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Workinhard

Workinhard
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  • CorMedix: Making Progress In Both EU Commercial And U.S. Regulatory Fronts [View article]
    It seem the stock sold off on the earnings announcement date , not sure what was on the call to warrant that. I'm sure the Biotech sell off didn't help but this isn't a biotech company and the using the biotech sell off as the reason for the stock weakness is not very comforting.
    Apr 14 11:34 AM | Likes Like |Link to Comment
  • One Liberty: The Little Triple Net Engine That Could (And 6.6% To Boot) [View article]
    There are many B&M stores that are doing fine and the goal should be to find those REIT's that have a high concentration in those businesses and are located in high income, high population , high barrier to entry locations. I just am not sure if this company is one of them.

    B&M stores are going to survive, and the survivors are learning to compete against online retailers - many embrace it as part as their overall business strategy. Plenty of shoppers that want to shop locally , not only to support their community but to see , feel and touch what they buy first. Beside - why make Jeff Bezos at Amazon another billion dollars when you can support your local retailers.
    Apr 1 06:34 PM | Likes Like |Link to Comment
  • Will Chambers Street Benefit From This Historic BMW Announcement? [View article]
    looks like the buys in this sector are ARCP, LXP & CSG. I would not be surprised to see someone scoop up LXP or CSG at some point unless they trade higher.
    Apr 1 08:52 AM | 3 Likes Like |Link to Comment
  • BDC Biggest Losers: Fidus Investment On Comeback Trail? [View article]
    the diff between MAIN and FDUS to me is the internal mgmt structure of MAIN vs the external structure of FDUS. The markets clearly like the internal model.
    Apr 1 08:46 AM | Likes Like |Link to Comment
  • What Do I Do With My Stocks If The Market Crashes? Part 1 [View article]
    Yes, people who held 100% stock portfolios may have not held through the downturn but that is why an investor needs to have investments other than stocks. Yes, gov't bonds underperform stocks over the long term, but they provide a buffer during stock downturns that give investors the confidence to hold onto the stocks that they do have.
    Mar 24 10:16 AM | 1 Like Like |Link to Comment
  • What Do I Do With My Stocks If The Market Crashes? Part 1 [View article]
    I think investors would be more likely to not panic and sell stocks during general market sell-offs if they do a couple of things.

    One is to not only watch the ups and downs of their portfolio as the markets move, but to also watch the total income your portfolio is generating. If you can see that your total portfolio income is steadily growing as you reinvest income and dividends , an investor is hopefully less likely to panic and sell at the lows.

    The second is to have a significant weighting in fixed income securities (corps, cd's, high yield, foreign bonds, tips, muni's , pfd's) with a significant weighting in long term UST's . The long term UST's act as one of the best hedges during severe market selloffs, so I treat them as portfolio insurance that pays me a little income.

    While i understand that fixed income may not provide the higher returns of stocks over the longer term , I also believe that the majority of investors who have a heavy stock weighting probably are the ones most likely to sell or hold a large chunk of cash during times of uncertainty while the balanced investor is less likely to panic and sell stocks for the simple reason that they don't have a portfolio heavily weighted in stocks.
    Mar 20 11:34 PM | 1 Like Like |Link to Comment
  • Tanger Outlets: Nobody Does It Better [View article]
    Brad - I have always liked Tanger and it is on my watch list as its a little too richly priced with too low of a dividend right now for me.

    As for all those who are implying that all physical retails stores are dead , these retailers aren't lying down and ignoring online retailers - they are using online strategies themselves and their physical proximity to the consumer to make their businesses work. Throw in online companies eventually having to charge sales taxes and add in shipping charges and that helps to level the playing field.

    That said - the US is definitely over-retailed and poorly located retail locations will have to repurpose themselves or fail. That is why you generally have to stick with the REIT's that have their portfolios located in higher income , growing population areas. It's why I like FRT & KIM but not CDR & WSR.
    Mar 7 01:27 PM | Likes Like |Link to Comment
  • Prospect Capital: Meet NMMB Holdings [View article]
    Lawrence - i suggest you check out how Prospect treated the sale of Gas Solutions some time back.
    Mar 6 09:35 PM | Likes Like |Link to Comment
  • The $1 Million Perpetual Income Portfolio [View article]
    Morgan - always enjoy your articles and I like this topic. Like many of the commentators , I believe the "4% rule" , the new JP Morgan "Dynamic Income Withdrawal Program " and other Financial advisor "safe withdrawal "rules are just marketing pieces to scare people into feeling they need to pay 1-2% of assets to manage their portfolio.

    I won't get bogged down with commenting on your particular asset selection and weights , you could construct a similar portfolio with ETF's or a basic portfolio using 5 Vanguard funds that would have similar objectives. But your selection is well thought out and can provide anyone with a template as to how to construct a "permanent "portfolio.

    Where I think you hit the nail on the head is where you have the portfolio set up so that the owner is NOT pulling out all the income each month. In my view that is the holy grail that investors should aim for - if you can live off of 80% or less of your portfolio's income, that allows the other 20% to be reinvested in additional income producing holdings , allowing the income stream to grow over time. With the extra cash that comes in each month , an investor can do mini rebalancings if they spend the excess cash on the portion of the portfolio that has lagged the market. This help force investors to buy low and not chase the hot performing sectors or stocks.

