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Portfolio Management 101

 
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  • Investment Strategies For Retirees In Today's Economic Reality [View article]
    Agree with you on this one Ghiban, if you're on the cusp, yes, you may have to take some risk, and the equity portion can be defensive in nature, such as buy-write strategies or dividend paying stocks. With a defensive allocation to equities, you can certainly increase the percentage but 50% seems high to me for a retiree.
    Jan 29, 2015. 08:24 PM | Likes Like |Link to Comment
  • Investment Strategies For Retirees In Today's Economic Reality [View article]
    Ghiban, if you're currently withdrawing from your retirement account, studies have shown that the portfolio with the least amount of volatility is one with 15-25% in equities. If you're withdrawing, you don't want your portfolio to take a hit. In 2008, if you had 50% in equities, you would have lost 20% of your entire portfolio just from the equity portion. Add in the losses from fixed income that year and guess what? You're going back to work.
    Jan 29, 2015. 08:22 PM | Likes Like |Link to Comment
  • Investment Strategies For Retirees In Today's Economic Reality [View article]
    Hi Alex, I understand this was a very basic article. For an experienced investor, the article may not have added much value. But you might be surprised at how many people are not familiar with some of the basic concepts presented here. We try to cater to all levels of investment sophistication so we may not always touch on something of interest to you. However, do check out some of our more technical, research-driven articles. We had taken a hiatus and written almost exclusively for SA Pro, but we are trying to publish more articles for general distribution. As a side note, I wish that more investors would have had at least a basic understanding of diversification back when Madoff defrauded them out of their life savings. Diversification, as simple a concept as that is, was certainly lacking in the portfolios of those unfortunate enough to have invested and LOST all of their money, when a basic concept like diversification, applied correctly, would have limited those losses to say, 10% of portfolios. Still a painful loss but certainly not the end of the world. I do hope you keep reading our articles. I'm sure you'll find most of them quite interesting. Thanks for the feedback.
    Jan 28, 2015. 10:27 PM | 3 Likes Like |Link to Comment
  • Why Investing In Real Assets Is A Sound Portfolio Strategy: Using REITs To Gain Exposure [View article]
    James, absolutely. Weve written articles on Weyerhaeuser, which is a direct competitor of some of the names you mentioned. http://seekingalpha.co...
    Jan 28, 2015. 10:14 PM | Likes Like |Link to Comment
  • Why Investing In Real Assets Is A Sound Portfolio Strategy: Using REITs To Gain Exposure [View article]
    Hoisan, the percentage of your portfolio allocated to REITs really depends on your specific investment objectives and profile. There are top REIT writers on SA that cover REITs as if your portfolio should be 100% allocated to them. This would be a huge mistake. It will be interesting to see what percentage of the S&P 500 will consist of REITs when the sector is created in 2016. Having that percentage to REITs as a percent of your total equity allocation would be a 'neutral' position, with adjustments up/down depending on your specific circumstances. I'd be happy to give you a more definitive suggestion on allocation if you send me a brief investment profile: investment objectives, risk tolerance, time horizon, tax circumstances, special situations, age, etc. and what you currently have in your portfolio.
    Jan 28, 2015. 10:10 PM | Likes Like |Link to Comment
  • Why Investing In Real Assets Is A Sound Portfolio Strategy: Using REITs To Gain Exposure [View article]
    My pleasure John.
    Jan 26, 2015. 09:33 PM | Likes Like |Link to Comment
  • Thin Film Electronics: A Pure Play Investment On The Internet Of Everything [View article]
    LOL. Darn editors.
    Nov 6, 2014. 08:50 AM | Likes Like |Link to Comment
  • Ring Energy: Digging For Black Gold In All The Right Places [View article]
    Cash is $45 million.
