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Leland Montgomery  

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  • Fearless Fiduciary: 7,000 CFA Charterholders - What's In Store For 2013 [View article]
    If you read the survey highlighted in the link, you'll get a more nuanced picture of the views of CFAs around the world. The above synopsis really doesn't do it justice.
    Feb 5, 2013. 10:09 AM | Likes Like |Link to Comment
  • Oil Field Services: 3 Ways To Invest In The Oil Sands [View instapost]
    Michel - Raymond James is not a Canadian brokerage house - far from it.
    Jul 12, 2012. 06:22 PM | Likes Like |Link to Comment
  • Dividends To Capital Gains: I Want A Divorce [View article]
    Sure thing, CP: This may be a bit of a deep dive for many folks, but here's a great article explaining why the need to eliminate the historical "income vs. principal" distinction in the Trustee's world came about:
    What happened was that big fluctuations in interest rates between the 1970's (ultra-high) and the 2000's (ultra-low) were playing havoc with the tried-and-true formulas for paying out appropriate levels of income. Forward-thinking estate-planning advisors implemented laws, now on the books in 40 states, to eliminate that distinction for a Trustee, so that a Trust was not distorted by the need to produce a high level of income for Grandma while the kids would see nothing but principal erosion from inflation. What I'm suggesting is that income investors question their allegiance to dividend streams in the same way, because they are often overlooking the very real risks to their principal when they do. Maybe there's room for an article in there??
    May 10, 2012. 12:33 PM | 1 Like Like |Link to Comment
  • Dividends To Capital Gains: I Want A Divorce [View article]
    Great article, CP, very thought-provoking. Yet I have to admit I've always been a little puzzled by the dividends-only crowd, because if you take a chapter from a Trustee's book called the UniTrust concept, you can execute an income-only strategy without all this fuss. For those not familiar, UniTrust says you withdraw, say, 5% of your holdings each year to pay living expenses. In bad years, you're down a bit, in good years, your portfolio grows faster than your withdrawals. It doesn't matter whether the funds come from yield/dividends or capital growth, the important thing is that it frees you from the artificial - and risky! - constraint of pursuing high-yielding investments.
    May 9, 2012. 01:34 PM | 1 Like Like |Link to Comment
  • How Will MLPs Fare With Weaker NGL Prices? [View article]
    Good article, Elliott, thanks for diving into the details in this rapidly changing market for all of our benefit.
    May 1, 2012. 04:59 PM | Likes Like |Link to Comment
  • My Take On Kinder Morgan [View article]
    K-1s, multi-state tax filings, unrelated business taxable income (UBTI), MLPs in IRAs to avoid K-1 issues, etc, etc. Sounds like we need a savvy accountant-type to help us all sort out these issues - can anyone recommend someone - either a Reader or Contributor?
    Apr 16, 2012. 03:59 PM | Likes Like |Link to Comment
  • Chesapeake Energy (CHK) +2.6% premarket after announcing plans to make $10B-$12B of transactions to fund its 2012 capital expenditures, including seeking JV transactions in its Mississippi Lime field, considering a 100% sale of its Permian Basin assets, selling ~$2B in pipeline and infrastructure assets, and issuing debt.  [View news story]
    A lesser-known aspect of the lease acquisition game that CHK has been playing so successfully for the past 20 years is the "drill it or lose it" aspect. Usually, a company signing a lease with a landowner has to drill at least 1 well within 2-3 years, or the lease expires. At current prices and cash flow, CHK has no hope of continuing enough drilling to avoid losing many hundreds of thousands of acres in their current leaseholdings, hence the desperation to raise cash for more drilling. This should be seen as the warning sign that some of you have indicated. For a fascinating look inside "roll-em" McLendon's mind, read:
    Feb 13, 2012. 01:55 PM | Likes Like |Link to Comment
  • My Top Picks For The Coming Decade Of Stocks, Part II [View article]
    FWIW - There are a serious number of tall buildings under construction in Manhattan, for the first time in 4 years, and not just the Freedom Tower/Wall St area.
    In Dallas, the RE development market, particularly multi-family has been lit on fire in just the last 3 months.
    While this may not be indicative of all local markets, I'd like to hear from other investors around the country who may be seeing signs of early rebounds in development/construction activity in their markets. Commercial building permits may be a way to track this activity nationally.
    Jan 26, 2012. 10:33 AM | Likes Like |Link to Comment
  • Edward Maran And Connor Browne Position For 2012: The Value Proposition For Equities Is The Best It's Been In Decades [View article]
    Dear Archman - While any fund manager is open to criticism, it seems more than a little unfair to do so by using such a mathematically lazy yardstick: When you say "TVAFX price in 2000: $30 TVAFX price in 2012: $30" it leaves us all to wonder why you don't realize that leaving out the dividend component of the typical value portfolio shortchanges that manager's real total return in a completely prejudicial manner.
    Counting that dividend stream, TVAFX is up an average 8.12 % annualized over the past 16 years (including a 5% load and all expenses), versus an average 6.75% annualized for the S&P 500 (w/ no expenses). Once you expend the effort to fully understand this Fund's track record, it seems your real criticism should be leveled at the poor return on the S&P 500, not the managers who must, almost by default, benchmark against it.
    Dec 28, 2011. 07:16 PM | 1 Like Like |Link to Comment
  • Preferred Stock ETFs: The Downside That Preferred Stock Investors Can Avoid [View article]
    Doug - Surely, this is an opportunity for a clever ETF issuer to build a high quality Preferred Stock ETF offering, just as others have done in the high yield and EM bond space. Do you see anyone stepping into the void here?
    Dec 6, 2011. 12:25 PM | Likes Like |Link to Comment
  • My Top Picks For The Coming Decade Of Stocks, Part II [View article]
    Arne -
    If global growth is the path to success for these two companies, how do view the path of the US dollar going forward? I mean, regardless of the European debt outcome, a haircut to the Euro seems inevitable, boosting the dollar's stature as the strongest among the weak. Will that affect these companies' earnings, and, if so, your earnings projections?
    Dec 5, 2011. 08:56 PM | Likes Like |Link to Comment
  • The Coming Decade Of Stocks [View article]
    Tony - Charlie Biderman of Trim Tabs follows that float shrinkage factor closely - in his inaugural article here:
    Dec 1, 2011. 12:24 PM | Likes Like |Link to Comment
  • If You Own CSJ, I Would Sell.... [View article]
    Peter -
    Thanks for exposing the weak holdings in what would otherwise be considered by most to be a fairly safe bet!
    Nov 22, 2011. 05:14 PM | Likes Like |Link to Comment
  • Healthcare In The Penalty Box [View article]
    Paul - Am intrigued by Gentiva - can that forward price-to-earnings ratio really be as low as 2.5x - what is making it so cheap, and what catalyst might be on the horizon that might change it?
    Nov 7, 2011. 09:25 AM | Likes Like |Link to Comment
  • Monitoring For Algorithms: A New Capability In A Computerized Market [View article]
    Steve - Very interesting article. Even if we can't take the time to monitor our stocks for High Frequency Trading activity, are there certain stocks which have been targeted by algorithmic traders for either price discovery or manipulation? Are there some general lessons/warnings we can take from all this?
    Oct 20, 2011. 12:16 AM | Likes Like |Link to Comment