Seeking Alpha
View as an RSS Feed

Marlin Keith DeBramaletta  

View Marlin Keith DeBramaletta's Comments BY TICKER:
Latest  |  Highest rated
  • The issue of legality may have been settled on Obamacare, but the debate about the law is just starting to heat up. Republican Rand Paul calls the decision "bone-headed," insisting that "The whole thing remains unconstitutional." Meanwhile, Democrat Nancy Pelosi went out on Twitter to declare "Victory for the American people!" One thing remains for sure: The uncertainty that has plagued the markets over this bill for the past two years shows no signs of abating any time soon.  [View news story]
    AIG American International Group was a huge topic of the financial crisis. The company was one of the companies receiving a massive Federal Bailout. Does today's ruling have to deal with a return on investments into AIG? Definitely their is stability long term with the mandatory health insurance reform. So politically neutral can you blame a President addressing it to appease constitutients, particularly in 2009/2012? I think the answer to solve his presidency to put an emphasis on the healthcare reform law. It appeases multiple parties, including less government spending, Meidcare and Medicaid politics, less government involvement in the healthcare sector. The burden through a regulation/statue/law is shifted to consumers.
    Jun 28, 2012. 08:33 PM | Likes Like |Link to Comment
  • The issue of legality may have been settled on Obamacare, but the debate about the law is just starting to heat up. Republican Rand Paul calls the decision "bone-headed," insisting that "The whole thing remains unconstitutional." Meanwhile, Democrat Nancy Pelosi went out on Twitter to declare "Victory for the American people!" One thing remains for sure: The uncertainty that has plagued the markets over this bill for the past two years shows no signs of abating any time soon.  [View news story]
    Economically, their is a better business in the selling of health insurance. Revenues for health insurance companies will sky rocket. In other words, the newly created marketplace for health insurance, will lead to competitive pricing for health insurance. Health Insurance is now going to be viewed at the consumer level as a necessary expense such as food and shelter related expenses. The employed will need a market for health insurance outside of their employers. Their are also potential positive cost reductions for business in the form of employees looking outside the firm for health insurance and bearing the costs on their own. Their is a natural investment in the healthcare sector as a whole. So ETF's or funds designated for the healthcare sector will definitely be a good buy in the short-term. Then the demand for the funds in the healthcare sector in the intermediate term will drive up the value of the healthcare related stocks. Long run the necessity of healthcare insurance will keep the sector stabilized.
    Jun 28, 2012. 08:28 PM | 1 Like Like |Link to Comment
  • The issue of legality may have been settled on Obamacare, but the debate about the law is just starting to heat up. Republican Rand Paul calls the decision "bone-headed," insisting that "The whole thing remains unconstitutional." Meanwhile, Democrat Nancy Pelosi went out on Twitter to declare "Victory for the American people!" One thing remains for sure: The uncertainty that has plagued the markets over this bill for the past two years shows no signs of abating any time soon.  [View news story]
    I am politically neutral. As an investor, this is a tremendous win for the pharmacuetical related stock, the medical field both doctors and nurses, the healthcare insurance industry, and healthcare stocks. Their is a guaranteed income stream in both the form of mandatory health insurance and now tax obligations by the American taxpayers to pay for the costs of healthcare in advance, which essentially what health insurance is.

    This is also a win for wealthier investors because tax burdens for Medicare and Medicaid programs are shifted away from the wealthier taxpayer and placed on the lower-income consumer. This leaves opportunities for the wealthier to contribute to other social based welfare programs, reduce their tax burden through charitable donations, and in the same token, have additional income streams for re-investment of their own fund.

