Henry Nyce's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.com/user/2056921/comments http://seekingalpha.com/article/1440921/comments?source=feed#comment-19020451 19020451 "Nobody ever made money by pulling out of the market..." Too inclusive a statement. There are many investors who have made money by moving in and out of markets. There are computer programs that are designed to make money by doing that.
There is a lot to be said for keeping one's money in the market if one has the right stocks. However, I have seen people do that and lose a great deal of money because they were incorrect in their analysis of a company.
I am convinced that a more eclectic approach to the market is reasonable. If you have been successful with your approach, that is a credit to your ability to evaluate companies.
Thanks for reading and adding your comments.]]> Mon, 20 May 2013 08:07:51 -0400 "Nobody ever made money by pulling out of the market..." Too inclusive a statement. There are many investors who have made money by moving in and out of markets. There are computer programs that are designed to make money by doing that.
There is a lot to be said for keeping one's money in the market if one has the right stocks. However, I have seen people do that and lose a great deal of money because they were incorrect in their analysis of a company.
I am convinced that a more eclectic approach to the market is reasonable. If you have been successful with your approach, that is a credit to your ability to evaluate companies.
Thanks for reading and adding your comments.]]> http://seekingalpha.com/article/1440921/comments?source=feed#comment-19020191 19020191 I also plan to sell many of the preferred stocks at that time and use the capital to get into areas where I can see profits can be made.
I normally do not have this much of my portfolio in preferred shares. It was the place where I felt that I could get a reasonable return while I wait for an opportunity to get back into the market.
Thanks for reading and your comment.]]> Mon, 20 May 2013 07:56:26 -0400 I also plan to sell many of the preferred stocks at that time and use the capital to get into areas where I can see profits can be made.
I normally do not have this much of my portfolio in preferred shares. It was the place where I felt that I could get a reasonable return while I wait for an opportunity to get back into the market.
Thanks for reading and your comment.]]> http://seekingalpha.com/article/1440921/comments?source=feed#comment-18981821 18981821 Thanks for commenting.
I am under the impression that CVRR will continue to pay the high dividend through the rest of the year. If it does, It should hold up reasonably well. If it does not, you will be proven correct.]]> Sat, 18 May 2013 11:35:01 -0400 Thanks for commenting.
I am under the impression that CVRR will continue to pay the high dividend through the rest of the year. If it does, It should hold up reasonably well. If it does not, you will be proven correct.]]> http://seekingalpha.com/article/1440921/comments?source=feed#comment-18981761 18981761 I agree with you ... Some of the preferred stocks are deep junk. That is the reason for the high rates.
I also feel reasonably confident that they will be OK in the short term unless everything tanks quickly and deeply.
But there certainly is risk there.
But then how risky is holding common stocks at their present price? Some of my favorites appear to be in nose bleed territory.]]> Sat, 18 May 2013 11:30:59 -0400 I agree with you ... Some of the preferred stocks are deep junk. That is the reason for the high rates.
I also feel reasonably confident that they will be OK in the short term unless everything tanks quickly and deeply.
But there certainly is risk there.
But then how risky is holding common stocks at their present price? Some of my favorites appear to be in nose bleed territory.]]> http://seekingalpha.com/article/1440921/comments?source=feed#comment-18981621 18981621 Sat, 18 May 2013 11:23:27 -0400 http://seekingalpha.com/article/1440921/comments?source=feed#comment-18981571 18981571 Thank you for answering my question. I finally got what you were trying to tell me.
I will take a look at your big picture idea.]]> Sat, 18 May 2013 11:22:05 -0400 Thank you for answering my question. I finally got what you were trying to tell me.
I will take a look at your big picture idea.]]> http://seekingalpha.com/article/1440921/comments?source=feed#comment-18950671 18950671 At the time I purchased the shares, they were selling below the call price of $10.00 per share.
Since it pays 8% and I was pretty sure that the REIT is turning around, I felt confident to hold it over a short term period of less than a year.
I was also pretty sure that I could sell it for greater than my purchase price in the short term.]]> Fri, 17 May 2013 12:56:00 -0400 At the time I purchased the shares, they were selling below the call price of $10.00 per share.
Since it pays 8% and I was pretty sure that the REIT is turning around, I felt confident to hold it over a short term period of less than a year.
I was also pretty sure that I could sell it for greater than my purchase price in the short term.]]> http://seekingalpha.com/article/1440921/comments?source=feed#comment-18939301 18939301 Fri, 17 May 2013 09:22:43 -0400 http://seekingalpha.com/article/1440921/comments?source=feed#comment-18939221 18939221 I don't understand what you are suggesting in the last paragraph.
Perhaps you could explain what you are suggesting.]]> Fri, 17 May 2013 09:21:33 -0400 I don't understand what you are suggesting in the last paragraph.
Perhaps you could explain what you are suggesting.]]> http://seekingalpha.com/article/1369441/comments?source=feed#comment-18072401 18072401 The profit and loss analysis was based upon the issue price of $25.00 per share. However the prices of the common and the preferred were such at the time of writing that if the conversion were to occur at that time, there would be a loss based on the current prices.

