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  • Oxford Lane Capital Sell-Off Is Irrational [View article]
    Istahler, I believe if they sell shares above NAV they are technically creating value for shareholders even though they are lowering the market price.
    Yes this will generate more fees for management because their portfolio is larger now. Assuming the raised capital is invested similarly to the existing portfolio, they could raise the distribution a little. Distribution is based on NAV portfolio returns which has nothing to do with trading price of OXLC.

    Simplified example (not OXLC):

    1,000 shares outstanding x $11.20 market price = $11,200 market cap.
    NAV $10/sh x 1,000 shares = $10,000 portfolio value.
    Portfolio yields 10% of NAV = $1000 total company returns.
    Company distributes 100% of income.
    Dividend per share = $1000 / 1000 sh = $1 / sh.

    Block trade to raise capital $11 x 100 shares = $1100 raised.
    Market doesn't like it and price drops to $10.60/sh.
    1,100 shares outstanding x $10.60 market price = $11,660 market cap.
    new NAV = old NAV + $1100 raised = $11,100 portfolio value.
    Portfolio yields 10% of NAV = $1110 total company returns.
    Company distributes 100% of income.
    Dividend per share = $1110 / 1100 sh = $1.009/sh.

    My point here is that the dividend per share can go up because management created value by selling above NAV, assuming they can deploy the new capital at the same (or better) rate of return as the existing portfolio capital. Though I didn't illustrate it, the yield went up too. Any thoughts or corrections are welcome.
    Jun 5, 2015. 11:30 AM | 1 Like Like |Link to Comment
  • New Efficiente PLUS Improving CD Options [View article]
    Nice article. I hope all the broker/dealers add these offerings to their platform soon.
    May 29, 2015. 08:35 PM | 1 Like Like |Link to Comment
  • Exceed Structured Shield Fund Is A Paradigm Changer [View article]
    It looks like a really interesting fund and much easier way to access a continuous collar with liquidity.

    Wouldn't this collar cost more (be a larger net debit) than 80 bps (0.80% annually) using the public options market? The fact sheet also says the net fees are 1.45%. I am wondering if the outcome set of [-12.5%,+15%] might look more like [-14.5%,+12.5%] in the real world. Would love to learn more.
    May 18, 2015. 07:27 AM | Likes Like |Link to Comment
  • Evolution Of The JPMorgan Efficiente Series [View instapost]
    Thanks for writing this very useful and informative article. The current MLCD's seem to be based on the ETF Efficiente 5 DS. Can you provide a link to the price history or performance numbers by year? Searching google yields a bunch of dead bloomberg links.
    May 9, 2015. 02:40 PM | Likes Like |Link to Comment
  • Enduro Royalty Trust Should Be In Your Portfolio [View article]
    Anybody know if NDRO will be able to recover if oil prices come back to 60+ ?
    Jan 29, 2015. 11:01 AM | Likes Like |Link to Comment
  • American Realty Capital Properties: What To Do About Cole Capital... [View article]
    "the only reason Cole was successful with aggregating assets and completing fill liquidity events was because ARCP was always there waiting."

    I'm not sure what you mean by this statement. To my knowledge Cole has never had a liquidity event selling to ARCP.
    Cole Credit Property Trust II -- Spirit Realty (SRC)
    Cole Credit Property Trust III became publicly listed as COLE.
    Cole Corporate Income Trust -- Select Income REIT (SIR)

    The COLE listing was often mistakenly referred to as an IPO, but really it was just a listing. It was later acquired by ARCP, but that was not a liquidity event, as it was already liquid.
    Jan 12, 2015. 10:43 AM | 2 Likes Like |Link to Comment
  • Update: American Realty Capital Properties - Activist Investment Not A Game Changer [View article]
    Did he really go long on all those according to his articles?
    Jan 5, 2015. 02:03 AM | Likes Like |Link to Comment
  • American Realty Capital: Death By A Thousand Cuts [View article]
    Class action lawsuits, by shareholders suing the company, are pointless. You are suing yourself. It's the same as if 90% of Americans were to sue the US Government. The only result is that lawyers make money.

    Suing executives personally is a different story however.
    Dec 19, 2014. 12:29 PM | 29 Likes Like |Link to Comment
  • A Scandal That Should Shock Nobody [View article]
    I would invite you to compare Cole 3 to a publicly traded competitor from 2011-2013, investing in the same types of triple-net properties. Also look at WP Carey's track record on their non-traded REITs. I believe it beats out whatever REIT index you compare it to.

    But to your credit, the upfront 10%-13% load is too high. (I haven't seen any at 15%.) FINRA and the non-traded REIT players are working on a more transparent and more level-load investment vehicle, which should be better for clients going forward, 2016 and beyond.
    Nov 21, 2014. 11:47 PM | 1 Like Like |Link to Comment
  • Estimating Baidu's Intrinsic Value [View article]
    At time of publication the share price was $215, not $191. I'm not sure if the rest of the analysis is based on $191 and needs to be revised or not.
    Oct 5, 2014. 12:12 PM | Likes Like |Link to Comment
  • StoneMor Partners: My Reason For Selling This 10% Payout MLP [View article]
    Have you not been following Stonemor for the last few years? Articles exactly like this one have existed for many years. Please read some more articles on MLP's to understand. Stonemor, like all MLP's, can continue to pay dividends greater than free cash flows for as long as the capital markets are willing to buy more shares, which is indefinitely.

    That having been said, I wouldn't own STON either. But you are wrong about, "At some time in the near future, cash flow and unit payout must meet."

    This statement should read:
    "At some time in the far distant future, cash flow and unit payout must meet. But if STON loses popularity with capital markets, that could happen in a matter of just a few months."
    Jun 19, 2014. 07:05 PM | 3 Likes Like |Link to Comment
  • Starbucks: The Apple Of Restaurants [View article]
    APPL did warrant their good graces, as well as BIDU, FB, and other hot stocks.
    Apr 30, 2014. 01:20 PM | Likes Like |Link to Comment
  • Why Cisco Is Ridiculously Underpriced [View article]
    Why are people impressed with 3% dividends?
    Apr 1, 2014. 10:33 AM | 1 Like Like |Link to Comment
  • Busting Medbox [View article]
    I should warn you against short selling even if you believe a stock is doomed. For day trading it is okay if you can borrow shares for free or cheap, but overnight shorts charge you borrowing fees that can easily exceed 25% APR. Also most of these scam companies are familiar with how to squeeze short positions using market manipulation strategies like pump and dump or announcing huge stock dividends. Would you have wanted to be short MDBX Jan 6-7, 2014 when the price doubled? I'm sure Citron knew it was a scam before that, but shorting would have been a disaster.

    It is much more difficult to make a profitable short trade with 1 month hold time than a long trade. The odds are stacked against short traders. It is better to just avoid scam companies.
    Feb 19, 2014. 01:48 PM | 5 Likes Like |Link to Comment
  • Will The U.S. Default? An Introduction To Sovereign Default Risk [View article]
    Would you explain this comment in laymen terms? Also would you explain why Taiwan and Singapore are not suitable counterparties for China risk? Is it the geographical closeness, or related to China's desire to take over Taiwan or what? Thanks.
    Sep 13, 2013. 12:26 PM | 1 Like Like |Link to Comment