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josephvm1

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  • Kinder Morgan Energy Partners Responds To Criticism [View article]
    Seeking profits,

    I believe Miguel Garcia from Kinder Morgan was very generous to respond to your original comments yet you seem to dissatisfied.
    Your frustration centers on the pricing of the sale of units $79 vs. $89. Kinder offered a reasonable and sound response stating they fund their Capital needs in a disciplined, responsible way that is designed to maintain a strong balance sheet, preserve their investment grade credit ratings, and promote healthy liquidity.

    You agree "Being Capital disciplined is important" but then suggest that Kinder act in an undisciplined manner by issuing a higher percentage of debt than equity just because the price of the units are at $79 rather than $89 and reverse that process should the unit price rally hard.
    Using your theory, if the units do not rally hard by the next time they need to fund growth through the sale of units they should again issue more debt than equity. If that is the case, discipline has gone out the window and management will be challenged by analysts and rating agencies. It is not the way to manage a company or a balance sheet, they must execute on plan. Kinder cannot predict market conditions or the market price of their units.
    As unit holders we all have options. If we do not agree with management decisions or think the fundamentals of the business have changed we can always exit.
    Respectfully,
    JVM1
    Feb 23 09:37 AM | 18 Likes Like |Link to Comment
  • Citi backs wider tick size experiment [View news story]
    Ron,

    Unfortunately you didn't answer any of the questions I asked you to address but you do shed some light on the subject which supports my original thoughts.

    The purpose of Exchanges is to facilitate the transfer of equity ownership between owners in an orderly and efficient manner. The Exchanges as we know them today have evolved from an inefficient, manual, chaotic environment to an efficient electronic mechanism which allows one second executions at the touch of a button. Depending on the size of the order some of those trades are executed across multiple Exchanges something which could not have been possible without that automation. Decimalization is what drove the Exchanges and Firms to embrace automation that made it all possible. The current environment meets the transfer of Equity ownership efficiently, unfortunately it has squeezed out some of the profitability for Specialists, Market Makers and Firm traders.
    All three proposed changes "enhance liquidity", "for less frequently traded securities" and move to 5 cent spreads are all things that happen naturally in the current environment. Markets are not e liquid, we trade billions of shares per day, when I look at the OTC market I find an e liquid stock CIBY quoted at $1400 to $1450. The move to 5 cents or widening spreads to any degree WILL result in improved Specialist, Market Maker and Trader Profitability.
    To the SEC I say, with decimalization the industry has done a good thing so stay the course continue to automate other inefficient markets. Widening spreads is a step backward. In my opinion it only serves to increase profitability.
    Jan 1 11:33 AM | Likes Like |Link to Comment
  • Citi backs wider tick size experiment [View news story]
    Ron,
    It would be interesting to get the traders perspective on the subject. They should address how increasing the quoted spread between bid and asked prices affects the firm's profitability, trader profitability, market efficiency and client transaction expense.
    Dec 31 08:54 AM | Likes Like |Link to Comment
  • Why President Obama Will Approve Keystone XL And Why TransCanada's Shares Will Soar [View article]
    The discussion surrounding this subject has gone on for too long and further discussion serves no purpose.
    All the benefits to the USA surrounding the construction of this pipeline (a construction boost to the economy, creating jobs for American workers, getting oil from a friendly and dependable source at a reasonable price, transported safely, are all positive. If Obama wanted to approve the pipeline's construction it would have already happened.
    Of course Canadian officials should not accept no as the final answer and should continue diplomatic discussion with the President but continue with an alternate plan.
    This President has and continues to disappoint the Canadian Government, the American Government and American people. The oil will get here through other methods. It should have been a no brain decision.
    Nov 12 09:28 AM | 3 Likes Like |Link to Comment
  • Citi backs wider tick size experiment [View news story]
    Decimalization was implemented about ten years ago. The net effect provided clients with better executions and reduced the "licence to steal" benefit to Market Makers and Specialists. Decimalization currently allows a client (retail and institutional) to place and execute orders within one cent of the bid and or asked price. The markets are functioning efficiently, effectively and capable of handling extremely heavy volume as experienced during the 2008 financial crisis. Trading systems have been automated to capture the best market in a given security wherever the inventory is located or wherever the best bid/s are. No institution or retail client can claim markets are illiquid to the point they cannot get orders executed at reasonable prices regardless of size.
    Increasing spreads greater than one cent only serves one purpose and that is to increase profitability for security Market Makers and Specialists at the expense of the end client.
    Shame on Citi, the other firms claiming improved liquidity and the SEC for entertaining the thought.
    Oct 23 11:11 PM | Likes Like |Link to Comment
  • Why President Obama Will Approve Keystone XL And Why TransCanada's Shares Will Soar [View article]
    Stephan,

