Comments on Paul Zimbardo's articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/paul-zimbardo/articles http://seekingalpha.com/article/168744-research-in-motion-a-long-term-play?source=feed#comment-742443 742443 Tue, 03 Nov 2009 11:38:12 -0500 http://seekingalpha.com/article/148583-a-short-trip-for-garmin?source=feed#comment-741557 741557 Mon, 02 Nov 2009 21:02:06 -0500
This statement shows how completely naive you are, along with the rest of the world, on Garmin's aviation segment.

Do you have any idea what type of sensors go into the G1000 integrated cockpit? From AHRS attitude and acceleration data in one box, to pure airspeed and altitude data in another box, autopilot servos that trump any existing autopilot in the market, XM weather, a RADAR, engine indicating and crew alerting systems....

And you try to tell me that the underlying technology is the same across segments?

Get with the program jack, everyone seems to think GPS is the only thing Garmin has any experience in.]]> http://seekingalpha.com/article/168744-research-in-motion-a-long-term-play?source=feed#comment-730422 730422 Mon, 26 Oct 2009 08:44:05 -0400
"Gross margin for the second quarter was 44.1%, in line with the guidance we provided in April and higher than the 43.6% in the first quarter [due to reductions in raw material costs] as well as the shifts in the product mix, as we discussed in the last earnings call."

]]> http://seekingalpha.com/article/168744-research-in-motion-a-long-term-play?source=feed#comment-730412 730412 when a company is practically giving away their phones that cannot > be a good sign for now....I sold a while back, part of my research > on a stock is visiting stores and asking questions.....buy 1 get > two free, told me to get out of the stock, so I did at 80.75...I > have no plans on getting back in until i see a correction in this > market.]]> Mon, 26 Oct 2009 08:37:08 -0400
Q2 Average selling price was $357
Q3 Average selling price was $345
Q4 projected selling price is $320

While this is clearly trending down, it is to be expected given the push into consumer space, and is not really the sort of price collapse implied by a buy 1 get two free promotion?

Congratulations on your near term exit price btw.


On Oct 26 08:11 AM LaChic wrote:

> when a company is practically giving away their phones that cannot
> be a good sign for now....I sold a while back, part of my research
> on a stock is visiting stores and asking questions.....buy 1 get
> two free, told me to get out of the stock, so I did at 80.75...I
> have no plans on getting back in until i see a correction in this
> market.]]> http://seekingalpha.com/article/168744-research-in-motion-a-long-term-play?source=feed#comment-730385 730385 Mon, 26 Oct 2009 08:11:55 -0400 http://seekingalpha.com/article/168744-research-in-motion-a-long-term-play?source=feed#comment-730319 730319 Mon, 26 Oct 2009 06:20:29 -0400 Remember that as long as the growth of earnings are there,the stock will look after itself. This most certainly will be the case with RIMM.
RIMM is selling more of its product than ever and in certain territories they have achieved better than expected sales for the coming quarter,so we could be in for a surprise!]]> http://seekingalpha.com/article/148583-a-short-trip-for-garmin?source=feed#comment-616698 616698 Wed, 05 Aug 2009 14:45:35 -0400 http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-615265 615265 Tue, 04 Aug 2009 16:59:21 -0400 http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-610547 610547 Sat, 01 Aug 2009 05:04:05 -0400
You are making a classic mistake in comparing depriciating and depleting asset based MLP to a corporaton. MLP by its articles of formation may be required to pay out all the cash flow or 90% of the cash flow... In theory, and in time, all MLPs would have exhausted depriciation and depletion, but it still may be able to generate cash flow, possibly indefinately as fully depriciated pipe may still work and there is a demand for its connectivity.]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-610546 610546 Very impressed with the knowledge/experience of the commenters here > (perhaps the point is made and its time to give the author a break). > > I find MLPs attractive but the discussions on tax complications elsewhere > scary. So a few newbie questions: > 1) Folks holding MLPs in taxable accounts: is the K-1 a big pain > come tax time? or not? > 2) Folks holding MLPs in tax sheltered accounts: have you ever had > more than $1000 UBTI reported? What's the consequence? Typically > what acct size should one have to worry about this? > 3) Recommendations for solid MLPs would be much appreciated. I am > looking at NAT, KMR, EEQ, LINE. > Thanks > MLP_Noob]]> Sat, 01 Aug 2009 04:55:27 -0400
1. With Turbo Tax, K-1 is straight forward for most MLPs. However, it pays to know what a partnership is, and how it is taxed, as well as the role of limited partner.

