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arbtrdr

arbtrdr
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  • Magnum Hunter's Eureka Pipeline: A Fantastic Asset Fairly Valued [View article]
    Clayton - Selling parts of it? how would that work? You have a main pipeline and several collector laterals. MHR built the laterals to provide collection for its own wells. The main pipeline mostly feeds MWE and thus they would be interested except for the fact MWE has repeatedly said they do not want to be in the pipeline business except as necessary for its processors. Not sure there are best parts of the pipe as it is a system.

    MHR stated they were going to sell off a number of assets to provide cash and they are executing that plan. Would think the time to sell would be late 2015 after the pipe system is mostly full and the EBITDA probably doubled from today. They could also sell it with a preferential rate for their own NG/NGLs. Hmmmm.
    Apr 22 12:01 PM | Likes Like |Link to Comment
  • Why Not Consider This 12% Yielder As An Alternative To REITs And MLPs? [View article]
    Would agree except PSEC was in the $18 area before the financial meltdown in late 2008 and hit almost $8 in august of 2011. That volatility is really a bit larger than one would call stable. Also what will happen if we get a spike in interest rates? Would guess that most in the high yield area would have share pricing pressure due to alternative opportunities in bonds.
    Apr 22 11:01 AM | 6 Likes Like |Link to Comment
  • Top MoPay Dividend Dogs Seek 14.8% To 89.6% Net Gains In April [View article]
    The only problem with this analysis is companies paying monthly are often very very different. Comparing Realty Income with Baytex is really hard. Even comparing Baytex (conservative approach to balance sheet) to Pengrowth is comparing apples to oranges. They have a different approach to leverage.

    Last, many energy stocks and REITs are down because of interest rate fears. If you took a different time frame you can obviously get a very different picture. O has been terrible in the last year but up some 500% plus lots of dividends in the last 20 years. Same for BTE.
    Apr 22 10:37 AM | Likes Like |Link to Comment
  • Top MoPay Dividend Dogs Seek 14.8% To 89.6% Net Gains In April [View article]
    There is a cap based on the amount of tax, amount of foreign income and your AGI for the year. Anything not allowed in the current year rolls forward. There is no cap and you eventually will get every dollar back.
    Apr 22 10:32 AM | Likes Like |Link to Comment
  • Top MoPay Dividend Dogs Seek 14.8% To 89.6% Net Gains In April [View article]
    You need a new broker if TradeKing is doing that. Could not find a major broker that does it that way inside an IRA.
    Apr 22 10:30 AM | Likes Like |Link to Comment
  • Top MoPay Dividend Dogs Seek 14.8% To 89.6% Net Gains In April [View article]
    Why? You can get a tax credit when you file your 1040. Thus the 10.36% does not turn into 8.6%.
    Apr 22 10:29 AM | Likes Like |Link to Comment
  • Magnum Hunter's Eureka Pipeline: A Fantastic Asset Fairly Valued [View article]
    Good article and restates well what MHR has already said in presentations, earnings calls and at conferences. Really silly to sell at a traditional multiple of EBITDA when the volumes transportated will triple in one year and MHR said they would not do that. They stated last fall they would sell leases non central to their plan first. Another of those sales was agreed to yesterday. Actually few surprises from MHR in the last year.
    Apr 22 08:19 AM | 3 Likes Like |Link to Comment
  • The Next MLPs To Crash? Hedgeye Targets Another Pipeline MLP [View article]
    APL has a track record under the Cohens that is less than perfect. Start with an expensive and failed buyout of a pipeline in Alaska. Next move to a failed buyout/merger with a coal company in Wyoming. Move on to a system of hedging that almost put APL into bankruptcy. Recently as another posted already a writedown of the Cardinal buyout and a pushback on distribution increases. APL also certainly does have issues with POP contracts that are not going to be very profitable until ethane prices rise circa maybe 2016 or 2017.

    What may be different is Cooperman will definately push back and Hedgeye is really crappy (no apology for the word) in tweeting they are going to publish something 3 days in the future. Thus those that received the tweets got a head start to sell. Maybe this time the SEC should investigate Hedgeye instead of the MLP. Tweeting ones clients that you are going to do something is simply manipulation.
    Apr 21 05:49 PM | 5 Likes Like |Link to Comment
  • Realty Income: Who Cares What Morgan Stanley Thinks? I'll Buy More On Pullbacks Anyway... [View article]
    If one reads the MS report they said NNN had slightly better opportunities for acquisitions based on tennant relationships. Nowhere did it say O was not a good company to buy. The key here is a matrix that MS and others follow. Very simply put, if you have an overweight you must then have an underweight.

