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Peter Angus

Peter Angus
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  • Bert's Recent Purchase - Norfolk Southern Corporation [View article]
    May I ask why you favour nsc and csx over Union Pacific?
    May 26, 2015. 08:50 PM | Likes Like |Link to Comment
  • Bert's Recent Purchase - Norfolk Southern Corporation [View article]
    My approach has been different, and will not receive universal approval - I use margin. One runs the risk of a margin call. But, if you are buying senior securities like nsc - your brokerage will allow you to borrow up to 70% of the securities value. And, if you have developed some confidence in identifying undervalued securities...use a bit of leverage, and manage the risk.

    Using your number of adding $400 per month, I would add $1,800 worth of nsc. That spreads your commission costs over a greater number of shares. Then, with the monthly deposits of $400 per month I would make no further purchases until I had whittled down my debt on that most recent purchase to 67% of the $1,800 (that is 3 months at $400 per month). Then, I would make another addition of $1,800.

    One way to manage the risk of a margin call is to add a senior reit to your portfolio, something like O, or a well selected preferred share - where the credit risk is minimal, mindful of the preferred's redemption conditions, rate re-sets, etc.
    May 25, 2015. 07:37 AM | Likes Like |Link to Comment
  • T. Rowe Price Group Remains Strong In The Long Run [View article]
    I am long trow. Every quarterly report and annual report I check the net inflows of cash. I understood that T. Rowe Price continues to attract new money. Your article states there have been outflows. What am I missing? Here is what the 1stQ2015 says:

    The net cash inflows, after client transfers, into the mutual funds of $3.4 billion, include net inflows of $2.1 billion into the stock and blended asset funds and $1.6 billion into the fixed income funds. The money market funds had net outflows of $.3 billion. The net cash outflows from the other investment portfolios were largely concentrated among a small number of clients who redeemed from large-cap U.S. equity strategies. The firm's overall net cash flows include $7.5 billion that originated in the firm's target-date retirement strategies, which totaled $160.9 billion in assets under management at March 31, 2015. These target-date assets contribute to the $207 billion of assets under management in our asset allocation portfolios..
    Apr 29, 2015. 07:39 AM | 3 Likes Like |Link to Comment
  • Harley-Davidson: Speculative Buy After An Aggressive Sell-Off [View article]
    I am long hog; and, I have been long hog since 2008. I have done very well. Recently, before the earnings announcement, I add more shares and sold a covered call (Nov. $67.50). The premium was $2.12 which helps offset the subsequent plunge in the price.

    Two comments - the market for hog products is shifting to non-traditional markets: women, hispanics, blacks, asians. See the recent Wall St. Journal article.

    Call premiums for hog remain very attractive for option writers, suggesting to me that the market expects a rebound.

    I expect that the call option that I sold will expire worthless in November and that the share price will have recovered to at least my purchase price. I think that this is a well run company that has, and is, adjusting to changing market conditions.
    Apr 23, 2015. 04:27 PM | Likes Like |Link to Comment
  • McClatchy: How I Nearly Fell Into A Value Trap [View article]
    Thank you for the article. I enjoyed reading it. I owned shares in mni decades ago, and made money. I recently looked up the ticker symbol and was astounded by the share price. I was going to start researching the Company again; your article gives me a good head start. And, I am mindful of your conclusions. Thank you for the article.
    Peter
    Apr 21, 2015. 02:03 PM | 1 Like Like |Link to Comment
  • Norfolk Southern Corp.: Stock Analysis [View article]
    My recollection of their 2014 annual report - about 20% of their revenues are Coal revenues. I can't see anything but a slow decline for the coal industry, particularly if natural gas stays low. I had held nsc for about 5 years; I took my profits. I think the Coal situation will damper overall revenue growth for this railroad. If we get a sharp market correction and a lower nsc entry point, I would consider getting back into nsc; I think it is a well managed railroad.

    Thank you for the article.
    Apr 20, 2015. 01:48 PM | Likes Like |Link to Comment
  • I Want Book Value: Annaly's Weakness Is Not The Dividend [View article]
    Thank you.
    Mar 17, 2015. 09:26 AM | Likes Like |Link to Comment
  • I Want Book Value: Annaly's Weakness Is Not The Dividend [View article]
    I am long nly and have been for years.

