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  • Seaspan: An 8.3% Yield For Income Investors [View article]
    In general, I recommend avoiding preferreds over par completely. Rates are likely to stay low for awhile and companies will continue to refinance to lower coupon rates.
    Feb 17 01:31 PM | Likes Like |Link to Comment
  • Seaspan: An 8.3% Yield For Income Investors [View article]
    There is no priority. All preferreds are equal. The problem with the C is that it is over par. If called, investors stand to lose on the principal, since the par is $25. The market may be expecting a call and therefore is pricing in the risk.
    Feb 16 03:58 PM | Likes Like |Link to Comment
  • Seaspan: An 8.3% Yield For Income Investors [View article]
    I never said it was risk free. Yes, its a profitable business, but I also mention its extremely capital intensive. I agree it is volatile and very cyclical.
    Feb 14 10:27 AM | 1 Like Like |Link to Comment
  • Seaspan: An 8.3% Yield For Income Investors [View article]
    I still like TOO-A and am still holding. Most preferreds declined in value when Bernanke mentioned tapering, and it had nothing to do with the underlying company. Teekay is still intact. The common just saw a recent dividend increase. In addition, they issued a private placement in December to raise more capital. I still like the preferred, but it may fall farther and I recommend staggered purchases instead of lump sums. As far as the other new shipping preferreds, I am still finishing up my due diligence on them before I write about them. The one thing I will mention is that though they are all in the same industry, some have managed themselves much better. The perceived risk of the underlying company usually determines the coupon rate the market is trying to price it at.
    Feb 13 02:35 PM | Likes Like |Link to Comment
  • Facebook soars as sell-side hikes across the board [View news story]
    To put things in perspective, FB's market cap is near that of Coke and has surpassed Visa.
    Jan 30 11:59 AM | Likes Like |Link to Comment
  • Get A Safe 5% Return In 9 Months [View article]
    Your right, a company like this doesn't have much volume on the bonds. If the bonds fall again, take the opportunity. I believe anything over 3% in 9 months is worth parking your money in here. Its almost like a safe CD with a much higher return.
    Jan 30 09:34 AM | Likes Like |Link to Comment
  • American Realty Properties Series F Preferred: A New 7.75% Yield Paying Monthly [View article]
    Been getting alot of messages regarding ARCP common's dividend increase. Given the common has a a yield above 7%, I believe the reward has somewhat declined for the preferred. The market should push the preferreds lower in order to justify some a higher yield for less upside. I am in the process of writing a follow up article on this. Stay tuned.
    Jan 28 01:47 PM | Likes Like |Link to Comment
  • Heard during Procter & Gamble's earnings call [View news story]
    I guess Icahn will single handedly push diaper demand in Q1 then.
    Jan 25 12:46 AM | 1 Like Like |Link to Comment
  • American Realty Properties Series F Preferred: A New 7.75% Yield Paying Monthly [View article]
    Yes, I never advise reinvesting dividends in the same preferred. Stay diversified. The great part about preferreds is that you can buy small increments and collect a stream of distributions through multiple securities.
    Jan 23 08:06 PM | 3 Likes Like |Link to Comment
  • American Realty Properties Series F Preferred: A New 7.75% Yield Paying Monthly [View article]
    Well Said. One of the reasons I love preferreds is because of that safety net. As long as your purchase a preferred with a good underlying company, you will continue to collect distributions.
    Jan 22 01:30 PM | 1 Like Like |Link to Comment
  • Capital One Living Up To Its Name [View article]
    This. Citi and Capital One had no choice as this regulation was meant to prevent risk. Also Rudester, why does it matter if you pay off your CCs in advance anyways? Its not like they will charge you unless you miss a payment.
    Jan 17 07:16 PM | Likes Like |Link to Comment
  • Make 4% On SodaStream's Fall [View article]
    Why buy a position in the first place? You'd be using more capital and you run the risk of the stock declining.
    Jan 15 10:46 PM | Likes Like |Link to Comment
  • MTY Food Group Inc. - A Restaurant Stock For The Wallet [View article]
    Awesome article, but I believe all the growth will be in Canada and any U.S. expansion would be a disaster. The U.S. is the most competitive fast food market in the world. These names are never even heard of here. Imagine Mr. Sub going up against Subway or Taco Time against Taco Bell. I really think the U.S. growth factor is limited. I like the company, I just hope the stock isn't pricing in U.S. growth.
    Dec 18 09:38 AM | 1 Like Like |Link to Comment
  • A 6.9% Yield That Rises With Rates [View article]
    Thats assuming that LIBOR is less than 4% a decade from now. That's a risk associated with it. In regards to MS calling it, that is even better because the investors get their cash back and can rotate it into other securities. There are always risks associated with any security. Each individual has a different risk profile.
    Dec 18 09:33 AM | Likes Like |Link to Comment
  • A 6.9% Yield That Rises With Rates [View article]
    I think you missed the part where I mention investors must get comfortable with a 6.8% yield. As for waiting for rates to go up, its basically the time value of money. Everyday your dollar is not invested, is a loss of return
    Dec 18 12:15 AM | Likes Like |Link to Comment
COMMENTS STATS
532 Comments
352 Likes