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BEACH HOG

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  • Now Is The Right Time To Consider Northern Tier Energy [View article]
    re: to 8053101

    MLP's can indeed become a problem for tax advantaged accounts such as 401K's and IRA's Once a threshold of income/distribution is passed (I think around $2K per year) something kicks in called Unrelated Business Tax Income and can adversely affect the IRA and/or the income withdrawn from it. I am not a tax expert but I read enough of the articles to "scare me away" from doing much with MLP's with my IRA investing. Would suggest anybody contemplating this to research it before jumping in too deep.

    For example, instead of investing directly into NTI I switched over to WNR who bought out the general partners in NTI and therefore benefit from the earnings of NTI but keeps me from worrying about the potential trap of threshold distributions in my IRA account as WNR is a straight up corporation with dividends and you deal with no K-1's at all. Outside my IRA I have no problem at all with investing in NTI

    Regards,
    Richard
    May 18, 2014. 04:04 PM | 2 Likes Like |Link to Comment
  • As Chesapeake Looks To Shed Its Oilfield Services, Takeover Rumors Swirl Once More [View article]
    I had read articles saying Icahn was seeking $40 not offering so I am not sure if she has new information or this was an error. Hope she will clarify.
    Feb 25, 2014. 09:40 AM | Likes Like |Link to Comment
  • Can Carl Icahn Push Chesapeake 40% Higher? [View article]
    Thanks Bret. Love your articles as they are always short, concise and to the point.

    I just came out from under some CHK 27 call options this past weekend and was going to write some more today but have decided to hold up awhile to see if my stock moves up a little as this recent move by Icahn heats up.

    Keep up the good work as I always look forward to your posts.
    Feb 24, 2014. 09:57 AM | 3 Likes Like |Link to Comment
  • Carl Icahn could force Chesapeake sale, report speculates [View news story]
    I have call options expiring next week with a 27 strike price and there has been no movement in them since this broke for what it is worth. Looks like if something was really there the speculators would be all over it.
    Feb 11, 2014. 03:27 PM | 1 Like Like |Link to Comment
  • 4 Reasons To Buy BP [View article]
    Nobody knows for sure on the dividend question but I cannot believe the board would have approved raising the dividend if they had the slightest doubt that a cut was looming. That fact alone is keeping me long on BP. I just wish I had added a little more when it was dead in the water around 40, which was not too long ago.
    Nov 27, 2013. 12:25 AM | 2 Likes Like |Link to Comment
  • How To Get $1,000 In BP Dividends Tax-Free Within 10 Years [View article]
    One other thought to your article is that in your example you are in effect dollar cost averaging your purchases over the 20 month period to attain your goal of acquiring the 208 shares. Unless you are set up in a DRIP account you will be paying transaction fees on each monthly purchase, which will find their way Into an average cost per share. This in no way should deter anyone from using your plan to prepare for their future.

    Any plan, such as the one you propose, has to be tailored to the individual. I think you have laid out a plan that should work very well for the majority of folks who need structure to their investment ideas. Keep up the good work.
    Apr 30, 2013. 10:39 AM | 2 Likes Like |Link to Comment
  • Arkansas Best: Stock Could Jump On Positive Outcome From Labor Negotiations [View article]
    Well thought out analysis on this stock. I have watched this stock for a long time but never pulled the trigger on it. You make a compelling argument and the entry price is right.
    Apr 30, 2013. 10:22 AM | Likes Like |Link to Comment
  • Super-Size Your Big Mac Dividends: Write Covered Calls [View article]
    Good article George.

    I have been writing covered call options for years to enhance income into my retirement accounts. A couple of other thoughts to support your article would be depending on the option premium you are able to get it also affords you some downside protection to any decline in the share value of the stock you are holding, as opposed to having just held the stock for the dividend and watching an erosion of your capital during a market correction. Having that little safety net under you can make you feel better about a stock you intended to hold anyway.

    Another way I have written covered calls is if I can write an in the money call that offers a good premium with a short amount of time on the exercise date. This generally is in a time frame of two to six weeks of my purchase date. As you stated I do this at the time of purchase after some research. I do not mind the stock being called in this scenario if I have already determined that I will have a nice return. Once again, if the stock were to drop below the in the money strike price, I retain the stock but my invested amount of capital has been reduced for the next go around.

    The only caveat that I use is that I only buy stock I believe in so if I have to hold it long term before working out of the position I don't suffer mental anguish.

    Once again, enjoyed the article and it being written in layman's terminology.

