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Kurtis Hemmerling  

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  • My Defensive Dividend Strategy That Still Beats The Market [View article]
    Thanks for response. Definitely look into each of these before buying. For instance...

    PEG - sales peaked in 2007/08 with current sales down but I really like what they have done with net income over the past decade and the yield based on payout is strong. Share prices have been flat over past 5 years though. This stock moves in slow-motion and you'll have many months exit if things turn.

    NEC... do you mean NEE or NWE? Negative sales and eps for trailing 12 months, or yoy quarters or 2011 vs 2010? I'm not seeing the numbers you are referring to at a quick glance.

    EXC is one I've written about earlier as wanting to accumulate a lower levels. My sweet spot would be $30 but I think regular buys throughout the year will give you an OK average price.

    Don't get me wrong, I think looking at pros and cons of these stocks are key and appreciate your insightful posting.
    Mar 14, 2012. 09:30 AM | Likes Like |Link to Comment
  • My Defensive Dividend Strategy That Still Beats The Market [View article]
    I'm happy with a long-term 15% total return even if interest rates do rise. But keep in mind that pipeline MLPs are allow rate hikes and if interest rates go up with inflation, so will the other utilities.

    You bring up a good point on which the right strategy is for this decade. I see low growth as making this type of strategy most relevant but others will see it differently.
    Mar 14, 2012. 06:54 AM | Likes Like |Link to Comment
  • My Defensive Dividend Strategy That Still Beats The Market [View article]
    Worth someone looking into. I don't smoke and thus do not promote tobacco companies. My own ethical investing belief system. They may very well have excellent returns for investors though.
    Mar 12, 2012. 01:31 PM | 2 Likes Like |Link to Comment
  • What Makes Covered Call ETFs So Lackluster? [View article]
    sorry yes you are correct but I also didn't mention margin. You have differing margin requirements depending on double or triple leverage and if you go long or short. Expect 90% margin req when shorting triple leveraged funds. Dec 2009 lowered the profit of this but still a good trading idea.
    Mar 11, 2012. 06:32 PM | Likes Like |Link to Comment
  • What Makes Covered Call ETFs So Lackluster? [View article]
    This is the data that I got - unless it is wrong you should have no problem short selling bull or bear ETFs.

    UPRO — Short Interest
    Shares Short 535,600
    Chg. from Last Month -22,400
    Shares Outstanding 3,500,000
    % of Shares Short 15.30%
    Days to Cover 0.2

    SPXU — Short Interest
    Shares Short 1,806,600
    Chg. from Last Month -845,700
    Shares Outstanding 56,650,000
    % of Shares Short 3.19%
    Days to Cover 0.2
    Mar 11, 2012. 11:47 AM | Likes Like |Link to Comment
  • 3 Deep Value Dividend Stocks To Buy, 1 To Sell [View article]
    Thanks for your viewpoint. Anytime a company is paying out a dividend with one hand and creating more shares with the other - they are essentially paying me the proceeds of dilution regardless if they say 'well your dividend came from this pile of cash and we needed to create this other pile for CAPEX...'. If you don't have enough cash to pay your bills and expand, don't pay a dividend on the back of shareholder dilution. Maybe that will change going forward but all I have is a past track record of managements policy to determine if this is a dividend stock I want to own.... and I don't.

    I never presume management smart unless they prove it first. They went with the 'same old same old' of paying dividends when clearly they should have cut it altogether for the time being. They have set their dividends at an unsustainable level (and I'm not talking relative yield since price is set by investors). Did you see the dividend cuts since 2006? If they have enough cash to pay the dividends - why the continual share dilution?
    Mar 10, 2012. 04:43 PM | Likes Like |Link to Comment
  • What Makes Covered Call ETFs So Lackluster? [View article]
    I'm not assuming constant premiums and was merely using those figures as an example. Monthly volatility with a longer term trendless market will kill your gains no matter how you slice it. I could take the time to go month by month with IV numbers but I thought the brief example would highlight the point.

    SPY options with 30 days until expiration ATM with 14% IV carry a 1.8% premium. Assume constant IV on upmonths. Assume down month IV is at 28%. Premium is 3%. (using options pricing model) Trendless choppy market with twice IV premiums in a down month. Market goes up 5% one month and down 5% the next. You will still lose over time even in this generous scenario. Of course if the market expects a big dump you might get increasing amounts. Is getting a 3 to 5% monthly premium worth the market risk of loving 15% in one month? Historical proof on these ETFs say no.

