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  • Annaly Capital - The Beginning Of The End [View article]
    Agreed with jonk...shorting a stock with a 14% dividend is a suicide mission. Also, the author didn't even mention book value in his "valuation" table...it seems like he may not fully understand the mREIT space.

    Leverage drives mREIT earnings...NLY dividends are lower because leverage is lower...there's nothing wrong with prudently managing risk...

    SHMULIK - PLEASE DO NOT REPRODUCE OUR CHARTS WITHOUT OUR PERMISSION! Thank you.
    Mar 21 10:29 AM | 21 Likes Like |Link to Comment
  • The Silver Correction Is Over, Next Stop $62 [View article]
    BK's $62 target is conservative.

    The rules of "money"changed in 1971 when Nixon took us off the gold standard and gave the government a license to print currency (and yes, there is a big difference between money and currency). Since then, the Fed has never printed with so much fury as they currently are today. Unfortunately for us, the printing presses are just warming up. How is the Govt going to attempt to solve the Social Security and Medicare problems that are on the horizon? You guessed it...MORE PRINTING.

    In the last 40 years, the US has gone from the richest nation in the world to the biggest debtor nation in the world. The dollar died in 1971. Let's call INFLATION what it really is...DEVALUATION.

    It's almost pointless to discuss silver prices in terms of value. If the inherent "value" of silver does not change (or even decreases)....the price of silver will still increase because the amount of "currency" it takes to acquire it will continue to increase...
    May 2 10:55 PM | 13 Likes Like |Link to Comment
  • The All-Aristocrat Team: 20 Dividend Stocks Retirees Should Own In 2013 (Part 4) [View article]
    Hi CGM - Don't underestimate the financial stability it takes to be able to raise dividends every year for as long as these companies have. There is definitely something special about them...

    Your point about yield is a fair and we knew that there would be some push back about these stocks. We love yield just as much as the next guy, but we also strive to build and maintain a diversified dividend portfolio. We aren't suggesting that a stock like VFC take the place of a high-yielding MLP in your portfolio, but we do think that investors should consider these Aristocrats for the diversification and stability that they will add to your portfolio.

    There is more to a dividend stock investment than yield itself and we feel that dividend investors often get too fixated on the yield %. Our income target for our Model DIY Dividend Portfolio is 6% per year and we think that this is very achievable through a diversified portfolio of stable dividend stocks and complementary conservative option strategies.

    Its easy to fall into yield traps with stocks that are not worth holding over the long-term. The stocks mentioned above are certainly not the highest yielders, but they are probably some of the most well-rounded dividend stocks that you will find.

    Again, we aren't saying that you should have a whole portfolio of these type of stocks, but you shouldn't throw them off your list just because they don't meet a minimum yield hurdle. Just some food for thought...
    Jan 11 12:42 PM | 10 Likes Like |Link to Comment
  • The All-Aristocrat Team: 20 Dividend Stocks Retirees Should Own In 2013 (Part 4) [View article]
    viperman, bill, and james - see the comment that we just posted above to CGM.

    When you move too far up the risk curve in search of yield (and we aren't saying that you are doing that, just speaking generally), you are putting your entire portfolio at risk. Yield is like any other drug, once you get a taste, your appetite for it only gets stronger.

    We talk to investors everyday that have these artificial dividend yield hurdles for individual stocks and it tends to cloud their vision a bit. Again, we LOVE yield just as much as the next guy...but there are many other factors to consider with a dividend stock investment. This is the exact reason why we created our rating system with five different sub-ratings. It helps us target where a particular stock's strengths and weaknesses are. All else being equal, we like well-rounded stocks the best.

    In addition, we think that investors should focus more on the stability of the $ income generated from their portfolio and not necessarily the %. And just as importantly, investors should do whatever it takes to protect their capital base. All else being equal, higher yielding portfolios tend to be more risky.

    We definitely aren't standing on a soap box here, because we fall into the same yield traps as everyone else from time to time. We just wanted give you some additional things to think about as you build your own portfolios...
    Jan 11 01:02 PM | 8 Likes Like |Link to Comment
  • Building A DIY Dividend Portfolio (Part 1): Picking The Best Dividend Stocks [View article]
    David - We respect your opinions and analysis. The point of this series is to highlight the importance of an investment plan, which we are sure you agree with wholeheartedly. In part 1 above, we are stressing the importance of establishing a consistent process for picking dividend stocks a portfolio. We have a link in our article that details our entire ratings methodology, including all the fundamental and technical data points that we look at. We understand that this may not be useful information to you, but we believe that most DIY investors will find value in it.

    Yes, we are also marketing our service at the end of this article because we believe that it provides a tremendous amount of value to investors trying to build their own DIY Dividend Portfolio (and it is very inexpensive).

    Quite frankly, we were surprised to see this comment from you because you also market your products on Seeking Alpha (your books are prominently displayed in the left side bar of every article you write).

    Again, we respect your analysis and we believe that anyone interested in dividend investing should consider buying your book. However, we were very surprised to receive this "shot across the bow" from you...
    Aug 16 10:59 AM | 7 Likes Like |Link to Comment
  • Taking Cover: A Strategy For Dividend Stock Investors During A Market Pullback [View article]
    Hi pal, thanks for the comment. You are not alone...we'll put together a detailed example in our next article. Which dividend stocks do you own? We could use one of yours as an example...
    Mar 22 11:39 AM | 6 Likes Like |Link to Comment
  • Avoiding Annaly Capital [View article]
    Agreed, madev1138...NLY should continue to perform well while interest rates remain low.

