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TGC004

TGC004
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  • Retirement Strategy: I Will Not Follow The Herd, Will You? [View article]
    I generally agree with your thesis here, except in 1 type of situation. That is when the underlying business of the investment is not doing well. In the portfolio presented, I take aim at MCD (which I own). Their business is struggling and management and the board could possibly cut the dividend back some - not saying they will - but, look at PB a year or so ago, that business was not doing great, there was a change in management and boom, the dividend got cut.

    I need to do more work on MCD myself before I make a call one way or the other.
    Dec 14, 2014. 08:05 AM | 1 Like Like |Link to Comment
  • Kinder Morgan begins test drilling on Burnaby Mountain [View news story]
    The environazis are just a bunch of punks, Kinder will steam roll them over and over.
    Nov 23, 2014. 07:15 PM | 1 Like Like |Link to Comment
  • A Closer Look At Buckeye Partners' 3Q'14 Distributable Cash Flow [View article]
    I don't disagree with facts as presented. The market values securities not on what happened in the past, but where the security is going. While I recognize history for BPL isn't great in recent years, I don't also worry about MLP investments as long as distributions are growing and the business improving.

    So while the Author's thesis has been repeated over and over again for most MLPs, it hasn't really provided me with much value as it is a backward looking view, and not a forward looking view. Thanks for trying, but it was really pretty useless.
    Nov 21, 2014. 10:24 PM | 2 Likes Like |Link to Comment
  • 13.1% Distribution Linn Energy Had A Good Q3, But It May Be In Trouble If Oil Prices Don't Rise. Sell? [View article]
    So the attack begins again on Linn. Frankly, as long as distibutions are not going south, I am happy to sit and collect. I am not alarmist on the company's strategy and direction. It is easy to be critical as many others have been. but Linn delivers over and over again. That to me means that management has cred and knows what it is doing. I will stick with Linn.
    Nov 15, 2014. 12:17 AM | 18 Likes Like |Link to Comment
  • Update: Calumet Specialty Products Earnings [View article]
    I agree with you that the leverage ratios are on the high side. One of things that makes this MLP a little different is the % ownership owned by managementl and the family.

    The other thing that makes CLMT a bit different is that they actually produce premium products that are priced for profit.
    Nov 11, 2014. 06:05 PM | 2 Likes Like |Link to Comment
  • Report: Trans Mountain expansion less beneficial than Kinder Morgan says [View news story]
    Run more trains through Canada full of volatile crude and wipe out more towns, that sounds like a good idea.
    Nov 10, 2014. 07:31 PM | 7 Likes Like |Link to Comment
  • Not All MLPs Beholden To Oil Prices [View article]
    I generally pay little attention to the price of my MLP midstream investments on any given day. What I pay attention to is the cash flows and distribution coverage, and growth rate of distributions. Those are the important metrics to me as an MLP investor. If the cash flows are growing, distribution coverage is above 1.0x and cash distributions are growing, I really don't care if the price bounces around, unless I am looking to buy more, then I pay attention and buy on a dip.
    Nov 9, 2014. 09:17 AM | 5 Likes Like |Link to Comment
  • Kinder Morgan: Just Cleared Major Hurdle On Way To Merger Vote [View article]
    Rich Kinder controls the partnership(s) / company and there is no doubt that this deal is getting done, the shareholder vote is already over, because if Rich Kinder votes for it (which he will) then no one can block it.

    I have some sympathy for those who as part of their estate plan invested in KMP with the intent to hold until death so that taxes would never get paid on the distributions received during their lifetime, but, stuff happens. And the rest of the unit holders are going to benefit, so pay your tax bill and enjoy the returns going forward.
    Nov 6, 2014. 08:39 PM | 9 Likes Like |Link to Comment
  • Retired Investors Must Be The Smart 'Little Pig' [View article]
    Solution, is to own the stock in your Roth, no tax on dividends, no capital gains taxes.