    Apr 22, 2013. 06:09 PM | Likes Like |Link to Comment
  • Chesapeake Energy (CHK) appointed COO Steven Dixon as interim CEO on Friday and made him part of a three-person committee to search for a replacement for Aubrey McClendon, who bid a teary goodbye to employees. “Advanced” negotiations with an unnamed candidate for the top job reportedly broke down yesterday. [View news story]
    I am in full agreement with you Tex. The real tears being shed are tears of joy by most stockholders who are in the same boat as you and I and have held on with the lingering hope we can recoup our investment. Hopefully the company can continue to heal and acheive some semblance of normalcy that it once promised.
    Mar 30, 2013. 12:54 PM | Likes Like |Link to Comment
  • Carl Icahn ups his stake in Chesapeake Energy (CHK) to 8.89% from 7.56% previously. Shares +2.3% premarket. (13D[View news story]
    Hope he keeps buying and enables a higher floor to be put under CHK. I had previously thought the high 19/low 20 price was that floor and was feeling better about things until the recent slide. Have been long CHK but am in at the 24-25 average for all my shares. At this point I would just like to get back in that low 20 range and try to ride it out to recovery unless Icahn bails out sooner.
    Nov 20, 2012. 09:03 AM | Likes Like |Link to Comment
  • Chesapeake (CHK -5.4%) opens trading as the S&P's biggest loser after a report of alleged bid rigging by CHK and Encana (ECA -3.2%), plus a story that J.P. Morgan declined to do loan business with CHK for more than 10 years because of credit quality, while Goldman Sachs took the business.  [View news story]
    What I would like to see is an update on Icahn's position. Is he buying more stock everytime it is knocked back down ? If so I feel that may bode well as it may help put a floor under this stock. If CHK drops back into that $13-14 range I would get nervous again. Time and guts to hold will tell the story.
    Jun 25, 2012. 11:55 AM | 1 Like Like |Link to Comment
  • Litigation Risk Not So Risky For Smart Investors [View article]
    Nice article Mike. I think with the news that BP and the Fed's are negotiating a number (apparently between 15-25 Billion) that this potential litigation cloud will evaporate sooner than later. Possibly before the election. If this proves correct then I think the stock will show a steady climb back into the mid to upper 40's IMO.
    Jun 11, 2012. 11:31 AM | Likes Like |Link to Comment
  • Mr. Icahn, Chesapeake Energy Shareholders Stand Behind You [View article]
    Also a small holder (1600 shares) but did the same as Richardx above. I have to believe that with the news of Ichan's holdings and Blackrock coming in with more shares purchased with their March 31 report that maybe, just maybe, the stars might be aligning to get this company back on track. I can live with any downturn in my stock due to NG pricing. What I can't live with is a rubber stamp board that has allowed a lot of this to happen. The majority of the beatdown this stock has endured rests solely on their watch.
    May 25, 2012. 10:01 PM | 4 Likes Like |Link to Comment
  • Carl Icahn discloses a 7.56% stake in Chesapeake Energy (CHK +1.5%) via 13D filings. Icahn: "If you continue to arbitrarily refuse the request we have made for shareholder representation, we, as activists, will immediately take whatever 'actions' we feel are necessary to protect the value of this company."  [View news story]
    With Blackrock showing an increased interest of somewhere in the 4-5% range and the 13 plus percent that Southeast Asset Management already owns there is a lot of long term bets at stake here. I have a gut feeling he may have a buyer or buyers lined up to purchase this operation. Other people have quoted the breakup value as in the $28 range and my memory may be wrong on the exact number, but anything below that price will be a good value for new owners.

    At this point I just hope to shorten my loss as I am in through purchases in the $24-25.50 range. $19-$20 a share look better than where we were just a few days ago. I am in it now to get whatever uptick I can and continue to move my stop loss floor up to minimize any downward turn in the price at this point.

    Hope we can all find a way to salvage our investments.
    May 25, 2012. 05:05 PM | 3 Likes Like |Link to Comment
  • Chesapeake Energy (CHK) says it is reducing compensation for outside directors by ~20% and eliminating the use of fractionally owned aircraft for personal travel by outside directors. CHK says the move reduces director compensation to a level at or below the average director compensation of the company's peers.  [View news story]
    This looks too little and too late by a board who was serving their own self interests and not the shareholders. People who put retirement dollars into this company, like myself, will have a big hole to dig out of to make up these losses. We all made that decision and have to live by it but it is sickening to realize a good company was not being run for the benefit of its stockholders. I also agree with WSS above as well as others. Clean house. At this point I don't think new management could do any worse.
    May 18, 2012. 08:34 PM | 1 Like Like |Link to Comment
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