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colodude

colodude
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  • Getting The Returns Without The Risk [View article]
    Okay John, I'm game: I don't understand the benefit of owning bonds for a year (other than long-term capital gains if in a non-IRA account, which I understand may make sense if ordinary income rates are high for an individual) then swapping for longer maturity bonds and repeating. Are you saying that buying a 10-year and holding it for 366 days and then rolling it to another 10-year bond (if rate is favorable) is the way to go?

    I understand the mechanics of ladders, but I don't understand how, under any circumstance, a ladder can ever lose money as long as there is no need to liquidate holdings prematurely. Follow up, please.
    Jul 9 12:11 AM | 2 Likes Like |Link to Comment
  • The Bond Trap [View article]
    svy, no worries. I just bought some stocks I like, so the top is in for this month. When I'm down 12%, I'll let you know....
    Jun 25 12:30 AM | 2 Likes Like |Link to Comment
  • Grid-Scale Energy Storage; Why Working Capacity And Cycle Duration Matter [View article]
    I found it interesting that GE, of all companies, doesn't have a dog for that bone.
    Jun 24 02:11 PM | 2 Likes Like |Link to Comment
  • Trinity Industries: Triple, Stock Split, Now What? [View article]
    Hi KC, I reread the section he wrote about advantages of the split, and what I picked up was the matter of it making options easier for a low-balance investor to buy and sell options that wouldn't be possible at the pre-split price. A more extreme example would be AAPL, which under no circumstance could I buy even one option. Today, no problema.

    Anyway, you might have been a bit harsh, as were later "repliers" responding to something he didn't assert. He did assert some potential reasons others might like splits, but he personally disavowed those.
    Regards...
    Jun 20 10:27 AM | 2 Likes Like |Link to Comment
  • Why Buying A House Is A Terrible Investment [View article]
    I'm sure he thanks you for the click, however...;-)
    Jun 15 08:44 PM | Likes Like |Link to Comment
  • Why Buying A House Is A Terrible Investment [View article]
    Watch out, Dave, that rule is changing or has changed; the AMT might have an effect, too, on the max capital gain you can claim. If you're talking a $250K regular-size home, it may not be an issue and is a good strategy. Otherwise, keep an eye open to the latest laws.
    Jun 15 08:41 PM | 2 Likes Like |Link to Comment
  • Why Buying A House Is A Terrible Investment [View article]
    The younger one is, the more I agree with the author. The older one is the more important the non-economic factors become, and the more likely one can right-size their dwelling for the longer term. The more one needs control of budget expenses, the less desirable renting is. In my fifth owned home, each sale had its unique tradeoffs, I owe the same amount now as I did buying my second home 26 years ago. I was, in effect, a renter through the whole time.
    Jun 15 01:33 PM | 6 Likes Like |Link to Comment
  • Correction 2014: Take Cover [View article]
    No, the title is quite cover...errrr...clever. Take cover as in covered calls.
    Jun 9 12:20 AM | 2 Likes Like |Link to Comment
  • Correction 2014: Take Cover [View article]
    I've seen a chart twice in the last week, possibly Doug Short or Bespoke, that shows the performance of the Russell 3000 broken into five classes by market cap, I believe the start date of the March 22 market high. There's a clear correction in stocks 2001 - 3000 at quite a pace. Since it would take only 10% of the Fed's money that it is now using to "advance" the market while many sold in May, I'm surprised they haven't turned their attention to the small fry yet to restore some market balance.
    Jun 9 12:18 AM | 2 Likes Like |Link to Comment
  • McDonald's And Franchisees: Part 3 Of 3 Ways To Tell When The Worst Is Over [View article]
    You mean the Egg McMuffin sliders? Their sausage is still tasty, though, and the McWrap's really are excellent, but that gets to the article's point: McDonald's doesn't want their franchisees selling fewer McWraps at higher margins. Think about that one statement: the strategic vision of McD corporate is to flash the quality, sell the bulk. THAT is a management problem of the highest order, since the death of their CEO. Whoever is leading them now is NOT committed to the quality of its product; They flash quality but they push rents, because they are making more as a REIT.

    That may actually lead to some serious further price decline in the stock. Ad about the stock price: Since Jan 2012, it's first price peak since its last run-up, the closing price Friday is 24 cents higher. It's one thing to say price is up 6% compared with S&P. It's another to think of McD as dead money with more risk down than up.
    Jun 8 11:35 PM | 2 Likes Like |Link to Comment
  • Texas Jury's Anti-Fracking Verdict Could Create Problems For Oil And Gas Producers [View article]
    In southern Colorado near walsenberg, there was a home owner who demonstrated live firewater coming out of the sink faucet when lit. Apparently the gas levels in the shallow gas wells (no need to frack) are such that they seep into the aquifer, which is a particularly low-rate water source.

    I'm interested in a deep well that was approved on the East side of Colorado Springs a couple years back which WOULD require fracking. I've moved so its no longer my backyard, but I wasn't worried about it when it was approved (a large ranch development originally planned for homes until the 2007 crash.)
    Jun 5 03:51 AM | Likes Like |Link to Comment
  • The Nifty Fifty Market [View article]
    One signal the VIX is sending is that people are not hedging with options as much as usual. Could be complacency, could mean people are hedging with other things, like shorting the Russell 2950 a stock at a time, or worse, using short ETF's a lot. I've read both alternative hypotheses, not smart enough to decide which is "rightest". I'm just trading with 25% of my account, leaving the rest in cash until some denouement. As long as my 25% share beats the S&P500, I'm happy enough. Hair-trigger to sell, though.
    Jun 5 02:41 AM | Likes Like |Link to Comment
  • MoPay Dividend Dogs: 3 Lists To Buy And Hold In June [View article]
    I didn't realize there were so many MoPays. Very enlightening, and since I'm a fan of the DowDogs (with all their variations: 10, 5, drop the highest div, don't drop the highest div)....it's nice to see another conrtarian strategy. This one seems to take a lot of attention in comparison, but I like the monthly rebalance.
    Jun 1 06:57 PM | 1 Like Like |Link to Comment
  • Starbucks: A Buy Or A Sell? [View article]
    I think I'll call myself Dr MACD from now on. I use a 8,34,8 setting because
    a. I find a roughly 1:4 time period ratio of MACD to signal has a different characteristic set than the traditional 12,26,9 setting.
    b. Fibonacci sequence numbers look cool, and frankly 8,32,8 is just as cool.
    In any case, after normalizing the histogram to closing price, SBUX is actually good for at least 5% up from the 5/22 close in the short-term; SBUX in the last two years has had nine similar signals, achieving that goal 6 times. It's also nice that it continues to be a well-run company. If SPY starts right tomorrow, I just may buy 50 shares and hold them for a week. The weekly is also having a MACD crossover, though below the 0 line, so not as strong. It also appears to want to climb the last leg of a "W" formation. But none of that matters. I just have a 2:1 shot at making 5% in the next week.
    May 28 03:42 AM | Likes Like |Link to Comment
  • Canadian Solar, First Solar: Great Long-Run Opportunities [View article]
    You know, Arnold, the whole wind turbine "bird-o-matics" push struck me that some environmental groups had been bought off in CA. Surely the sight of wing parts on the ground would tell your average liberal consumer the price to environmentally at-risk migratory species might be too high. Same with the CFL lamps with its "dash of mercury"....perhaps some maturing cost/benefit work? Or was it ninja dust thrown in to the eyes of the environment protectors?
    May 26 04:07 PM | Likes Like |Link to Comment
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