2. If UBTI exceeds $1000 (I think from all MLPs combined, not a MLP), you pay taxes from the tax-sheltered account, and it is originated by the custodian of the account. Not all custodians are happy to do this.

3. No comment.

On Jul 31 04:13 PM MLP_Noob wrote:

> Very impressed with the knowledge/experience of the commenters here
> (perhaps the point is made and its time to give the author a break).
>
> I find MLPs attractive but the discussions on tax complications elsewhere
> scary. So a few newbie questions:
> 1) Folks holding MLPs in taxable accounts: is the K-1 a big pain
> come tax time? or not?
> 2) Folks holding MLPs in tax sheltered accounts: have you ever had
> more than $1000 UBTI reported? What's the consequence? Typically
> what acct size should one have to worry about this?
> 3) Recommendations for solid MLPs would be much appreciated. I am
> looking at NAT, KMR, EEQ, LINE.
> Thanks
> MLP_Noob]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-610440 610440 Fri, 31 Jul 2009 21:50:35 -0400 http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-610315 610315 Very impressed with the knowledge/experience of the commenters here > (perhaps the point is made and its time to give the author a break). > > I find MLPs attractive but the discussions on tax complications elsewhere > scary. So a few newbie questions: > 1) Folks holding MLPs in taxable accounts: is the K-1 a big pain > come tax time? or not? > 2) Folks holding MLPs in tax sheltered accounts: have you ever had > more than $1000 UBTI reported? What's the consequence? Typically > what acct size should one have to worry about this? > 3) Recommendations for solid MLPs would be much appreciated. I am > looking at NAT, KMR, EEQ, LINE. > Thanks > MLP_Noob]]> Fri, 31 Jul 2009 18:48:19 -0400

On Jul 31 04:13 PM MLP_Noob wrote:

> Very impressed with the knowledge/experience of the commenters here
> (perhaps the point is made and its time to give the author a break).
>
> I find MLPs attractive but the discussions on tax complications elsewhere
> scary. So a few newbie questions:
> 1) Folks holding MLPs in taxable accounts: is the K-1 a big pain
> come tax time? or not?
> 2) Folks holding MLPs in tax sheltered accounts: have you ever had
> more than $1000 UBTI reported? What's the consequence? Typically
> what acct size should one have to worry about this?
> 3) Recommendations for solid MLPs would be much appreciated. I am
> looking at NAT, KMR, EEQ, LINE.
> Thanks
> MLP_Noob]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-610182 610182 Fri, 31 Jul 2009 16:13:29 -0400 I find MLPs attractive but the discussions on tax complications elsewhere scary. So a few newbie questions:
1) Folks holding MLPs in taxable accounts: is the K-1 a big pain come tax time? or not?
2) Folks holding MLPs in tax sheltered accounts: have you ever had more than $1000 UBTI reported? What's the consequence? Typically what acct size should one have to worry about this?
3) Recommendations for solid MLPs would be much appreciated. I am looking at NAT, KMR, EEQ, LINE.
Thanks
MLP_Noob ]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-609905 609905 Natural gasoline pipelines??]]> Fri, 31 Jul 2009 12:55:34 -0400
Paul, in all seriousness, you may want to take your stripes with this one and learn. Passion and diligence are essential traits for being a successful financial commentator and I think you have both. You do need to tighten your arguments, use more relevant analogies, refine the organization, polish the language and correct the factual ambiguities and errors. We work with words and they are to be clear, concise and accurate.

For example, PWE is not a 'stock' but it is 'an open-ended, unincorporated investment trust'. Stocks are shares of ownership of a company. PWE is a trust with units.

It takes courage, or stupidity, to throw your ideas into the battlefield for public scrutiny. The Seeking Alpha audience is very sophisticated. Poorly communicated or weak ideas get thrashed pretty quickly. Most read, few comment and the rare elite actually craft an article for publication. Critics are people with no legs who tell people how to run.

With experience the better your writing will become and the larger your audience. But tasty investor food attracts plenty of trolls and haters. I know as I get plenty because of my subject matter. But do not mistake the trolls for genuine constructive criticism, which I think the majority of the comments have been. Take your lumps with this article and keep on trucking; it will be water under the bridge in a week.





