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  • Is Enterprise Products Partners Dividend Sustainable? (Video) [View article]
    As long-term owner of EPD units, and a recent buyer of more at dirt-cheap prices, I resent the title of this article. (And not because of the nit-picking difference between dividends and MLP distributions.)
    Since inception, EPD has been a conservative distributor of cash. I suspect that this article was prompted by the recent low unit price and high distribution yield. Both of those are attributable to the over-reaction of the market to low commodity prices, and do not reflect any weakness in their cash flow statement.

    Long EPD for 10+ years and couldn't resist buying more at the recent low prices.
    Oct 5, 2015. 11:53 PM | 1 Like Like |Link to Comment
  • Gilead Will Rebound In The Fourth Quarter [View article]
    Thanx for the article, Mr Jensen.
    Used this downturn to buy some $110Jan17 calls - enough to add 20% to my current holdings.
    My so-called "dry powder" is now fully invested. I may have missed the lows on the shares that I bought, but can live with my cost bases.

    Long GILD.
    Oct 2, 2015. 10:06 PM | Likes Like |Link to Comment
  • Why Does Gilead Need $10 Billion? [View article]
    You might stop being so impatient ultraz2.
    Evaluations and acquisitions take some time to get right.
    Why should they cater to your sense of panic just because the share price is down recently?
    Oct 2, 2015. 01:02 AM | Likes Like |Link to Comment
  • Enterprise Products raises distribution by 5.5% [View news story]
    If you check into the company further, you will find that EPD doesn't fit your description at all. Their financial exposure to low commodity prices is limited, and the distribution is well-covered by their cash generation.

    Long EPD for 10+ years.
    Oct 1, 2015. 12:51 PM | 15 Likes Like |Link to Comment
  • Geron: Calculating The Potential Value Gap [View article]
    I spent my dry powder over the last few weeks. Had built up about 16-18% cash during the summer, hoping for a pull-back.
    Picked up AAPL on Freakish Monday (my term) at ~$97, bought TNH at $105, picked up more EPD at $26, added 40% more GERN at $3.30, and bought CBI at $42.
    If I jumped the gun, I won't lose any sleep over it.
    The future's so bright, I gotta wear shades.
    Sep 23, 2015. 12:47 AM | 3 Likes Like |Link to Comment
  • Geron: Calculating The Potential Value Gap [View article]
    FVG - you're showing your age with that LBJ quote.

    Oops, so did I....
    Sep 23, 2015. 12:37 AM | 2 Likes Like |Link to Comment
  • Geron: Calculating The Potential Value Gap [View article]
    I agree with you AW. Same old, same old won't get it done this time.

    What do you think about Ben Carson?
    Sep 22, 2015. 12:06 AM | 1 Like Like |Link to Comment
  • Geron: Calculating The Potential Value Gap [View article]
    This may be a needless reminder to most, but Irish Trader asked for donations in the event of Imetalstat success to help the patients be able to afford the travel and the treatments.
    I, for one, am still committed to do just that.
    I figure that I can contribute 10-20% of the profits I make off of GERN, and still afford to make it to the island.
    Sep 21, 2015. 12:58 AM | 3 Likes Like |Link to Comment
  • Geron: Calculating The Potential Value Gap [View article]
    AW - good comment. No doubt Mr Scarlett has helped to get where we hope to be.
    That said, you know it is the drive of every CEO to reinvest profits from a success to build another one. That's the only way he can justify and enhance his existence. In this case, I think that would be a mistake.
    Hitting it big with a new pharmaceutical has longer odds than a single spin of the roulette wheel.
    If Imetalstat is a hit, the best thing GERN can do for shareholders is to cut admin expenses to the bone and pay out as much as they can to the owners.
    Give us the bonanza that comes with a successful cure, and we can use that money to invest in the next big thing of our choosing.
    I fear the alternative is for Imetalstat to pay out big-time, and we get to watch Geron fritter the money away chasing the next big hit.
    OK, call me a pessimist if you want, but not when it comes to the effectiveness of Imetalstat.
    Sep 21, 2015. 12:52 AM | 1 Like Like |Link to Comment
  • Geron: Calculating The Potential Value Gap [View article]
    Sitting here reading this article for the second time on Sunday night, I think I'll buy a few more shares on Monday.
    I'm currently playing with house money, but it wouldn't hurt to put some of my money at stake at this point.
    I certainly don't want to show up at the island and have to explain why I didn't buy more than I had...... Another 20-30% on top of what I own wouldn't go amiss.
    Thanx to the author and Mr Levi both for keeping the faith.
    Sep 21, 2015. 12:31 AM | 2 Likes Like |Link to Comment
  • Geron: Calculating The Potential Value Gap [View article]
    I have long ago forgotten what the word cynical means.
    It makes perfect sense to me that as results come in from the current testing, J&J will know before us, and maybe before GERN management. If the results show promise, they will act to buy early and cheap.
    Hopefully, the GERN bigwigs won't sell too cheaply.
    (Of course, if the results suck all this flies out the window.)

