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  • Crude pushes past $50/bbl [View news story]
    I predict it will fluctuate.
    Oct 9, 2015. 12:36 PM | Likes Like |Link to Comment
  • Crude pushes past $50/bbl [View news story]

    I don't want high oil prices, but I would like to see the panic selling in the oil sector come to an end. It certainly seems like that is the case. We may have seen the lows already.

    I'm tapped out on money. I went all in on the midstream MLP sector. It would be nice to accumulate more shares, but all in all its probably better for me if oil gets back to $60ish.

    Now I will just sit back and collect very high MLP dividends for the next few decades...
    Oct 9, 2015. 12:36 PM | 1 Like Like |Link to Comment
  • Should Intel Worry About IBM's Launch Of Linux Servers? [View article]
    Intel should worry because IBM is giving China what they want. With openpower IBM has basically open sourced their Power processors. China has made it pretty clear they don't want to use non-Chinese IT. However they are perfectly happy using open source.
    Oct 9, 2015. 12:29 PM | 1 Like Like |Link to Comment
  • MLPs With Safe And Growing Distributions [View article]
    AMZA sounds interesting. This is the first I have heard about it. I do like to mix market cap ETFs in with actively managed CEFs, and a little stock picking by myself. I'll have to keep that ETF in mind for latter on.

    I like the idea of using leverage, especially with ZIRP. I let the professionals do that for me though, usually with closed end funds. So I do like that AMZA can use leverage especially with something like midstream MLPs.
    Oct 9, 2015. 12:24 PM | Likes Like |Link to Comment
  • Generation Y: Buying Worthless Degrees Instead Of Houses [View article]
    Education debt is not good but I don't know that housing debt is any better. I'm 39 and have never owned a house. I've taken money that would have gone towards a mortgage and invested it. Now I'm almost financially independent. My dividend income from my brokerage account covers roughly 79% of my yearly living expenses...

    I work in IT and its not an easy career to stay in. Layoffs, outsourcing, and just the constant need to stay on top of the field so your skills don't become outdated... So I never felt comfortable tying myself down to one location.

    When I graduated college it was into the dot com bust with a degree in computer science... So that made me paranoid about job security. It turned out to be a good thing as I started off at the very beginning of my career living below my means and I was forced to learn how to invest money.

    The area of IT that I work in (server administration) is going through a huge disruption now. "Cloud computing" is a huge productivity boost and it lets companies more easily use labor from anywhere on the planet... Its just a matter of time before head counts in the US go down for the area I'm in. It will happen once cloud computing becomes more popular in the enterprise. My guess is I have 5-10 years before a huge shakeout. Thankfully, I'm going to be in a position where I don't have to work anymore anyway...
    Oct 9, 2015. 11:58 AM | Likes Like |Link to Comment
  • WSJ: EMC in merger talks with Dell [View news story]
    That's an interesting point. I don't see a Chinese company (even Lenovo) being allowed to buy EMC, but loan money to Dell... I bet that could fly under the radar.
    Oct 8, 2015. 04:43 PM | Likes Like |Link to Comment
  • MLPs With Safe And Growing Distributions [View article]
    I went very long on the MLP sector (using AMLP) starting around 8-11. There has been a pretty significant downturn since then, but recently it has been recovering and I'm almost back to a zero, on paper, capital loss. All in all I think I did pretty well on the timing. I *do* think we have seen the bottom in MLPs.

    I basically went all in with my taxable brokerage account (non-retirement money). I've followed the MLP sector for years and was not afraid to put a lot into it. Midstream MLPs are necessary for the US economy regardless of what is going on with the oil price. If natural gas power plants continue to replace coal power plants then there will be a lot of growth needed in MLPs. Given that the US has abundant natural gas, and that natural gas power plants are cheaper to run, easier to run, and have half the pollution as coal... I think its a good bet. Coal makes up around 30% of US power.

    Anyway, my average cost per share is $14.65 on 18,250 shares. I plan to keep adding as long as the share price is below my avg. I should receive around $21,827 in dividends next year. My yearly living expenses are around $28k... If the dividend growth rate stays around 6.3% (as it has been the last few years), then I should hit roughly $28k divs in four years with no reinvestment of income...

    I'm only 39 and plan to keep working full time, but I just might be financially independent pretty soon...
    Oct 8, 2015. 04:31 PM | 3 Likes Like |Link to Comment
  • WSJ: EMC in merger talks with Dell [View news story]
    Cisco would make more sense given the many years history with VCE.