    The funds for taxes can be diverted to other programs.
    Jun 28, 2012. 08:20 PM | 2 Likes Like |Link to Comment
  • Treasury prices add to gains following the TIPS auction at which 10-year inflation-protected paper was sold for a negative yield for only the 2nd time. The 10-year note (very much not inflation-protected) is off 3.4 bps to 2.26%. The long bond -2.8 bps to 3.36%.  [View news story]
    The preservation of income methodology is still at work particularly for the ultra-wealthy. If you have huge sums of money, laying around. Their are those that would be interested in those huge sums of money. Treasury Inflation Protected Securities are a method of investing in immediate financing for the government or holders of government securities, and getting the principal amount back in full. Investment is about protecting huge sums of money, and their are venues with varying ranges of interest that must be paid to your to hold your money. In this instance, an investor is still having a guaranteed vehicle to store their money securely, at this particular moment in economic history they must pay in order to have their funds protected. At some point it is possible for them not to pay for those funds, maybe those interest rates rise in the near future. Who knows?
    Mar 22, 2012. 06:44 PM | Likes Like |Link to Comment
  • More on the collapse in TVIX : "The long term expected value of your ETN is zero. If you hold your ETNs as a long term investment, it is likely that you will lose all or a substantial proportion of your investment." That line from the Credit Suisse prospectus is bolded and underlined. Don't say you weren't warned. (h/t Kid Dynamite)  [View news story]
    Who is the market maker for the ETN (Exchange Traded Notes)? Isn't their a financial advisor who is regulating the use of the notes as a strategy in a portfolio, rather than a strictly long term hold strategy. The only reasonable investment that does not require consistent management of the funds is a savings account or a checking account. There are those that want to preserve income and make a long-term investment. So will they ever assign TVIX and/or wealth of holders of the ETN to a asset management entity and let them do their job?
    Mar 22, 2012. 05:22 PM | Likes Like |Link to Comment
  • More news from the Starbucks (SBUX +0.3%) shareholder meeting: SBUX will enter the $8B energy drink market with a beverage that combines fruit juice and green coffee extract, expects to have more than 1,500 stores in China by 2015 and will open its 1,000th store in Japan next year, and confirms plans for a fifth U.S. plant to be located in Georgia. (earlier)  [View news story]
    Strategically the long-term outlook of Starbucks increases with this new line of business. http://bit.ly/GEVhaQ. There are two revenue streams potentially from the Starbucks energy beverage while appeasing the "green" constituents. Starbucks now has an opportunity to increase its brand presence and revenue stream in venues such as convenience stores and retail grocery stores with the green energy drink. At the same time, there is a new additional reason to enter a Starbucks Coffee franchise location and an alternative to an espresso. Coffee is a tremendous buy at coffee shops and is a social stable of gentler society. Energy drinks are useable anywhere. If I were an investor, not necessarily a buy and hold strategy, but a long-term valuation preservation of income can be an additional reason to invest in Starbucks with this new beverage.
    Mar 21, 2012. 08:18 PM | Likes Like |Link to Comment
  • Making some yearn for the days when the Fed was completely secretive and stuck to managing the cost of money, Ben Bernanke ruminates on solutions to the housing "issue." Now experts on the ins and outs of being a landlord, the Fed staff believes REO property holders would be better served renting units instead of trying to sell them.  [View news story]
    Chairman Bernanke's opinion is warranted. The Federal Reserve has a portfolio with asset backed securities, mortgage backed securities are one variety, and is responsible for the banking system as a whole. The majority of banks are owning real estate assets via repossession due to contract defaults in the foreclosure process. "Issues related to the housing market and housing finance are important factors in the Federal Reserve's various roles in formulating monetary policy, regulating banks, and protecting consumers of financial services..."

    Of course, his interest positively construed for the banking system is maximizing the Return on investment (MBS) and Return on Assets (Bank REO). In order to maximize the ROI and ROA ratios, their needs to be income. Rental income, considering the current economic climate, is the most viable option because home ownership is not a viable opportunity for those with terrible credit ratings.

