Yes, There Is A (High-Yield) Dividend Bubble [View article]
all you need, to be short, is to hope that the premium doesn't increase. If the premium to NAV stays the same, PGP will leak something like 8-9% per year relative to its NAV. (approximately the difference between the yield on price vs yield on NAV).
Sense And Nonsense About Fiscal Stimulus [View article]
I am aware of the "article", and you completely misread it. They said the effect of lowering IOER would be small. Furthermore, they point out that there could be disruption to the money markets.
Sense And Nonsense About Fiscal Stimulus [View article]
-11 reducing the interest on reserves from 0.25% to 0%, will make how much of a difference? going from a negative real interest rate to a minutely more negative real interest rate?
U.S. oil demand fell to 18.062M barrels/day in July, reports API, off 2.7% Y/Y and the lowest monthly usage since September 2008. "(It's) a strong indication the economy is still faltering," says API's John Felmy. It's not all a weak economy, though, points out Citi's Tim Evans. Consumers are buying more fuel-efficient autos, thus tamping down gasoline demand. [View news story]
is that total dependence on foreign oil? seems just like oil purchasers are exploiting the well documented surge in Saudi production. please let us know if the net number of imported barrels of foreign oil (in total, not just Saudi) has increased.
U.S. oil demand fell to 18.062M barrels/day in July, reports API, off 2.7% Y/Y and the lowest monthly usage since September 2008. "(It's) a strong indication the economy is still faltering," says API's John Felmy. It's not all a weak economy, though, points out Citi's Tim Evans. Consumers are buying more fuel-efficient autos, thus tamping down gasoline demand. [View news story]
Way to go America! this is the path to oil independence
Oil production in North Dakota hit 660K bbl/day in June, another record high, after average production in H1 jumped 67% higher than a year earlier. Oil companies drilled a record 7,100-plus wells in the state during the month. North Dakota recently passed California and Alaska to become no. 2 U.S. producer behind Texas (1.24M bbl/day). [View news story]
Standard Chartered (SCBFF.PK +9%) agrees to pay $340M to NY State to settle charges it laundered hundreds of billions of dollars from Iran. "The parties have agreed that the conduct at issue involved transactions of at least $250B," says NY's Ben Lawsky. Anybody who bought on last week's initial airing of the charges is ahead more than 20% today. [View news story]
that's among the reasons why setting stops is a terrible idea. I guess we all learn the hard way :( Better luck next time
StoneMor's Misleading Press Release: The Short Case Continued [View article]
I think you misinterpreted :) I love dividends myself, and for the most part, only invest in companies that have a history of returning cash to shareholders.
My point is this, they claim obscenely high IRR on the acquisitions they pursue (much higher than an investor could reasonably hope to achieve in the market), and are apparently only limited by cash. If what they are saying is correct, dividends would be a "waste" of capital if that capital could otherwise be deployed on these acquisitions. Even if they didn't have sufficient acquisitions in the pipeline, buying back the 10.25% notes below par would obviously be a better use of capital than dividends. I'd love to hear you argue otherwise.
StoneMor's Misleading Press Release: The Short Case Continued [View article]
Another thing is, they like to portray the people they cemeteries from as noobs. However, they are often buying from top-notch cemetery businesses like SCI. Or other times, they are paying more for cemetery businesses than SCI or STEI are willing to pay, despite SCI and STEI having clear competitive advantages. On conference calls, they claim absurd returns on investment for these acquisitions. But if rates of return are so high, then why are they wasting cash on distributions they aren't obligated to make? Further along this point, why do they spend a dime on distributions when they are frequently able to buy their 10.25% coupon bonds below par. They are very obviously pumping up their distribution to (1) attract yield-chasing retail investors, in order to amp their ability to place secondary offerings, and (2) because of the conflicts of interest in their distribution policy.
StoneMor's Misleading Press Release: The Short Case Continued [View article]
Did you listen to Colin Stewart on the conference call? That is Colin Stewart of Stewart Enterprises, who was cut off during the call when he pointed out that the "adjusted operating profit" would instantly fall if Stonemor stopped making acquisitions. I suspect he knows more about the cemetery business than you.
