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  • Magellan Midstream Partners' Great Q3 That No One Seems To Care About [View article]
    Logic just won't prevail as the tide continues to move out on lower oil prices. I continue to just keep adding to my only 2 MLP positions; MMP and CMLT with each dip in oil prices.
    Nov 12, 2015. 01:42 PM | 1 Like Like |Link to Comment
  • 4 Reasons To Buy Compass Diversified Holdings Along With The Insiders [View article]
    I have owned CODI for nearly 3 years for many of the reasons cited in this article. Their dividends are reported to shareholders on a K-1 as interest income which is why I hold it in my IRA. As to their acquisitions and divestures,.. "they know when to hold them and know when to fold them".
    Sep 18, 2015. 11:14 AM | Likes Like |Link to Comment
  • General Mills sells Green Giant business to B&G Foods [View news story]
    The Green Giant brand has seen its better days. GIS inherited it from the Pillsbury acquisition. It never really gained any traction. Back in the mid nineties, they licensed the brand to a fresh produce operator with the goal of enhancing their fresh and healthy image. Licensing revenue was chump change to GIS. The clear trend is private label. It's not easy peeing green.
    Sep 6, 2015. 10:30 AM | 3 Likes Like |Link to Comment
  • I Pity The Fool That Chases Fool's Gold, Invest In REIT Preferreds [View article]
    I like the firewall provided by preferred REITs. Because REITs must distribute 80-90 percent of their cash flow in their dividends, the dividends on the preferred issues are virtually guaranteed unless the underlying REIT totally tanks.
    Sep 5, 2015. 12:30 PM | 1 Like Like |Link to Comment
  • Plains All American - An Undervalued MLP Opportunity [View article]
    As a former MLP junkie with over a dozen names in my taxable portfolio, I have since pared down to the best of breed; PAA and MMP. While not nearly the highest yielders in the space, astute management of DCF (Distributable Cash Flow) helps me sleep at night.
    Jan 9, 2015. 08:00 PM | 1 Like Like |Link to Comment
  • Vanguard Natural Resources: Significant Value Can Be Found In The Preferred Units [View article]
    While all Preferred issues bear interest rate risks, those of MLP's and REIT's offer an additional measure of security. That being the suspension or cut of the dividend must be preceded by a complete elimination or suspension of the distribution of the common units. For that to happen, the underlying company is probably toast.
    Dec 28, 2014. 11:11 AM | 1 Like Like |Link to Comment
  • Use Common Cents When Evaluating The Preferred Stocks Of Health Care REIT (HCN) [View article]
    Lighthouse Financial Services. They work in partnership with TD Ameritrade. A small shop with only 9 employees. If you are interested in their contact information, please send me a private message.
    Nov 4, 2014. 09:52 PM | Likes Like |Link to Comment
  • Use Common Cents When Evaluating The Preferred Stocks Of Health Care REIT (HCN) [View article]
    The "floor" is created by the competitive yield that exists on the issue even after throwing out throwing out the conversion benefit, or lack thereof. There are many convertible preferreds on the market whose conversion rates are astronomically out of the money, but still have dividend yields that keep their face values from falling into the abyss.
    Nov 4, 2014. 03:31 PM | Likes Like |Link to Comment
  • Use Common Cents When Evaluating The Preferred Stocks Of Health Care REIT (HCN) [View article]
    ... which is why I was neutral about the series "J" Preferred which was $1.00 over the call price of $25.00 at the time of writing this article.
    Nov 4, 2014. 03:01 PM | Likes Like |Link to Comment
  • Use Common Cents When Evaluating The Preferred Stocks Of Health Care REIT (HCN) [View article]
    Hi Jim, thanks for reading my article.

