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Amerlafrance

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  • Why Will This New Net Lease REIT Be A Game Changer? [View article]
    Any word from the company about their schedule? Did the shaekout on the rate scare make them decide not to list now?
    Oct 23 09:29 PM | Likes Like |Link to Comment
  • Lexington Realty Trust: Patience Is A Virtue [View article]
    For a margin of safety, look at the LXP preferred C, a cumulative convertible preferred stock. If patience is a virtue with this one, then the preferred may better suit your needs.
    Oct 20 09:32 AM | Likes Like |Link to Comment
  • Royalties Vs. Streams [View article]
    This is from the SLW list of risk factors in their filings:

    No Control Over Mining Operations
    The Company has agreed to purchase a certain percentage of the silver and/or gold produced by the Mining
    Operations. The Company is not directly involved in the ownership or operation of mines and has no contractual rights
    relating to the operation of the Mining Operations. As a result, the cash flows of the Company are dependent upon the
    activities of third parties which creates the risk that at any time those third parties may: (i) have business interests or targets
    that are inconsistent with those of the Company; (ii) take action contrary to the Company’s policies or objectives; (iii) be
    unable or unwilling to fulfill their obligations under their agreements with the Company; or (iv) experience financial,
    operational or other difficulties, including insolvency, which could limit a third party’s ability to perform its obligations
    under the precious metal purchase agreements. Except in limited circumstances, the Company will not be entitled to any
    material compensation if such operations do not meet their forecasted silver or gold production targets in any specified
    period or if the operations shut down, suspend or discontinue on a temporary or permanent basis. There can be no
    assurance that the silver or gold production from such properties will ultimately meet forecasts or targets. At any time, any
    of the operators of the Mining Operations may decide to suspend or discontinue operations.

    So it does look like the purchase agreements for the streaming companies are at risk in a bankruptcy type reorganization and could be rejected. Does anyone know if they have a valid security interest or lien on the production?
    Oct 16 06:51 PM | Likes Like |Link to Comment
  • Royalties Vs. Streams [View article]
    I am going to look at the risk factors in SLW for the streaming agreement. The title issue is important (not just for the depletion I mentioned above) for enforcement. With a royalty, that is generally considered (under US law) to be an interest in the minerals that is owned and is not divested if the operator goes belly up. How is a stream protected? If it is just a contract right, then it is subject to being wiped out in a bankruptcy; if it is a security interest in the production, then it can also be subject to renegotiation in a bankruptcy. A little thought is showing I am not fully aware of some important things in making my choices here. Thank you for raising the question.
    Oct 16 01:15 PM | Likes Like |Link to Comment
  • Royalties Vs. Streams [View article]
    Is there a difference on depletion for tax purposes. A royalty is an interest in the mineral that entitles the holder to claim depletion. It seems a stream is a purchase of the metal, so maybe no depletion?
    Oct 14 03:09 PM | Likes Like |Link to Comment
  • Bunge Limited: Not A Good A Candidate For Investment [View article]
    Forward PE is based on projectedearningsincre... They may not be realized, but are not based on an assumed price decline. The level of understanding displayed is sadly lacking.
    Oct 12 10:00 PM | 1 Like Like |Link to Comment
  • 5 Takeaways From Lindsay's 2014 Earnings [View article]
    I would prefer they sell the infrastructure business and use those proceeds to focus on water
    Oct 12 02:41 PM | Likes Like |Link to Comment
  • 5 Takeaways From Lindsay's 2014 Earnings [View article]
    Using today's low rates to incur debt to acquire profitable companies in a growing industry is a good idea IF they get a fixed rate of interest, plan to amortize the debt from the acquisition cash flow and not merely roll it forward at maturity, and if they make wise acquisition that they assimilate smoothly. I acknowledge those are a difficult trio to accomplish, and would hope someone asked management those questions (knowing you have to believe in management for number 3).
    Oct 12 11:11 AM | Likes Like |Link to Comment
  • National Oilwell sinks despite - or perhaps because of - stock buyback news [View news story]
    Or maybe invesotrs are worried that this will replace the special dividends. I am not a big fam of share repurchases.
    Sep 30 10:13 PM | Likes Like |Link to Comment
  • Let's Make Some REIT Hay While The Sun Is Shining [View article]
    Brad:

    Thank you for your diligence. I just turned 63 and have been building cash for my retirement; decided to rebalance and put 15% into Reits and went from 5% (my old allocation) to 10% last week, with some of the bargains here and others you have written about. I need a 4% draw for retirement and now have 10% of the portfolio that is paying 4.75% overall. Hoping to see more bargains in October.

    I am intertested in farm and timber reits and don't recall you covering them. With High Cotton and Making Hay are you looking at that area at all?

    With the decision to have a large reit position, I will be ordering your newsletter to better keep up with them and assume your newsletter is better than the posts here.
    Sep 28 09:34 PM | Likes Like |Link to Comment
  • 'Tax Inversions' Are Tip Of An Iceberg That Already Cost The U.S. Treasury Hundreds Of Billions [View article]
    yes, it is a bi-partisan mess. I fear it will take a crisis for the will to change to come to the fore. Our electoral process demonizes those who discuss the problems and solutions that involve some pain and elevates the panderers (whether to the welfare state or the military industrial complex). When bright idea people cannot even get known in a primary (Bradley, Huntsman), it is a sad commentary on our political system.
    Sep 28 06:39 PM | 2 Likes Like |Link to Comment
  • 'Tax Inversions' Are Tip Of An Iceberg That Already Cost The U.S. Treasury Hundreds Of Billions [View article]
    It is not a loophole excpet the media calls it that. These are well known provisions of the tax code that Congress does not have the political will to close. I suggest that US companies that do not consider an inversion are actually more valuable as takeover candidates for foreign companies. Look at news this month from Siemens, SAP and Merck KGA buying US companies to use their cash. The US holders get a premium price and this is not called an inversion (in the sense the media discusses) but the taxes to the US are still gone. Here at home, the legal avoidance of corporate taxes is running like wildfire with REITs and MLPs the rage because they lower the taxes paid and make the compoany more valuable. The tax code needs to be rationalized entirely and the only way to get that done is to throw all the bought and paid bums out (but no chance of that happening).
    Sep 28 07:49 AM | 12 Likes Like |Link to Comment
  • Bill Gross PIMCO Exit Creates Unprecedented Value In CEFs [View article]
    I think you should look at AZSEY. It sold off on this and if Gross is not a drag on his funds, he will certainly not be a drag on Allianz. Nice yield, making the rights moves in the PC industry and close to book.
    Sep 27 12:09 AM | Likes Like |Link to Comment
  • Now Is The Time To Maintain A Tactical Approach To Buying Blue Chip REITs [View article]
    Do you view the drop for the secondary to about 64 close enough to your target price to jump in?
    Sep 25 09:17 AM | Likes Like |Link to Comment
  • Why Will This New Net Lease REIT Be A Game Changer? [View article]
    Any word from them about the roadshow or timing?
    Sep 22 07:20 PM | Likes Like |Link to Comment
COMMENTS STATS
508 Comments
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