I don't fully agree with Valuesleuth, but I've gone through the 10Ks and 10Qs and what is very clear is that Stonemor's "distributable cash flow" is a deceptive and worthless number. Half of that number is generated by ignoring the cost of property and assets that they've accumulated in acquisitions.
Furthermore, if their acquisitions have such a high IRR, why do they bother wasting cash on distributions? God this conference call had so many red flags. It was hilarious when they cut Stewart off, after he pointed out that adjusted operating profit would instantly decline if they shut off acquisitions.
Iron Ore Crash Worsens [View article]
Yes, There Is A (High-Yield) Dividend Bubble [View article]
Yes, There Is A (High-Yield) Dividend Bubble [View article]
Sense And Nonsense About Fiscal Stimulus [View article]
Sense And Nonsense About Fiscal Stimulus [View article]
Sense And Nonsense About Fiscal Stimulus [View article]
reducing the interest on reserves from 0.25% to 0%, will make how much of a difference? going from a negative real interest rate to a minutely more negative real interest rate?
please explain that one to us
U.S. oil demand fell to 18.062M barrels/day in July, reports API, off 2.7% Y/Y and the lowest monthly usage since September 2008. "(It's) a strong indication the economy is still faltering," says API's John Felmy. It's not all a weak economy, though, points out Citi's Tim Evans. Consumers are buying more fuel-efficient autos, thus tamping down gasoline demand. [View news story]
please let us know if the net number of imported barrels of foreign oil (in total, not just Saudi) has increased.
U.S. oil demand fell to 18.062M barrels/day in July, reports API, off 2.7% Y/Y and the lowest monthly usage since September 2008. "(It's) a strong indication the economy is still faltering," says API's John Felmy. It's not all a weak economy, though, points out Citi's Tim Evans. Consumers are buying more fuel-efficient autos, thus tamping down gasoline demand. [View news story]
Oil production in North Dakota hit 660K bbl/day in June, another record high, after average production in H1 jumped 67% higher than a year earlier. Oil companies drilled a record 7,100-plus wells in the state during the month. North Dakota recently passed California and Alaska to become no. 2 U.S. producer behind Texas (1.24M bbl/day). [View news story]
Standard Chartered (SCBFF.PK +9%) agrees to pay $340M to NY State to settle charges it laundered hundreds of billions of dollars from Iran. "The parties have agreed that the conduct at issue involved transactions of at least $250B," says NY's Ben Lawsky. Anybody who bought on last week's initial airing of the charges is ahead more than 20% today. [View news story]
StoneMor's Misleading Press Release: The Short Case Continued [View article]
My point is this, they claim obscenely high IRR on the acquisitions they pursue (much higher than an investor could reasonably hope to achieve in the market), and are apparently only limited by cash. If what they are saying is correct, dividends would be a "waste" of capital if that capital could otherwise be deployed on these acquisitions. Even if they didn't have sufficient acquisitions in the pipeline, buying back the 10.25% notes below par would obviously be a better use of capital than dividends. I'd love to hear you argue otherwise.
Again, I think you misunderstood what I wrote.
StoneMor's Misleading Press Release: The Short Case Continued [View article]
They are very obviously pumping up their distribution to (1) attract yield-chasing retail investors, in order to amp their ability to place secondary offerings, and (2) because of the conflicts of interest in their distribution policy.
StoneMor's Misleading Press Release: The Short Case Continued [View article]
I don't fully agree with Valuesleuth, but I've gone through the 10Ks and 10Qs and what is very clear is that Stonemor's "distributable cash flow" is a deceptive and worthless number. Half of that number is generated by ignoring the cost of property and assets that they've accumulated in acquisitions.
StoneMor's Misleading Press Release: The Short Case Continued [View article]
Stop whining. Valuesleuth has done nothing unethical.
StoneMor Partners' CEO Discusses Q2 2012 Results - Earnings Call Transcript [View article]