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bobhairgrove

bobhairgrove
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  • It Is Finally Time To Buy Medley Capital Corp. [View article]
    Or do you work with smoke and mirrors? Maybe a little incense and theremin music on the side... perhaps with a Ouija board?

    Unfounded conjecture is not what SA is about. Unless you give more specific details, that's exactly what your remark is (re: more non-accruals on the horizon).
    May 3, 2015. 06:27 AM | Likes Like |Link to Comment
  • It Is Finally Time To Buy Medley Capital Corp. [View article]
    "... more non-accrual loans on horizon..."

    Would you care to elaborate?
    May 1, 2015. 04:13 PM | Likes Like |Link to Comment
  • Gilead hopes to drive international demand for hep C drugs by giving some away [View news story]
    "You might image that is your privilege..."

    Should be "imagine", of course.
    Apr 22, 2015. 04:27 PM | Likes Like |Link to Comment
  • Gilead hopes to drive international demand for hep C drugs by giving some away [View news story]
    The last few days I have been re-reading "Jurassic Park" by Michael Crichton, published in 1991 (yes: soon it will be 25 years since this was written). There is a very interesting passage which struck me as very relevant to today's discussion of GILD. In my edition (Arrow edition, paperback) it is on p. 199 where Hammond is "preaching" to Henry Wu about his motivations for the park. Excuse me if this is a bit long, but since you may not find the place (it's approx. on the 3rd page of the chapter with the title "Bungalow"), I'm going to quote the relevant passage and hope that this doesn't awaken any sleeping copyright furies (I would assume that this quote would qualify as "fair use", although IANACL):

    === begin quote: ===

    Hammond: "If you were going to start a bioengineering company, Henry, what would you do? Would you make products to help mankind, to fight illness and disease? Dear me, no. That's a terrible idea. A very poor use of new technology." Hammond shook his head sadly. "Yet, you'll remember," he said, "the original genetic engineering companies, like Genentech and Cetus, were all started to make pharmaceuticals. New drugs for mankind. Noble, noble purpose. Unfortunately, drugs face all kinds of barriers. FDA testing alone takes five to eight years -- if you're lucky. Even worse, there are forces at work in the marketplace. Suppose you make a miracle drug for cancer or heart disease -- as Genentech did. Suppose you now want to charge a thousand dollars or two thousand dollars a dose. You might image that is your privilege. After all, you invented the drug, you paid to develop and test it; you should be able to charge whatever you wish. But do you really think that the government will let you do that? No, Henry, they will not. Sick people aren't going to pay a thousand dollars a dose for needed medication -- they won't be grateful, they'll be outraged. Blue Cross isn't going to pay it. They'll scream highway robbery. So something will happen. Your patent application will be denied. Your permits will be delayed. /Something/ will force you to see reason -- and to sell your drug at a lower cost. From a business standpoint, that makes helping mankind a very risky business. Personally, I would /never/ help mankind."

    === end quote ===
    Copyright (c) 1991 by Michael Crichton
    ISBN 0 09 928291 7

    So the problems facing GILD are at least as old as this book, or the companies mentioned. One would think that society had made a little progress in the meantime?

    (Disclosure: long GILD)
    Apr 22, 2015. 03:46 PM | 7 Likes Like |Link to Comment
  • CEFL And YYY: Are These CEF Alternatives Worth Owning? [View article]
    It was a hypothetical question about SP appreciation vs. yield in general.

    Of course, none of the UBS 2x leveraged Etrac products are what I would consider "buy-and-hold" investments. But there are many people who are quite happy owning stocks like AT&T for several years just for the 5% or greater yield, although the SP has not kept up. And in the long run, they might even come out ahead of people who are in GE or IBM, for example.

    When I compare the 1 year charts for CEFL and BDCL, I don't see much of a difference. CEFL is down -18.65% and BDCL -16.83% from a year ago. I think the yield is also comparable here; MORL had a much better yield (and performance) over the past year. But it was a lousy investment in 2013 unless you got in late in the year when MBS equity had bottomed.
    Apr 21, 2015. 01:26 PM | 2 Likes Like |Link to Comment
  • CEFL And YYY: Are These CEF Alternatives Worth Owning? [View article]
    It depends.

    If you are retired, and your heirs are well taken care of, and all you need to have is a steady income stream to supplement your social security / pension plan / etc., then maybe you don't care so much about SP appreciation. Dividend cuts will be more critical to you.

    As long as those monthly or quarterly dividend payments keep rolling in, and you don't need to worry about what you are going to leave your heirs, who cares what the SP is?
    Apr 17, 2015. 01:15 PM | 2 Likes Like |Link to Comment
  • It Is Finally Time To Buy Medley Capital Corp. [View article]
    MCC was 9.60 when you wrote this. And what is it now?

