Rip2451, are you looking at the same chart as I am? EPD & MWE both have lower cost of capital and are running circles around the Kinder complex on an annualized basis.
I use common sense when it comes to most of this stuff. A stock may be riding high now - but if the facts don't justify its valuation, things will correct on their own time line. :)
Many MLP's have run up due to the low T-Bond markets.
The owners versus LP's issue will resolve itself. Plenty of quality info out there on the subject real time.
MWE/EPD - companies who want to serve share holders and reduce cost of capital - remove IDR's. That's the bottom line. MWE/EPD didn't take their actions because it was a sunny day. :)
Richard Kinder & Goldman (owners of KMI) want the IDR's for their self-interests. They could remove the IDR's within 2-months time - if they wanted too but its their golden goose. TJ
Caveat: I love spin offs. John Fredriksen, however, does so many that I am skeptical (fro,sfl). Keep the companies alive in my mantra. But preaching against a billionaire lacks any credibility. ;)
It's just one company in the mega-empire. We shall see the value. FRO at one time was king of the hill. As with the spin offs we know there is more to be announced on this deal. TJ
"....The Oslo-listedplayer, controlledby shipping billionaire John Fredriksen, also saidit aims to expandits role in oilfield services through a possible joint investment with pipelay vessel contractor SapuraCrest, in which it already holds a 23.6% stake.
Seadrill looks set to throwthree semi-submersible drilling rigs into the entity which is to be spun off, according to a report in Reuters citing chief financial officer Esa Ikaheimonen.
The finance boss earlier toldUpstream that Seadrill was engaged in a restructuring in Brazil that wouldsee Seabras emerge as the holding company for its local operations andthe vehicle for a possible listing...."
3 Wicked Reasons To Buy Mortgage REITs Today [View article]
Ahedfraz,
Nope, it shouldn't. Book value will increase. GSE MBS is very, very liquid. If AGNC trades at a major discount to book value per share, they can announce a stock buyback which would be accretive to shareholders.
If dividend is decreased 50% (hypothetical to make a point), it still is in the top 10% of dividend yields. Secondly the assets on its balance sheet are the most sough after assets at the present time.
Philip Morris: My Favorite 2012 Dividend Stock Idea [View article]
HI Uain53,
Your "philosphical qualms", "social concerns" are 100% respected by me. Bottom line.
I have friends/family who have been impacted by cigarettes. They wanted to smoke - so it was their choice. In the U.S., anybody over the age of 50 or 60 has known about the risks for awhile. Some people drink booze; eat the Wendy's 4000-calorie Baconator (ok, I do on occassion.....); and who knows what else people do that isn't healthy. Horse racing, prostitution (Nevada), casinos (every state but Utah as far as I know), lottery impacting the poor more than any other group ---- a lot of vices out there.
I respect your views - 100%. My point is the government won't bail out Joe Sixpack ----- but will bail out a $10 billion bank. If that's the playing field we are dealing in, then I think all bet's are off.
I only play to win in a market that is a bit fixed, against me, at times.
6 Must-Buy Justifications To Buy Linn Energy [View article]
Bigazul,
Yes, awesome point. If there is a MLP - and one is worried about UBTI, etc, call investor relations to see what the past 2-3 years have been. They can provide an idea of what this year's UBTI will be - in some cases.
CYS: A High-Yield mREIT To Invest In Now [View article]
Hi David,
Am I "locking in gains". Yes. I take it when I can get it. ;)
Having said that, I am selling options on open positions for credit cash flow for income and to pay for my hedges.
I'm a simple person, truly. I am not greedy. Thus if I have a 10% profit in 3-weeks, I'll take it. It's not sophisticated - just stuff you learn the hard way.
I remember a relative I had (won't mention his name in case he reads this) who made a fortune on paper with a stock. He was involved in the horse race industry and the computerized ticketing service. He was given private placement shares: cost under $1. The stock rose to $50-$60/share. Then it started to fall, gradually. It went bankrupt because of accounting fraud - so if the profit is more than fair, I'll take it. This would have been a life-changer trade. One doesn't know what tomorrow offers.
On the other side, if it's not a core position, then I'm quick to exit if not hedged.
Todd
PS: I don't bring up the above stock around the holidays....
My Ray Dalio-Inspired Income Investing Strategy [View article]
Second look, Ray is up 25% on 122-billion this year via long gold and long Treasuries. Ray's principles: http://bit.ly/qpn37E
Could anything go wrong with my assumptions, my positions, my net return? Yes.
But that's what it is all about. I assume usdebtclock.org has ramifications. I assume a 0% Treasury yield has ramifications. I assume deleveraging Europe and leveraging in growing economies have ramifications.
I'm willing to put my money where my mouth is. I follow winners like Ray, Marty Whitman, Einhorn. Coulda, woulda, shoulda don't pay the bills.
5 Reasons To Seriously Consider Enterprise Products Partners [View article]
Hi J. Stack,
I think some people remember years ago when the tax reporting was so complicated. The MLP industry has really moved forward to ensure the data is easily uploadable into tax software programs.
Receiving high-yield distributions & growing annually - is my kind of easy to understand investment.
2 MLP Dividends To Buy, 3 To Avoid [View article]
2 MLP Dividends To Buy, 3 To Avoid [View article]
I use common sense when it comes to most of this stuff. A stock may be riding high now - but if the facts don't justify its valuation, things will correct on their own time line. :)
Many MLP's have run up due to the low T-Bond markets.
The owners versus LP's issue will resolve itself. Plenty of quality info out there on the subject real time.
