A Unique Class Of Preferreds: The Perfect Income Security? [View article]
Your comment about Auction Rate Preferreds is a good one. The advantage here is that the fund MUST redeem if the ratio falls below 2:1 and their collateral is common stock which, of course, is VERY liquid. TYG, for example, recently had a coverage ratio of over 10:1!
Some people already know about this benefit but I thought that there were definitely people out there who did not. I am pleased that I could help you with your strategy on what is a great investment area!
InterOil: Setting The Record Straight [View article]
Are you stating that there will be a substantive decision when the NEC meets this week. I have long been frustrated by what's coming with IOC and it never does. I would appreciate someone making a call and standing by it.
Also, I am somewhat of a novice with respect to SEC regulations but your statement "It would certainly make sense for Shell to buy up to 20% of InterOil's common stock in the open market" begs a question. Wouldn't RDS be required to file with the SEC if it acquires 5% of IOC. You seem to imply that they could acquire 20% in the open market but I'm not sure they can do that without full disclosure...
See http://bit.ly/V2t32E for a better explanation on evaluating REITs and the use of FFO (Funds from Operations). Earnings are not a good measure for this type of entity. For the three months ending 9/30/12 FFO was $0.54 per share and the dividend appears safe.
I think that you miss the main thrust of the Act. Pandora is trying merely to pay no more than terrestrial radio. The artists have no say currently as the rate is mandated by the panel. I see no common sense reason why one distribution method (internet) should pay significantly more than another (terrestrial). Your analysis of access to songs is also misplaced. On Pandora a listener does not have the option of choosing a song or even a particular artist. The system provides the songs and, unless you subscribe, you may only "skip" a limited number of songs per hour. While you can certainly tailor your "station" you are still provided content by P, just as you are with radio. While I have my own concerns about P's business model, I think that you are not properly framing the argument here.
Opko Health: Shorting Is The Best Diagnosis [View article]
I heartily agree with Pablo. You may choose not to be long OPK but to short it in the face of monthly purchases by Frost who could buy the entire float if he so chose? I doubt that you will see enough of a drop to make a short at these levels very profitable unless your timing is very good in light of its normal volatility. As they say, don't fight the fed and in this case, don't fight Frost, just choose not to participate.
A Unique Class Of Preferreds: The Perfect Income Security? [View article]
Anathan, one more point. The coverage ratio here has nothing to do with market price and any premium or discount thereto. The ratio is calculated purely on NAV providing even more protection to the holder of these securities.
A Unique Class Of Preferreds: The Perfect Income Security? [View article]
Thanks so much for your kind words Bob. It's easy to push normal dividend stocks as there really isn't much effort required in "discovering" them. I have long thought that finding "out of the box" opportunities will pay off in the long run.
A Unique Class Of Preferreds: The Perfect Income Security? [View article]
Very true, modern computing has allowed much of the inefficiency to be "arb'd" out. As these securities are not based on NAV, I am pretty comfortable owning them. The only realistic risk that I can see is your risk to call depending on the premium paid. That being said, I am a big fan of purchasing CEF's at the low end of their historical premium/discount range.
Shares of plantation owner Sino-Forest (SNOFF.PK -60%) plunge after a report from Muddy Waters questions the company's accounting and land holdings. Sino-Forest's largest shareholder is Paulson & Company, which owned 34.7M shares as of April 29. [View news story]
This would be pretty big news if Paulson was caught up in the Chinese reverse merger phenomenon. At least one analyst will likely be losing his job today and it pierces the perception that Paulson can do no wrong. What does it say about his due diligence if he was taken in by a fraud. Of course allegations and fact are two different things but definitely makes for interesting water cooler talk...
4 Scary Charts Warning Of The Next Financial Crisis [View article]
That has been the argument for the short treasuries strategy. It will be right at some point but many very wealthy people have lost a great deal trying to time that trade...
4 Scary Charts Warning Of The Next Financial Crisis [View article]
A Unique Class Of Preferreds: The Perfect Income Security? [View article]
American Capital Agency Corp.'s Detailed Dividend Sustainability Analysis [View article]
MLPs And The Hidden Benefit [View article]
Google Punkslaps Apple - Cook Makes Strategic Error [View article]
InterOil: Setting The Record Straight [View article]
Also, I am somewhat of a novice with respect to SEC regulations but your statement "It would certainly make sense for Shell to buy up to 20% of InterOil's common stock in the open market" begs a question. Wouldn't RDS be required to file with the SEC if it acquires 5% of IOC. You seem to imply that they could acquire 20% in the open market but I'm not sure they can do that without full disclosure...
The Obama REIT: A Secure 7% Yield [View article]
This Pandora Rally Screams Caution [View article]
Opko Health: Shorting Is The Best Diagnosis [View article]
A Unique Class Of Preferreds: The Perfect Income Security? [View article]
A Unique Class Of Preferreds: The Perfect Income Security? [View article]
A Unique Class Of Preferreds: The Perfect Income Security? [View article]
Shares of plantation owner Sino-Forest (SNOFF.PK -60%) plunge after a report from Muddy Waters questions the company's accounting and land holdings. Sino-Forest's largest shareholder is Paulson & Company, which owned 34.7M shares as of April 29. [View news story]
4 Scary Charts Warning Of The Next Financial Crisis [View article]
MLPs And The Hidden Benefit [View article]