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ge12ar

ge12ar
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  • 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
  • This High Dividend Stock Just Declared 5th Straight Hike, Yields Almost 8%; Goes Ex-Dividend This Week [View article]
    Why aren't you troubled that the distribution coverage ratio has consistently been under 1? Were it not for the fact that major unitholders are participating in a DRIP program the distribution would have to be cut rather than increased as you suggest and in less than a year their agreement to defer cash distributions will have expired.
    I may be wrong but it appears that they are able to make distributions at the current level only because they are issuing more units. Unless I have it wrong, that is not a very comforting situation and does not bode well.
    I also find your investment suggestions to be interesting and have purchased several of them but I am troubled by this one.
    Jul 27, 2014. 10:20 AM | 3 Likes Like |Link to Comment
  • Now Is The Time To Profit From The Surge In Zinc Price [View article]
    You should also look at ZINC(Horsehead). (See this SA article for more information-http://bit.ly/1rV3Xn2.
    For the record I own it as well as TV.to.
    Jul 27, 2014. 10:15 AM | Likes Like |Link to Comment
  • ALPS to launch gold miner ETF with Sprott Asset Management [View news story]
    Is there any indication of which miners are included in the index and how this differs from the ones that already exist. In other words, what is Sprott offering that is currently not available other than an opportunity for him to make some money?
    Jul 14, 2014. 02:02 PM | 1 Like Like |Link to Comment
  • I Sold Kinder Morgan Energy Partners [View article]
    Are you the same person who less than a month wrote the article below?

    http://bit.ly/1pfOyvf

    In that article you made a very bullish argument for KMP. I guess there is a strong likelihood that one of your articles will be right on the money but I for one intend to ignore both.
    Jun 18, 2014. 10:17 AM | 4 Likes Like |Link to Comment
  • Seadrill Ltd. What Part Of 'Success Story' Did Analysts Not Understand Yet? [View article]
    The short answer is that there is no withholding because of where they are domiciled.
    May 31, 2014. 11:06 AM | Likes Like |Link to Comment
  • Seadrill tagged with Sell rating at Nordea [View news story]
    That is truly the stupidest analyst report I have ever read in the 45 years I have been reading them. The dividend is in jeopardy. It has been raised twice this year and neither was necessary since the yield is something like 9%. While the increase was not likely to do much for the stock if it were cut in the near future that would have a very negative effect. So unless the Board of SDRL consists of a bunch of morons they must feel very confident that it can be at least maintained or it would have been very foolish to have approved the increase.I also particularly liked the comment that there was not much visibility on earnings post 2015. Tell me one company that has great visibiltiy on post '15 earnings. Can Apple, Exxon, Mocrosoft or any other listed company tell you with any certainty what their revenuse will be in 2016? Actually SDRL can give you a far better prediction than almost any company I follow.
    This report was to put it mildly a POS and any one who acts because of it is IMO truly a fool and they deserve what happens to them. Total Garbage! For the record I have a substantial investment(for me ) in SDRL and NADL
    May 30, 2014. 07:57 PM | 8 Likes Like |Link to Comment
  • Extendicare - Strong Catalyst In 2 Months With 50%-150% Upside [View article]
    The dividend is $.04(CDN) per month. The next one is payable on 6/16.
    May 23, 2014. 01:37 PM | Likes Like |Link to Comment
COMMENTS STATS
109 Comments
107 Likes