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das555

das555
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  • Vanguard Natural Resources: The Lackluster Coverage Ratio Remains A Concern [View article]
    I have held VNR for quite some time for it's monthly dividend which I believe is safe. I will continue to hold it for the same reason. Most companies have rough patches and this management is taking steps to shore things up in the face of an adverse NGL market. I would say "Market Perform" is about right and OK with me.
    Aug 6 04:36 PM | 1 Like Like |Link to Comment
  • Equity CEFs: New Kids On The Block [View article]
    I don't believe Mr. Albo meant to suggest that the new CEF is bought with an intent to lose investment value but rather that when investment value is diminished, as is often the case with new issue CEFs, then the sale of the purchase which has lost value can and often is used as a tax abatement. The sale then for tax abatement further contributes to a fall in CEF price.
    the unvirtuous circle...
    Jul 22 01:42 PM | Likes Like |Link to Comment
  • Kinder Morgan companies lower AH as Q2 earnings miss estimates [View news story]
    EPS of no importance with MLP structure. Distributable Cash Flow is the metric and is increased. Pleased holder.
    Jul 16 06:33 PM | 18 Likes Like |Link to Comment
  • Enhancing Retirement Income With A Portfolio Of Covered Call CEFs: Part I [View article]
    When JLA is merged with QQQX there will be a change in option writing strategy for JLA. QQQX the remaining fund will write options on approx 55% of holdings as opposed to JLA's current 100% option writing strategy (http://bit.ly/1qQIVEW). JLA shares then, when converted, will be less defensive. Still a good current arbitrage opportunity however (http://seekingalpha.co...).
    Jun 15 12:01 PM | Likes Like |Link to Comment
  • Equity CEFs: QQQX And JLA Merger Opportunity [View instapost]
    This is a relatively straight forward calculation. Nuveen has stated the merger will be based on the relative NAV values of JLA and QQQX while the financial impact to the JLA holder will be dependent upon the relative Market Values of JLA and QQQX.
    For simplicity sake, assume JLA and QQQX each had the same NAV value $10 - then at the merger, for each share of JLA you would receive one share of QQQX. But if at the merger the Market Value of JLA was say $9 (a discount to NAV value) while the Market Value of QQQX was $11 (a premium to NAV Value) the holder of a share of JLA would exchange his JLA share (worth $9) for a share of QQQX (worth $11). Merger based on NAV Value, financial impact based on Market Value - allowing the nimble investor to potentially exploit the difference. In an efficient market, one would expect as the merger approaches, the JLA share to sell up from $9 to at least it's NAV of $10 and the QQQX share perhaps to sell down to its NAV of $10 thereby eliminating the arbitrage opportunity. The market however is not always efficient and CEFs in particular are often poorly understood - giving rise to the current opportunity pointed out by Mr. Albo. Currently JLA is selling at a 5.05% discount to NAV while QQQX is selling at a 1.21% premium to NAV - the only way this doesn't work out well for the JLA purchaser is if QQQX sells down from it's current premium to a 5.05% or greater discount (which I view as unlikely).
    Jun 8 10:44 AM | 3 Likes Like |Link to Comment
  • Equity CEFs: QQQX And JLA Merger Opportunity [View instapost]
    I see it the same way and have been a steady buyer of JLA.
    Thanks.
    Jun 6 10:19 AM | Likes Like |Link to Comment
  • Cramer's Lightning Round - Linn Energy Has Lost Its Way (5/29/14) [View article]
    Cramer's calls can possibly be used as a good contrarian indicator as they are made generally on the basis of widely perceived sentiment and with a superficial knowledge at best. I strongly suspect in this instance he was/is not even aware of the recent Permian swap raising LINE's DCF 30 to 40 million dollars per annum making his "earnings" growth comment egregiously in error. A "fast gunner" who shoots from the hip and while making a lot of noise, most often misses.
    May 30 10:57 AM | 3 Likes Like |Link to Comment
  • Time To Sell Enterprise Products [View article]
    Best to you Bob.
    May 25 05:54 PM | Likes Like |Link to Comment
  • Time To Sell Enterprise Products [View article]
    My MLPs are purchased in general as life long holdings for tax advantaged income - only to be sold if the business model appears broken to the point of threatening distributions. This point of view is encouraged by a large tax liability incurred upon sale versus no tax liability upon being passed on in an estate.
    For new money I would not purchase EPD currently as I believe EPD's valuation is currently too high - would rather consider MWE or Crestwood family as attractive new money choices. Having said that, I believe EPD is here to stay and I regard their distribution as quite safe and will continue to hold.
    May 25 01:10 PM | 9 Likes Like |Link to Comment
  • Linn Energy: The Best Value In The Upstream MLP Sector? [View article]
    Why own just one?
    May 21 04:52 PM | 5 Likes Like |Link to Comment
  • Goldman answers pushback on Kinder Morgan upgrade, reiterates bullish view [View news story]
    GS hurt the shorts...
    May 19 05:09 PM | 7 Likes Like |Link to Comment
  • 9.6%-Yielding Memorial Production Partners Enters Enhanced Oil Recovery [View article]
    Yes, but as they made a firm point of in the conference call they don't guide for DCF on a quarterly basis as there are quarterly variables (cap ex, maintenance, weather, etc) that can impact DCF unduly in this short term. Management felt very comfortable in guiding DCF on an annual basis in the 1.1 - 1.2 range and stated they were being conservative.
    May 8 01:15 PM | 2 Likes Like |Link to Comment
  • Nuveen To Consolidate Its Equity Option Income Funds: What Does It Mean? [View article]
    QQQX provides a tax advantaged yield - last dividend (which was raised) was 81% ROC.
    May 4 09:57 AM | 1 Like Like |Link to Comment
  • Equity CEFs: Funds Benefiting From The Weakness In Technology And Small Cap Sectors [View article]
    Yup. As CEFs seem to generally be so poorly understood it will be interesting to see how the market reacts to these funds. One would expect the premium of QQQX to sell down and the discount of JLA decrease - but we shall see.
    May 1 11:31 PM | 1 Like Like |Link to Comment
  • Equity CEFs: Funds Benefiting From The Weakness In Technology And Small Cap Sectors [View article]
    My bad - market value of JLA today 12.95 therefore the JLA holder will receive .77 * market value of QQQX (18.81) = 14.48 which calculates to a bonus of 1.53 or 11.8%. Of course these market values can and likely will change - but current holders of JLA should be OK.
    May 1 07:37 PM | Likes Like |Link to Comment
COMMENTS STATS
173 Comments
408 Likes