    If you don't have a Roth, you need to get one. You may say that you make too much to contribute to a Roth - well that isn't the case. You can make a non deductible IRA contribution and flip that immediately into your Roth. If your 401k plan allows for post-tax contributions, max those out and then transfer those post tax contributions into your IRA, then flip them into your Roth.

    The more money you can move into a Roth over your working life, the more taxation you can avoid in retirement. (in theory at least, until they change the law).
    Oct 31, 2014. 05:54 PM | 1 Like Like |Link to Comment
  • Retirement Strategy: Sometimes It's Easy To Put Cash To Work [View article]
    Interesting article and concept. I have been following a similar strategy, but with using selected MLPs. Some of the MLPs in my portfolio are growing distributions at a roughly 15% annual clip recently (look at MMP). In addition, I get the tax shield.

    I know the tax time K1 headache is a bit of a chore, but I am generating about a 6% yield (tax deferred) on the portfolio and have been reinvesting distributions and growing it via savings. I have been able to grow the portfolio over time such that if things stay the same or better, the annual cash generated by the portfolio will fund our 3 kids college educations, and when they are done, I will still have a substantial portfolio throwing off cash.

    And then when I am done and gone, the step up in basis should reset the tax shield once again (this is not intended to be tax advice).
    Oct 25, 2014. 05:29 PM | 2 Likes Like |Link to Comment
  • Still Lovin' It? McDonald's In Q3 [View article]
    I own this stock, not a major position, but a decent sized one. I recently paid a few visits to a couple of franchise locations near me in NJ. Drive Thrus were busy at lunch time, in the morning it appeared that most of the drive thru volume was coffee. At lunch, the dollar menu items seemed to be the movers, very few people were buying the higher dollar items. Yet they continue to sell lots of soft drinks and their fries are so much better than BK's which taste terrible.
    Oct 19, 2014. 07:18 PM | Likes Like |Link to Comment
  • 10 Contender Curs Count 11% To 38% September Upsides [View article]
    Very interesting article, thank you for writing it.
    Oct 15, 2014. 09:58 PM | Likes Like |Link to Comment
  • Use The Apple Cash Machine To Grab A 9%-Plus Yield And Beat The Market Pullback [View article]
    Your comment that the cash only seems to grow is one I take exception to. I like to look at net cash, that being cash net of debt. AAPL's debt has grown from $0 to $31b in just a few short years, such that the net cash number is below where it was a few years ago. That said, total cash is substantial, however, most of it parked offshore.
    Oct 12, 2014. 06:04 PM | Likes Like |Link to Comment
  • HealthEquity: A Niche Pure Play On Healthcare Reform [View article]
    Let me clairify for you. Say my deductible is $6,000, I pay $6,000 in out of pocket from my pocket. I also put $6,500 into the HSA, and take a deduction on my returns for the $6,500.

    Then the HSA earns money on investment. The money put in you get a current deduction for which is nice. The earnings on a growing asset are never taxed just like a Roth. So in this case, not only do you get a current deduction for funding (unlike a Roth) but everything you take out is tax free, assuming you can support medical expenses paid out of pocket.

    What a great opportunity, do a spreadsheet or two / three with different assumptions. Works every time.
    Oct 6, 2014. 09:27 PM | Likes Like |Link to Comment
  • HealthEquity: A Niche Pure Play On Healthcare Reform [View article]
    I can "recoup" prior medical expenses going back in time all the way to when I entered the HSA, I have vetted this strategy with my tax advisor, you should do the same. Since my family generally tends to spend the entire deductible each year (which is the same as what you can deposit into the HSA, and I pay for these expenses out of pocket), the whole balance should be tax free including earnings. Indeed, a major win win, tax advantaged equivalent of a Roth, but even better because you get the tax deduction each year with no taxes on the back end.

    It is well worth paying the deductibles out of pocket as a result. It is also worth paying for smart advice on the tax and investment side.
    Oct 6, 2014. 09:23 PM | Likes Like |Link to Comment
COMMENTS STATS
444 Comments
654 Likes