If CLF trades between 29 and 35.5 at the time of conversion, CLV holders will end up with the issue price of the preferred.

CLV take precedence over the common in the event of a bankruptcy. CLV would be equal to other preferred issues.

The parameters of the complicated formula may be found at:
http://1.usa.gov/15Jqoml
or
Cliffs Natural Resources, 7.00% Depositary Shares, each representing a 1/40th interest in a Series A Mandatory Convertible Preferred Stock, liquidation preference $1,000 per depositary share. The preferred shares must convert on 2/1/2016 into a variable number of Cliffs Natural Resources, Inc. (CLF) common shares based on the then current price of the common shares for 20 consecutive trading days immediately prior to the conversion date. The conversion settlement rate will be 28.1480 shares per unit if the then current market price is equal to or greater than $35.53 and 34.4840 shares per unit if the market price is equal to or less than $29.00. For market prices between those values the settlement rate will be $1,000 divided by the market value. The last reported sale price of the common stock on 2/12/2013 was $29.00 per share. (taken from QuantomOnline.com)

Hope this helps.]]> Thu, 25 Apr 2013 09:02:14 -0400 The profit and loss analysis was based upon the issue price of $25.00 per share. However the prices of the common and the preferred were such at the time of writing that if the conversion were to occur at that time, there would be a loss based on the current prices.

If CLF trades between 29 and 35.5 at the time of conversion, CLV holders will end up with the issue price of the preferred.

CLV take precedence over the common in the event of a bankruptcy. CLV would be equal to other preferred issues.

The parameters of the complicated formula may be found at:
http://1.usa.gov/15Jqoml
or
Cliffs Natural Resources, 7.00% Depositary Shares, each representing a 1/40th interest in a Series A Mandatory Convertible Preferred Stock, liquidation preference $1,000 per depositary share. The preferred shares must convert on 2/1/2016 into a variable number of Cliffs Natural Resources, Inc. (CLF) common shares based on the then current price of the common shares for 20 consecutive trading days immediately prior to the conversion date. The conversion settlement rate will be 28.1480 shares per unit if the then current market price is equal to or greater than $35.53 and 34.4840 shares per unit if the market price is equal to or less than $29.00. For market prices between those values the settlement rate will be $1,000 divided by the market value. The last reported sale price of the common stock on 2/12/2013 was $29.00 per share. (taken from QuantomOnline.com)

Hope this helps.]]> http://seekingalpha.com/article/1319401/comments?source=feed#comment-17710451 17710451 I sold put on the stock... They are now in the money.. meaning I get the stock on the 17th.

Yes the market is a bit crazy right now.]]> Tue, 16 Apr 2013 19:01:26 -0400 I sold put on the stock... They are now in the money.. meaning I get the stock on the 17th.

