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  • American Farmland Is Poised For Value Creation [View article]
    Since you also own Land and FPI I think it would be helpful if you could compare Afco to them. I bought Land about 6 months ago and so far it has been a very poor investment. I intend to still hold it but I am reluctant to invest more in an asset class that has, at least so far, proven not to be a winner. I also note that most Reits provide investment income(Land has a yield of approximately 4%) and you never mentioned Afco's having a distribution and based on the expansion plans you outlined I assume that a distribution is not likely in the next few years.
    Nov 25, 2015. 10:41 AM | 2 Likes Like |Link to Comment
  • NexPoint Residential Trust Offers 45%-60% Upside Catalyzed By Highly Aligned Management [View article]
    I liked your analysis but I do have one concern. The company has around $550M of floating rate debt that currently carries an interest cost of around 2.5%. Over the next 12 months rates are almost certainly going to increase. I don't know by how much but .50% is not an unreasonable guess. That would cause an increase expense of almost $3M which would reduce NOI by almost 20%(based on Q2's run rate). What impact does that have on your investment thesis?
    Aug 15, 2015. 12:02 PM | 3 Likes Like |Link to Comment
  • Peering Through The KMI Dividend Crystal Ball [View article]
    There is a potential flaw in your argument. During the period you covered interest rates were very very low. If interest rates over the next five years return to historical levels (it is almost a certainty that they will go up but I don't think anyone knows by how much), then the yield from KMI and other interest sensitive investments will also have to increase. The average yield over the next 5 years will almost certainly be higher than the 4% figure you used. If it is significantly higher then the market price will be significantly lower. It is that fear that has kept me from owning the warrants although I do own the stock for the current income.
    Jul 7, 2015. 02:33 PM | Likes Like |Link to Comment
  • Alexis Tsipras's Critical Miscalculation - It Serves Stocks This Week [View article]
    Maybe you should withdraw your article since the vote was overwhelmingly no(62-38). That undermines the entire premise of your argument.
    Jul 5, 2015. 06:41 PM | Likes Like |Link to Comment
  • KKR & Co. L.P.: This 8% Yielder Is Just Too Good To Pass Up [View article]
    Could you please elaborate on the the difference between Capital gains 11%, short term capital gain 2% and long term capital gains 106%. Something doesn't add up.
    May 20, 2015. 07:06 AM | Likes Like |Link to Comment
  • Equity CEFs: Now Is The Time For The Nuveen Global Equity Income Fund [View article]
    I think you should have noted that the high distribution is not really representative of the funds earnings. While it distributes $1, its NII is only $.05. The rest is a return of capital not because of historical losses but because that is what it is. It is not earnings as one might initially expect. That to me is a very big negative.
    May 12, 2015. 12:07 PM | Likes Like |Link to Comment
  • Reuters: Hedge fund urges Atlantic Power to return cash to shareholders [View news story]
    Wouldn't it be more sensible to retire some of the public debentures which are trading at a significant discount. The YTM is around 10%. IMO that would be a more sensible use of the excess cash assuming the company has excess cash.
    Apr 29, 2015. 06:01 PM | 1 Like Like |Link to Comment
  • TransGlobe Energy Has Major Upside [View article]
    If the situation is a rosy as you think then please explain why the convertible debenture are trading way below par(around 80) and yield to maturity is above 14%. That's a rate that there is considerable concern that the debentures wii not be paid in full at maturity in which event the common should be worthless.
    For the record I own the debentures and I am way under water.
    Mar 26, 2015. 01:48 PM | Likes Like |Link to Comment
  • Legacy Reserves: The Time To Accumulate Is Now [View article]
    You buy a put at a below market price and that costs you money. Then you sell a call at an above market price. Typically the puts & calls have the same expiration date. You then adjust how much below market is the put and how much above market is the call so that they end up costing you nothing or very little. This arrangement is called a collar. I have never done it with oil or ng but I have done it with individual stocks and you can definitely arrange the transactions so the net cost is nothing or a very modest amount.

    Of course, by selling the call you may be giving up some upside and by buying a below market put you might realize a price that is less than the current price. In one transaction I had a call with a 50% upside and a put with a 20% downside.

