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Davidesand

Davidesand
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  • Coping With Mortgage REIT Chaos Part II: Additional Thoughts [View article]
    I agree in that the mReits will continue to provide stellar dividends for the next few years. Even better if the overall economy picks up. The sheep ran for the sidelines.
    Oct 18, 2012. 12:21 PM | 4 Likes Like |Link to Comment
  • The success of the mortgage REIT industry (both in garnering AUM and providing shareholder returns) is swell, writes Sober Look, but will end as another chapter in the story of leverage. Borrowing short and lending long, the companies are exposed to rising rates and the chance of financing being cut off - threatening not just shareholders, but U.S. mortgage markets. [View news story]
    Like any investment, you must factor in risk versus reward and also the tolerance that you have. In this case, my thoughts are as follows.
    1. The economy is a minimum two years out for any significant recovery. Somewhat shorter if we change presidents and somewhat longer if we don't.

    2. The economy will not turn in a dramatic fashion, but slowly. As it does show signs of life, the Fed will be reluctant to choke it off with a rise in short term borrowing, but wait to see if a substantial recovery is really there.

    3. So 2015 is not out of reason. But when it does, both short term and long term rates will rise together. So some spread will remain for REITs to harvest. The better managed ones will shed current long term debt and secure new debt obligations. So these REITs will remain profitable, though maybe adjusted.

    4. Look, if your return on the dividends drops to 8%, you are still beating out anything else out there for income investors.

    Thoughts anyone, or did I completely miss the mark.
    Sep 11, 2012. 01:08 PM | 4 Likes Like |Link to Comment
  • AT&T: Dividend Increase Was Not A Disappointment, Stock Still Serves A Very Valuable Purpose [View article]
    By dripping T you get an effective interest rate of a little over 7%. That is not shabby.
    Dec 24, 2014. 09:20 AM | 3 Likes Like |Link to Comment
  • Prospect downgraded as Ares is upgraded at Barclays [View news story]
    as long as BDC generates dividends, can cover future dividends, and can grow a bit, then thses analysts miss the mark on upgrades and downgrades.
    Dec 18, 2014. 10:29 AM | 3 Likes Like |Link to Comment
  • CVR Refining Earnings Estimate Q4'14 [View article]
    You are correct. Refiners and pipeline companies benefit from lower crude pricing. Crack spread improves and volumes shipped rise. The only firms that hurt are the crode oil producers.
    Dec 16, 2014. 11:14 AM | 3 Likes Like |Link to Comment
  • Enterprise Products defends backlog, says others overpromise [View news story]
    Enterprise maintains a strong management group that generates further profits as they enter into new projects. That results in less risk to us as shareholders going forward. As to a previous writer's comment about the low yield, that is only and end result of higher stock price, not a reduction in dividends to us. So we have been rewarded with both stock price appreciation as well as dividends. What's not to like?
    Aug 1, 2014. 06:04 AM | 2 Likes Like |Link to Comment
  • AT&T - Investing In The Future But At What Cost? [View article]
    While I am not initiating any new positions in T at this moment, the long view shows that T will continue to successfully sustain and/or grow their position in the telecommunications industry. As with all other tech oriented investments, T must continue to pour capital into upgrades in their delivery of services. Those companies that don't will go the way of Eastman Kodak - which by the way was the original inventor of digital photography. They elected not to push into this product because it would hurt their traditional photographic film business. So with that lesson learned, I am confident in T's long term prospects.
    Dec 12, 2012. 11:37 AM | 2 Likes Like |Link to Comment
  • AT&T & Verizon: Stifel's Downgrade Creates A Buying Opportunity [View article]
    Long on T. This company has continued to successfully evolve over the last 40 years. As long as the leadership keeps their eye on the ever changing technological landscape, I see nothing but UP.
    Sep 15, 2012. 08:07 PM | 2 Likes Like |Link to Comment
  • High-Yielding AT&T Down On Its Luck No Thanks To Verizon Downgrade [View article]
    T has been around a long long time. I believe that the company will continue to meet the challenges if technological change, competitive change, and regulatory change. T produces a good dividend and will continue to do so. However, stock price growth will be slow and steady, so this company is not for the appreciation crowd, but those interested in the long term.
    Nov 26, 2014. 07:50 PM | 1 Like Like |Link to Comment
  • American Capital Agency Is Still A Buy And Hold [View article]
    The street noise over Q1 is deafening, so I added to my position. The company has shown strong leadership and given the lack of a solid recovery, they have negotiated quite a number of "land mines". I think that this is a buying opportunity. Yes, I am long on AGNC
    May 3, 2013. 12:01 PM | 1 Like Like |Link to Comment
  • After the Boston Fed's Rosengren's call for aggressive QE, out trots the Dallas Fed's Fischer to proclaim the central bank has "done (its) job." Unworried about inflation, he still does not see the need to print more money. The Fed needs to avoid the impression it can solve all of our problems, he argues. [View news story]
    To ascribe the shrinking middle class and a growing disparity between what you might call the rich and the poor to the actions of the Federal Reserve is flawed thinking. It is not the duty of the Fed to monitor sectors of the stock market to determine if any sector may be hyper-inflated. The economic adjustment was due in most part to various congressional leaders pushing the idea that everyone deserves to own their home without regard to the credit worthiness of those people. Freddie Mac and Fannie Mae did what they were instructed to do.