Yes the market is a bit crazy right now.]]> http://seekingalpha.com/article/1319401/comments?source=feed#comment-17445331 17445331 There is a huge difference between risking one's life and a small portion of one's capital.
Recent history indicates that this is a reasonable place to put some of one's capital.
However, I respect your opinion. If one considers the unknowns too high, than avoid the stock or investment.
That would almost eliminate all investments for me since I can't quantify the unknowns.
I couldn't invest in a utility because a nuclear plant could become the next Chernoble.
I couldn't invest in a pipeline because there could be a massive explosion and lose all.
Just like BP, who knew beforehand that there would be the massive oil spill.
It seems to me that there are unknown risks that can not be quantified in every investment.
I don't know about you, but I've had several complete busts in my investment career. On the other hand, I have had some triples and quadruples as well while I was collecting dividends.]]> Wed, 10 Apr 2013 10:00:10 -0400 There is a huge difference between risking one's life and a small portion of one's capital.
Recent history indicates that this is a reasonable place to put some of one's capital.
However, I respect your opinion. If one considers the unknowns too high, than avoid the stock or investment.
That would almost eliminate all investments for me since I can't quantify the unknowns.
I couldn't invest in a utility because a nuclear plant could become the next Chernoble.
I couldn't invest in a pipeline because there could be a massive explosion and lose all.
Just like BP, who knew beforehand that there would be the massive oil spill.
It seems to me that there are unknown risks that can not be quantified in every investment.
I don't know about you, but I've had several complete busts in my investment career. On the other hand, I have had some triples and quadruples as well while I was collecting dividends.]]> http://seekingalpha.com/article/1319401/comments?source=feed#comment-17361281 17361281 Mon, 08 Apr 2013 12:51:39 -0400 http://seekingalpha.com/article/1319401/comments?source=feed#comment-17346181 17346181 YZC is traded independently in the US, Hong Kong, Australia and China. This change in the FXI may have caused additional down draft of the stock... but I believe the consequences are now over. Whatever damage is already in the stock price.]]> Mon, 08 Apr 2013 08:04:02 -0400 YZC is traded independently in the US, Hong Kong, Australia and China. This change in the FXI may have caused additional down draft of the stock... but I believe the consequences are now over. Whatever damage is already in the stock price.]]> http://seekingalpha.com/article/1319401/comments?source=feed#comment-17345501 17345501 Just look at the amount capital expended in pipelines in the US to exploit this... China is just beginning. The US still has some of the finds being held up because of the lack of infrastructure.]]> Mon, 08 Apr 2013 07:49:35 -0400 Just look at the amount capital expended in pipelines in the US to exploit this... China is just beginning. The US still has some of the finds being held up because of the lack of infrastructure.]]> http://seekingalpha.com/article/1319401/comments?source=feed#comment-17260881 17260881 The puts will be turned into stock holdings by the 19th if the price of the company does not rise above 13.
The US has abundant natural gas, but China and the rest of the emerging economies do not. It will be 10 - 20 years before China ramps up drilling for natural gas. The equipment is just not there and it will be years before it is.]]> Fri, 05 Apr 2013 09:36:30 -0400 The puts will be turned into stock holdings by the 19th if the price of the company does not rise above 13.
The US has abundant natural gas, but China and the rest of the emerging economies do not. It will be 10 - 20 years before China ramps up drilling for natural gas. The equipment is just not there and it will be years before it is.]]> http://seekingalpha.com/article/1319401/comments?source=feed#comment-17260751 17260751 Just as with any investment, one must consider risk and rewards.]]> Fri, 05 Apr 2013 09:32:29 -0400 Just as with any investment, one must consider risk and rewards.]]> http://seekingalpha.com/article/1319401/comments?source=feed#comment-17260631 17260631 thanks for commenting.]]> Fri, 05 Apr 2013 09:30:28 -0400 thanks for commenting.]]> http://seekingalpha.com/article/1319401/comments?source=feed#comment-17203311 17203311 I feel reasonably sure you will profit again from your investment.]]> Thu, 04 Apr 2013 07:48:35 -0400 I feel reasonably sure you will profit again from your investment.]]> http://seekingalpha.com/article/1295971/comments?source=feed#comment-16818251 16818251 You have a plan that has generated an excellent return. I also appreciate your disciplined approach to dropping a company from your list.