    Their question is at the next earnings conference how will O do in both the $$ volume of acquisitions and dispositions, but the cap rate they get. Recent declines are of concern to all REITs. Valid questions and an UW rating that actually should be taken with little weight. Ratings need to be looked at BEYOND THE HEADLINE.
    Apr 21 11:58 AM | 2 Likes Like |Link to Comment
  • Kinder Morgan Energy Partners: Why Not Consider This Outstanding Wealth Building Machine? [View article]
    That one is easy. People wanted to sell KMP and buy KMR. What else move the prices of stocks?

    KMI or KMR belong in an IRA as no possible UBTI recapture. KMP does not, especially when you have an alternative investment sitting there selling at a discount! The IRS is collecting recapture of UBTI on depreciation and passive losses for large non-profits today. Will that move to individuals? No idea but the possibility is always there.
    Apr 19 10:47 AM | Likes Like |Link to Comment
  • Kinder Morgan Energy Partners: Why Not Consider This Outstanding Wealth Building Machine? [View article]
    Using the 5 year chart for APL tells a big lie. It almost went BK because of mismanaged hedges a bit over 5 years ago. Then it sold off a bunch of assets and righted the company. Does that make APL - with little growth in DCF in the last year - a better investment today? Hardly.

    The key is all in the timing of when one gets in. I would argue the authors portfolio is a bit risky. SDRL is a good company but the 10% yield certainly is an indicator that most think it is risk\y otherwise its yield would be lower. Same for KMP vs. EPD. There certainly is a reason KMP pays 7% and EPD about 4%. If EPD was not a more secure stable company going forward investors would either sell EPD or there would be more demand for KMR.

    Pretty simple that higher yield implies higher risk.
    Apr 19 10:42 AM | Likes Like |Link to Comment
  • Boardwalk Pipeline Partners: Is There Anything To Be Salvaged From This Fiasco? [View article]
    Adam - The comments regarding bluegrass are not correct. Both BWP/WPZ and KMP/MWE have proposed projects for a NGL pipeline. Neither project has gotten producers to allot more than about 10% of capacity. Thus neither project is moving forward right now. One or the other will eventually be built.

    Pipelines inherently have one big problem - they are not flexible as to destination. They also while able to move large quantities of product very cheaply; are very expensive to build. Thus lately producers have been moving back and several pipes have been cancelled by companies including EEP, OKS, KMP, and SXL.

    Last a question about LNG. If prices of NG are $6 - then it will cost approximately $11.50-$11.75 to land USA/Canada LNG in Europe. That is MORE than what gas costs in parts of Europe today as the EU import price today is about $11. Going to be interesting with the need for meeting EPA regulations on coal and a lack of infrastucture to deliver NGas in the US how things will work out. Bottom line is much over $6 gas and other producers (Middle East & Australia) can and will deliver for less than the US.
    Apr 18 04:02 PM | Likes Like |Link to Comment
  • Kinder Morgan Energy Partners: Do Not, Ever, Underestimate The Distribution Yield [View article]
    Peter - Fractional shares are not an issue as the broker simply adds $$ paid and units/shares to get an average price paid. As to UBTI. The IRS is already collecting UBTI on the sale inside an IRA for recapture of depreciation for major non-profits. IMHO it is only a matter of time before they go after others. UBTI on a sale could be a time bomb for the future.
    Apr 17 10:28 AM | Likes Like |Link to Comment
  • Kinder Morgan Energy Partners: Do Not, Ever, Underestimate The Distribution Yield [View article]
    David - If your KMP is not inside an IRA you should have been paying taxes long ago! You are not allowed to have a negative tax basis. Need to shoot your tax person (or yourself).
    Apr 17 10:24 AM | Likes Like |Link to Comment
  • Kinder Morgan Energy Partners: Do Not, Ever, Underestimate The Distribution Yield [View article]
    Sure would be good if the article discussed at least the notion of a K-1 and the ramifications come tax time of that. Also that much of that "yield" is created by depreciation much of which is recaptured on sale at ORDINARY INCOME rates in addition to any capital gain on the transaction when dealing in KMP. KMR is a hybred and avoids much of this. The GP parent is a C corp that has itrs own issues involving taxation coming up in a couple years.
    Apr 15 09:34 AM | 1 Like Like |Link to Comment
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