Seeking Alpha
View as an RSS Feed

MLP Trader  

View MLP Trader's Comments BY TICKER:
Latest  |  Highest rated
  • Averages cap dismal week with more losses as economic concerns grow [View news story]

    Let's give credit where it's due: Hillary starts talking about new capital gains taxes and the market immediately drops a few hundred points.
    Jul 25, 2015. 12:14 PM | 3 Likes Like |Link to Comment
  • Why Yield On Cost (YOC) Is An Important Metric [View article]
    "1) difference between a coupon bond yielding 5% and a zero coupon yielding 5% might be in taxes. US politicians tend to change taxes too often."

    The IRS imputes interest to the zeroes.

    "2) difference between sell a stock or collect dividends is the same as between 2 owner of caw herds but one is butcher and the second is milkman. Quiz: who survives longer?"

    Butchers don't keep cow herds. After they make money on a cow they go buy another one. YOC-els are kind of like a milkman who will never sell a cow because he is getting so much milk compared to what he spent for the cows years ago. Irrational. As another poster writes above: YOC-els really need to read the chapter on sunk costs in an Econ textbook.

    Here's a query: my reduced cost basis on EPD shares bought in 2001 is 0. Therefore my YOC is infinite and I should never sell EPD, right?
    Jul 16, 2015. 08:35 PM | 1 Like Like |Link to Comment
  • Why Yield On Cost (YOC) Is An Important Metric [View article]
    The derision is toward the irrational clinging to a metric that is, at best, useless for investment decisions. If YOC-els would simply admit that YOC no more than a "feel-good" measure the derision would probably stop.

    Incidentally, I'm glad you're no longer wearing the orange jumpsuit in your photo. I was worried that ISIS might have you. Now you seem to have a predator preparing to strangle you or something.
    Jul 15, 2015. 07:07 PM | 2 Likes Like |Link to Comment
  • Why Yield On Cost (YOC) Is An Important Metric [View article]
    "To your first point, the dividend is already in my pocket if I choose it to be. The stock may re-depreciate (is that a word?) tomorrow"

    QED to my point about YOC-els not understanding zero-coupons.

    If you choose to sell a stock, the money is also in your pocket. There is no difference. Just as there is no difference between a coupon bond yielding 5% and a zero coupon yielding 5%.
    Jul 15, 2015. 04:54 PM | Likes Like |Link to Comment
  • Why Yield On Cost (YOC) Is An Important Metric [View article]

    I wonder if any YOC-els understand how zero-coupon bonds work. Judging from this article, I'll bet it's a mystery to them.

    News Flash 1: there is no difference between collecting a 5% dividend and selling a stock that has appreciated 5%. They both generate a 5% return and 5% income.

    News Flash 2: companies do not keep track of how much you paid for their stock; they pay the same dividend to each share. So YOC is utterly irrelevant to forward-looking investment decisions.
    Jul 14, 2015. 08:13 PM | 8 Likes Like |Link to Comment
  • Airline stocks fall; DOJ probing price collusion [View news story]
    @wrscomncents

    "They just don't want to compete with carriers that are being subsidized by their governments."

    Of course the U.S. carriers never get subsidies from the U.S. govt. Gimme a break.

    It's amazing. I can fly from Frankfurt to Barcelona or Singapore to KL for about $50 RT. The same length flight here costs me $700-800 -- unless it's one of the very few routes (e.g. LAX-LAS) where there's actually competition. I call that gouging.

    I say let all foreign airlines operate in this country without restriction. Let the most efficient company win. That's what free markets are about.
    Jul 1, 2015. 07:18 PM | Likes Like |Link to Comment
  • Airline stocks fall; DOJ probing price collusion [View news story]

    Look at flights to/from the airlines' "fortress hubs." You will see extreme price gouging: $600-$800 for 300 mile flights. In the meantime, UAL, DAL, and AAL all fight to keep out competition from Etihad, Emirates, etc.

