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GMG3

GMG3
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  • A Safe 7.1% Yield And 20% Upside Potential From This Financial Issue [View article]
    Since Dec. 2012, this security has lost about 15% in principal value according to a chart on the Preferred Stock Channel. That's pretty steep volatility, especially in an environment in which interest rates going forward are expected to rise, and gives pause even though the the current yield is high.
    Dec 27 06:07 PM | Likes Like |Link to Comment
  • New York Community Bancorp's Share Price Is Up 25% This Year - Why Is Short Interest Up Nearly 50%? [View article]
    Did the sale of stock you mention have anything to do with the purchase of stock of other banks at distress prices?
    Dec 3 08:43 AM | Likes Like |Link to Comment
  • New York Community Bancorp's Share Price Is Up 25% This Year - Why Is Short Interest Up Nearly 50%? [View article]
    Is it clear that regulatory restraints on the dividend will be imposed? NYCB had a stellar record during the financial crisis , losing very little money, turning down TARP money and increasing its dividend. It is very conservatively managed, only lending to credit worthy borrowers that own rent controlled apartment houses in New York. The Feds may not think that restraints on dividends are necessary or that only small ones are appropriate.
    Dec 2 03:25 PM | 1 Like Like |Link to Comment
  • AT&T Is Still Trying To Please Its Investors Too Much [View article]
    I should also have asked whether the repurchased shares are cancelled or held as treasury stock. It is questionable to say that the $1.9 B of repurchased stock is to please its shareholders unless the shares are cancelled and therefore make dividends larger. Treasury stock may be used to pay incentives to officers and employees or used to help pay for acquisitions.
    Oct 25 05:15 PM | Likes Like |Link to Comment
  • AT&T Is Still Trying To Please Its Investors Too Much [View article]
    What do you make of Yahoo's 1 year forward P/E of 13.89, presumably based on the 32 analysts' estimates it polls for this stock, vs its trailing three month estimate of 25.89? It also says that the analysts see an average growth of about 8% in earnings next year.

    P/E can fall because of increased earnings, lower expenses or a falling stock price. I have read elsewhere that T's cost for 4G should fall in the U. S. because the rollout is nearing completion. What is your view?
    Oct 25 04:30 PM | Likes Like |Link to Comment
  • 3 High Yielding, Undervalued Utilities, Part III: PPL Corporation [View article]
    Thanks for our very helpful articles on NGG, SO and PPL. I own NGG and PPL.

    I did own SO but sold it recently because of its high current P/E relative to the other two and because I believe that its delays and huge cost overruns for its two new facilities that you mention may be lengthy and quite costly to the company. The Miss. authorities have already ruled that the company may not recover a substantial portion of the overruns.

    I should add that I am over 80 so my long term is short term. I invested the proceeds of the sale in increasing my positions, primarily in NGG, and in PPL .

    For those interested in the comparisons (per Yahoo Finance) the PE's (ttm) for the companies are: NGG 12.27, PPL !2.21 and SO
    21.27; the current dividend rates are NGG 6.7%, PPL 4.8% and
    SO 4.9%: and the the forward P/E's for 1 year are NGG 14.42, PPL
    14.03 and SO 14.81
    Oct 18 02:30 PM | 2 Likes Like |Link to Comment
  • 3 High Yielding, Undervalued Utilities, Part I: National Grid [View article]
    I hope your article on SO will deal with the huge cost overruns that SO is experiencing in building two new facilities in MIss. and I believe in GA. In the first one, the public authorities have insisted that the company eat a substantial part, so far amounting to several hundreds of millions of dollars and the second one is using a new , as yet unproved technology (involving lignite I believe). I sold my position in SO recently because of these developments.
    Oct 16 11:08 AM | 1 Like Like |Link to Comment
  • AT&T's Hidden Source Of Value [View article]
    What about the increased competition from T Mobile and Sprint which have improved their financial backing and are offering lower pricing than T ?
    Oct 16 10:48 AM | Likes Like |Link to Comment
  • Linn Energy: Can This Dividend Player Take The Heat? [View article]
    It seems to me that you are leaving out of account the costs of defending the lawsuits.Unless the suits are thrown out of court by summary judgments based on findings that no reasonable jury could find for the plaintiffs, which is a high bar to reach, the costs of defense can be very high. An exoneration by the SEC would be very helpful but that is unknown at this time. In addition, it is likely that any successful lawsuit which has a count for fraud could result in punitive damages for multiple times the actual damages. Three times is not unusual in such circumstances.
    Sep 28 01:15 PM | Likes Like |Link to Comment
  • PPL Corporation: Why You Should Avoid Its 4.9% Yield [View article]
    Yesterday's announcement of the sale of hydroelectric assets in Montana was remarkably opaque. All it said was that the company had the opportunity to obtain a good price. It contained no explanation of why it would sell non carbon assets which would reduce its dependence on coal. Nor did it explain what it would it do with the net proceeds of about $600 million. Shareholders are left to guess. Was it to reduce the company's debt load which the author suggests is a red flag and a risk to the sustainability of the current dividend?
    Sep 27 12:56 PM | 1 Like Like |Link to Comment
  • Reuters: Hedge funds plan to keep fighting Vodafone over Kabel [View news story]
    I hope German law has the concept of abuse of process because that is what the hedge funds tactic is. Their suit should be thrown out on its face as having no merit. VOD has gone through a fair negotiation and already raised its initial bid to win the bidding. Now these vultures want more. A successful abuse of process claim in the U.S. would allow VOD to collect damages.
    Sep 13 04:42 PM | 1 Like Like |Link to Comment
  • Utility Companies Paying Over 4% To Consider Now? [View article]
    Have you considered the very large cost overruns on two of SO's construction projects in Mississippi and Georgia. At least the Miss. authorities are requiring the company to absorb substantial parts of the overruns there.

    What about NGG which has a good dividend , operates in England and the Northeast of the U.S. and ,importantly, concluded negotiations with the English authorities in April granting them favorable rates for the next 7-8 years.?
    Sep 13 03:43 PM | 1 Like Like |Link to Comment
  • 5 Safe Dividend Stocks When Using The 4% Rule [View article]
    Ignoring losses in the price of stocks paying steady dividends is a dangerous route for retirees. Total return is more important.
    Sep 11 11:34 AM | 3 Likes Like |Link to Comment
  • American Electric Power's 4.2% Yield Seems Attractive But There Is Better Value Elsewhere [View article]
    Short/medium muni or corporate bonds paying 4%-5% are generally unavailable today (especially not munis) unless they are junk bonds in which case they will not present less risk.
    Aug 10 10:23 PM | Likes Like |Link to Comment
  • Linn Energy Is A Major Opportunity [View article]
    The price drop has not, as you say, "erased "several years of dividend income. That would only be true if the SEC determines that there has been wrongdoing by LINE . At the moment it is a nervous, one day response to an informal inquiry that may amount to nothing.
    Jul 2 06:02 PM | 11 Likes Like |Link to Comment
COMMENTS STATS
39 Comments
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