    The second driver is the fact that government grew at an outrageous rate. You may not be aware, but a dollar spent by government only turns 3 times, while a dollar spent by the private sector turns 7. Shifting the economy to a larger government kills productive growth.

    Last but not least is the multi-decade of the baby boomer effect. Unlike their parents who saved and purchased with cash, the boomers were an entire generation of debt accumulation to acquire everything "right now" that they wanted. So downturns were multiplied by this.

    You mention capitalism. We haven't had it for years. With the ever growing socialistic government, we have squeezed capitalism to death. We seek to punish the successful and reward the non-producers. You really ought to read Atlas Shrugged.
    Aug 8, 2012. 01:10 PM | 1 Like Like |Link to Comment
  • Seniors Deserve Better Advice: Simpler Asset Allocation And Dividend Stocks That Produce Safe Income [View article]
    My KISS model is to select those companies that yield greater than 10% in dividends, have a solid history of dividends, continued growth, and products/services I know. Trying to beat the market at the same time of attempting dividend rewards is folly.
    Jun 30, 2012. 01:26 PM | 1 Like Like |Link to Comment
  • American Capital's 38.04% Annual Return Continues [View article]
    The analysis is correct. The historic performance, tied to the current management philosophy will continue to realize strong results. Naysayers continue to beat on the mREITS saying that the risk of interest rates rising, Euro issues, and other factors will cause problems in the near future. However, I see a good ride for 18 to 36 months and I am convinces that AGNC leadership will successfully navigate the ever changing landscape, outperforming standard investment stocks.
    I am long on AGNC, NLY,
    David
    Jun 17, 2012. 10:41 AM | 1 Like Like |Link to Comment
  • AT&T: Never Underestimate The Power Of 'Ma Bell' [View article]
    I too came from the age of "Ma Bell" and have seen the investment pundits predict the demise of the company at various times throughout the company's evolution since the break-up of AT&T. However, though the company had become a behemouth again, the leadership remains nimble within the voice and data sectors, which will do nothing but grow. The profitability and the willingness of the leadership to "share" the profits in terms of decent dividends continue to make this investment attractive, despite the short veiwed naysayers. I am long in T.
    Apr 25, 2012. 09:33 AM | 1 Like Like |Link to Comment
  • TICC Capital launches $50M buyback program [View news story]
    I have no idea what is causing TICC to continue taking a beating.
    Dec 18, 2014. 07:01 PM | Likes Like |Link to Comment
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