Seeking Alpha

charliezap

charliezap
Send Message
View as an RSS Feed
View charliezap's Comments BY TICKER:
Latest  |  Highest rated
  • Get Paid While You Sleep: REITs That Pay Monthly [View article]
    What do you know, Mr [yet to provide a bio]?
    Sep 17 10:49 PM | 1 Like Like |Link to Comment
  • Get Paid While You Sleep: REITs That Pay Monthly [View article]
    Even the Part 1 model is misleading, as it arbitrarily assumes beginning of period payments for monthly and quarterly dividends. But you cannot buy at the beginning of the period and immediately receive the dividend, because of the lag between the trade date, the ex div date, and the payment dateBwhich may often be as much as a month. Besides, the stock will usually trade at a premium just before the ex div date in anticipation of the dividend payment.
    Sep 17 01:04 PM | 1 Like Like |Link to Comment
  • Should I Short These 3 REITs? [View article]
    Yes, its PLUS 10.5%, vs a decline for the VNQ.
    Sep 17 11:33 AM | Likes Like |Link to Comment
  • Get Paid While You Sleep: REITs That Pay Monthly [View article]
    In my simple opinion, there is no real advantage to dividends that come monthly, unless one has absolutely no cash reserves and lives from month to month on dividends, plus, perhaps a social security check. If one confines one's investing to monthly payers, one will automatically screen out a lot of good stocks. And if you are re-investing, the smaller amounts involved may result in higher effective brokerage costs.

    As for compounding monthly, instead of quarterly, the difference, IMO, is peanuts. Forgive me if I repeat a comment that I recently made on another board:
    **********************...
    If a $100 stock yields 5.0% annually, and pays dividends monthly, compounding gets you to $105.116 by year end. Quarterly compounding gets you to $105.095, just 2.1 cents less. On a $1 million holding, you will be about $210 ahead -- before taxes -- which will just about cover dinner for 2 and a bottle of wine at my favorite local restaurant.

    http://bit.ly/1wzuI4X
    Sep 17 11:18 AM | Likes Like |Link to Comment
  • Get Paid While You Sleep: REITs That Pay Monthly [View article]
    Gary,
    REIT dividends are normally non-qualifying in relation to the special lower tax rate on most corporate dividends. In an IRA, this has no impact, as taxes are only paid on withdrawal. In a taxable account, the dividends are generally taxed as ordinary income, but, for some REIT's, a portion may come as capital gains, or as a return of capital. The 1099B form that you receive or download from your brokerage firm each year usually sorts this out quite well. If you do your own taxes, e.g. through Turbotax, there is usually no problem in processing this information.
    Sep 17 11:06 AM | 3 Likes Like |Link to Comment
  • Improving Production Gives BP Significant Upside [View article]
    Agree fully.
    Sep 17 10:17 AM | Likes Like |Link to Comment
  • Improving Production Gives BP Significant Upside [View article]
    """Many of the world's governments, especially in the Middle East and Asia, are expanding their refining capacity so as to lower their reliance on imported fuels and create more employment."""

    The above does not make much sense. First, refineries are not big employers of people. Second, in the Middle East, refinery expansion relates mainly to export refineries -- there is more "value added" in exporting products versus exporting crude oil.

    Third, in Asia, which is mainly China, refineries are being expanded to produce products that are mainly for domestic consumption -- China's imports of oil products exceed its exports of oil products; plus, since China's domestic crude production falls short of domestic refinery input requirements, any expanded capacity has to be supplied through imported crude oil -- this does NOT lower net reliance on imported fuels. In fact, according to the EIA, China is about to overtake the USA as the world's largest net importer of oil and products. For more on the Chinese oil situation see the link below:

    http://1.usa.gov/NSZ7Hn
    Sep 17 09:22 AM | 1 Like Like |Link to Comment
  • ExxonMobil Could Be Under-Valued, But Not By Much [View article]
    As they say in the Geico ad: "Everybody knows that."