    NLY management has slowly been reducing its leverage (see chart in the article below) which has been the main driver of the dividend reduction. While lower leverage leads to lower profits (and dividends), it also reduces risk. We view this as a positive risk management technique, which is why we are still bullish on NLY.

    http://seekingalpha.co...
    Dec 22 09:23 AM | 6 Likes Like |Link to Comment
  • High Yield Mortgage REITs Are Still A Buy Despite Stagnant Housing Market [View article]
    Hi rmaring478 - It's a great question. We wrote an article recently titled "When Should You Sell Your Mortgage REITs" (see link below).

    http://seekingalpha.co...

    In a nutshell, when short term interest rates start to creep up without a corresponding rise in long-term rates (i.e., if the yield curve flattens meaningfully)...that is the time to sell mREITs.
    May 1 10:58 AM | 5 Likes Like |Link to Comment
  • 3 Ways To Reap The Dividends From Kinder Morgan And El Paso Merger [View article]
    Very nice summary of the Kinder Morgan Complex, TJ. Keep up the good work, bro...
    Mar 22 12:26 PM | 5 Likes Like |Link to Comment
  • Is Your Portfolio Ready For The 'Great Deleveraging?' [View article]
    css1971 - We believe that the "ink fairies" will definitely keep rates low for the foreseeable future. All the more reason to allocate some capital to low beta dividend stocks. As you know, there are ways to hedge downside risk if you think the situation is getting too hairy...
    Nov 27 02:04 PM | 5 Likes Like |Link to Comment
  • Profitable Trade Setups for the Coming Gold, Silver and Dollar Reversals [View article]
    It's dangerous to assume that there will be a correction in gold and silver just because the USD reverses course and begins to rally. In general, gold and silver are negatively correlated with the USD (gold/USD= -0.45; silver/USD= -0.64)...but the correlation isn't perfect (-1.00) and it often breaks down and becomes positive for periods of time.

    For example, during the USD's most recent meaningful rally (Dec. 2009 - Jun. 2010), gold (+0.76) and silver (+0.30) had a POSITIVE correlation with the USD...
    May 3 01:34 AM | 5 Likes Like |Link to Comment
  • Building A 6% Income Portfolio For 2013 (Part 8b): Industrial Sector 'Buy Zones' [View article]
    Hi toneguru - This shouldn't be a let down to you because nowhere in this article did we tell you to "buy" now. The title of this article clearly states that it highlights "Buy Zones" for some selected stocks in the industrial sector...not "5 Industrials to Buy Now"...

    As we pointed out in part 1, our investment strategy is to buy good stocks on a dip. We believe that the stocks above are great stocks for a long-term portfolio, but not at the current prices. We establish low-risk entry points (i.e., "Buy Zones") for the high-rated stocks that we cover. We have a "Buy Zone" watchlist that we keep track of and when a stock enters its respective "Buy Zone", we consider it for purchase. This is the methodology that we use to build and manage our Model DIY Dividend Portfolio and that is what we are sharing in this article...
    Mar 1 02:17 PM | 4 Likes Like |Link to Comment
  • DIY Dividend Portfolio: Protection For A Correction [View article]
    David - Thanks for the comments. We agree with most of what you have said above. We certainly aren't suggesting to liquidate your dividend portfolio over the possibility of a correction...we are just pointing out that a simple hedge will help you mitigate some potential downside risk (while keeping your dividend income fully in tact).

    We agree that buying the dips in great dividend stocks is a phenomenal long term plan. The core of our investment strategy is to identify good dividend stocks and patiently wait for low risk entry points. It sounds like you have done a great job of that historically.

    A hedge may not make sense for everyone, but it is one strategy that we use to mitigate downside risk...and the cost of protection is very cheap right now...
    Feb 19 05:13 PM | 4 Likes Like |Link to Comment
  • The All-Aristocrat Team: 20 Dividend Stocks Retirees Should Own In 2013 (Part 4) [View article]
    Agreed, Myer...it's not that black and white. But as you know, everything in the investment world is a tradeoff between risk and reward. There are high-quality dividend stocks that have yields above 4% (and we have highlighted some of those in this series). Conversely, there are lower yielding stocks that we wouldn't touch with a 10-foot pole.

    The key takeaway here is to keep an open mind about your dividend stock investing and try to make your portfolio as well-rounded as possible. You will sleep much better at night... :)
    Jan 11 01:09 PM | 4 Likes Like |Link to Comment
  • The All-Aristocrat Team: 20 Dividend Stocks Retirees Should Own In 2013 (Part 1) [View article]
    Hi George - You should definitely view good research and ideas as an investment. Good research should continue to pay dividends just like your stocks.

    The investment plan for our “Model” DIY Dividend Portfolio is very simple:

    1. Identify, research, and invest in dividend stocks with the best risk/reward profiles.
    2. Identify low-risk entry points for each stock.
    3. Diversify using strict asset allocation targets and concentration limits (for asset classes, industries, and individual stocks).
    4. Utilize conservative option strategies and portfolio hedging techniques and to generate additional income and to manage downside risk.
    5. Maintain a disciplined exit strategy for each stock by closely monitoring changes in fundamental and technical data points.

    DIY investors definitely have the tools to carry out a simple plan like this. However, it helps to have a little guidance along the way. We have a very low monthly fee for our premium service, and we strive to provide you with the research necessary to carry out this simple investment plan for your own DIY Dividend Portfolio.

    We know you seek value from your investments and we want your investment in us to be no different...
    Dec 31 04:21 PM | 4 Likes Like |Link to Comment
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