    My question is:

    nly pays out most of their cash flow in dividends. Can they continue dividend, and their payout ratio and at the same time dramatically reduce their share count? It is not that I disagree with the premise of your article, but this is not a Company like DE that might pay out 30% of earnings in dividends leaving lots of cash available for buybacks.
    Mar 16, 2015. 09:13 PM | 1 Like Like |Link to Comment
  • Bank Of Nova Scotia Is A Safer Bet Than The Market Is Representing [View article]
    I am long bns; have been long bns for decades. It has been a fabulous holding.

    What is missing in the analysis and posted comments, in my view, is the ability of bns to successfully invest in Latin America. Yes, there was the Argentine fiasco years ago. But, overall - their record of investing in Latin America has been good. They are currently investing heavily in the Pacific Latin America region; Mexico, Columbia, Peru and Chile.

    The future results posted by bns will be levered by their success, or lack of success, in this region.
    Mar 12, 2015. 10:13 AM | 6 Likes Like |Link to Comment
  • Valspar: Significant Margin Expansion Thanks To Low Oil Price [View article]
    Thank you for the analysis. I have been long val and shw for years. They have been good investments.
    Feb 19, 2015. 08:24 AM | Likes Like |Link to Comment
  • Royal Bank Of Canada: Solid Buy On Commodity Pullback [View article]
    The Canadian banking system is an oligopoly; this makes the big banks attractive at the right price. Yes, there are risks, housing market, the effect of low oil prices, etc.

    But, I think the big issue is growth. The Canadian public is up to their eyeballs in debt, so it is a question of where and how can the Canadian banks effectively deploy their capital to grow their earnings.

    RBC had a disastrous foray into US mainstream banking in North Carolina; now they have chosen a niche market in their latest acquisition. I think it is a better choice. I am long RBC. It has been a fabulous holding. At current prices, I am adding to my position.
    Jan 25, 2015. 08:01 AM | Likes Like |Link to Comment
  • Tootsie Roll's Mel Gordon Dies At 95: Don't Fall For The Acquisition Hype Just Yet [View article]
    Enjoyed reading the article. I had a similar experience as a TR shareholder. It was very tempting with the 3% stock dividend, plus the regular dividend. The number of shares outstanding remained pretty consistent year over year as the Company bought back shares to off set the stock dividend. I don't remember what I paid for my shares, but I know that I sold them for a small loss.

    Zero top line growth, shrinking margins, excessive management compensation were big problems.

    TR's valuation was already stretched before Mel's death, when the shares were around $27. I think any takeover premium was already built into the stock price.
    Jan 25, 2015. 07:49 AM | Likes Like |Link to Comment
  • Trinity Industries: Asymmetric Risk-Reward [View article]
    I have traded in and out of Trinity in the past. Currently, I do not own the shares but am considering them again.

    The news items getting the most attention are:
    1. the litigation
    2. crude by rail and the impact of plunging crude prices on this segment of the business.
    3. the effect of new government regulations on crude cars.

    Trinity builds more than just oil tanker cars. The age of freight rail cars in North America is getting old, and there should be a healthy replacement cycle coming up on the horizon. I have researched those numbers in the past (10 years ago) but have not done so recently. Does anyone out there have those figures handy?
    Jan 16, 2015. 08:52 AM | Likes Like |Link to Comment
  • Trinity Industries: Asymmetric Risk-Reward [View article]
    Would the Corporation not have adequate liability coverage to pay their share of the wrongful death claims and associated legal fees?
    Jan 13, 2015. 02:08 PM | 1 Like Like |Link to Comment
  • Royal Bank Of Canada: Solid Buy On Commodity Pullback [View article]
    I am long RY. The article was very good - thank you. I have one comment to add.

    CMHC (Canadian Mortgage and Housing Corporation) is a crown Corporation (owned by the Canadian government )- if you are buying a house in Canada with less than 25% down, you must insure your mortgage through CMHC. Fearing a real estate bubble, the Canadian government has taken some measures to mitigate their risk (they reduced the allowable maximum amortization period, and other measures, etc.)

    I think the thrust of your argument that Canadian mortgage lending is sounder than what occurs in the US is fundamentally correct; but if you examine the role of CMHC you will discover the Canadian government's role in mortgage financing is broader than suggested in your article.
    Jan 11, 2015. 10:06 AM | 6 Likes Like |Link to Comment
COMMENTS STATS
72 Comments
56 Likes