Good job.
I am sure others who read your post can learn from your disciplined approach.]]> Tue, 26 Mar 2013 08:52:35 -0400 You have a plan that has generated an excellent return. I also appreciate your disciplined approach to dropping a company from your list.
Good job.
I am sure others who read your post can learn from your disciplined approach.]]> http://seekingalpha.com/article/1295971/comments?source=feed#comment-16817991 16817991 You raise some very powerful points on avoiding ETR. I already conceded the point to someone else earlier that putting 25% into ETR may be too much.
I am not against purchasing utility preferred stocks, I just was not inclined to put them in a utility fund. I have purchased many preferred stocks in my portfolio with the idea of keeping my eye on interest rates. (all below their call) When interest rates begin to rise, I expect to withdraw from the preferred stocks I own.
I am not against using leverage, I own many mortgage REITS right now that use leverage. I think I know what they are doing and also stand poised to move out of them when interest rates begin to rise. I just raised the issue with UTG because there is no way of knowing how they are using leverage. They may use leverage well... I don't know.]]> Tue, 26 Mar 2013 08:46:52 -0400 You raise some very powerful points on avoiding ETR. I already conceded the point to someone else earlier that putting 25% into ETR may be too much.
I am not against purchasing utility preferred stocks, I just was not inclined to put them in a utility fund. I have purchased many preferred stocks in my portfolio with the idea of keeping my eye on interest rates. (all below their call) When interest rates begin to rise, I expect to withdraw from the preferred stocks I own.
I am not against using leverage, I own many mortgage REITS right now that use leverage. I think I know what they are doing and also stand poised to move out of them when interest rates begin to rise. I just raised the issue with UTG because there is no way of knowing how they are using leverage. They may use leverage well... I don't know.]]> http://seekingalpha.com/article/1295971/comments?source=feed#comment-16816271 16816271 GWEFF ... The dividend just appears in my account. Like I commented earlier, it is almost impossible to get information on the company. Just look it up on Yahoo and you will see how much information is available.
I want you to know that I am not recommending the company... I happened to get into because I followed some advisor 5 years ago. This is one of the few stocks that turned out well.
They are not taking out any Foreign Tax so far... but who knows when that will change.]]> Tue, 26 Mar 2013 07:58:39 -0400 GWEFF ... The dividend just appears in my account. Like I commented earlier, it is almost impossible to get information on the company. Just look it up on Yahoo and you will see how much information is available.
I want you to know that I am not recommending the company... I happened to get into because I followed some advisor 5 years ago. This is one of the few stocks that turned out well.
They are not taking out any Foreign Tax so far... but who knows when that will change.]]> http://seekingalpha.com/article/1295971/comments?source=feed#comment-16815991 16815991 Good timing.
Keep up the good work.]]> Tue, 26 Mar 2013 07:53:04 -0400 Good timing.
Keep up the good work.]]> http://seekingalpha.com/article/1295971/comments?source=feed#comment-16815931 16815931 Thanks, it is great to see that others agree with my priorities.]]> Tue, 26 Mar 2013 07:51:38 -0400 Thanks, it is great to see that others agree with my priorities.]]> http://seekingalpha.com/article/1086171/comments?source=feed#comment-16769751 16769751 I am negative on gas and oil stocks at the moment.
