Seeking Alpha

Kenyan Investor

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  • Better Investing Through Leverage [View article]
    True, thats why one should be properly diversified. In 2008, TLT went up while SPY went down as an example. KO only went down 33%. GLD went down 25% or so. Other things went down more. I tend not to market time, but it seems like that could be another source of protection.

    The real challenge is being down 50% and not selling... But you need to know yourself before doing investing of any sort, especially with leverage.
    Jul 18 09:37 AM | Likes Like |Link to Comment
  • Philip Morris International (PM): Q2 EPS of $1.30 misses by $0.11. Revenue of $7.9B misses by $0.32B. (PR[View news story]
    I'd be surprised if it even hit 85. A lot of the miss had to do with a strong dollar, which is not unexpected at all.
    Jul 18 08:47 AM | Likes Like |Link to Comment
  • Better Investing Through Leverage [View article]
    I'm not sure avoiding margin loans is always a bad idea. For example, one can get margin loans at discount brokers for very low interest (I use Interactive Brokers, which currently charges about 1.65%).

    You can lever up a portfolio to 130% with very little risk of a margin call. The market would need to drop 69% for a margin call at 130% leverage, which should (nearly) never happen if you have a well diversified portfolio including some bonds. I look at it as taking out a low-interest mortgage on high-quality, long-term investments that allows me to take advantage of market crashes.
    Jul 18 08:43 AM | 1 Like Like |Link to Comment
  • Ponzi Or MLP? Linn Energy's Unsustainable Distributions [View article]
    Interesting food for thought as usual. Thanks for the article.
    Jul 12 08:55 AM | 4 Likes Like |Link to Comment
  • Dividend Growth Investors - Prepare For The Correction [View article]
    Really sensible advice and a nice reminder for those who view D-G stocks as bond proxies. Thanks for the article.
    May 9 08:46 AM | 1 Like Like |Link to Comment
  • How Safe Are Silver Wheaton's Silver Streams? [View article]
    Thanks for the kind words Abegaz! There's definitely risk out there, especially in the precious metals space on a day-to-day basis.
    May 7 04:21 PM | Likes Like |Link to Comment
  • How Safe Are Silver Wheaton's Silver Streams? [View article]
    NoGood - thanks for the catch on Lundin! It's obviously LUNMF, I'll submit the correction.
    May 7 04:19 PM | Likes Like |Link to Comment
  • How Safe Are Silver Wheaton's Silver Streams? [View article]
    'If Barrick is in such a precarious financial position, which is not likely to improve if Chile prevents them completing the mining operation, how do you expect them to pay more than a half billion back to SLW? Out of petty cash?"

    I'd expect them to raise equity with a secondary stock offering if the situation came to that. It wouldn't be fun for current shareholders, but with Barrick's size and asset base there's no way anyone would let them go bankrupt. SLW will almost certainly have its contracts honored.
    May 7 10:38 AM | 4 Likes Like |Link to Comment
  • How Safe Are Silver Wheaton's Silver Streams? [View article]
    I really like the idea of easing in and out of a SLW position using covered calls and puts to help profit from the volatility. I had a couple Jan 2014 $30 puts out on SLW before the recent drop which are now underwater, but the decent put premiums definitely take some sting out of the drop.
    May 7 10:35 AM | 1 Like Like |Link to Comment
  • How Safe Are Silver Wheaton's Silver Streams? [View article]
    George - thanks for the kind words!
    May 7 10:30 AM | 5 Likes Like |Link to Comment
  • Sell In May And Go Away; Profit Anyway [View article]
    Thank you for the article Christopher. Also, you have a lovely girlfriend, congrats.
    May 2 11:46 AM | Likes Like |Link to Comment
  • Sysco: We Would Sell This One [View article]
    Agreed, SYY could probably issue preferred shares for sub 6% if they wanted to, hard to see how WACC could possibly be 9.2% in this environment.
    Feb 25 03:02 PM | Likes Like |Link to Comment
  • 2 High Quality Energy Companies On Sale After The Election [View article]
    prairiedog555 - I love KMI too, in fact I filled out my full position for my own portfolio at the end of last week! Like you say, it has a lot of wind at its back as the US produces more oil and gas. The recent price drop makes me scratch my head a little, but everything in the company looks good, so we might as well take advantage of the discount.
    Nov 19 12:06 PM | 1 Like Like |Link to Comment
  • Vodafone: Get Paid 5% To Wade Through The Euro Crisis [View article]
    No foreign tax are withheld on companies based in the U.K.
    Sep 11 10:07 AM | 1 Like Like |Link to Comment
  • The Conundrum Of Triple Net Lease Valuation [View article]
    "This means that (by investing over the long-term) he needs to replace the income by purchasing another investment yielding better than 11 percent (to replace the income he currently receives from Realty Income)."

    This is not true at all. He only needs to find an investment that is higher that Realty Income's current yield.
    Aug 29 12:05 PM | 2 Likes Like |Link to Comment
COMMENTS STATS
60 Comments
44 Likes