended up with a small gain plus two dividends. My reasoning was that I did not see much in the way of progress -- as far as I know, still no CEO has been hired. The last quarter was somewhat disappointing. To refresh my own saga with DBD, I bought a few shares just before the big drop, concurent with the article, then added more during the days when it was crashing, and since, I have held on, pleasantly surprised by the gradual recovery. Once I saw I could avoid a loss, and influenced by the lack of progress, I decided to get out while the opportunity existed. DBD remains on my Tier2 list for now, but there needs to be some good news soon, or it will be dropped from that list.

    John D. Thomason
    Jun 2 03:26 PM | Likes Like |Link to Comment
  • Yield, Value, Safety With Utilities - Redux [View article]
    Hi, 11worth,

    My most recent issue of the Morningstar Dividend Investor has added WEC to the newsletter's "Income Bellwethers" list, which I thought might be of interest to you. The newsletter editor, Josh Peters, is not too excited about the current market price as an entry point, which can be said for just about all stocks these days. He advises not paying more than $28. But if you bought it awhile back, at better levels, it would be a good utility to hold.

    John D. Thomason
    May 29 11:36 AM | 1 Like Like |Link to Comment
  • I Am Not A 'Gold Bug' But I Do Like Newmont Mining For The Dividends [View article]
    I believe any buyers of NEM focused on the dividend should become familiar with the firm's gold price-based dividend policy, as stated in an April 7, 2011 press release, available from the Investor Section of the firm's website. The relevant section is as follows: "Gold Price-linked Dividend -- Newmont's gold price-linked dividend policy contemplates a quarterly payable dividend based on Newmont's average realized gold price for the preceding quarter. The annual payout will increase at a rate of $0.20 per share for each $100 per ounce rise in the average realized gold price. At the current gold price of approximately $1,450 per ounce (i.e. between $1,400 - $1,499 per ounce), Newmont's annual dividend would be $1.00 per share. Subject to Board approval, the first quarterly dividend under this policy is expected to be payable on June 29, 2011 to shareholders of record on June 16, 2011. The declaration and payment of dividends remains at the discretion of the Board of Directors and will depend on the Company's financial results, cash requirements, future prospects and other factors deemed relevant by the Board." The next dividend up, in September (after the 6/10/2013 ex-dividend date) will likely be somewhat less than the $0.35 current dividend, considering gold prices during the 2nd quarter. I still agree with going long NEM, as I stated in my recent article, but I am not counting on a 4% yield always being there.

    John D. Thomason
    May 29 11:17 AM | 3 Likes Like |Link to Comment
  • Yield, Value, Safety With Utilities - Redux [View article]
    I had not considered it prior to your comment, but in response, I looked it up. This article http://bit.ly/112xwmd has some info. As I stated in my original article, regulators usually extract concessions before giving approval, and it appears to be the case here. The question is, do the benefits (to shareholders) outweigh the concessions. Note that the benefits are usually projected, while the concessions are real. A press release from the company stated "this merger puts us in a unique position to provide better service levels, support our communities and employees, and take the lead on green programs and smart technologies that protect the environment, and blah, blah, and so on.” I did not see anything in the release saying dividends to shareholders would be increased! Wouldn't that be a welcome surprise. Another article
    http://bit.ly/174SSb4 did say the NU dividend would be increased. The same article stated there would be two headquarters going forward, in different states. Say what? That doesn't sound like effective consolidation. I guess to summarize, I don't look favorably on mega mergers generally -- how well it works out depends upon compatibility, synergy opportunities, and above all, execution. A lot can go wrong. Still, if you are a prior owner, no reason to sell, just wait and see how it goes. There are not a lot of screaming buys out there right now.

    John D. Thomason
    May 29 10:46 AM | Likes Like |Link to Comment
  • Newmont Mining - A Value Stock Speculation Opportunity [View article]
    I concur I was not clear on my approach. I follow an incremental, averaging down approach up until such time as I have acquired a set maximum number of shares. After that, if the stock becomes range-bound, I would be prepared to hold, and hopefully collect dividends, until such time as it rebounds, or if, after a year or two, I tire of waiting, I can get out close to break-even. A worst-case scenario is the stock (and likely the gold price) continues on down after I have finished accumulating shares. At that point, I must make a decision that somewhere along the downside continuum, there is a point at which I will cut my losses to conserve capital. and admit a mistake. I'm hoping that decision won't be required, that NEM will not go down much more -- but I need to consider up front what I will do if that happens. After selling to cut my losses, if it goes way, way down, say to single digits, and I'm still a believer, I can always get back in.

    John D. Thomason
    May 28 02:48 PM | Likes Like |Link to Comment
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