    Cisco also has a lot of cash offshore. Probably enough to offset any debt they would take on in the US to acquire EMC.

    Whoever buys EMC there will be significant risk with such a large merger.

    I'm pretty sure HPQ will not bid. They have such a horrible acquisition track record. I don't see how they could get approval to go ahead with it from shareholders.
    Oct 8, 2015. 10:37 AM | Likes Like |Link to Comment
  • CNBC: Dell offer for all of EMC would be above $27/share (updated) [View news story]
    EMC shareholders would be better off with vmware and pivotal spun off. EMC is undervalued compared to its holdings in vmware.

    Pretty stupid decision by EMC not to just pull in vmware and pivotal and run them as independent subsidiaries if they are going to let Dell by them out cheap and do just that.
    Oct 8, 2015. 10:31 AM | Likes Like |Link to Comment
  • WSJ: EMC in merger talks with Dell [View news story]
    I don't own any EMC but if I did and my shares got diluted picking up Dell I'd be pissed. Dell is garbage compared to EMC.

    If Dell wants to pay cash for EMC that's another story, but there should be a descent premium if that is the case. I'm not sure how Dell could afford it. If I owned EMC I'd be worried that I would get compensation in Dell stock... yuck.
    Oct 8, 2015. 12:40 AM | Likes Like |Link to Comment
  • Panic In The Pipelines? [View article]

    As MSCEDAR points out, they aren't changing to c-corp. However, even if they did then Alerian could just change the index so that they are included. It doesn't worry me.

    AMLP is already a c-corp. So if many MLPs switched to c-corp my yield would probably not change much and I wouldn't have any tax issues.

    Its not necessarily MLPs that I'm interested in but midstream pipelines. However the MLP structure is an advantage just like REIT structure is.
    Oct 7, 2015. 09:52 PM | Likes Like |Link to Comment
  • Microsoft: Reimagining Personal Computing [View article]
    That's a good point. This is a game changer in the enterprise. I work in IT and I can say that Azure is gaining huge share in enterprise cloud.

    If I were a Dell, HP, Lenovo, etc I would be panicking. The way I see it Azure will eventually replace most in house IT infrastructure.

    Why buy a server when I can put one out in Azure where I will have better disaster recovery, and the ability to scale out resources on demand? All without needing any huge upfront CAPEX. The costs are now cheap OPEX which you can adjust on the fly as the resource demand goes up or down.

    Now that Microsoft is making a laptop the OEMs will lose that business too. Let's face it, the OEMs come out with pretty crappy products in general. Filled with add-on bloatware, using cheap parts, etc. The OEMs are a mess. The hardware that Microsoft makes is night and day better than the crap the OEMs make.

    The OEMs brought this on themselves. I think Microsoft finally got ticked off enough to say screw it. We are taking over because the OEMs are too incompetent to compete against Apple.
    Oct 6, 2015. 10:32 PM | 6 Likes Like |Link to Comment
  • Microsoft: Reimagining Personal Computing [View article]
    Well, I definitely like Windows 10 better than Windows 8. I was one of the people that downloaded it and I'm definitely using it.

    The way I see it win 10 is what win 8 should have been. Now that they have an OS that makes sense (don't force a PC user with a keyboard & mouse to touch the screen please...) and an OS that integrates all of their hardware (tablet, laptop, phone, xbox) now they are really in a place to start pulling out the innovation.

    Win 8, like vista, was a set back, but they are on solid ground now. The game isn't over. I could even see their phone gaining traction as apps should be portable now from laptop to phone. That will go a long way to making up the "app gap".
    Oct 6, 2015. 10:19 PM | 4 Likes Like |Link to Comment
  • Panic In The Pipelines? [View article]

    You are probably right. Let's not forget that for a while Kinder Morgan went private and then just a few years later they went public again...

    The MLP structure is great for running a midstream pipeline business. Its been around for a few decades and has proven itself. I think it will be here to stay. I'm really not worried about everyone deciding to go c-corp. There is a big benefit to not having to pay taxes twice, which is what sets MLPs and REITs apart from c-corps.
    Oct 6, 2015. 10:10 PM | Likes Like |Link to Comment
  • Microsoft: Reimagining Personal Computing [View article]
    Sounds to me like the PC OEMs are toast long term. Microsoft can probably make a lot of money just taking share from their OEMs. The overall market could even shrink and they would still be fine.
    Oct 6, 2015. 07:36 PM | 4 Likes Like |Link to Comment