    HCN series "I" is a perpetual preferred and thus does not have an actual call date like a traditional preferred. The $50 that you refer to is actually the liquidation preference price to be paid to the holder upon liquidation of the company. As I pointed out in my conclusion to the article, this is a complex instrument. On or after 4/20/18 the parent company has the option to convert the preferred shares to common shares if the price of the common exceeds 130% of the conversion price which initially was $59.10. The actual conversion price may be adjusted in the future due to new stock offerings, splits, etc. Meanwhile, the holder of the Preferred can convert each Preferred share at any time to .846 common shares up to 4/20/18. The pospectus spells this out in detail, but a more readable summary can be found at
    Nov 4, 2014. 02:24 PM | Likes Like |Link to Comment
  • Health Care REIT with secondary; details acquisition pipeline [View news story]
    Market overreactions to secondary offerings of REIT's and MLP's seem to be commonplace. While it is always frustrating for existing shareholders to see these reductions in market price, investors need to understand the differences between these classes of assets as opposed to traditional common stocks. C corps can fund their growth through retained earnings as they have no statutory obligation to return cash to shareholders in the form of dividends. REIT's on the other hand must return 90% of otherwise taxable income to shareholders in order to maintain their tax exempt REIT status. Because they have limited retained earnings, the only way REIT's can increase dividends to the stakeholders is by increasing rents or through adding debt or new equity to finance expansion.

    For example, if I owned three single family homes that generated $30,000 in net rental income, there are three ways that I can increase that income. 1) Raise rents 2)Borrow money to buy more properties 3) Buy more properties using available cash. Considering that most all ready cash in a REIT structure has already been distributed to the stakeholders, only options 1 and 2 are available to grow the income stream.
    Sep 13, 2014. 01:23 PM | Likes Like |Link to Comment
  • Update: GE Nears Deal To Sell Appliance Business To Electrolux For $2.5 Billion [View article]
    I get the Electrolux purchase of the manufacturing assets but what about the GE brand? Anyone know if licensing the brand is part of the deal? Mr. Wonderful on the Shark Tank would say, keep your $2.5 Billion (25 cents a share) and just pay me a royalty. The legacy value of the GE brand vs Electrolux cannot be compared. I have had many GE products, not all good, but mostly OK with a broad service network. My limited experience with Electrolux branded products has been horrible.
    Sep 7, 2014. 02:22 PM | Likes Like |Link to Comment
  • An Outperforming High-Dividend Stock With Multiple, Safe High Yields Over 6% [View article]
    I discovered PSA Preferred's a couple of years ago and I continue to add to my positions. IMO, they are contenders for the best of breed in the entire Preferred universe. I penned a SA article on these issues a year ago and my outlook has not changed. I always look for strength in the Common dividend as a measure of safety for the sustainability of the Preferred dividend. PSA Preferreds are also rated Investment Grade, which further bolsters my confidence in these issues.
    Aug 24, 2014. 12:00 PM | 1 Like Like |Link to Comment
  • Orchids Paper Products A Paper Tiger, But In A Good Way [View article]
    Just listened to the conference call after seeing the stock price fall out of bed this morning. The call was off to a rocky start with a lot of nervous tension being displayed by both the CFO and CEO as evidenced by the constant throat clearing. They should have done a better job in anticipating some of the tough questions being posed in the Q&A session, particularly those relating to the announced store closings (30%) of their second largest customer, Family Dollar. However, Jeff Schoen (CEO) seemed to eventually hit his stride. The upshot seems to be a commitment to dramatically expand the company to that of a national supplier as opposed to a private label producer shipping only to destinations within 500 miles of their single production facility. The commitment seems strong to at least maintain the dividend, now at 5.25%, however prospects for near term dividend growth are in question. Only 200,000 shares traded so far today, well short of the 700,000+ that changed hands back in late March on a 6 point drop in the share price. My guess is that some institutional dumping is going on as the overall fundamentals haven't changed that much to warrant a 21% drop in the stock price over the last month. While I am tempted to add here, I will just hold for now. Would love to hear other comments and reactions to today's call. --wj
    Apr 23, 2014. 01:20 PM | 3 Likes Like |Link to Comment
  • Campus Crest Looks Cheap, Should I Hit The Buy Button? [View article]
    And lets not forget, the sooner we get the youngsters into the work force, the sooner they start contributing to social security to help shore up that black hole, instead of spending their student loan money on concerts and good times; much of which will never be paid back. Double whammy!
    Apr 20, 2014. 02:07 PM | Likes Like |Link to Comment