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Robin Heiderscheit

Robin Heiderscheit
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  • Deere & Co. - Higher Financings And Sales To Deere Finance Boost Revenue And Margins [View article]
    I guess I would like to know about this trend toward more customer financing, whether through lease or loan.

    Are they reducing collateral requirements?
    Are they reducing the cost of the funds being provided?
    Are they reducing covenants?
    Are they changing the cost/terms of the buyout option?
    Are the customers less creditworthy in some way (e.g., small construction contractors instead of land rich farmers)?
    Etc.

    Making more loans to your customers sometimes is dumb (see GM circa 2002) and sometimes is genius (basically see GE in the 80s and 90s). It just depends on the terms of those loans. Are you getting paid for the risk you are taking?

    Over the decades DE has struck this balance well. I enjoyed the article and all Blue's Deere pieces.
    May 22, 2015. 03:28 PM | Likes Like |Link to Comment
  • How Is Management At Dynex Financial Aligned With Shareholders? [View article]
    Colorado I was one of your first followers so I hope you will consider my request seriously even though it will involve some work.

    I would like you to spend some time thinking about the efficiency of DX and other MREITs in turning a dollar of gross interest income into dividends. In other words, develop some type of operating efficiency ratio taking account particularly G&A costs especially and also cost of capital (which I know gets complex in a hurry). In BDC land, it turns out that operating efficiency is of critical important in determining long term rates of return to the common. In a market that is pretty efficient (and pretty stingy) for opportunity to generate gross interest, being tight with a buck at the operating level could be critical.
    May 22, 2015. 11:00 AM | Likes Like |Link to Comment
  • How Is Management At Dynex Financial Aligned With Shareholders? [View article]
    I remember talking to these guys in 2006 and 07 asking why they weren't levering up esp. in nonagency like everybody else . . . with the yield curve flat it looked like the best way to maintain NII. We know how that story ended. Hopefully they will get the next turn right, too.

    I wish insiders owned as much stock as they did then . . . insider ownership is still pretty good but management pretty much didn't participate in the offerings over the years as the company increased in size.

    I have been out for a long time (2012) but down here at $7.70 even if they earn a long run ROE of 8% (i.e., roughly where they have been running) you get 9.5%. That's pretty danged attractive in a permanent ZIRP environment.
    May 22, 2015. 10:56 AM | Likes Like |Link to Comment
  • How Is Management At Dynex Financial Aligned With Shareholders? [View article]
    @phil, DX was at $8.60 or so a year ago so if you had bought then you would be about flat
    May 22, 2015. 10:50 AM | Likes Like |Link to Comment
  • TCP International: Sub-$5 Bulbs, Completion Of Quality Control Review, And Retention [View article]
    this is historically a VERY difficult business, as it had negative retained earnings when it went public and has averaged just 6 cents per year in EPS as a public company . . . getting Yan out of an employee facing role will probably be helpful
    May 21, 2015. 03:14 PM | Likes Like |Link to Comment
  • TCP International: Sub-$5 Bulbs, Completion Of Quality Control Review, And Retention [View article]
    Hey CVC:

    Retained earnings were negative when they went public. Not sure if they are still negative but there you go.

    Here's the link to the cheap bulbs. Everyone has them now. The 2 for $5 thing from Philips is the promo price but the point is prices are low and failling so anyone going gaga over a $5 bulb doesn't know much about the business.

    I agree that there is a good possibility that this company is NOT a massive fraud as some contend.

    http://wrd.cm/1c7NVCD
    May 21, 2015. 03:12 PM | Likes Like |Link to Comment
  • CenturyLink's Recent Slump Makes An Appealing Income Play [View article]
    Okay, well when evaluating dividend sustainability I think FCF would be a better metric because it takes account of capex requirements, which operating cash flow does not.

    Still basically agree with you though at $34 in a very difficult market for value. You should also look at HCOM in Hawaii. Doesn't have the dividend today but likely will next year.
    May 21, 2015. 08:33 AM | Likes Like |Link to Comment
  • CenturyLink's Recent Slump Makes An Appealing Income Play [View article]
    In a picked over market you could do worse, although I wonder where the author is getting those FCF figures. My number is about half of his.
    May 20, 2015. 01:37 PM | Likes Like |Link to Comment
  • TCP International: Sub-$5 Bulbs, Completion Of Quality Control Review, And Retention [View article]
    Yawn, an historically unprofitable commodity product maker.

    BTW, here is a link to a story that says a brand name competitor is selling two for $5. So yeah, LEDs are getting cheaper. What else is new?
    May 20, 2015. 09:49 AM | Likes Like |Link to Comment
  • PennyMac Mortgage Investment Trust: Why Not Consider This 11% Yielder On The Sell-Off? [View article]
    Yes, it just seems after yet another bad quarter that their supermarket approach creates stability but not profits.
    May 18, 2015. 10:07 AM | Likes Like |Link to Comment
  • Getting Defensive With The PowerShares S&P 500 BuyWrite Portfolio ETF [View article]
    @sumoman zero percent . . . they have new managers since 2010 and completely dropped the short sale component of the strategy (except for selling options of course) . . . GPM and GGE are "rules based" and serial underperformers. . . . their distributions are mostly taxable (they had alot of ROC in 2013) so you get a sizeable tax bill while watching your investment stagnate . . . what fun!
    May 18, 2015. 08:51 AM | 1 Like Like |Link to Comment
  • Rising Interest Rates: Bear On Banks [View article]
    What if short term rates rise and long term rates don't rise or rise less than short term rates? Aren't NII margins then, all else being equal, declining?

    It is a serious question because you hear people repeat the mantra over and over that rising rates are good for banks and, to me, it seems like if your source of funds is rising in cost that is bad, at least initially, as Vast writes.
    May 16, 2015. 01:42 PM | Likes Like |Link to Comment
  • Stay Away From Capitala Finance Corp. [View article]
    you nailed it (as usual) Factoids
    May 16, 2015. 01:38 PM | Likes Like |Link to Comment
  • Getting Defensive With The PowerShares S&P 500 BuyWrite Portfolio ETF [View article]
    If you look at price returns (rather than NAV) you will find that the outperformance by buy-write CEFs in 2008 shrinks about in half. The reason as you probably could guess is that once stocks are out of favor discounts widen.
    May 16, 2015. 01:37 PM | 1 Like Like |Link to Comment
  • Rising Interest Rates: Bear On Banks [View article]
    "A rising rate environment tide raises all boats in the banking industry." I am curious why you say that?
    May 15, 2015. 02:53 PM | 2 Likes Like |Link to Comment
COMMENTS STATS
2,197 Comments
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