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  • Investing With An Edge: First Trust Dividend And Income  [View article]
    I, too, am a Goldstein fan and an investor in SPE, however, it sure isn't difficult to grasp the irony of Bulldog being an activist investor going after a closed end fund trading at an 8% discount to NAV when their own SPE is trading at a 15% discount to their own NAV....
    Feb 9, 2016. 04:11 PM | 1 Like Like |Link to Comment
  • Investing With An Edge: Winthrop Realty  [View article]
    Perhaps a naive question regarding 701 7th Avenue, but here goes - Since their stake is relatively small as a percentage of property's estimated value, doesn't the process of FUR's liquidation mean what they get out of 701 will have more to do with what they can realize from the sale of their stake than it does from an eventual possibility of a trophy premium being placed on the property? Isn't it possible or even probable that FUR will be unable to capture any future premium valuation of 701 due to the short time frame of their liquidation? I realize what you're saying about their ability to participate in 15% of an increased valuation above 1.18bil but is that based on an official, independently assessed value of 701 at the time of FUR's liquidation of its stake, an actual sale of 701 or actually only on what they can realize for the sale of their stake? How will that work?
    Feb 5, 2016. 12:54 PM | Likes Like |Link to Comment
  • The Perfect Storm For BGC Partners  [View article]
    I'd been in BGCP since 2011 before exiting about a year ago for reasons non company related.... BGCP has been a tough one to figure out because, to generalize, it performance as a stock tends to follow the market's direction instead of the market;s volume. As a broker, I would think its fate ought to be more tied to volume than market direction, so I always felt that as a stock it was misunderstood. That seems to have magnified as they seemed to do everything right in timing their diversification into other areas of brokerage outside of financial markets, such as into commercial real estate, over the years. Personally, I have been of the opinion that a major issue holding BGCP back has been its capital structure which imho is designed to be beneficial to management and Cantor Fitzgerald to the detriment of other common holders. And because of the intent of the structure, you're not going to be seeing that change any time soon.... A simplification of that structure would do a whole lot more for BGCP's share price imho than a $300 million share buyback program which undoubtedly will be implemented of a long period of time. Having said all this, I still have regrets about exiting and am more inclined to get back in than to bash. A fascinating company.......
    Dec 9, 2015. 11:47 AM | Likes Like |Link to Comment
  • Investing With An Edge: Winthrop Realty  [View article]
    Does the $15.17 projected liquidation value include the $1 dividend now past ex-div date? In other words, should the $15.17 now be adjusted to $14.17 because $1 of that number has now been paid out as far as anyone entering now is concerned?
    Dec 5, 2015. 05:37 PM | Likes Like |Link to Comment
  • Source Capital: Big Change Is Coming At This Closed-End Fund  [View article]
    Good point regarding IRA vs Roth implications... Thanks... to me, the transition of strategy is a net positive in the environment I envision going forward, and, as Laser points out, the new managers have a good long term rep of not only generating returns but protecting them, so the change in SOR could possibly make SOR even more interesting to me, but that coming distribution certainly does seem to make for a wait and see approach to jumping in... Thanks for your take.
    Dec 3, 2015. 06:40 PM | Likes Like |Link to Comment
  • Source Capital: Big Change Is Coming At This Closed-End Fund  [View article]
    I do not own SOR but have been a follower. Thanks for your article as I have been a fan of Ende's and Rodriquez. I'd be curious how or if your opinion would change if talking about a long term owner of SOR in an IRA. Could the massive anticipated distributions in 2016 be beneficial in an IRA?
    Dec 2, 2015. 03:21 PM | Likes Like |Link to Comment
  • Retirement Strategy: What If I Had Lots Of Money?  [View article]
    Creese - I have accounts at two brokerages and if your experience is similar to mine, you'll find you're giving up a lot (relatively) buying your CDs through your brokerage accounts as opposed to directly. For example, the best 1 yr CD available at my broker is .85% and that's for one of the Puerto Rican banks. There are well known bank 1 year CDs available as high as 1.25% outside the brokerage networks according to bankrate and, though the absolutes are still peanuts, the percentage yield improvement is significant.
    Nov 27, 2015. 05:59 PM | 1 Like Like |Link to Comment
  • BreitBurn Energy Partners: Q3 Results In Line With Guidance, But 2016 Needs A Significant Recovery  [View article]
    Smight -

    A novice???? You sure don't sound novice-like so congrats on being a learned novice.... I've never shorted anything personally, but I did when I was an institutional muni bond trader way back when. As I mentioned, what I wrote was sort of a stream of consciousness wondering taken to paper, but I surely understand your reasoning on "arbing the capital structure." It makes a whole lot of sense on paper, but who knows if it could work in practice given the thinness of all entities.... And as far as who is responsible for a past coupon once it's finally paid, I suppose you're probably right that the last one off the rollercoaster, the one, if any, who's short WHEN the back coupon gets paid would be liable, not the one who was short when it was passed... Record keeping any other way would be a nightmare......It wouldn't seem fair, but I suppose there'd be no other way...
    For the record, check out the Additional Disclosure at the end of EA's article. He is short BBEPP according to that.
    Nov 6, 2015. 03:06 PM | 1 Like Like |Link to Comment
  • BreitBurn Energy Partners: Q3 Results In Line With Guidance, But 2016 Needs A Significant Recovery  [View article]
    Smight -

    Your comments and Elephant's being short BBEPP leaves me with some stream of consciousness questions and a general comment. If you short BBEPP, aren't you responsible for the coupon? If that's correct, that's a monthly negative to a successful short I would think... Then I was also wondering, if Breitburn suspended BBEPP dividends, would someone still be responsible for the dividend whenever it gets paid? Since BBEPP is cumulative, somebody's responsible for a suspended dividend whenever the dividends are resumed, is it the guy who was short when the dividend was passed or Bretiburn? So could the shorter of a cumulative preferred have a continuing liability well into the future if the divvy's missed while he's short?