On Jul 28 01:18 PM User 145964 wrote:

> Natural gasoline pipelines??]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-609782 609782 Hard luck story....I bought my first shares of > KMP in April 2000 at a split adjusted price of 19 when the MLP was > paying 32.5 cents per > share. Today KMP is 52 and pays 1.05 quarterly. Over the years I > have added to the position, so my average cost is 31. In 9 years > I have received approximately my cost back in distributions and paid > a small amount of taxes. KMP is up over 50 % and the distributions > add another 100 %.... > and I still hold the security. And this is at a time when the DOW > and S&P are down... > I love KMP and I especially love Rich Kinder. > Paul, suggest you request Seeking Alpha have more customer testimonials > to the beauty of investing in MLP's, because obviously you have no > idea what you are writing about. Perhaps an MBA might be in order...or > some common sense.]]> Fri, 31 Jul 2009 11:43:30 -0400
MLPs are weird animals and any MLP can go in difficulty like any business, especially, those involved in E & P, just look at CEP. If oil/gas demand crashes, there is no use of pipes, nor enhanced recovery etc. Oil majors can pay high distributions if they were to restructure to MLP, though probably unmanagable. So the majors sell off assets that can be managed in MLPs. SXL is one example.

On Jul 31 11:04 AM rdp1 wrote:

> Hard luck story....I bought my first shares of
> KMP in April 2000 at a split adjusted price of 19 when the MLP was
> paying 32.5 cents per
> share. Today KMP is 52 and pays 1.05 quarterly. Over the years I
> have added to the position, so my average cost is 31. In 9 years
> I have received approximately my cost back in distributions and paid
> a small amount of taxes. KMP is up over 50 % and the distributions
> add another 100 %....
> and I still hold the security. And this is at a time when the DOW
> and S&P are down...
> I love KMP and I especially love Rich Kinder.
> Paul, suggest you request Seeking Alpha have more customer testimonials
> to the beauty of investing in MLP's, because obviously you have no
> idea what you are writing about. Perhaps an MBA might be in order...or
> some common sense.]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-609684 609684 Fri, 31 Jul 2009 11:04:48 -0400 KMP in April 2000 at a split adjusted price of 19 when the MLP was paying 32.5 cents per
share. Today KMP is 52 and pays 1.05 quarterly. Over the years I have added to the position, so my average cost is 31. In 9 years I have received approximately my cost back in distributions and paid a small amount of taxes. KMP is up over 50 % and the distributions add another 100 %....
and I still hold the security. And this is at a time when the DOW and S&P are down...
I love KMP and I especially love Rich Kinder.
Paul, suggest you request Seeking Alpha have more customer testimonials to the beauty of investing in MLP's, because obviously you have no idea what you are writing about. Perhaps an MBA might be in order...or some common sense.]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-609664 609664 Fri, 31 Jul 2009 10:58:49 -0400
This by itself isn't a problem. However, the general partner (which used to be publicly traded under the ticker KMI but was bought out by private equity) is currently entitled to 50% of the incremental cash flows distributed by the limited partner. This is known as being in the high splits; there are several lower tiers to incentivize the GP (which manages the pipeline) to raise distributions as fast as possible. However, when the LP issues units, the LP has to raise its distributions, and again, the GP gets 50% of the incremental distributions.

I think KMP's assets are very stable and long-lived, and that they'll be able to maintain their distribution. However, I expect distribution growth to tail off. They won't be able to sustain their past growth rates.]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-609533 609533 Fri, 31 Jul 2009 09:32:03 -0400
If he keeps writing, may be his university will take the business degree back!]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-609371 609371 Fri, 31 Jul 2009 06:57:51 -0400 http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-609310 609310 Fri, 31 Jul 2009 02:14:20 -0400
VAN LUNSEN GIL J Director 2009-06-23 Buy 1200 $43.26 16.11
DINAN CURTIS EVP, CFO & Treas. 2009-06-17 Buy 2500 $44.02 14.11
GIBSON JOHN WILLIAM Policy Committee Member 2009-06-17 Buy 5000 $44.44 13.03
PETERSEN GARY N Director 2009-03-11 Buy 3000 $36 39.53
Lawhorn Caron A SVP & Chief Acctg. Officer 2009-03-06 Buy 265 $37.1 35.39
DINAN CURTIS EVP, CFO & Treas. 2009-03-03 Buy 3000 $39.75 26.36
BARKER JOHN R EVP, General Counsel, Sec 2009-02-13 Buy 167 $50.15 0.16]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-609237 609237 Thu, 30 Jul 2009 23:38:31 -0400 http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-609190 609190 Thu, 30 Jul 2009 22:08:10 -0400 http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-609174 609174 Thu, 30 Jul 2009 21:53:46 -0400 http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-608837 608837 Thu, 30 Jul 2009 17:36:50 -0400
On "KSAccountant":

