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John McCoy

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  • Desperately Seeking Yield Through Equities Redux: Part 1 - BDCs [View article]
    Nice article, thanks! I agree with you on ACAS. The biggest reason that the stock trades at a discount to NAV is the fact that they do not pay a dividend. They are buying back signficant amounts of stock instead of paying a dividend while they work off large deferred tax credits. Once their tax credits are used up, they will revert back to RIC tax status and resume dividend payments, which will draw in the income oriented BDC investors. Be patient and buy this stock hand over fist now, and in two years or so, you'll be VERY glad you did. I also like PSEC and their 10% dividend yield - paid monthly too!
    Mar 4 07:55 PM | 3 Likes Like |Link to Comment
  • Heads You Lose 40%, Tails You Lose 70% On Gamble With Navidea Shares [View article]
    Well, it looks like Montaur's response verified what just about everone here already knew - that this article is nothing more than a hit piece, and a badly done one at that. This propaganda piece is filled with half truths and a flat out lies that tries to spread fear and uncertainty among shareholders in an attempt to drive down the shareprice to support their short position. Add this to the fact that another company is suing them over a similar effort and it tells us that this author has ZERO credibility. What suprises me is that these shameless hit pieces continue to affect share prices at all any more, as anyone who has invested in biotech start up companies for more than 5 minutes should be well aware of the unethical and fraudulent tactics used by the short siders in an attempt to manipulate prices in their favor. Pay this article and this author no mind people.
    Dec 19 08:58 PM | 3 Likes Like |Link to Comment
  • Buy And Hold Means Buy And Monitor [View article]
    It goes without saying that buy and hold should really be called buy and monitor - never ignore the story behind your stocks, and never take anything for granted with any company. When choosing "buy and hold" dividend stocks, I try to look for companies that are undervalued and offer the potential for captial gain along with the dividend income. By buying low, watching them closely and selling as they reach fair value, you can reduce risk and enjoy the dividend income. Good article, thanks!
    Nov 28 09:01 PM | 3 Likes Like |Link to Comment
  • Should You Invest In Bank Of America Because Buffett Did? [View article]
    You should NOT invest in BAC because Warren Buffett did. You should invest in BAC because it is a tremendous franchise that is slowly but steadily being leaned up and beaten back into shape, and IMO, it offers the greatest potential for share price increase long term than any of the other big banks. BAC should see $20 - $25 per share and a much higher dividend within 3-4 years - a great long term investment, again IMO.
    Jul 24 11:20 PM | 3 Likes Like |Link to Comment
  • Fear And Noise Creating Opportunity In Freeport-McMoRan [View article]
    I expect that Freeport and the Indonesian government will work out a reasonable settlement at some point in the near future. Once this uncertainty is removed, I expect the stock to move back up quickly. This stock has a history of quick moves, both up and down. I'm long FCX, with a $55 target price, and I'll collect the nice dividend while I wait. This company offers a lot of value, and it's on sale dirt cheap. I'll also add more if we dip under $30.
    Jul 24 11:14 PM | 3 Likes Like |Link to Comment
  • How JPMorgan Just Lost A Huge Source Of Profits, Now A Terrible Investment [View article]
    That's right, and the VALUE you refer to comes from investing in a business whose assets are worth more than the PRICE that you pay for your shares. In this case, Andresrue is correct, JPM is undervalued, as are BAC, WFC, STT, BK, and AXP. Add to their undervalued share prices the potential for increased dividends over the next 2-3 years and you have a vastly undervalued group of stocks.
    Jul 14 08:43 PM | 3 Likes Like |Link to Comment
  • Proof That Forever Investing Can Work [View article]
    Great article, and I agree 100%. I'm glad to see that there are still other investors out there that still believe in "buy and hold" in this trade driven market.
    Jul 9 09:22 PM | 3 Likes Like |Link to Comment
  • Berkshire Hathaway: A Calculation Of Its Intrinsic Value [View article]
    Book value and intrinsic value are two entirely different things, and Buffett goes to great lengths to distinquish the difference between the
    two. Book value reflects the total of all the assets of the company at current carrying costs on the books, minus liabilities. Some of these assets have been carried on Berkshire's balance sheet for decades, and when calculating book value, are valued at their original aquisition costs.

