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kaptain_lou

kaptain_lou
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  • It's Not Rocket Science: STAG Is Now Grossly Mispriced [View article]
    STAG has a decent portfolio of Class B industrial properties and they are making some good purchases. The length of the leases is somewhat of a concern, as a number of properties are purchased with less than 5 years left. However, I expect that a number of these will be renewed.

    The REIT sector is currently under pressure and STAG may not have hit a bottom yet. It may be a good idea to play their Class B preferred shares until the market settles down a little. They are trading under par and provide a decent yield in tax deferred accounts.
    Aug 30, 2015. 08:31 PM | 1 Like Like |Link to Comment
  • This High-Dividend Stock Yields Over 11%, Has 36% Cash Flow Growth, Goes Ex-Dividend Soon [View article]
    Another way to play this company, and the sector, is to purchase their 2019 bonds. The bonds are easily available through Vanguard and the interest will need to be paid before the dividend on the common stock.

    I like the business model of this company and if you look at their SEC filings they have made money over the past four years. And a very nice amount of money.

    Best wishes to all investors.
    Aug 12, 2015. 10:55 PM | Likes Like |Link to Comment
  • 8.25% Yields With DynaGas LNG Bonds, Maturing October 2019 [View article]
    While this article is about two months old, the bonds are really now worth a look as they are trading at about 90 now. These bonds can be picked up if someone has a brokerage account at Vanguard and has access to their bond desk.

    The company is clearly earning money and their ships are leased for the next couple of years. While there is clearly some risk with shipping LNG, the yield to maturity on the bond helps compensate for this.
    Aug 9, 2015. 10:21 PM | 1 Like Like |Link to Comment
  • Whitestone REIT Is Now Yielding 8.9% [View article]
    WPG also reported good numbers, trades at 7x FFO, and also got pounded by the market this week. I had an old limit order that filled at $13.00 today for WPG. It's a great time to be buying some beaten down companies.
    Aug 6, 2015. 10:38 PM | 1 Like Like |Link to Comment
  • Whitestone REIT Is Now Yielding 8.9% [View article]
    I'm still struggling to find out why the stock market is punishing some of the REITs at the present time. WSR reported great numbers yesterday - and yet the stock hits a 52 week low today.

    At least for patient investors, an earnings report like this with a stock price at the current level represents a great buying opportunity.
    Aug 6, 2015. 10:08 PM | Likes Like |Link to Comment
  • Whitestone REIT Is Now Yielding 8.9% [View article]
    Brad - good article on WSR. While the company does have some higher leverage, it is certainly worth a look at the current price and I own some shares of the company. Just a question on some of your articles on WSR.

    In July 2013 you posted an article recommending WSR when it was trading around $16 and think you stated "Don't Mess with this Texas Shooter." The yield was about 6.5% then, but the stock is now under $13. It may be a good buy now, but can you give any insight as to why you recommended the stock at $16. Their tenant mix has not changed much since then.

    Thanks for any insight you may be able to provide. In any event, the stock appears undervalued now - at least on a Price to FFO ratio standpoint.
    Aug 2, 2015. 10:17 PM | 1 Like Like |Link to Comment
  • Earnings Season Restores Rationality To REITs [View article]
    While CORR is an interesting investment, most of their revenue is derived from two tenants. It's clearly high risk. A more conservative investment in the company is their preferred shares.

    IRT is a much safer investment, even with the higher leverage. Rents can always be raised on tenants, and they have thousands of individuals renting from them.
    Aug 2, 2015. 09:33 PM | 1 Like Like |Link to Comment
  • Rubicon's REIT Roundup [View instapost]
    I was able to save the file into an Excel spreadsheet and it was easy to view there. The valuations in the apartment sector have nowhere to go but down.
    Jul 25, 2015. 08:42 PM | Likes Like |Link to Comment
  • Store Capital: A Differentiated Net Lease REIT With Superior Total Return Potential [View article]
    Thanks for the response. Heald College was shut down only recently, so occupancy may have been 100% when their last quarterly report was filed.
    Jul 19, 2015. 02:00 PM | Likes Like |Link to Comment
  • This High-Dividend Stock Yields Over 11%, Has 36% Cash Flow Growth, Goes Ex-Dividend Soon [View article]
    Thanks for a good article on a very unique shipping company. While the company only has five ships currently, it appears they are leased for the next several years and revenue is basically guaranteed for the company. There is a little risk with Gazprom being one of the lessors, but the yield may be worth taking a little bit of risk.

    Their recently issued 9% preferred stock looks very attractive and is trading below par.
    Jul 18, 2015. 08:46 PM | 1 Like Like |Link to Comment
  • Store Capital: A Differentiated Net Lease REIT With Superior Total Return Potential [View article]
    Thanks for a good article. It helped provide me with a much better understanding of the company. I notice that one of their top tenants is Heald College. Is this the college that was recently shut down?

    Their balance sheet looks solid and I like the fact that their top 10 tenants make up less than 20% of total rents.
    Jul 18, 2015. 08:39 PM | 1 Like Like |Link to Comment
  • Pound-For-Pound Apollo's 10.5% Yield Is The Best In Town [View article]
    Nice article and probably one of the author's best on Commercial REITs. I would also agree with Brad's decision to only hold 10% of his portfolio in investments like this.

    The other angle on a this company is to place 50% in the common stock and another 50% in their preferred stock issue. As funds allow, I will be doing this in the next couple of weeks and be buying on any weakness in the market.

    Thanks for the article.
    Jul 12, 2015. 10:07 PM | Likes Like |Link to Comment
  • Retirees, You May Want To Add Preferred Stock To Your Dividend Growth Portfolio [View article]
    David, in the article you mention that you have some preferred shares of AGO. As you may have read in the news, AGO insures some debt of Puerto Rico and it appears that the island may default on some of their debt. What are your thoughts on the preferred now?

    For me, the preferreds of REITs are easier to value because most have balance sheets that are easy to read. The financials of insurance companies, such as AGO, are much harder to read - at least for me. Thanks.
    Jul 4, 2015. 12:03 PM | Likes Like |Link to Comment
  • Retirees, You May Want To Add Preferred Stock To Your Dividend Growth Portfolio [View article]
    David, it is interesting to note that CBL only trades at 2 times sales. This is a very low multiple for a REIT, but they do have a fair amount of debt.
    Jul 2, 2015. 09:28 PM | Likes Like |Link to Comment
  • Retirees, You May Want To Add Preferred Stock To Your Dividend Growth Portfolio [View article]
    David, good questions. I've been a CPA for over 20 years, so the financial analysis comes a little easier for me, but here are my answers:

    1) CBL debt is rated Baa3, so the preferred would be generally be rated two steps below. This should give investors a general idea of the rating.
    2) You can go to the SEC filings for CBL and print out the balance sheet page. Divide their total debt by the Cost of the buildings (and DO NOT back out the depreciation). If debt is 50% or less, than the preferreds are probably "safe" in my opinion. This generally works for REITs only. However, some REITs may have bought their properties years ago, so cost may not matter. But I do use this as a general rule of thumb.
    3) Yes, the common may be a better buy right now. However, as you mention in the article, the dividend could be cut on the common. The preferred is cumulative, so it would be hard to suspend the dividend on the preferred.

    At least for now, the preferred offers less downside potential. I may buy the common stock if the price drops lower, but REIT common stocks have not hit a bottom yet. Hope this helps.
    Jul 2, 2015. 09:24 PM | 1 Like Like |Link to Comment
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