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Tom Dorsey

 
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  • Treasury Bond Bump Scares Market Into Sell-Off Of mREITs And Financial Stocks [View article]
    Let us see what the Feds say today and Wednesday (Sep 16 & 17, 2014)
    Sep 16 12:08 PM | Likes Like |Link to Comment
  • Weekly Investment Document  [View instapost]
    September Special!

    For the first 5 days of September send a request for a free copy of my "Investment Weekly". It is published every Saturday and this one is free, but a one month subscription is $15 and one year is $150. Take a look and do the math, how much could you EARN by following our advice in the right investments.
    Aug 30 07:56 PM | Likes Like |Link to Comment
  • Disappointment, But Brighter Future For Alon USA Partners [View article]
    Readers, good catch on the ALJ, sorry, I read too many articles and they overlapped. ALJ is the parent company of ALDW.

    I don't see the 3Q dividend being $1, but think $.65-$0.85 is realistic. If the company can run full operational status for 4 consecutive quarters, then I think the dividend can grow and sustain at the $1 per quarter mark.

    My buy back in will probably be after the 3Q dividend is paid in Nov-Dec., after a solid dividend and the unit price drops would be a sweet buy-in point. I cannot give you a number right now, but wait a week or two after the dividend to find the best buy-in for the quarter.
    Thanks again.
    Aug 12 01:21 PM | 1 Like Like |Link to Comment
  • Orchid Island Is A Monthly Dividend Payer Of 15% [View article]
    L9, Urbannek is correct. For the company to maintain their tax free status as a REIT, they must pay 90% of taxable income (earned income) on their financial report or lose their status. This is important to us investors because. If the company pays no tax it looks like this. Earned income with payout of 90% or better to investors, then we are taxed on the amount as earned income on our personal income tax reports. (100 x .20 tax = I keep 80%). A non-REIT company pays their corporate tax (100 x .15 tax to gov is 15%, I get = .85 that is paid to me and then I pay the personal tax looks like this. (.85 x .20 tax = I keep only 68%). REITs allow investors to keep more than a company that does not have this special tax-free status. So to answer your question, I want them to pay out at least 90%, and the last 10% is up to the board if they can invest it better to make me more money, or better to pay it out based on the current market conditions.
    Aug 10 08:18 AM | 2 Likes Like |Link to Comment
  • American Capital Agency Corp. Grows Toward The Future [View article]
    Gents, Bob Anderton is correct. The last 3 quarterly dividends and this coming dividend is the fourth quarter in a row at $0.65. My error came from a site called dividendchannel.com that reported a dividend on Mar 25, 2014 and March 27, 2014. Thank you for the correction. My point is still valid that the company is profiting near this dividend rate over the last year and we expect it to continue. Thanks for the correcting me on the numbers.
    Aug 7 09:01 PM | Likes Like |Link to Comment
  • Double-Digit Return On CYS Investments Even Better [View article]
    Readers,

    I will elaborate on my description using CYS since the ex-date.

    If you look at the stock price, CYS closed at $9.16 on the ex-date (Jun 19). The dividend was $0.32 which would open the following day at $8.81. The market supply and demand let the share price drop to close at $8.66 on July 7th. That is a $0.50 drop which is a great buy in price. The low on July 7 was actually $8.62, but I try to use the open/close numbers for a more realistic look.

    Hope this helps.
    Jul 16 03:44 PM | Likes Like |Link to Comment
  • Investment In Armour Residential REIT Nets Profitable Double-Digit Gains [View article]
    Joe,

    Good question.

    In general, these companies borrow millions or billions of dollars and when the cost if money (interest rates go up), the cost of borrowing goes up. Anything they currently have borrowed the investments are locked in. Many companies have hedge investments that if interest rates go up, their hedge investments will make more money, trying to offset their losses.
    Jul 14 12:32 PM | 1 Like Like |Link to Comment
  • Interest Rate Increase Not Likely During 2014 [View article]
    Readers,
    Great comments. Your additional points support my position that we - do not believe interest rates will go up soon. I do not disagree with many of your points, just could not squeeze everything into the article. On the flip side, we should be looking for indicators that could signal a change that may allow the Feds to begin raising the rates. Thanks for all your comments.
    Jun 25 08:00 AM | 1 Like Like |Link to Comment
  • Western Asset Pays Another 18% Dividend For Q2 2014 [View article]
    Readers, thanks for the comments. many are spot on. If you follow the 90 day cycle I discuss, you will see the stock price peaks just before the ex-dividend date, then bottoms about a week to 4 weeks after, then begins the climb again to the next dividend.