    Disclosure: Long GERN at 0 cost.
    Sep 17, 2015. 10:52 PM | 3 Likes Like |Link to Comment
  • Murphy USA Has Been Unfairly Decimated [View article]
    Anon - I don't know all the specifics, but it has to do with the MUSA separation from MUR being classified as a tax-free spinoff by the IRS. The IRS puts restrictions on what the new company can do with its capital for two years following the transaction.
    One thing restricted was the initiation of a dividend to shareholders. Since the two years expired in August, the restrictions no longer apply.
    Perhaps the author has more details.
    Sep 17, 2015. 06:19 PM | Likes Like |Link to Comment
  • Murphy USA Has Been Unfairly Decimated [View article]
    Thanx for the article, Alpha Gen. MUSA seems to get very little mention on SA.

    You know there is a reason why the market pays attention to fuel margins for a company like Murphy - because it is the prime driver of profitability. Because of the competitive environment for fuel retailers in most areas, the retailer is not able to control his profit margin, but he can be whip-sawed by it nonetheless. Your graph of fuel margin with time would have told a better story if you had included the first half of 2015. (1Q margin of 10.0 cpg, 2Q at 9.0)
    To put things in perspective, I took some numbers from the company's 2014 annual report. For last year, the retail profit margins were split 68% for fuel, 19% for tobacco, and 13% for other merchandise. The "other" category is enjoying modest growth year-over-year, but the tobacco sales are under pressure. Between 2012 and 2014, "other" margin grew 11%, while tobacco profit margins were down 10%.
    This offset in the two non-fuel categories serves to emphasize the fuel margin, rather than downplay it.
    RIN's can be a good source of extra income when the market allows it, but the value of RIN's depends a lot on the opaque machinations of the EPA. When I look at the company, I tend to heavily discount RIN's as a permanent source of significant cash flow.
    I share the author's optimism with regard to the future growth of Murphy USA over the long-term, but won't be buying any shares near-term. 3Q fuel margins will probably show some rebound from the first half lows, but it won't be sustainable. Don't forget that crude oil prices are in the $40's and when they recover, MUSA will have their uncontrollable margins squeezed hard. No way to predict when that will happen, but it will.
    One other note: MUSA is the only Murphy-legacy company that doesn't pay a dividend to shareholders. It makes sense that they initiate a modest (1-2%) dividend sometime over the next few quarters.

    Disclosure: Owned MUSA from the spin-off from MUR, and sold at ~$70 after the 4Q14 results were published. Owned a few puts during the spring and summer but cashed out during the recent lows below $50. Planning to buy back into the company at some point, but not yet.
    Sep 16, 2015. 08:56 AM | 1 Like Like |Link to Comment
  • Could Major Acquisition Boost Gilead? [View article]
    Mr Jensen - thanx for the article.
    While GILD management is being understandably quiet about a potential acquisition, they would be remiss in their duties if they weren't looking at possibilities. It would be a shame to see them take on debt to do nothing more than buy back shares.
    Of your suggested targets, the one I don't like is Incyte. Their current business isn't bad, but if Geron's Imetalstat hits, Jakafi is toast.

    Long GILD and GERN.
    Sep 12, 2015. 10:29 PM | 4 Likes Like |Link to Comment
  • Why Does Gilead Need $10 Billion? [View article]
    I am also long GERN.
    If anything, GERN would be acquired by JNJ because their Janssen subsidiary knows more about Imetalstat than any other outside company via their joint agreements.
    As for Tim's query, when it comes to small pharmaceutical, no fresh good news = bad news.
    Don't despair - hand onto your shares.
    Sep 12, 2015. 01:02 AM | 1 Like Like |Link to Comment