    Then my comment is, I do not understand making comparisons between a perpetual preferred and bonds with stated, relatively short maturities... To me, maturity matters, but I suppose taken the thought to its logical conclusion, it only adds to the validity of the conclusion that BBEPP is too high.
    Nov 6, 2015. 11:17 AM | 1 Like Like |Link to Comment
  • Annaly Capital Management And The 3 Series Of Preferred Shares  [View article]
    In reading your article and the comments, I can't help but think most are not aware of the website quantumonline which provides a good starting point for research on most listed preferreds including every one mentioned so far. In fact, it even tells you what happened to NLY-B which was apparently a mandatory convertible preferred with final conversion date 4/2/12. Practically all issues shown on quantum provide links to the original prospectus and, if you're looking to discover if a particular company has any listed preferreds, it gives you a link to searching that way as well.... For example, I just entered symbol NLY and then went to the link to Find All Related Securities for NLY and found all 4 preferreds, including the B's which are identified as inactive while giving the reason why.
    Oct 27, 2015. 09:53 AM | Likes Like |Link to Comment
  • Aberdeen Asia-Pacific Income: Emerging Markets Bonds At A 17% Discount  [View article]
    Mevo and Gratian - Many thanks for the leads and explanations on understanding ROC better. I own FAX in an IRA, so that may be partially why the tax implications have not been particularly important in my thoughts on ROC, however, there's still something illogical about this to me. For example, it would seem to me the logical conclusion to your point, Mevo, would be to be rooting for an ever expanding disparity between price and NAV so you can capture an even greater discount for the ROC portion of the dividend. That's not what I hope for when I time my purchases of CEFs at what I hope to be an aberrationally high discount to NAV. And in fact, I also own Special Opportunities Fund, [SPE] who's primary strategy is to invest in CEFs trading at high discounts and then proactively lobby for changes to close the gap. I might point out that SPE right now is ironically trading at a large discount to its own NAV, but that's beside the point.... So is SPE's strategy a faulty one? Are they advocating for a bad outcome? To me, ROC contributes to a downward pressure on NAV that I would hope not to happen and in most cases, the purpose of the ROC portion of dividend policy for most CEFs doesn't appear to be tax efficiency or miscalculation of expected overall income but to be able to overstate its yield... Is that too simplistic a conclusion?
    Oct 14, 2015. 11:41 AM | Likes Like |Link to Comment
  • Aberdeen Asia-Pacific Income: Emerging Markets Bonds At A 17% Discount  [View article]
    Levis - Would you explain your rationale a bit more? To me paying a dividend partially using return of capital has the effect of lowering the NAV drip by drip. If a CEF had a constant NAV over time and continuously paid out return of capital in dividend, that constant NAV would constantly go down. And as I mentioned, to me, paying a dividend partially with return of capital technically overstates the dividend yield since part of what's happening is the company is using your already invested money to pay you. I don't think that's generally taken into account by many retail investors who do nothing more than see the dividend yield printed somewhere......What am I missing? Your point about liquidating has nothing to do with dividend paying. It's the nature of the beast on practically all CEFs since a majority of them do trade at discounts to NAV.
    Oct 13, 2015. 08:07 PM | Likes Like |Link to Comment
  • Aberdeen Asia-Pacific Income: Emerging Markets Bonds At A 17% Discount  [View article]
    To me, the fact that about 1/3 of the dividend is Return of Capital is an important factor you have not mentioned in considering the dividend yield as stated.... In a way it's a good news/bad news situation. I'm not a particular fan of managed return funds because I believe it tends to have an effect of overstating the return in most search engines and that's the bad news. It's almost as if the 9.23% yield you point out should come with an asterisk. The good news is, if you estimate the amount of dividend paid annually strictly from income to be 24.6 cents, then the yield on that amount based on Friday's close of 4.70 is still 5.23%. For the quality and relative short duration of their bond portfolio, that's still a bargain imho... I'm long FAX...
    Oct 12, 2015. 08:17 PM | 4 Likes Like |Link to Comment
  • Consider Whitehorse Finance Baby Bonds For A Steady 6.5% Yield  [View article]
    Sorry, the language didn't copy.... It reads, "The Notes.... will be structurally subordinated to any existing or future indebtedness of any of our Subsidiaries, financing vehicles, or other entities (as described ....)" I know I've wondered just exactly what that means in some companies that are structured like holding companies where all activity actually occurs at the subsidiary level, not meaning to imply that WHF is so structured necessarily.... Mine was probably a misplaced comment.
    Oct 10, 2015. 07:56 PM | Likes Like |Link to Comment
  • Consider Whitehorse Finance Baby Bonds For A Steady 6.5% Yield  [View article]
    Like I said, I'm probably just confused so you're absolutely right in not beign sure what I mean because maybe I don't know what I mean either.... What I do know, speaking in generalities, as that all of the Senior Notes of baby bonds that I've looked at all have language similar to this language in WHFLB's prospectus which led me to wonder where you stand in line in worst case.... It might be pure boilerplate and absolutely meaningless in the case of WHFLB, but it's always made me wonder......
    Oct 10, 2015. 07:50 PM | Likes Like |Link to Comment