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rickevan

rickevan
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  • Is American Realty Capital Properties' 8% Dividend Yield Built To Last? [View article]
    Good article, as always. Effectively, the shareholders gave up the shopping center spin-off and a 7.3% dividend raise for 500 Red Lobster locations, not a good exchange in my opinion. The real audacity, is the Company selling 13.8 million shares for $ 12 per share gross ! This pisses me off the most. Very long ARCP.
    May 30 06:24 AM | 35 Likes Like |Link to Comment
  • American Realty Capital Properties: Why Marcato Capital Management Is Wrong [View article]
    You wrote a good article and I respectbyour point of view, however, as someone very long ARCP I disagree. Up until recently the shopping center spin-off was proceeding on schedule which was going to increase the dividend overall by 7.3 %. At the last moment a sale to Blackstone was announced with the proceeds being reinvested in the Red Lobster locations. Time will tell if this was a beneficial swap for sharholders. Their is no net cash needed so why the gigantic equity raise at such an abysmal price. Are new assets being purchased with this new cash so cheap that a 10% or greater cash return will be realized ? I don't want to sound like a broken record, however, the stock price was almost 15 a couple of months ago.

    Mine and many others equity was temporarily, hopefully just temporary, destroyed in the equity raise unless the cash raised is redeployed in property returning substantially above the trend. With regards to your noting that the AFFO multiple the stock is trading at is a bargain you should be fair and also ask why that is the case. No investor confidence. I hope the recent uproar and rejection of the proposed management windfall gets the message across. As mentioned above, I am very long ARCP.
    Jun 9 06:06 AM | 23 Likes Like |Link to Comment
  • 5 Myths About Dividend Growth Investing [View article]
    Once again, a well wrtitten and very VALUABLE article. For years I have been trying to figure out what the big deal is about achieving the "4% rule". It is all about cash flow. If a 4% distribution from your assets is all you need than that seems relatively easy to achieve without having to liquidate your assets and consume principal. It is a myth being perpetrated by those that want to help you manage these assets for a fee ! Financial education is a must starting with middle school children.
    Mar 11 07:16 AM | 23 Likes Like |Link to Comment
  • Start Investing Now For Retirement Wealth [View article]
    I have to disagree with your statement about young people waiting for a market correction before initiating new positions. A young person can afford to make an ill timed purchase if they are in it for decades. You want them to invest regularly regardless of the current value of quality companies. I don't think that teaching or even discussing market timing as a strategy makes sense. I have trained my kids to invest when you have the funds. They have already experienced market volatility, corrections etc, however, there portfolio is worth more today than years ago when they began investing. Finally, I'm not smart enough to market time so how could I potentially teach this strategy to anyone ?
    Mar 3 08:40 AM | 18 Likes Like |Link to Comment
  • Kinder Morgan Energy Partners Responds To Criticism [View article]
    Good article and well timed. I agree with all you said. You really can't argue with success and Richard Kinder has proven he knows his business. I respect the Company for responding to your article. Like you, I am still frustrated that more debt wasn't used in the immediate future than smoothed out with equity over time. Net interest expense is much less than non-deductible distributions ! I am very long the Kinder group.
    Feb 23 06:55 AM | 15 Likes Like |Link to Comment
  • What 'Intrinsic Value' Might Warren Buffett Assign To Linn Energy Common Units? [View article]
    I just want to coment that I have not seen another article written on this website that is as thorough as I just read. If you don't mind, what type of work do you really do and what is your education ? Did you work for Line in the past or another MLP ? Beyond impressive !
    Sep 5 04:03 PM | 14 Likes Like |Link to Comment
  • A Retirement Reality: Save More, Spend Less And Invest In Dividend Stocks [View article]
    Hi R.S. excellent article. Short, sweet and to the point. The key to get this terrible saving situation turned around is training and educating our young. We must start in middle school and teach everyone about money and investing. As important as English and the sciences are, the curriculum needs to become 21st century. We need to teach relevant topics. While I was never a good student, my self taught investing education and my formal accounting education has served me and my family quite well. Thanks again for another practical article.
    Sep 23 11:33 AM | 14 Likes Like |Link to Comment
  • Retirement Strategy: How Dividend Income Grows To Staggering Levels By Reinvesting And Compounding [View article]
    Thanks for the reply. The main point of my short comment was to begin as soon as possible to get the maximum compounding results as inferred from reading the article. I have two children, both younger than you, who were exposed to saving and investing at an early age. My older son is 19 and has funded a Roth IRA from the past two summers work. Starting at 16 vs starting at 21 matters in the long term. While I appreciate that you are a graduate with debt, as long as your working you should fund a Roth IRA, at a minimum as you get going in your career. I am assuming that you have student loans, not credit card debt. You can't fund for the past so take advantage, to the extent you can, while you are young.
