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ge12ar

ge12ar
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  • Atlantic Power Refinancing: Positive For Common And Preferred [View article]
    No it can be purchased on the TSX just like the common.
    Mar 1 08:16 PM | Likes Like |Link to Comment
  • Atlantic Power Refinancing: Positive For Common And Preferred [View article]
    I suggest one should consider the 4 publicly traded convertible subordinated debentures(all traded on the TSX). The conversion prices are very high($13 or higher) so that is not really a factor. But the debentures (which have a remaining terms of between 3-5 years) are all trading at very big discounts from par so that the YTM are in the 12-15% range. They are clearly less risky that the preferreds. If this refinancing reduces the risk of bankruptcy I think the CSD's provide very attractive returns (assuming they are ultimately repaid). The effective limitation on dividends may not be favorable to the Common shareholders but it certainly is to the debenture holders.
    Feb 28 03:48 PM | Likes Like |Link to Comment
  • Will Sandstorm Gold Rebound In 2014? [View article]
    I believe you need 5 of the 2015 wts + $5USD.
    Feb 23 12:55 PM | Likes Like |Link to Comment
  • Seadrill could be headed for a dividend cut, Wells Fargo says [View news story]
    Short term puts will do you no good IMO. The company just raised the dividend in November from $.91 to $.95. Unless they are stupid(which is definitely not the case) there won't be any reduction in the near future. Frankly, I don't think there will be any reduction in the foreseeable future and WF and the other analysts that have been negative about this stock just don't appreciate the company's game plan. Yes they have borrowed a lot of money but that money has been used to purchase new rigs. As they come on stream they will be significant income generators which can be used to repay the loans. Frankly I would rather trust JF's judgment than some Wall Street analyst. I have owned this stock for about 4 years and added to my position on two occasions since then. All of my purchases are now in the money. My only question is should I make another purchase. There maybe downward pressure in the short term but in the long term the stock will reach another high IMO when these new rigs are covered by multi-year contracts.
    Feb 12 04:08 PM | 4 Likes Like |Link to Comment
  • A Premium Healthcare REIT That Delivers Something Special [View article]
    I am not as knowledgeable as Brad butt perhaps I can answer your question. Let us assume a company distributed $200 to its shareholders but it had only $100 of taxable income. In that case 50% of the distribution would be taxable income and the other 50% ROC. ROC can be good and it can be bad depending on what cause it. In the case of OHI(and other Reits) they incur a substantial deduction for depreciation much of which I consider to a different type of expense. I generally look at FFO(cash flow). If the dividends are greater than the cash flow I generally get very concerned but if the dividends are less than cash flow the fact that a portion of the distribution is ROC is for me not a great concern. I believe you are correct about the tax situation so the higher the percentage of ROC(provided the distribution does not exceed cash flow) is IMO a positive. I hope that helps and I am sure Brad will correct me if anything I wrote is incorrect.
    Feb 12 01:25 PM | Likes Like |Link to Comment
  • Acquire Or Die: Understanding High-Yield Upstream MLPs [View article]
    I think you omitted one additional important feature. I do not follow all of the mlps you discussed but I do own LINE. Historically almost all of the distributions have been return of capital and are not currently taxable (you would pay taxes when and if you sell your position). So LINE provides an investor with a 10% yield that is currently tax free. I believe that the others also provide a tax shelter for a significant portion of their distributions. That makes them IMO very attractive investments.
    Jan 30 11:53 AM | 2 Likes Like |Link to Comment
  • Preciously Functional: Palladium May Outshine Its Cohorts ... Again [View article]
    I am surprised that you did not also mention that another way to gain exposure to palladium is by investing in palladium miners. Would you care to recommend a few?
    Jan 19 09:30 AM | Likes Like |Link to Comment
  • These 2 Stocks With Yields Of 12% Or More Are Poised For A January Rally [View article]
    For a completely different view on EROC see http://seekingalpha.co...

    I don't know who is right but I'll be cautious and avoid it entirely.
    Nov 29 05:29 PM | 2 Likes Like |Link to Comment
  • Data Group Inc.: Deconstructing A Failed Idea [View article]
    I was wondering if you have an opinion about the Debentures. They are trading at around $40 which results in a YTM of almost 40%(assuming there is no default). I own a few shares of the Common but a relatively large(for me) number of the Debentures and I am tempted to continue to hold if it's likely they will be repaid. It is not likely to do management any good if the company goes bankrupt and just not going bankrupt is a pretty low bar for a 40% return.
    Nov 28 08:50 AM | Likes Like |Link to Comment
  • ADX And PEO Increase Annualized Distribution Yield 6.0% In Q4, But Little Changes In November [View article]
    I was interested until I checked that PEO significantly under performs XLE and ADX significantly under performs the S&P 500. I like the distribution levels (btw the x dividend date is 11/21) but it appears there is a reason for the large discount and it is due to their historic under performance.Thanks for the article but I'll pass on the investment.
    Nov 19 09:12 AM | Likes Like |Link to Comment
  • North Atlantic Drilling's NYSE Listing Could Result In Higher Liquidity, New Demand [View article]
    The company pays a dividend in excess of 9%. I can not understand how any investor can feel "a bit ripped off" when an investment pays that high a dividend. Maybe you should focus on investments more like twitter if you are looking for significant greater capital appreciation(as well as significant greater risk). If it continues to pay me at least 9% I will be very happy with my investment.
    Nov 19 08:44 AM | 3 Likes Like |Link to Comment
  • American Capital Agency: 2014 Dividend Projections Look Everything Else But Pretty [View article]
    The basic thrust of your article is that interest rates are going to rise which will reduce iBV and cause a reduction in dividends. Have you considered the fact that when the Fed starts to taper that is likely to cause long term rates to rise at a much greater amount than short term rates(which I believe will continue to be at historic lows for the foreseeable future). If that does occur then Mreits, which basically profit on the difference between short term and long term rates will become more profitable than they currently are. I believe your fear of continued dividend reductions is not going to occur.
    Nov 14 06:43 AM | 9 Likes Like |Link to Comment
  • This Undervalued, Oversold High Dividend Stock Has 2 Payouts Going Ex-Dividend This Week [View article]
    When I click on your free covered call table there's nothing there. Same for your cash covered put table. What am I doing wrong?
    Sep 15 09:02 AM | Likes Like |Link to Comment
  • The Unique Opportunity In Stillwater Mining [View article]
    Relatively little palladium is currently used in jewelry. They are trying to get jewelry manufacturers to use more in addition to or in substitution of platinum. It is not being spent to increase market share from another supplier but to increase the overall market. I have no idea whether it is a cost effective use of funds.
    Aug 27 01:43 PM | Likes Like |Link to Comment
  • CF Industries: Buying $1 For 40 Cents - Follow-Up [View article]
    I am sorry I don't understand your reply. I am no expert in this area although I have a fairly large(for me) percentage of my portfolio in chemical fertilizers. The article seems to indicate that farmers will be able in 2/3 years to buy new seeds that would eliminate the need to use nitrogen based fertilizers. If that is true then much of CF's revenue would soon vanish. What am I missing since I'd like to know what I should do with my holdings if this development is likely to occur?
    Aug 5 03:35 PM | Likes Like |Link to Comment
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88 Comments
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