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huthutho

huthutho
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  • Prospect: Portfolio Debtor Files For Bankruptcy, Meet New Century Transportation [View article]
    PSEC lost ~10-12 cents/share on that deal (maybe less after the dust clears). Sure enough, 13.8% payouts have some risk. Staying long PSEC!
    Jun 13 02:03 PM | 25 Likes Like |Link to Comment
  • Linn Energy: Many Ponzi-Like MLP Blow-Ups To Follow [View article]
    IMO... the comparison is way off-base b/c you are expecting non-GAAP to "comply" with GAAP... and even the Hedgeye/Barrons view expressed no issues with GAAP. Guess we'll see if the whole industry gets destroyed or not. Staying long LNCO.
    Jul 5 09:22 AM | 13 Likes Like |Link to Comment
  • Wall Street Breakfast: Brent Soars, GE Seals Deal, Oracle Acquisition [View article]
    gggl: Sensible... but "we" don't "own" Syria or Iraq in order to be able to do as you suggest. But... it was reported that Kerry landed in Iraq today... I only wonder who we're trading him for?
    Jun 23 09:17 AM | 12 Likes Like |Link to Comment
  • Why I Agree With (Some Of) Friedrich Hayek [View article]
    Our decision makers are not just trying to be lawyers - most of them are lawyers. And that is, IMO, a key part of the problem couched. Why? 'Simply because lawyers are trained to take sides and not come together in the middle of anything.
    Sep 23 08:39 PM | 10 Likes Like |Link to Comment
  • Annaly Capital: Cautious About Its High Yield [View article]
    No emotion here... recently bought NLY on its merits and the interest rate environment for the next two years...

    Bill Gross' (PIMCO) NLY comment from a year ago still applies: they "deal in floating-rate adjustable mortgages backed by Fannie Mae and Freddie Mac and you and me, the taxpayers. What they own isn't really subject to default risk. It is subject to a lag in interest rates. The rates on these mortgages adjust every six to 12 to 18 months. If interest rates went up by two percentage points tomorrow, Annaly's cost of funding would go up by that amount, but the rates on the mortgages it holds would go up 12 to 18 to 24 months later and the company would have to cut its dividend. So there are risks here, but not in terms of the creditworthiness of the collateral. It is more in terms of the cost of financing, which gets back to my original thesis: the benefits of borrowing at negative real interest rates. Annaly has a book value of about $16 a share. You are basically buying it at book, and giving the company the privilege of investing money for you, levering it 5-to-1, and offering you a 14.5% dividend yield. In the absence of another crisis, you'll do well."

    IMO, we are still a year or more away from any significant rise in interest rates, the rate of increase will be slow, and NLY will still pay a significant "divvie" for at least a year thereafter, as the stock price fluctuates around book value. Long NLY.
    Apr 1 10:17 AM | 10 Likes Like |Link to Comment
  • Prospect Capital Suffers A Flash Crash [View article]
    "Prospect Capital has likely forever lost its status as a "stable" income stock."

    Not for me, it hasn't. Indices-based funds selling as PSEC comes out of the indices followed by stop-loss selling is the likely reason. Other funds that are not indices-based got a great deal on yesterday's 25M share day. (78M shares traded in the last 5 days as these indices funds unloaded.)

    IMO, it is unfortunate many retail investors got shaken out of their shares due to the concurrent SEC issue.

    Staying long PSEC and will buy more if it has another big down day.

    Lastly... sure, I'll sell if the SEC issue turns into something bigger, but I don't see it happening based on all I've read. (PS-I don't use stop-losses.)
    May 14 12:02 PM | 9 Likes Like |Link to Comment
  • Avoid Prospect Capital [View article]
    "In a world filled with uncertainty..." What??? ISIS & ebola are reasons to stay away from PSEC? IMHO, their mgmt team knows what they're doing. Disc: long several BDCs incl PSEC.
    Oct 14 02:05 PM | 8 Likes Like |Link to Comment
  • Dividend Champions For January 2014 [View article]
    @ksiera ~ Suggest you learn to use the "hide" function in Excel... and thanks to Mr Fish!
    Jan 3 01:42 PM | 8 Likes Like |Link to Comment
  • Prospect Capital: What Comes Next? Part 1 [View article]
    1~ Sure, there's risk. That's why those companies getting the loans are paying the high rates. It is PSEC's job to manage that risk, which is one reason they get the big buck fees that shareholders are willing to sign up to for the arrangement.

    2~ I'll bet you aren't only buying 3% payers for your portfolio. This AM would have been a good time to close out a short position. No doubt there will be others. In the meantime, holders will be collecting monthly dividends.

    3~ Good movie scene... gets the blood flowing!
    May 13 10:54 AM | 7 Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    Finally, useful investing news!
    Feb 24 09:05 AM | 7 Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    You can say the ACA is wonderful because it addressed the pre-existing condition problem, but so much else that could have been addressed was left out to satisfy the companies that helped write it, and the egos of those who rammed it through. The state rates vary widely, the deductibles are unaffordable for so many (lower-income young people in particular have said they'll go without coverage and pay the fine for as long as they can), and a host of other issues that could have been addressed if open debate had taken place, show it to be a mockery of our legislative process. The other wonderful package called COBRA is/was another hardship for those on the lower end of the earnings spectrum. After it has been milked for all its political worth, the ACA will eventually have to be modified extensively, or thrown out in favor of single-payer, which may have been the real goal of those who wrote it.
    Feb 21 09:55 AM | 7 Likes Like |Link to Comment
  • Linn Energy Is A Major Opportunity [View article]
    I'm holding LNCO until substantive determinations are made. Let's see... can't buy&hold mREITs, can't buy&hold MLPs... what's next? Hm-m, time to short Southwest Airlines cuz they hedge fuel purchases.
    Jul 3 12:52 PM | 7 Likes Like |Link to Comment
  • Why I Have Become An Extremely Conservative REIT Investor [View article]
    Excellent content (IMO) Brad... thanks! I now take to heart Ben Franklin's quote, "Experience is the best teacher, and a fool will learn from no other." So, while we all make mistakes, I appreciate your sharing your experience that serves me well, too. (I'd do an article on my investment mistakes, but it would have to be a series.)
    Sep 30 09:15 AM | 6 Likes Like |Link to Comment
  • Linn Energy Remains An Excellent Buy For Courageous Investors [View article]
    Effective OCT15 payable date, annualized payout forecast goes up from $2.90 to $3.08, per company website. Long LNCO.
    Jun 27 10:28 AM | 6 Likes Like |Link to Comment
  • SEC orders accounting change at Prospect Capital [View news story]
    Why do I think this is another "much ado about not much" scenario... LNCO comes to mind. Interpretation of accounting principles leaves much to the company to decide, so long as it is consistent. I'm sure others will weigh in with their "but the SEC may say differently..." arguments, but at the end of the day, while NAV may fluctuate, the payouts will continue, even if at a slightly lower rate. So, if the impact is a part of a percent reduction in payout, I'll add to my position. I'm certainly not selling.
    May 7 01:18 PM | 5 Likes Like |Link to Comment
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