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31October

31October
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  • Has CEFL Done As Badly As It Looks? [View article]
    Since CEFL is a note and only has to replicate 2X the index (although I assume they do hold the components, they really do not HAVE to with perfect accuracy), I don't see why they would use market orders. I don't, and UBS is 20 billion times bigger than me.
    Jul 1, 2015. 07:16 PM | 1 Like Like |Link to Comment
  • MORL's Still Attractive Dividend Yield May Exceed 30% [View article]
    That must be the explanation. I've dripped the bottom 4, but never had the top 3.
    Jul 1, 2015. 01:43 PM | Likes Like |Link to Comment
  • Preferred Stock Market Q2 2015: Investment Grade Preferred Stocks Available Below $25 [View article]
    Preferreds were my absolute favorite investment. I've never lost money on one, they are tradable, they have a floor of $25 in case I did make a bad call, and they trend toward par as they approach maturity.
    Cumulative preferreds (true preferreds that pay from Retained Earnings and get taxed at a lower rate) are following dinosaurs into extinction. After one big bite from a bank that ended its dividends, I wish that non-cumulative preferreds did not exist. If it isn't cumulative, I will not touch it- The value is capped, and you potentially get none of the return.
    Jul 1, 2015. 01:41 PM | Likes Like |Link to Comment
  • ETN Showdown: Why Now Is The Time To Consider MORL [View article]
    "Let me reiterate that nothing is assured about any security" can never be reiterated loudly enough about a levered note!
    The last time MORL took a drop, it slid from $32.25 to $16.69 in six months, before bouncing around $22.50. A proportional 48% high-to-low drop would put it at $12.39.
    As long as it does not drop quickly & violently enough to hit $5, we are all going to get rich off panic.
    Jul 1, 2015. 01:00 PM | 3 Likes Like |Link to Comment
  • ETN Showdown: Why Now Is The Time To Consider MORL [View article]
    Here is a 10-year chart of the total stock market vs. the top five components of MORL. The leveraged dividend payout should cushion leveraged drops in value. It will be volatile, but that is good during the reinvestment stage.
    http://bit.ly/1JvS9Ao
    Jul 1, 2015. 12:37 PM | 2 Likes Like |Link to Comment
  • ETN Showdown: Why Now Is The Time To Consider MORL [View article]
    The normal way of calculating support has the next support level at $15.71. I do something different and mix in relative strength to commodities, and expect it to possibly go as low as $13.936.
    But technical analysis is a fancy way of saying "I'm takin' a wild guess here..." so just reinvest dividends. As long as it doesn't go to $5, it's all good.
    Jul 1, 2015. 12:32 PM | 1 Like Like |Link to Comment
  • How To Return To Oil Sector Investing [View article]
    I cushion my technical *guess* and mix in commodities, and I get a tight $39.80-39.99... I cannot see it going below $36.66. If it did, I might have to transfer cash and buy everything.
    Somebody buying now at $42 will do VERY well. I may live to regret trying to time this.
    Jul 1, 2015. 12:15 PM | 1 Like Like |Link to Comment
  • CEFL At All-Time Low, But 21.8% Dividend Yield Makes It A Buy [View article]
    Good point, timcoughlin! To clarify, if the *INDEX the note is based on* drops 30% in a single month, which leverages to a 60% drop in CEFL, UBS liquidates the note.
    Jun 30, 2015. 07:46 PM | 2 Likes Like |Link to Comment
  • X-Raying CEFL (Part 2): Geographical Distribution [View article]
    My wife has a Fidelity account, but according to http://tinyurl.com/ntb..., Fidelity is not much better than Etrade for margin interest.
    I logged into Fidelity to check if this year's company stock options had matured. They did, and the price is close to its 5-year high, but Fidelity wants a $16.92 commission to sell it instead of $7.95. Every broker wants to screw me over in different ways.
    Jun 30, 2015. 05:28 PM | 1 Like Like |Link to Comment
  • CEFL At All-Time Low, But 21.8% Dividend Yield Makes It A Buy [View article]
    Because if it drops 30% in a single month, UBS liquidates the note.
    These leveraged notes are great... until they aren't.
    Jun 30, 2015. 01:26 PM | 2 Likes Like |Link to Comment
  • X-Raying CEFL (Part 2): Geographical Distribution [View article]
    Etrade is not for margin! When I started long, long ago, way back in the ancient 20th century, they were the best online broker, especially when I was a frequent "trader." Everything is streaming live with fast executions and every possible form of conditional trade. There are a good assortment of commission-free ETFs, so I buy one share at a time on the way down.
    But margin... I would never consider leaving but for the margin rates and requirements, both of which increase as often as my dog sneezes. The last time I tried to change brokers, it was to Fidelity, and they instantly jacked their rates.
    Jun 30, 2015. 12:59 PM | 1 Like Like |Link to Comment
  • X-Raying CEFL (Part 2): Geographical Distribution [View article]
    $1/trade opens up some possibilities. I'm digging through their fees now: "...$100,000 min required for margin. If client does not spend at least $10 in commissions per month they will be charged the difference. Additionally, there is a fee of $10 charged for real-time quotes each month which is waived if at least $30 in commissions is spent. As of December 1st, 2014, clients are now also required to pay $1.50 per month for NASDAQ, NYSE, and AMEX equities quote data. This $4.50 per month cannot be waived with commission spend."
    I want to merge (we also have a legacy Fidelity account) into one broker & simplify, but I might have to still need 2 brokers in the end to do what I want.
    That margin rate is as tempting as a cheesecake.
    Jun 30, 2015. 12:33 PM | Likes Like |Link to Comment
  • Seadrill - Time To Get Out [View article]
    Powerhedge is correct:
    "Seadrill has had no trouble getting loans from banks even in the current environment... ...The CEO of DNB ASA recently said that his bank is willing to postpone required principal payments for offshore drilling companies..."
    DNB even mentioned Seadrill specifically-- that is not surprising, since a Seadrill executive left to become DNB's investments manager.
    Somebody stated that SDRL could go to $6. Probably, but it won't go to zero, which means $6 is a buy.
    Jun 30, 2015. 12:25 PM | Likes Like |Link to Comment
  • X-Raying CEFL (Part 2): Geographical Distribution [View article]
    Indeed, etrade is ridiculous regarding margin, and getting worse. Their upside is that they will DRIP almost anything. I have read comments that many brokers will not DRIP notes.
    As I slowly transitioned from frequent trading to income and now wanting to leverage that income, they don't work for me any more. Thanks for the IB recommendation- those rates look fantastic! (With my luck, if I transition to IB, they'll get bought by Ameritrade and jack rates to 10%.)
    Jun 30, 2015. 12:10 PM | Likes Like |Link to Comment
  • X-Raying CEFL (Part 2): Geographical Distribution [View article]
    I made money in the end, not locked losses. But I had to transfer funds to cover. I tried something similar to your concept [but less aggressive] to keep margined years ago. What affected me is that etrade capriciously changes (quadruples!) margin requirements and rates, ruining strategies meant to stay well under requirements, plus eating the dividend I was trying to leverage.
    I used to have an insane number of individual stocks and am still unwinding it all so that I can eventually change to a more margin-friendly broker.
    Jun 30, 2015. 11:50 AM | Likes Like |Link to Comment
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