MWE/EPD - companies who want to serve share holders and reduce cost of capital - remove IDR's. That's the bottom line. MWE/EPD didn't take their actions because it was a sunny day. :)
Richard Kinder & Goldman (owners of KMI) want the IDR's for their self-interests. They could remove the IDR's within 2-months time - if they wanted too but its their golden goose. TJ
TJ
Seadrill Offers Enticing 8.9% Dividend Yield [View article]
Caveat: I love spin offs. John Fredriksen, however, does so many that I am skeptical (fro,sfl). Keep the companies alive in my mantra. But preaching against a billionaire lacks any credibility. ;)
It's just one company in the mega-empire. We shall see the value. FRO at one time was king of the hill. As with the spin offs we know there is more to be announced on this deal. TJ
Seadrill eyes semi trio for Brazil float
http://bit.ly/yADhnk
"....The Oslo-listedplayer, controlledby shipping billionaire John Fredriksen, also saidit aims to expandits role in oilfield services through a possible joint investment with pipelay vessel contractor SapuraCrest, in which it already holds a 23.6% stake.
Seadrill looks set to throwthree semi-submersible drilling rigs into the entity which is to be spun off, according to a report in Reuters citing chief financial officer Esa Ikaheimonen.
The finance boss earlier toldUpstream that Seadrill was engaged in a restructuring in Brazil that wouldsee Seabras emerge as the holding company for its local operations andthe vehicle for a possible listing...."
Why I'd Avoid These 5 14.2% And Greater Dividend Stocks [View article]
There are some investors (me) who don't invest in a company without understanding the risks.
Todd
3 Wicked Reasons To Buy Mortgage REITs Today [View article]
Nope, it shouldn't. Book value will increase. GSE MBS is very, very liquid. If AGNC trades at a major discount to book value per share, they can announce a stock buyback which would be accretive to shareholders.
If dividend is decreased 50% (hypothetical to make a point), it still is in the top 10% of dividend yields. Secondly the assets on its balance sheet are the most sough after assets at the present time.
TJ
Philip Morris: My Favorite 2012 Dividend Stock Idea [View article]
Your "philosphical qualms", "social concerns" are 100% respected by me. Bottom line.
I have friends/family who have been impacted by cigarettes. They wanted to smoke - so it was their choice. In the U.S., anybody over the age of 50 or 60 has known about the risks for awhile. Some people drink booze; eat the Wendy's 4000-calorie Baconator (ok, I do on occassion.....); and who knows what else people do that isn't healthy. Horse racing, prostitution (Nevada), casinos (every state but Utah as far as I know), lottery impacting the poor more than any other group ---- a lot of vices out there.
I respect your views - 100%. My point is the government won't bail out Joe Sixpack ----- but will bail out a $10 billion bank. If that's the playing field we are dealing in, then I think all bet's are off.
I only play to win in a market that is a bit fixed, against me, at times.
TJ
AT&T: My Stock Pick Of 2012 [View article]
Good stuff. Thanks,
Todd
Why Oil And Energy Stocks Are Set For A Massive Fall [View article]
Not to hard to predict you are the man to read on SA. Your articles on point, actionable, intellectual, and must read. Period.
TJ
6 Must-Buy Justifications To Buy Linn Energy [View article]
Yes, awesome point. If there is a MLP - and one is worried about UBTI, etc, call investor relations to see what the past 2-3 years have been. They can provide an idea of what this year's UBTI will be - in some cases.
Todd
6 Must-Buy Justifications To Buy Linn Energy [View article]
LINE is just taking care of business 365-days a year. Steady, nothing flashy, but delivers results.
TJ
3 Reasons To Avoid Energy Transfer Partners [View article]
Yes, this MLP may be 100% ok acceptable for many. You may note the other posters don't provide any proof of their "concerns". ;)
A high yield with little growth - due to the GP IDR - is fine to many investors.
I'm only suggesting why I wouldn't buy the MLP. The returns have not justified ownership in recent years - in my opinion.
Todd
CYS: A High-Yield mREIT To Invest In Now [View article]
Am I "locking in gains". Yes. I take it when I can get it. ;)
Having said that, I am selling options on open positions for credit cash flow for income and to pay for my hedges.
I'm a simple person, truly. I am not greedy. Thus if I have a 10% profit in 3-weeks, I'll take it. It's not sophisticated - just stuff you learn the hard way.
I remember a relative I had (won't mention his name in case he reads this) who made a fortune on paper with a stock. He was involved in the horse race industry and the computerized ticketing service. He was given private placement shares: cost under $1. The stock rose to $50-$60/share. Then it started to fall, gradually. It went bankrupt because of accounting fraud - so if the profit is more than fair, I'll take it. This would have been a life-changer trade. One doesn't know what tomorrow offers.
On the other side, if it's not a core position, then I'm quick to exit if not hedged.
Todd
PS: I don't bring up the above stock around the holidays....
My Ray Dalio-Inspired Income Investing Strategy [View article]
Could anything go wrong with my assumptions, my positions, my net return? Yes.
But that's what it is all about. I assume usdebtclock.org has ramifications. I assume a 0% Treasury yield has ramifications. I assume deleveraging Europe and leveraging in growing economies have ramifications.
I'm willing to put my money where my mouth is. I follow winners like Ray, Marty Whitman, Einhorn. Coulda, woulda, shoulda don't pay the bills.
Best, Todd
5 Reasons To Seriously Consider Enterprise Products Partners [View article]
I think some people remember years ago when the tax reporting was so complicated. The MLP industry has really moved forward to ensure the data is easily uploadable into tax software programs.
Receiving high-yield distributions & growing annually - is my kind of easy to understand investment.
Thanks for the feedback.
Best, Todd
5 Reasons To Seriously Consider Enterprise Products Partners [View article]
This is a blue chip MLP. This is a winner long-term. Thanks again, and good to hear from you.
Todd