    http://bit.ly/xQ2IsY the Property Cash Flow method in this article from Investopedia illustrates how ROI can be maximized with earnings from rental income.
    Feb 11, 2012. 05:59 PM | 1 Like Like |Link to Comment
  • What If Apple Were In The Dow? [View article]
    http://bit.ly/wuiERx If you scroll to the bottom of the page, you can see Apple's diverse product selection including servers, "quicktime", Wi-fi base stations, Mac, Mac program developer, and of course the I-Phone. The IPhone and IPad are gadgets that are natural marketing venues for Apple. As those products sell at the level they sell now, their is more popularity and subsequent global presence of the product. Apple has the capability to sustain the level of intrigue in both the Iphone and IPad. Though I should immediately upgrade to an IPhone, I still use the Blackberry. I am aware as a consumer of the capabilities of the IPhone or IPad in the smartphone market. Those capabilities are high.
    Feb 8, 2012. 09:45 PM | Likes Like |Link to Comment
  • What If Apple Were In The Dow? [View article]
    I agree with the article's proposition. The link, http://yhoo.it/wQuHM7 , quick snapshot of Apple illustrates a company that deserves to be in the Dow Jones. Apple's sound financial statements, the positive financial ratios, and moderate-low risk (0.92 Beta) indicates Apple has proven to be a blue chip stock with growth potential. Apple's IPhone is one of the premier consumer products, and Apple continues to make sound business decision in regards to patents for its products. The company should be listed as a premier company and a main driver of the economy. Usually companies with that stability are placed in the Dow Jones Industrial Average. The previous arguments against tech stocks stemmed from a tech bubble and the dotcom burst in the early 00's and late 90's. Apple continuously makes prudent operational decisions relative to it's product. Marketing wise it manages to stay competitively at the forefront in a variety of products by sound strategic maneuvers in the tech markets. Apple initially was focused as Microsoft's rival in the computer market, but the diversity of it's business in the tech sector make it a company with a positive long-term outlook.
    Feb 8, 2012. 08:05 PM | Likes Like |Link to Comment
  • What The South Carolina Primary And Italy Could Mean For Your Money [View article]
    I think the debt covenants of the Italian debt need an expose' or a strong Wall Street journal article. The proposed worst case scenarios are already a subject of discussion. As a person with interest in the global markets, I ponder what are our nation's banks entitled to in the event Italy defaults? The Italian debt is listed on commecial banks' balance sheets as an asset. What can be claimed residually in the event Italy defaults? In addition, what tranche or hierachy in the credit structure are our nation's banks. Is the Italian debt secured debt or not?
    Jan 21, 2012. 05:16 PM | 1 Like Like |Link to Comment
  • The Student Debt Bubble [View article]
    Advanced Placement gives you leverage in college entry and obtaining scholarship, not leverage in life. Being in AP, which is a private school equivalent if you are at a public high school, enabled me to receive several academic scholarship offers, and receive a full academic scholarship. Minimally if you perform well on AP, a person can save money on tuition based on the AP credits you receive. I remember one of my two of my classes being used as credit towards my actual major. I remember gaining a foreign language exemption because of AP. Advanced Placement is just a step to the next level, while in high school, or a collegiate implicit guarantee, and not a guarantee in life overall.
    Jan 11, 2012. 02:54 PM | Likes Like |Link to Comment
  • The Student Debt Bubble [View article]
    A University or college is in economic terms, financial terms, and as an accountant, a brand or a license that a person is paying for to distinguish themselves in society. The cost of that license or brand is lessened based on how well you can academically or athletically perform. The University or college is required to keep a record for security purposes in national interest of the license or brand that you paid for. Essentially for a brand for the rest of your life, you are obligated to pay for the rest of your life. If you spend your 18-22, wanting to go to Spring Break, which stimulates tourism, or use the money for the girl of your dreams, both decisions should position you socially for the rest of your life. As a person with a strong aptitude and educated sense of risk-reward, you want to land that dream girl for the rest of your life, since you invested those funds in her. So can you fault student loan spending on women? No. Realistically the University boosts its prestige and value based on it's academic, athletic, and overall repuation. If you want a part of that, you pay set amount of tuition dollars and fees to come to that school. Your level of performance is based on the person completely. Realistically the college as a natural valuation can charge you that amount because you did well. If you want to pay to go to a party school, you are paying to party. Then again someone may not hire you because you partied well. The only unfair matter is giving that level of discretion or responsibility or decision making about your entire life or future, to an adult under 21 years of age.
    Jan 7, 2012. 11:39 AM | Likes Like |Link to Comment
  • The Student Debt Bubble [View article]
    http://bit.ly/Ai9hPu As a person with training in both external and internal auditing, would I understand the rationale of the military, government or law enforcement for restricting or making hiring decisions more difficult? Yes! Realistically I was a junior/senior in college, in 2005 and 2006, about 19/20 years of age when Wachovia came to college and interviewed. I remember their Evergreen Asset Management being the southern equivalent of a NY program to get into and participate with. Tons of overeager youth, attempting to make something of themselves in business suits. Within a matter of 3 years, your are realistically seeing visual testimonies such as this one. http://bit.ly/Ai9hPu . As a person who graduated top notch from a top flight business program, intuitively I can understand why hiring is more difficult to perform. As a graduate, I know I am going to have to put in double the effort to illustrate I can handle the responsibilities of a position. If power or authoritative strong holds, are compromised at the most prestigious level, then of course, the elite(government, military, law enforcement, defense) in this country are going to want to keep themselves in power and making hiring for graduate difficult. I understand the difficulty in the job market for collegiate graduates, completely. In six years, literally the entire landscape has changed. Their was a time when companies came to colleges at career fairs, and in hindsight, I should have been a more polished individual for this companies. The question should a company compromise their organization structure and integrity to trust students, "white" or "black" or whatever ethnicity just because they have obligations in the form of student loans. That sort of action could compromise the integrity of the banking system and structure. As a person, with an understanding, realistically, if a cartel member can corrupt a person with an illegitimate product, they have rights to those persons to do what they say. The government and law officials can't make those products legitimate just for that sake. So is it in the best interest of the country really, to add financial suffering or burdens to students if they misspend on the collegiate education? What a person spends their student loan money is their personal and private decision and business, and one cannot tell them not to. The interest of the illegitimate enterprise is to generate money off of an illegitimate products. So the student loan debt debate is a political and legal issue, and much less the reality of not being able to afford the student loans.
    Jan 7, 2012. 11:31 AM | Likes Like |Link to Comment
  • Real House Prices Will Probably Keep Falling [View article]
    I agree, but in lieu of mortgage discussion, I do recommend this article. http://bit.ly/v0xooC
    Jan 2, 2012. 06:30 PM | Likes Like |Link to Comment
  • Real House Prices Will Probably Keep Falling [View article]
    Fannie Mae and Freddie Mac are less a responsibility of the government, but strengthen the ability of a consumer to purchase home. Both entities insure the homes essential as an intermediary in the purchasing process. Essentially your paying tax dollars to keep yourself in a home. Fannie Mae and Freddie Mac are performing services for consumers on behalf of the government. With the majority of consumers unable to pay their mortgages, their are going to naturally lose double The US government is an outside party to the transactions other than the potential tax income stemming from Fannie Mae and Freddie Mac, that used to be a guaranteed portion of the budget, is now unstable. That in my opinion, is the only thing the government should concern themselves with, where should they get the funding or guaranteed tax receipts to cover budgetary deficits.
    Jan 1, 2012. 02:22 PM | 1 Like Like |Link to Comment
COMMENTS STATS
262 Comments
91 Likes