    Of course, I have no idea what the terms would be now for an energy related transaction.
    Nov 11, 2014. 04:23 PM | Likes Like |Link to Comment
  • No Relief For GLD Longs On The Horizon [View article]
    While I don't disagree with your statement that there is a perception that gold does not do well in a high interest rate environment, I see no evidence that we will be in a high interest rate environment anytime in the foreseeable future. Although interest rates are now lower than they were at the beginning of the year, clearly at some point they have to go up since they are now close to 0 and can't go down. That being said, does anyone really think rates will be materially higher. Imagine what the US deficit would be if rates were 3% higher than they are now(it would more than double from the current amount). The economy might be getting stronger but I don't think there is anyone who is projecting a truly vibrant economy in the US(let alone Japan and Europe which appear to be about to slip into recession). So I don't get the point of your article since it seems to be based on a very flawed assumption.
    Oct 15, 2014. 12:00 PM | 3 Likes Like |Link to Comment
  • Pure Multi-Family REIT And Agellan Commercial REIT: 8% Yields With Plenty Of Upside [View article]
    I am not an accountant but if the total amount of your foreign withheld taxes exceeds I think $400 you have to file another complicated form (1116) that can limit the amount that you can receive as a credit. The form is far too complicated to summarize so you will have to use it to calculate your own situation. But in my case I only got a credit for approximately 1/3 of what was with held in 2013. I have substantial foreign income and to my knowledge I have never received a credit of 100% of what was withtheld. You need to consultant an accountant to get a more complete answer
    Aug 31, 2014. 10:31 AM | 1 Like Like |Link to Comment
  • Update: North Atlantic Drilling Sells 30% Equity Stake To Rosneft In Exchange For Onshore Drilling Assets In Russia [View article]
    The dividend is more likely to be increased not decreased since there is only a 20% leakage. I don't know anything about Rosnoft but SDRL certainly needs all the income it can get to sustain its dividend and its stock price.
    The only thing that troubles me is the land rigs. I have no idea how they fit into an offshore driller but I am confident that the management of SDRL knows what is doing. If I am reading it correctly the entire NADL fleet is now contracted for 5 years at an attractive price. I assume that is also the case with the 150 land rigs. As new rigs are added that will only increase NADL's income but this is now similar to a 10% 5 year bond since its income is totally locked in place
    Aug 22, 2014. 02:03 PM | 2 Likes Like |Link to Comment
  • Diamonds Are A Girl's Best Friend, But Can Lucara Diamond Be My Best Friend? [View article]
    I think your analysis assumes no change in the price of diamonds over an 18 year period. I do not have data that indicates what has happened to the price of diamonds since the mid 1990's but I bet it would show a substantial increase in their price and one that is far greater than inflation. If you have that data perhaps you could adjust your analysis because I think it would show that the value far exceeds the $2.82 figure that you use.
    For the record, I have been a shareholder for about 2 years and have (for me) a relatively large position( that has a value in excess of 100% of my cost). I have no current intention of disposing of any of he shares I hold and I expect in the not too distant future that the price will be far greater than $2.82.
    Aug 18, 2014. 04:42 PM | Likes Like |Link to Comment
  • Kinder Morgan Inc. Consolidation [View article]
    You should be embarrassed, this is a truly worthless article. Why did you even publish it? I for one will never read anything else ever written by you.
    Aug 11, 2014. 06:53 PM | Likes Like |Link to Comment
  • Pure Multi-Family REIT And Agellan Commercial REIT: 8% Yields With Plenty Of Upside [View article]
    Your statement about withholding is not accurate. I, for example, get almost none of my withholding as a tax credit. The tax provisions are too complex for me to summarize but your statement may be true for you and certain other investors but not all US investors.

    In addition since the income is all derived in USD and most of the expenses(except perhaps for most of the corporate G&A) are also in USD, the exchange rate is not going to be a major factor. Furthermore, the Canadian S is at a relative low to the USD and although I cannot predict what will happen in the future I think it is most likely that it will remain at the current level or appreciate somewhat against the USD.
    Aug 3, 2014. 05:09 PM | Likes Like |Link to Comment