    Did we really need another article about "Exxon mobile", especially one that is poorly written, and has a chart that does not work?
    Sep 17 08:32 AM | 3 Likes Like |Link to Comment
  • Why Citigroup Will Double Over The Next 5 Years [View article]
    "" . . the DoJ is going to launch yet another round of lawsuits against the big banks!""

    Do you have a link? Or is this just your personal opinion?
    Sep 16 11:00 PM | Likes Like |Link to Comment
  • How Costly Is The Biggest Offshore Oil Spill In U.S. History For BP? [View article]
    There is nothing new here. A virtual repeat of a previous article. The author says: "The company MIGHT have to pay up to $4,300 per wasted barrel, which sums up to be over $17 billion," (emphasis on "might" is mine) but that's probably a worst case scenario. With appeals, negotiations, and settlements, the ultimate result is likely to have far less impact. Besides, the news is priced in at this level -- just look at the hit the stock took on the news. BP is priced far more reasonably on yield, P/E, and NAV than its major rivals, XOM, RDS, CVX, TOT, and COP, and is a BUY at this level.
    Sep 16 01:13 PM | 2 Likes Like |Link to Comment
  • Mr. Market Provides Some Early Fall Color For REIT Investors [View article]
    """REITs are damaged by higher rates through their hedging."""

    Not sure what you mean here. mREITs hedge interest rates, but not eREITs (to any significant extent) -- there is no reference to hedging in the Aloisi article that you link.

    I think the point of the Aloisi article is that REITs in sectors with longer term leases, such as triple net, are fairly highly predictable with respect to cash flows, and are therefore competitive with bonds as investments. When interest rates go up, bonds decline in value. The same goes for triple net REITs.
    Sep 16 10:10 AM | 1 Like Like |Link to Comment
  • Mr. Market Provides Some Early Fall Color For REIT Investors [View article]
    onetusk,
    I would not confine myself to monthly payers, as doing so will eliminate a lot of good stocks.

    If a $100 stock yields 5.0% annually, and pays dividends monthly, compounding gets you to $105.116 by year end. Quarterly compounding gets you to $105.095, just 2.1 cents less. On a $1 million holding, you will be about $210 ahead -- before taxes -- which will just about cover dinner for 2 and a bottle of wine at my favorite local restaurant.

    http://bit.ly/1wzuI4X
    Sep 16 08:39 AM | Likes Like |Link to Comment
  • Bank Of America: Buy Before Everyone Else Does [View article]
    Professor

    If I could get the deal that Warren got -- 6% yield plus warrants @ $7.14 -- I'd invest 10 times what I now have in BAC!
    Sep 13 05:36 PM | 3 Likes Like |Link to Comment
  • Mr. Market Provides Some Early Fall Color For REIT Investors [View article]
    """ My only REIT holdings have growth rates closer to 15%..."""

    Mike, with REITs obligated to pay out 90% of taxable income, it is very difficult, IMO, to maintain a 15% growth rate over the longer term. Some newly formed, smaller, REITs may be able to do 15% or more for 2 - 3 years, but once they settle down so does the growth outlook. But if you have a list of REITs that will grow at 15% more than 3 years into the future, perhaps you can share it with us?
    Sep 13 03:32 PM | 2 Likes Like |Link to Comment
  • Mr. Market Provides Some Early Fall Color For REIT Investors [View article]
    SLVO -- Business Summary (from Yahoo)

    The investment seeks a return linked to the performance of the Credit Suisse NASDAQ Silver FLOWSTM 106 Index. The index measures the return of a “covered call” strategy on the shares of the iShares® Silver Trust (the “SLV Shares”) by reflecting changes in the price of the SLV Shares and the notional option premiums received from the notional sale of monthly call options on the SLV Shares less notional transaction costs incurred in connection with the covered call strategy.
    ______________________...

    As Warren Buffett says, if you don't understand it, don't invest in it!
    Sep 13 03:23 PM | 2 Likes Like |Link to Comment
COMMENTS STATS
1,234 Comments
1,734 Likes