My guess is that they have enough liquids to help raise the average price of their production... but it is only a guess.
May you prosper with your investments.]]> Mon, 25 Mar 2013 11:05:08 -0400 I am negative on gas and oil stocks at the moment.
My guess is that they have enough liquids to help raise the average price of their production... but it is only a guess.
May you prosper with your investments.]]> http://seekingalpha.com/article/1254491/comments?source=feed#comment-16769151 16769151 Henry Nyce may know why.
There are several reasons...
1. I like to purchase in 100 share lots
2. It costs me the same with my broker to buy 100 or 200 shares. It costs me $1.00 to buy 200 shares.
3. Even share lots allow me to write puts to purchase and/or write covered calls.
4. The size of my portfolio allows me to purchase 200 shares at a time unless i am purchasing a stock that sells for more than $200 per share.
Hope this helps.
PS. You can customize the number of shares to fit your own portfolio.]]> Mon, 25 Mar 2013 10:53:52 -0400 Henry Nyce may know why.
There are several reasons...
1. I like to purchase in 100 share lots
2. It costs me the same with my broker to buy 100 or 200 shares. It costs me $1.00 to buy 200 shares.
3. Even share lots allow me to write puts to purchase and/or write covered calls.
4. The size of my portfolio allows me to purchase 200 shares at a time unless i am purchasing a stock that sells for more than $200 per share.
Hope this helps.
PS. You can customize the number of shares to fit your own portfolio.]]> http://seekingalpha.com/article/1295971/comments?source=feed#comment-16768761 16768761 You did not miss a posting EDE.
Thanks for Dividend Re-investment Discount reminder ... I typically don't use them... I need cash in order to live at this point in my life.
For a younger investor... it is a good opportunity.
Thanks for your comment.]]> Mon, 25 Mar 2013 10:47:43 -0400 You did not miss a posting EDE.
Thanks for Dividend Re-investment Discount reminder ... I typically don't use them... I need cash in order to live at this point in my life.
For a younger investor... it is a good opportunity.
Thanks for your comment.]]> http://seekingalpha.com/article/1295971/comments?source=feed#comment-16768621 16768621 Why don't you share with us the ETF you would buy and the amount of margin you would use to cover fees.
However, you must remember that margin can not be used in an IRA. So it would be limited to personal accounts.]]> Mon, 25 Mar 2013 10:44:57 -0400 Why don't you share with us the ETF you would buy and the amount of margin you would use to cover fees.
However, you must remember that margin can not be used in an IRA. So it would be limited to personal accounts.]]> http://seekingalpha.com/article/1295971/comments?source=feed#comment-16768391 16768391 Thanks for your comment. I also have misgivings about UTG.
You can read it in my reply to Mickelsson.
Perhaps you would like to share with us your personal utility fund...]]> Mon, 25 Mar 2013 10:42:11 -0400 Thanks for your comment. I also have misgivings about UTG.
You can read it in my reply to Mickelsson.
Perhaps you would like to share with us your personal utility fund...]]> http://seekingalpha.com/article/1295971/comments?source=feed#comment-16768171 16768171 Looked up your UTG.
It just issued 5.9 million new shares in August of 2012. I don't know what that is doing to their NAV.
I noticed that this closed fund also plays options, invests in bonds and preferred stocks. It also uses leverage of up to 38% of total assets.
One must have confidence in the management.
If you read their 19A disclosure as of 12/31/2012 it reads:
Average Annual Return on NAV for 5 year period: -3.28%
(Found this on their website)
I would reconsider my investment in this company if I were you.
Thanks for reading and commenting.]]> Mon, 25 Mar 2013 10:39:04 -0400 Looked up your UTG.
It just issued 5.9 million new shares in August of 2012. I don't know what that is doing to their NAV.
I noticed that this closed fund also plays options, invests in bonds and preferred stocks. It also uses leverage of up to 38% of total assets.
One must have confidence in the management.
If you read their 19A disclosure as of 12/31/2012 it reads:
Average Annual Return on NAV for 5 year period: -3.28%
(Found this on their website)
I would reconsider my investment in this company if I were you.
Thanks for reading and commenting.]]>