    You are spot on with the interest rate risk. If interest rates rise it will cost more to fund the current borrowing, however, the Feds have constantly stated they plan to hold interest rates low for 2014 and into 2015. At some point they will rise, but the Feds are aware of the effects when they do let them climb. The rate should climb slowly, not to effect the markets ability to borrow and loan money.

    Have a great day, and thanks for the comments.
    Jun 21 01:54 PM | 3 Likes Like |Link to Comment
  • Strength In ARMOUR Residential REIT's Portfolio - May 2014 SEC Filing [View article]
    Great comments, I will address 2 points you ask questions on.

    1. ARR is a good buy and hold stock. If you reinvest your dividends, you can grow the value over 10% (13 right now). If you take the cash, you can create a cash machine that pays a steady, month allowance.
    1b. Both the preferred are paying over 8%, but they are preferred and have the set payout spelled out in the prospectus. If you are comfortable with ARR, the common shares are paying much better, but as you saw in May 2013, the value (stock price) can drop.

    2. the drop in dividends was due to the market and that drove the stock prices down as well. As the federal government keeps the interest rates low, the effect on the ability of companies to make more money is also there. There is no perfect model or no perfect investment. As you can see many readers/investors, (I am one also) invest because we believe the stock will continue to be profitable. Each quarter and annual report continues to support our belief. If and when market conditions change, and the will, all companies will adjust and so will ARR. How well they do will effect our return on our investments.

    Thanks again to all my readers.
    Jun 2 08:29 PM | 1 Like Like |Link to Comment
  • Now Is The Right Time To Consider Northern Tier Energy [View article]
    Jazz, I see you like Option 2. This is the method I use also, but I share different thoughts for different types of investors.

    Thanks to all of you for great comments.
    May 16 06:23 PM | Likes Like |Link to Comment
  • A New Solution For Fannie And Freddie [View article]
    Komodo Global, interesting thought process, but Congress, (who writes the laws and will at some point in the future be required to write standards for F&F to leave conservatorship), has not embraced anything from your story. I think you have some good points, but draft documents on the future of F&F, from both parties from the House and the Senate have a focus of winding down F&F and standing up a new program that will be extremely different than you describe. There is no support from the Administration or Congress to change the Third Amendment that sweeps all the profits into the government's treasury. I have been the bearer of bad news, as many have disagreed with me here is SA, but your path ahead is not the same as Washington's. Thanks for your insight.
    Apr 29 08:40 AM | 2 Likes Like |Link to Comment
  • Buy Cornerstone Progressive Stock At A Discount [View article]
    Chris,
    Yes, contact the company through their website or the phone number in the article. Thanks for following.
    Apr 22 09:17 AM | Likes Like |Link to Comment
  • Sandridge Mississippian Trust II: Oversold And Returns 24% Dividend [View article]
    Ritalia,
    The price of the stock has dropped, which pushes the yield up, but the dividend the company will pay will remain strong for several more quarters. With SDR, the parent co, SD, is close to fulfilling all the requirements for the number of wells. Once this happens, the production of the wells will decrease over time and the dividends will decrease.
    In my opinion, I think the price has dropped to soon and there is still value in the stock that investors can reap. At some point in the future the dividends will drop, forcing the stock price to decrease also.
    Thanks for your comment, have a great day.
    Apr 17 11:37 AM | Likes Like |Link to Comment
  • Fannie Mae repays Treasury, and more [View news story]
    I could not agree with everyone here, I WANT TO SEE the GSEs returned to the PEOPLE (owners = shareholders).

    That said, the lawmakers (general term) in DC are the same guys that spend our taxpayer money wrecklessly and want to keep their cash cow as long as possible.

    In my humble opinion, the way ahead includes a court victory for the stock holders (with multiple appeals) and after many years, the courts will direct Congress and FHFA to create a plan that restructures the GSEs. I do not believe the solution will include repaying the current stock holders any returns. That would be an admission of guilt, and not likely in the US Govt.

    I agree and want FNMA and FMCC to be returned to the stock holders, but don't see it happening. Outside of complaining, does anyone see a different set of events for the GSEs?
    Feb 21 09:43 AM | 1 Like Like |Link to Comment
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37 Comments
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