    The legacy U.S. airlines and their execrable unions are the worst sort of rent-seekers. We need to truly open the skies so they have to compete.
    Jul 1, 2015. 02:41 PM | 7 Likes Like |Link to Comment
  • Uber Has Lost The Taxi Battle In NYC [View article]
    @DGM01,

    They are easily trumped by the domestic legacy airlines (UAL, DAL, AAL), who seem to devote most of their executive energy to lobbying big brother govt. to keep the competition out.
    Jun 23, 2015. 02:07 PM | 1 Like Like |Link to Comment
  • Uber Has Lost The Taxi Battle In NYC [View article]

    ".I ABSOLUTELY detest Uber richly valuing itself at some $50 billion...talk about rigging another game, where insiders, ibanks, private equity, and fund managers collude to bring themselves a payday...with, once again, ordinary and unwitting retail investors taking the risk."


    You don't seem to understand markets. Uber didn't value itself at $50 billion; investors did. Nobody is forced to buy it at those prices. People who do are probably foolish. But it's their choice.

    That being said, I have used Uber in Singapore, Portugal, China, and all over the U.S. It has been vastly superior to the local taxi service every single time.
    Jun 23, 2015. 02:05 PM | 6 Likes Like |Link to Comment
  • Uber Has Lost The Taxi Battle In NYC [View article]

    When you invest in rent-seekers (which is what medallion owners are), you are investing in cronyism, inefficiency, and government malfeasance. That is a cynical bet. And in the long-term, it will be a foolish one, since such arrangement rarely last forever.

    I'd rather bet on innovation and on companies that make money by giving consumers what they want.
    Jun 23, 2015. 09:27 AM | 22 Likes Like |Link to Comment
  • American Capital's Large Q2 Book Value Loss May More Than Double By June 30 [View article]
    Thank you Stockmeister,

    I was scratching my head reading this article wondering how he could get the whole thesis precisely backward. I don't think anyone except this author believes that a Grexit would mean higher yields.
    Jun 20, 2015. 01:17 AM | 4 Likes Like |Link to Comment
  • Capital Products Partners LP: More Than Just A Big Yield [View article]

    Any thoughts on the sudden announcement of the CEO leaving at the end of June?
    Jun 12, 2015. 04:08 PM | Likes Like |Link to Comment
  • Crude Oil: It's The Imports, Stupid [View article]

    Good article. If you have any doubts about this thesis, I recommend listening to the recording of the Plains All American (PAA) investor day:

    http://bit.ly/1KJ4rHt;I=

    No company in America is more in touch with what's going on with oil production and storage than PAA. They touch more barrels than anyone. And they see oil prices headed lower all the way through Fall. In fact, we can expect prices to fall precipitously during Fall refinery shutdowns. Recovery after that.
    Jun 11, 2015. 09:51 PM | 1 Like Like |Link to Comment
  • Plains All American - The Oil Spill Was Bad, But Not That Bad [View article]

    This article makes the erroneous assumption that PAA's decline is due to the spill. Over the time that PAA dropped 7%, EPD has dropped over 8% and the Alerian MLP index (as measured by the AMJ ETF) has dropped 7.1%.

    So factoring out the sector decline, the spill accounts for approximately 0 of PAA's recent decline.
    Jun 8, 2015. 05:07 PM | 5 Likes Like |Link to Comment
  • Friday Is Judgment Day In Crude Oil's Financial Cold War [View article]
    No. NO. NO. Those so-called "breakeven" prices for the OPEC countries are NOT real break-even prices. They are completely different from the breakeven prices cited for the U.S. plays. This is a huge misconception repeated ad nauseam in the financial media.

    These so-called break-even prices are the prices needed for OPEC countries to balance their govt. budgets. They have absolutely nothing to do with operating costs.

    The actual operating cost for Saudi Arabia and the gulf countries is in the single digits. The true break-even price is around $10-15/barrel.
    Jun 4, 2015. 07:47 AM | 46 Likes Like |Link to Comment
COMMENTS STATS
969 Comments
2,453 Likes