    Oct 11, 2014. 10:05 AM | 1 Like Like |Link to Comment
  • Ring Energy: Digging For Black Gold In All The Right Places [View article]
    Sorry, they do provide operating costs, of $9.00 per BOE plus $29.05 of Depletion, Depreciation, and Amortization of $29.05. G&A is an additional $13.65, so based on that, it looks like they will still be profitable at $51, which is what I expected. Also, you asked about cash flow. For the 6 months ending in June 2014, cash flow was $0.51 per share. Once again, thanks for the questions. Will make sure I address these points in the future.
    Oct 11, 2014. 10:05 AM | 1 Like Like |Link to Comment
  • Ring Energy: Digging For Black Gold In All The Right Places [View article]
    Hi David, thanks for the questions. It was hard to get so much info on a 3900 word article but I certainly should have mentioned that the company has NO debt. Your $73 BBL result includes operational expenses as well, which, with higher levels of production, are spread out over more barrels. As they ramp up production, their margins will expand. The company doesn't specifically state what their drilling cost per barrel is but an article in the WSJ on Friday quoted other Permian drillers as being profitable with oil below $40. Given that Ring is not as big as some of the other drillers and their cost basis is higher, let's assume they are still profitable at $50 oil. Still compelling if you ask me.
    Oct 11, 2014. 09:58 AM | 1 Like Like |Link to Comment
  • Coresite Realty: It's Not Cheap, But I May Still Give Some Of My Data Dollars To This REIT [View article]
    Hi Charlie, thanks for the comment. I agree with you that the extra step is always good. I actually read some of the analyst reports that I assume are the ones whose estimates are on Yahoo. (It doesn't list them) Most of the ones I read have cautious forecasts for 2-3 years out. Expectations are for slower growth after 2015 but none of them state their forecast over the next 5 years. I'm curious as to whether the Yahoo 5 year growth forecast comes from all the analysts or just a few of them that throw these figures around like they can predict the future with 100% accuracy. None of the analyst reports I read had estimates past 2015. Even so, I do think that COR should grow faster than DLR and DFT in the long-run. I just think there could be better entry points for those trying to 'time' their investment. For the long-term investor, timing should be irrelevant and I think COR will provide a great return in the long run. Take care and thanks again for your comment.
    Sep 13, 2014. 11:46 AM | Likes Like |Link to Comment
  • Forget The Trains And Planes, Buy This Industrial REIT For A 20% Treat [View article]
    Paul, good point, but the properties they are buying have lower rates that can eventually be raised due to the value-add activities Terrreno uses...property improvements, customization, etc.
    Jul 16, 2014. 10:30 PM | Likes Like |Link to Comment
  • Forget The Trains And Planes, Buy This Industrial REIT For A 20% Treat [View article]
    Good one Brad C.
    Jul 16, 2014. 10:27 PM | Likes Like |Link to Comment
  • Forget The Trains And Planes, Buy This Industrial REIT For A 20% Treat [View article]
    Vern, why is there an 'instead of' in your question instead of a 'in addition to'. Start thinking about portfolio management. O and TRNO are different types of REITs. Why would you buy just chips when you can wash them down with a coke?
    Jul 15, 2014. 10:44 PM | Likes Like |Link to Comment
  • Forget The Trains And Planes, Buy This Industrial REIT For A 20% Treat [View article]
    Hi Bruce, I was just trying to point out that FFO per share only increased a few cents per share, even though the absolute level of FFO doubled from $2.5 million to $5.2 million. The 21.2 multiple is the reality because shareholders were diluted by the new shares. But if you looked at market cap/FFO in March 2013 compared to now, the multiple looks quite different. Annualizing the FFO in 1Q 2013 and 1Q 2014, we would get $10M ($2.5*4) for 3/2013 and $21M ($5.2*4) for 3/2014. The estimated market cap of the company was approximately $288M in 3/2013 based on 16M shares at $17.98. That equals a market cap/FFO ratio of 28.8. Compared to the current market cap/FFO ratio of around 22 ($473M/$21M).
    I hope that better explains what I was trying to say. I'll try to explainj it better in the article next time.
    Jul 15, 2014. 02:55 PM | Likes Like |Link to Comment
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