    Intrinsic value reflects the actual real and current value of those assets, which is MUCH higher in most cases than the decades old carrying costs they are carried on the books at. IMHO, intrinsic value on the BRK-B shares is closer to $160 per share, or $240K per share for BRK-A.

    Buffett did set somewhat of a floor on the stock with his 1.2 x book value statement, but IMO that reflects intrinsic value minus a significant margin of safety that one would expect from Buffett. Remember, price is what you pay, value is what you get.
    Apr 29 03:37 PM | 2 Likes Like |Link to Comment
  • Ford Motor: This Ridiculous Valuation Can't Last Forever [View article]
    Don't forget China, which is a small but very fast growing and important market for Ford. With strong US sales continuing, new models being rolled out and setting up for 2015, a recovering European market, and a small but fast growing China/Asian market, Ford is an excellent long term investment, and one of my top positions along with BAC and BRK-B. And with a current 3.3% dividend yield, they're paying you to wait. Ford is a buy on any weakness throughout 2014.
    Mar 16 01:35 PM | 2 Likes Like |Link to Comment
  • The Dhandho Of Berkshire Hathaway: Why It Just Might Be A Good Partial Substitute For An Index Fund [View article]
    Excellent article Jim, thank you. I especially like the phrase "Heads I win; tails I don't lose much." That's precisley how I've always viewed my BRK position, which is also one of my largest positions. Count me as a new follower too, and thanks again for the excellent article.
    Mar 2 11:22 AM | 2 Likes Like |Link to Comment
  • Buffett's Latest Letter Drops This Weekend [View article]
    I'm seriously considering attending my first Berkshire shareholders meeting this year. Can't wait to read tomorrows letter, but I don't see much in the way of suprises coming out of it. Berkshire's portfolio companies all did very well, and the stock portfolio must have really sizzled. All in all, I expect excellent results, little in the way of suprises, and a nice pop that starts us back towards new highs. That said, I could be wrong about the suprises.
    Feb 28 06:26 PM | 2 Likes Like |Link to Comment
  • Fannie Mae And Freddie Mac, Short-Term Trade Or Deep Value Investment? [View article]
    Major news on the FNMA / FMCC front. Perry Capital has filed a lawsuit against the Treasury Dept, challenging the 2012 change in terms to the bailout agreement. This suit is the news that longs have been waiting for, and could be the first of many.
    Jul 7 09:33 PM | 2 Likes Like |Link to Comment
  • Fannie Mae And Freddie Mac, Short-Term Trade Or Deep Value Investment? [View article]
    What to do is right, lol! Wow has this stock been super volatile. Looks like it settling back down towards a new low end of the range. Tought to tell with FNMA and FMCC. I think I'll stay out for now. This thing could shoot to $5.00 in the blink of an eye, or back down to .50 cents just as fast.
    Jun 5 08:00 AM | 2 Likes Like |Link to Comment
  • Fannie Mae And Freddie Mac, Short-Term Trade Or Deep Value Investment? [View article]
    That is correct, GM and Chrystler formally filed for bankruptcy, which has not happened in the case of the GSE's, and won't happen now that Fannie & Freddie are profitable again. Congress may be able to cancel the common shares, but dgfurr may have a point about the preferreds. Hmmmm!
    Mar 25 08:35 PM | 2 Likes Like |Link to Comment
  • 6 Large Cap Dividend Stocks Fueled On Hefty Profits [View article]
    Freeport is a fantastic value right now. At these prices and current yield, I'm adding all I can to my long postion. Thanks.
    Jul 14 08:48 PM | 2 Likes Like |Link to Comment