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Tim McPartland  

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  • Forget High Yield, How Risky Are Your Other Bond Funds? [View article]
    Hi Gregg--one item you are overlooking is the 'leverage' that CEFs carry--if their asset values fall too far they will be in violation of Section 18 of the SEC Act of 1940. This is already close to happening in many CEF's--in particular in the MLP arena.

    CEFs must maintain a 300% asset coverage ratio on debt or they are not allowed to declare distributions. Falling values mean they may have to liquidate holdings to pay down debt which only adds to the issue as it drives values down. A vicious circle of sorts. I just covered this issue on my website.

    This tends to become a problem just in panic situations--although in 2008 and 2009 it did become an issue and caused bunches of pain
    Oct 2, 2015. 08:49 PM | Likes Like |Link to Comment
  • American Capital Agency: The 8% Yielding Preferred Stock Is Not Looking Bad At All [View article]
    thales23--all dividends of REIT preferreds are taxed at ordinary income tax rates (non qualified for preferential treatment).
    Sep 24, 2015. 03:49 PM | 2 Likes Like |Link to Comment
  • I Pity The Fool That Chases Fool's Gold, Invest In REIT Preferreds [View article]
    Thanks for the article Brad. The SOHO issues are debt though and not preferreds. I understand that folks use the word 'preferreds' interchangeably, but clearly there is quite a bit of difference--in particular with maturities and duration risk.

    Take care.
    Sep 4, 2015. 12:57 PM | 2 Likes Like |Link to Comment
  • Annaly Capital Preferred As A Superior Investment To The Common [View article]
    Nice article Justin. It, of course, remains to be seen how the preferreds will react in the potential rising rate environment which lays just ahead (maybe). We certainly know that the perpetuals have almost breathtaking interest rate risk, in particular if we were to get a inflation in the years ahead--but crystal ball forecasts on this potential have been cloudy at best.

    Keep up the good work.
    Aug 11, 2015. 05:22 PM | 1 Like Like |Link to Comment
  • It's Not Rocket Science: STAG Is Now Grossly Mispriced [View article]
    You got it Archman.
    Jul 29, 2015. 11:06 AM | 1 Like Like |Link to Comment
  • Annaly Capital: Why Not Buy The 7.73%-Yielding Series D Preferred Stock And Reduce Portfolio Risk? [View article]
    All dividends on preferred stocks of REIT's are non-qualified dividends.
    Jul 9, 2015. 03:49 PM | 2 Likes Like |Link to Comment
  • Forget The Underdog, CorEnergy Is A Cinderella Story [View article]
    Any interest from debt is ordinary income. Additionally preferred stock of a REIT pays dividends that are ordinary income.
    Jun 25, 2015. 02:52 PM | 1 Like Like |Link to Comment
  • Keep Manhattan, Just Give Me The Countryside [View article]
    Brad--thanks for the balanced article on FPI. Risk/reward continue to be too high for me and I think we are at a critical juncture in the aq economy as we enter a 3rd crop year with very low commodity prices. Good Luck.
    Jun 12, 2015. 08:25 AM | Likes Like |Link to Comment
  • Wait For Realty Income To Fall $9 Before Buying [View article]
    Thanks Tim--don't own O at this moment and am very patient waiting for an entry point. I am looking for an entry more in the $40-$42 area--of course subject to change based on the macro economic outlook at that time.
    May 22, 2015. 12:06 PM | 4 Likes Like |Link to Comment
  • A 6.4%+ Yielding Preferred From Citigroup That Can Benefit From Rising Rates [View article]
    Wow Josh--you missed on this one. With what we know and see today this issue will be instantly called when possible.
    Apr 18, 2015. 01:27 AM | 1 Like Like |Link to Comment
  • 4 Critical Notes On Farmland Partners [View article]
    Excellent observations Bram. Thanks for the critical look. This management team is full of pixey dust stories that appear to be quite arrogant. You are on the mark to look with a critical eye instead of accepting their spoken word.
    Apr 14, 2015. 11:10 AM | 4 Likes Like |Link to Comment
  • Farmland Partners: 2 Things You Need To Know About Farmland Investing [View article]
    Thanks Reuben-

    One should not even consider FPI unless they are planning to hold for a very long time--farm land values can go through extremely long cycles of valuation (as long as 10-15 years) and thus rents can vary substantially--over longer terms. The current commodity prices do not justify the rents being paid to FPI and while a contract in place for land rents holds more value than a new lease, just like oil and gas contracts, leases 'roll off' and new rents are negotiated--in the current market at a lower price. The next 12 months will be critical to the farm economy as many (most) farmers are losing money with every acre planted.

    I believe that FPI will be coming to market pretty soon with more common shares as they will need more cash if they are going to grow. Their recent acquisitions have been combinations of shares and cash. They have recently started borrowing longer term from Farmer Mac -- recently at somewhere around 3.7%, which while seemingly a low rate is being used to buy land at a cap rate of maybe 5%. They have promised a 60% leverage level which means they are going to have to sell shares or buy for all shares. Additionally their approved buyback was an attempt to jawbone share prices higher since they haven't bought a single share in the since October when they announced the buyback.

    You would think I was negative on FPI from my comments, but really I am just negative at this price as the risk/reward proposition isn't favorable---I'm a buyer at $8/share.
    Apr 10, 2015. 10:34 AM | 4 Likes Like |Link to Comment
  • Exploring Investment Grade Baby Bonds [View article]
    Hi puck--thanks again for stopping. Yes the old 2014 portfolio here

    that we just liquidated had a short S&P500 hedge that cost us thousands as the market went up and up. We have never had luck with hedges--just costs. Just the same that portfolio performed exceptionally - up over 13% in 15 months.

    We personally don't have hedge (but we have tried some--unsuccessfully) and wouldn't have any that we could mention--BUT don't use ultra (2x, 3x) issues that are out there---very painful when you are wrong (wrong or bad timing)
    Apr 1, 2015. 06:00 PM | 1 Like Like |Link to Comment
  • Exploring Investment Grade Baby Bonds [View article]
    Hi Bernie--thats for stopping. I am a capital preservation guy--the coupon is not the first factor. You better have a high pain tolerance if you buy for just yield---I know of some folks that put everything in upstream MLPS last year--they are much poorer now.

    Yes we are aware of the situation of first call dates and prices above par. We are making folks aware of the instrument that is available. It takes some patience and months and months to nail down just a few good.

    On the other hand if one has a point of view that rates will move higher in the next year or two they will have more options
    Apr 1, 2015. 05:52 PM | 2 Likes Like |Link to Comment
  • Exploring Investment Grade Baby Bonds [View article]
    We will check this one out. Sounds interesting.
    Mar 31, 2015. 03:55 PM | 1 Like Like |Link to Comment