    Aug 17 09:08 AM | 13 Likes Like |Link to Comment
  • Start Investing Now For Retirement Wealth [View article]
    You have written an excellent and very relevant article. I have 2 sons, now 18 & 16, who have been saving and investing since about 12. Starting young is the key to success since you not only have the advantage of youth, you have the advantage of training your brain to save and invest which makes it easier to continue as you age. This article is going right to my older boy later. Best of luck. You will succeed !
    Mar 3 05:52 AM | 13 Likes Like |Link to Comment
  • American Realty Capital Properties: Rapid Growth At A Cheap Price [View article]
    Very good article. Like many others, I am a very upset and angry shareholder. I feel that it would have better to let your debt/equity ratio get out of whack than issue 138 MM shares gobat $ 12 per share. What dilution. The after tax cost of the dividend payment far exceeds the cost of interest on debt or even another preferred issuance ! Finally, since the company projected, at the beginning of the year, a multi billion dollar acquisition spree than why not have a shelf registration or some form of standby issuance ready for the opportunity. The stock was $ 14.90 a few months ago. Why didn't management pull the trigger then ? Even giving up a little for a quick placement they could have gotten $ 14 for the shares ? Management needs to slow down and get its act together to gain credibility with the investing public.
    May 24 06:44 AM | 12 Likes Like |Link to Comment
  • Linn Energy And The Value Of 'Under Promise, Over Deliver' [View article]
    Good article Casey. Personally, I hope management does not increase the distribution too soon. They should aim for a minimum cushion of at least 10% before giving another increase. The current yield is substantial enough for now and would prefer to see strong numbers which should drive the share/unit price into the mid 30's within 6 months. Long LNCO.
    Aug 12 11:26 AM | 11 Likes Like |Link to Comment
  • Linn Energy For Dummies [View article]
    Very good article. Although irrelevant at this point, the cash paid for the puts should have been expensed pro-rata of the period they were to receive the benefit. In accounting, you try to recognize your income and expenses in the year incurred. The puts purchased, with cash, is no different than if you treated it as prepaid insurance. I also agree with you that after the Berry acquisition, hopefully it gets done, that distributions should be frozen. This is the negative of an MLP or REIT, which as a pass-thru entity cannot retain enough earnings to grow. Growth must be paid for with debt and/or sale of shares. I am very long Line and Lnco.
    Jul 21 01:49 PM | 10 Likes Like |Link to Comment
  • The Best Dividend Growers, Part 5: Philip Morris [View article]
    Your initial chart on revenue growth seems to be a little misleading. The apparent 65% decline for MO is probable due to the KFT and PM spin-offs. I think you should have adjusted for this and shown the revenue growth, or decline, of the current MO business.
    May 11 05:48 AM | 9 Likes Like |Link to Comment
  • An Alternative To Overvalued Dividend Stocks [View article]
    Excellent article. I wholeheartedly agree with you about diversification. In addition to having a more balanced portfolio, the level of dividend income is typically substantially higher for holdings outside the U.S. My dilemma, and I'm sure other readers, will be the tax due on sales in a taxable account. I live in a high tax state and when adding that tax plus the medicare surcharge to the 20% Federal rate my tax rate on Long term gains would be about 32%. In my case I think that it's better to sustain a correction in price than pay the tax. I didn't mean to detract in any way from the quality of your article, however, in a taxable account this becomes a material decision. Granted, a high class problem to have. Finally, I would look at VNQI as a less costly ETF to RWX.
    Nov 10 06:24 AM | 9 Likes Like |Link to Comment
  • Protected Principal Retirement Strategy: Retiring Without A Million-Dollar Nest Egg - Part III [View article]
    Very good article. Your recommendations are clearly skewed towards obtaining as high a yield as possible regardless of risk to hit the income amount needed. I think that some of your choices are more suitable for more sophisticated and/or higher net worth individuals. Unfortunately, I assume the majority of the population are not adequately prepared to retire. I hope that your article stimulates some people to refocus their priorities and try to get their act together well before retirement !
    Jul 22 07:51 AM | 9 Likes Like |Link to Comment
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