    With the ETFs, you are shorting both the bull and bear leveraged funds so you are hedged against a quick move in either direction. Look at the chart (bottom one) again and note the inverse hedging moves for short-term runs in either direction, but the longer term degradation of the combined values due to volatility.
    Mar 10, 2012. 12:11 PM | Likes Like |Link to Comment
  • 5 Dividend Stocks To Buy, 5 To Avoid [View article]
    EXC doesn't have such a terrific payout ratio when you look at forecast earnings for 2012. Pushing 70% and SO works out to 70.7% payout ratio. Not sure which of the two categories it should be in based on that.

    I like EXC but I'd like to see prices drop a bit more before buying. A 10 - 15% discount from here would make more sense to me.
    Mar 8, 2012. 10:06 PM | Likes Like |Link to Comment
  • Why I Am Still Bullish (II) [View article]
    I believe we'll see 1275 in the S&P 500 soon. I've been expecting this for some time now.

    Reasons include S&P 500 earnings losing momentum (if looking at two trailing and two forward quarters), currently at price resistance, sentiment increasing as contrarian indicator, long-term trend line sits at 1275 which also just happens to be my confirmation signal of the 100 day moving average. Volume was falling until a couple days ago. No real reason to go up and every reason to test and potentially bounce. If 1275 doesn't hold (provided forecast earnings trend drops below key thresholds) - I'll goto the sidelines as my criteria for a down market will all be hit.

    Right now I'm looking at a short-term 7-8% downside followed by a bullish bounce up.
    Mar 6, 2012. 11:53 AM | Likes Like |Link to Comment
  • Today's Market News To Trade On: Once Again Under Pressure [View article]
    Foxy Loxy - did you show up b/c SIRI was mentioned? You sure do love that stock.

    Matthew Smith - My best guess is we'll see 1275 in the S&P 500 soon enough. I've been forecasting a stall and fall but despite that we are should still be in long-term term bull trend provided that level isn't breached. A bounce off the 1275 would actually be quite healthy IMO.

    Here is to hoping everyone is well positioned for what is coming next...
    Mar 6, 2012. 09:23 AM | Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    My best guess is we will see prices go back to 1275 in the short-term.
    Been calling it for a few weeks now but we'll see how this unfolds.
    Mar 6, 2012. 08:03 AM | Likes Like |Link to Comment
  • Little Known Dividend Stock That Could Double In 2012 [View article]
    Agreed. They just started a dividend and for reasons listed in article there should be some pretty big price growth over the next 6 - 12 months. Once earnings accelerate and price jumps to factor in growth things might calm down but much of the alpha will already be out. Make no mistake - a super tiny cap stock but a value play with huge upside nonetheless. Definitely not a stock for those liking larger cap slow moving income stocks.
    Mar 2, 2012. 06:40 PM | 2 Likes Like |Link to Comment
  • Near 52-Week Lows: 2 Buys And 1 Sell [View article]
    I mean 'not based' on one black swan trading day. If I could pick those days I'd only trade 7 days a year on those monster swings up.
    Mar 1, 2012. 05:31 PM | Likes Like |Link to Comment
  • Proposed Dividend Tax Is As Uninformed As It Is Naive [View article]
    Thanks for the pass card. We also have tax free savings accounts in Canada since 2009. 5K per year is what you can add and all money made is tax free. In 30 years you invest a total 150K @ 5K per year and if good dividend stocks (total returns of 7% split between dividends and capital price gains) you withdraw 543K tax free. Its not a total retirement plan but will help with whatever other tricks are up the sleeve. Something like this work in the US maybe?
    Mar 1, 2012. 02:40 PM | Likes Like |Link to Comment
  • Near 52-Week Lows: 2 Buys And 1 Sell [View article]
    My suggestion is based on one black swan trading day. If you daytrade and locked in some quick gains on this I tip my hat to you. This is still 'investors beware'. Unless you read something in CEOs comments I didn't - its fluff.

    He says investors deserve better which they do. They are underperforming the competition, guided first quarter less than half of expectations, and firing many employees to save costs. Did you see something other than a daytrading opportunity and possible short squeeze that made you think this is a good long-term investment? I'd be interested in hearing your rationale.

    You really think this stock is going anywhere over the next 6-12 months or longer? I'll entertain some debate but from the looks of your other comments you show up with a lot of one-liner insults.
    Mar 1, 2012. 02:20 PM | Likes Like |Link to Comment