    I wouldn't talk about "falling knives" here if I were you.
    Apr 16, 2015. 01:21 AM | Likes Like |Link to Comment
  • Despite Exxon Bumping Up Your Dividend In April, It Is Not A Buy [View article]
    When comparing yields, it would be a good idea to take tax issues into consideration. After all, Shell is a Dutch company (at least it says so in the name), and I assume that U. S. investors will have to pay tax to the Netherlands on the dividends. What effect does this have on the comparison, e.g. if holding these in an IRA or Roth tax-advantaged account?
    Apr 14, 2015. 05:33 AM | Likes Like |Link to Comment
  • 10.87% Advantage To 5 BDC Highest Yield, Lowest Price, April Dogs [View article]
    His source is Yahoo. The charts given are all labelled "4/2/15". But Yahoo still hasn't updated MCC's dividend and yield as of today (4/12/15), and I assume it hasn't updated the other BDC's mentioned here, either.
    Apr 12, 2015. 10:46 AM | Likes Like |Link to Comment
  • Top Dog April BDCs: 22.65% Yield; 27% Upside; 40.36% Net Gain [View article]
    As noted on your other article, the yield numbers are not accurate:

    http://seekingalpha.co...
    Apr 5, 2015. 06:24 PM | Likes Like |Link to Comment
  • 10.87% Advantage To 5 BDC Highest Yield, Lowest Price, April Dogs [View article]
    These yields aren't accurate -- unfortunately, Yahoo (your source) hasn't updated their data yet. For example, MCC cut their dividend earlier this year. Now it is 0.30 per quarter (previously 0.37). I believe several of the others have also cut the dividend (FSC and PSEC, although I don't follow those two).

    Since this is information which is publicly available on the websites of each of these companies, it would be nice if you would check the most recent numbers in the future accordingly before publishing stale information.

    As to MCC, it has been a real "dog" since they did a secondary offering at $13 last fall. They have a long way to go to catch up to NAV at this point. Although management has advertised their decision to do share buybacks, there hasn't been much evidence of this to date. It will be difficult to grow their portfolio until the share price has caught up a bit. Besides, it is heavily shorted ... last count there was more short interest as of mid-March than has been in over a year with more than 6 days to cover.

    It might even be a good buy now, IF management would put their money where their mouths are, get a good short squeeze going, and cut back management fees to a more shareholder-friendly level.
    Apr 4, 2015. 03:54 PM | 2 Likes Like |Link to Comment
  • CEFL And YYY: Are These CEF Alternatives Worth Owning? [View article]
    Sorry about misspelling your name, BTW!
    Mar 28, 2015. 08:39 AM | Likes Like |Link to Comment
  • CEFL And YYY: Are These CEF Alternatives Worth Owning? [View article]
    Thanks, Reuven Gregg, for your enlightened insight into these investment vehicles. As always, it is most appreciated.

    Apropos "monthly distribution payments":

    These almost always vary to a considerable extent. In the realm of UBS goodies, in addition to $CEFL, there is also $MORL, which pays a monthly coupon/distribution, but the amounts are dependent upon which index constituents go ex-dividend within the month prior to the ETN coupon ex-dividend date. With $MORL, in some months there are huge distributions (or coupons) and sometimes tiny ones. They vary month by month.

    Most of the index constituents in CEFL (or YYY) pay monthly, but sometimes the timing of the payouts can vary ... with interesting effects on the CEFL payout (e.g. when one of the index constituent CEFs goes ex-div. in a different month than otherwise usual, IGD for example).

    S.A. author Lance Brofman has done some exemplary work with these 2x leveraged ETNs ... I would highly recommend reading his work (and ALL of the comments) before investing a nickel in any of these ETNs. I have tried to do some dividend capture trades with these, unfortunately always with pretty disappointing results (up to now, anyway). YMMV
    Mar 25, 2015. 04:21 PM | 3 Likes Like |Link to Comment
  • 6 Confident And Secure Companies Boosting Dividends [View article]
    $ARI, also managed by Apollo Global (same as $AMTG), increased their dividend from 0.40 to 0.44 this quarter as well. Yield is abt. 10% right now.
    Mar 24, 2015. 09:26 AM | Likes Like |Link to Comment
  • 6 Confident And Secure Companies Boosting Dividends [View article]
    HTA might be an exception to that. They did a 2-to-1 reverse last year and came out smelling like roses.
    Mar 24, 2015. 09:25 AM | Likes Like |Link to Comment
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226 Comments
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