    It really doesn't take the average investor much time to set up and monitor a portfolio , and it is not as complicated as it is made out to be by the financial press. Articles like yours help that education process.
    Mar 5 01:00 PM | 2 Likes Like |Link to Comment
  • Prospect's Growth Hides Bad Underwriting [View article]
    Good article, I am also not a fan of PSEC as they don't cover their dividend and I don't believe mgmt acts in the best interest of shareholders (issuing of stock under NAV and structuring deals to turn capital gains into ordinary income so mgmt can receive incentive distributions).
    Mar 3 12:28 PM | 2 Likes Like |Link to Comment
  • Prospect Capital: This High-Yield Investment Is The Best In BDC, Part One [View article]
    PSEC might be good for a trade but it is certainly not deserving of your title "best of BDC's" . They don't earn the dividend for starters and mgmt does not have the best interest of the shareholders at stake - i suggest you look at the way PSEC treated the sale of Gas Solutions and turned a capital gain for shareholders into ordinary income and therefore add'l income for mgmt. They are externally managed and mgmt benefits by building the assets of the company.

    Your statement regarding "other competitors who had default rates of 50%+ " is questionable - I don't remember any BDC even remotely close to those numbers. And the first BDC to buy another one was not PSEC, I believe it was ARCC, which acquired Allied Capital.
    Feb 28 03:39 AM | 9 Likes Like |Link to Comment
  • Kinder Morgan Faces Yet Another Bear Attack [View article]
    Barron's and Kaiser make a HUGE deal about Kinder's cap-ex maint spending not being high enough. I thought the company's explanation below was clear enough even for them , but I am sure they will dismiss it.


    It is important to note that a material amount of the dollars we spend maintaining our assets is picked up in operating expenses, not maintenance capital. The key activity for pipelines, in terms of safe operations, is
    “pipeline integrity” and “third party damage prevention”. The vast majority of these expenditures are captured in operating expenses. “Third party damage prevention” is primarily labor, and some materials and equipment.
    “Pipeline integrity” work, for interstate pipelines, is primarily in-line inspection tool runs, data analysis, and remediation work. The remediation work typically involves an inspection dig and repair work which might include
    recoating, sleeving, or the replacement of a pipeline joint. Under FERC regulatory accounting (which GAAP incorporates in this instance) a substantial amount of pipe must be replaced in order for the work to be capitalized. Operating expenses and sustaining capital are both deducted in determining distributable cash flow,
    so the classification difference does not make a difference to the bottom line.
    Feb 24 02:01 PM | 5 Likes Like |Link to Comment
  • Barron's Is Wrong On Kinder Morgan Energy Partners [View article]
    One item that Barron's, Kaiser and other shorts have not seemed to grasp is the company's response to the claim that they spend too little on "cap ex maint". The company clearly points out that in addition to the expenses classified as "cap ex maint" they have other expenses related to maintenance that are listed at regular operating expenses. So the maintenance funds are being spent, they are just not completely broken out all neat and clean enough for Barron's and Kaiser. See below:

    **It is important to note that a material amount of the dollars we spend maintaining our assets is picked up in operating expenses, not maintenance capital. The key activity for pipelines, in terms of safe operations, is
    “pipeline integrity” and “third party damage prevention”. The vast majority of these expenditures are captured in operating expenses. “Third party damage prevention” is primarily labor, and some materials and equipment.
    “Pipeline integrity” work, for interstate pipelines, is primarily in-line inspection tool runs, data analysis, and remediation work. The remediation work typically involves an inspection dig and repair work which might include
    recoating, sleeving, or the replacement of a pipeline joint. Under FERC regulatory accounting (which GAAP incorporates in this instance) a substantial amount of pipe must be replaced in order for the work to be capitalized. Operating expenses and sustaining capital are both deducted in determining distributable cash flow,
    so the classification difference does not make a difference to the bottom line.***
    Feb 24 01:57 PM | Likes Like |Link to Comment
  • Barron's Is Wrong On Kinder Morgan Energy Partners [View article]
    Take a look at the companies rebuttal - they go over every point raised by Barron's.
    Feb 24 01:49 PM | 3 Likes Like |Link to Comment
  • Mr. Market Is Starting To Spread The Love For This Small Cap REIT [View article]
    The country is over retailed but well located community shopping centers are attractive to a lot of businesses. They generally sell essentials and are increasingly filling their space with service oriented business that are not easily replaced by online shopping. Bricks & mortar stores are also becoming more adept at adding online operations and are not going to let Amazon take over the world lying down.

    Speaking of Amazon , when was the last time Amazon sponsored your local little league team or donated merchandise for your local fundraiser? At some point , people will look at what Amazon is doing to their local communities business structure and say "no mas". Throw in Amazon shipping costs (i know about Prime) and growing sales taxes charged in more states. and I am not so sure online shopping will take over the world.
    Feb 17 11:06 AM | 2 Likes Like |Link to Comment
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