"However, OKS recently offered more shares to the public (essentially diluting my ownership) which bothers me. I continue to hold OKS because I take a long-term approach like "You're Kidding" and see that in 20 to 30 years the US Dollar will be crap and natural gas prices will return to record highs. I could be totally wrong which is why I ask all those who commented on KMP and MLPs in general for thoughts on OKS. I also hold PAA. "

It is common for MLPs to dilute stock to raise capital. Although annoying, the raised capital helps MLPs take steps towards their growth. This is important since they don't retain much of the cash flow. If used efficiently, the capital raised by dilution could be accretive to the cash flow in years to come. So it comes down to what the MLP plans on doing with the proceeds of additional shares.

Read point #5 in "You're Kidding" comment above.

In another excellent comment above by "Smackdown" you will find a link to a report from Bullmarket.com. Read that to understand what OKS does and what its exposure is to commodities is - that would be your risk (natural gas prices are sucking the life out of everyone right now, but things will hopefully change in a year or so). Other than that OKS has an excellent coverage ratio and is a solid stock in my opinion.

I would also like to point out that not all MLPs have been happy stories. Look up EROC and BBEP and see how the unit price was annihilated when distributions were reduced/cut. BBEP has recovered a bit, but EROC is still beaten down.

Long: KMP, EPD, ETP, PAA, LINE, MWE, NGLS, and TLP]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-608682 608682 Thu, 30 Jul 2009 16:25:11 -0400
However, they are not as simple as many people are lead to believe, and the rules for valuing these companies are quite different from your average dividend paying corporation. The analysis presented above is a well-stated case for commonly held misconceptions about MLP valuation and investing. The author should go back to the drawing board and learn about this special sector of the market, as I think he has the energy and intelligence to understand them and, ultimately, present an article that is interesting.

Had he presented a case for ENP or DPM to decrease or eliminate their distributions in the short run, I would have found that interesting. However, to pick KMP (the grand-daddy of MLPs and one of the least exposed to business risk) was a major error and reveals the author's fundamental lack of knowledge in this area. Also, to refer to KMP's distribution as "high" compared to the MLP universe shows that the author did not, in fact, look at the universe of MLPs. I would refer him to alerian.com to see a comprehensive list of MLPs. He should start his research there. They have an excellent primer on MLPs (the Wachovia primer is decent as well).

He will also discover that "payout ratio" is not the important metric for MLP distributions. I recommend that he looks into the metrics of "coverage ratio" and "distributable cash flow".

It was a nice try, though. Sorry you had to wade into a niche area with an inapplicable analysis. Good luck next time.]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-608668 608668 Thu, 30 Jul 2009 16:15:46 -0400
Payouts are distributions, not dividends. As such, 80% to 90% of the payout is a cash distribution that reduces cost basis.

Cash distributions are much higher than earnings primarily because of depreciation and other tax benefits.

MLPs simply can't be compared to corporations when it comes to distributions.]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-608637 608637 Thu, 30 Jul 2009 15:53:27 -0400
KMP is hurting (relatively) because they cannot sell all that CO2 that was a hot well completion stimulation commodity in the boom. You can take a wild guess what they will do with all that extra CO2 if you study their history]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-608623 608623 Thu, 30 Jul 2009 15:38:20 -0400 http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-608420 608420 Thu, 30 Jul 2009 13:48:27 -0400 Paul, I would suggest, as gently as possible, you were over your head in writing this article. I will not criticize you for writing it, but I will severely criticize your editor for allowing it to be printed in it's present form. This did a great disservice to the reputation of Seeking Alpha. It, however, did get us "Distribution" receivers energized. Personally, I have been receiving "Distributions" from the Santa Fe Pacific Pipe days, prior to Rich Kinder buying us out. This was twenty some years ago. I will not go there......]]> http://seekingalpha.com/article/151685-kinder-morgan-s-dividend-payout-rate-is-unsustainable?source=feed#comment-607931 607931 Thu, 30 Jul 2009 10:47:49 -0400