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Marc Lichtenfeld  

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  • Why Dividends Are Safer Than Fixed Income [View article]

    That's an interesting question and in a vacuum you'd be right that the 5% dividend stock would be $19. But the market is not a vacuum. Everything else being equal, I believe the stock with the 5% yield would outperform the one without because of supply and demand.

    There would be greater demand for a stock that generates a 5% yield, particularly in today's low interest rate environment.

    And yes, I believe shorts have to consider the dividend in their assessment of risk. Again, in a vacuum that might not be the case, but in the real market, the dividend can add to their loss if the stock moves against them.
    Nov 30, 2011. 08:21 AM | 3 Likes Like |Link to Comment
  • Why Dividends Are Safer Than Fixed Income [View article]

    Chowder is right, the price drop related to the dividend is temporary. Over the long term, stock prices follow earnings, so if earnings are increasing, so should the stock price.

    You compare the yields of stocks and fixed income vehicles so that you have a clear understanding of what the risks and rewards are. Knowing I can get 5% on a stock, doesn't mean much unless I know what the risk free rate is on a treasury. It's also helpful to see how the dividend yield relates to corporate and muni bonds for comparison.
    Nov 29, 2011. 09:11 AM | 1 Like Like |Link to Comment
  • How To Trade Like A Congressman [View article]

    Thank Peter Schweizer and 60 Minutes for bringing this story to the mainstream.

    I think the two ways of stopping this are vote the bums out and demanding they pass the STOCK Act. Interestingly, this week, after the 60 Minutes piece ran, the STOCK Act as gained a bit more momentum.

    It's just too bad that Congress will only do the right thing when their hands have been caught in the cookie jar, rather than doing it because it's the moral thing to do.
    Nov 18, 2011. 08:22 AM | 1 Like Like |Link to Comment
  • Dividend Aristocrats: Stocks You Need in Your Portfolio Now [View article]

    Thanks for your comment. My issue with the "knuckleheads" at the ratings agency isn't so much that the U.S. doesn't deserve the downgrade, but that they have been so fundamentally wrong in the past that they shouldn't have any credibility.

    The point I was trying to make is that they had mortgage backed securities backed by sub-prime loans rated AAA, but the debt of the U.S. is rated lower than that. Despite the trouble we're in, our debt is certainly more likely to be paid back than those sub-prime loans, which oh, by the way, they never bothered to research despite assuring investors they were AAA securities.
    Aug 13, 2011. 10:41 AM | 1 Like Like |Link to Comment
  • Why I Don't Watch CNBC [View article]

    Thanks. I'll definitely check it out.
    Jul 13, 2011. 08:27 AM | Likes Like |Link to Comment
  • Why I Don't Watch CNBC [View article]
    Thanks to everyone for all of the great comments.

    I'm curious, is there any financial media, that you think does a good job?
    Jul 11, 2011. 08:22 AM | 2 Likes Like |Link to Comment
  • Desperately Seeking Yield Through Equities: Part 9 - Dividend Anticipation Strategy [View article]
    Cedar Fair has agreed to pay unitholders $1 per share in dividends this year, so the yield will be meaningful.
    Jul 6, 2011. 08:39 AM | Likes Like |Link to Comment
  • 4 Biotech Stocks That Could Pop [View article]
    I believe you're right about AMAG. I know that several of the company's institutional investors feel the same way.
    May 20, 2011. 09:24 AM | Likes Like |Link to Comment
  • Get Ready for $30 Silver [View article]
    You are insane. Silver will never ever ever go down. Don't you know that it's different this time?
    May 6, 2011. 04:10 PM | 2 Likes Like |Link to Comment
  • As Silver Reaches Euphoric Levels, Protect Your Investments [View article]

    My article is not anti-precious metals, it's pointing out that these metals are in a mania. Your statement that I know nothing about PM bubbles implies that a PM bubble is different than others.

    My point is exactly the opposite. That it doesn't matter what asset class the bubble is in. A bubble is a a bubble.

    And Americans do own silver. Coins are sold out, every finance show on the radio is focused on silver and gold. Will they buy more before it's over? Probably. But whether silver has topped out or it goes to $200, it will end like all manias do.

    All I'm saying is if you've made some money in the silver market, protect those profits. As some of the commenters here have pointed out, that's a very reasonable stance to take.

    The fact that you got into such a lather about it only reinforces my belief that it's a bubble.

    I had people telling me I didn't understand the internet in 2000.

    And real estate in 2006.

    It's not different this time.
    May 4, 2011. 08:33 AM | 1 Like Like |Link to Comment
  • Berkowitz Should Unlock St. Joe's Value [View article]
    "I have yet to hear what I think is credible reasoning as to why that much land that is well located in Florida with even competent management won’t be worth a bunch in the future. "

    How is it well located? Yes, they have tons of land on the beach, but much of that land has already been sold. Much of the rest of the land is forest that was previously classified as timberland. Now, all of a sudden, it's prime vacation land and home sites?

    Perhaps it's prime if you like camping in the back woods of northern Florida.
    Mar 29, 2011. 08:59 AM | Likes Like |Link to Comment
  • The Best Way to Invest in Dividend-Yielding Stocks [View article]
    Thanks for all of the great comments.

    As notbob and David mentioned, that strategy works as well. I would just argue that DRIPs are easier as the investor does not have to take any action (or even think about it once enrolled) and avoids commissions.

    Of course, you can make up for the commission if you're buying a better stock at that time.
    Mar 25, 2011. 03:28 PM | 4 Likes Like |Link to Comment
  • Why This Stock's Price Should Be Slashed in Half [View article]

    I am not supporting anyone's short position. I have been bearish on JOE since 2006, when I first wrote about the company.

    I wouldn't call Berkowitz "stupid" but do believe he is overvaluing JOE's land. I could make the same argument and say is David Einhorn, the guy who called Lehman's demise stupid enough to short prime real estate on the verge of a rebound?
    Mar 25, 2011. 09:15 AM | Likes Like |Link to Comment
  • Follow the 'Millionaire Money' Into These 3 Sectors [View article]
    Max, no I'm not saying they use derivatives to generate return. Like non-millionaires, when things get rough, many exit the market and stick their money in the bank, treasuries and other safe instruments.

    I also wasn't suggesting they are being contrarian. Just pointing out which sectors they are most interested in. Although, you are right about those sectors not being the current hot sectors.
    Mar 21, 2011. 07:59 AM | Likes Like |Link to Comment
  • Follow the 'Millionaire Money' Into These 3 Sectors [View article]

    That's a fair point but most would argue that just before the crash of 1929, the market was a bubble. I don't think you can make that same argument today.
    Mar 20, 2011. 08:13 AM | Likes Like |Link to Comment