    We have been discussing this topic for three months. All that is being expressed are opinions. It seems to serve no useful purpose.

    Why don't we wait and see what the President of the U.S.A. does.
    Aug 2 02:13 PM | Likes Like |Link to Comment
  • Why President Obama Will Approve Keystone XL And Why TransCanada's Shares Will Soar [View article]
    Stephan,
    I was expressing my view of how the President will act given his past decision making process. I happen to hold a significant number of shares. I believe in the Company and pipelines as a business.
    May 13 04:33 PM | Likes Like |Link to Comment
  • Why President Obama Will Approve Keystone XL And Why TransCanada's Shares Will Soar [View article]
    This President has been consistently negative on the project. I believe he sees the project benefiting Canada more than the USA and as a result he will drag his feet until Canada and Canadian companies begin building their pipeline West and East to their own port cities.
    If the XL pipeline were to be completed as proposed it will benefit both Canada and the USA with an edge to Canada. The value of Canadian oil will increase to market price since the pipeline provides a more efficient outlet to U S refiners and access to a coastal port.
    Although that increase in price will negatively affect America the building of the pipeline will be an immediate benefit to the American economy and American workers.
    The above article provides a reasonable scenario for the pipeline's approval but this President cannot accept a win win proposal unless the benefit is heavily slanted to a USA win.

    Although I would like to think differently, I think the President will be consistent with his past decision process. He will thank Joe Oliver for his recommendation and delay the decision to a later date.
    May 13 12:17 PM | 2 Likes Like |Link to Comment
  • Jamie Dimon is threatening to leave JPMorgan (JPM) if stripped of the Chairman role, sources say. [View news story]
    Jamie's management style allows for small infractions but does not allow for major loss or incompetent events like the London whale and subjecting the bank to regulatory scrutiny.
    Someone has to pay with loss of compensation, their jobs or both (as was the case with the London loss).

    Lately there has been enough financial, managerial and regulatory issues and in general negative press which suggests the pristine environment shareholders have come to expect of the bank have become suspect.

    Jamie should accept the consequences and yield on the issue treating himself as he would have treated his subordinate/s for subjecting the bank to regulatory reviews and shareholder dissatisfaction. It is time to focus and fix what is going wrong. He has held both positions for some time and it is not clear he has been effective in his execution.The CEO position is enough responsibility for any one person.

    It is a reasonable request and outcome.

    Josephvm1
    May 11 07:51 PM | Likes Like |Link to Comment
  • As Pres. Obama weighs approving the Keystone pipeline (TRP), a recent series of energy mishaps, including a spill in Arkansas from a pipeline owned by Exxon (XOM), aren't helping the pro-pipeline cause. The administration isn't saying how the spill is affecting its thinking. Yet a larger spill from a train in Minnesota last week drew little criticism, even as oil pipelines carry far more crude and have fewer leaks per mile. [View news story]
    My view,
    The only reason Canadian oil is priced lower than market is the inland location of the oil source and the cost of transporting it to refineries(via rail or truck).
    If the pipeline is completed through to the Gulf of Mexico the cost of moving it to refineries becomes less than the cost of transporting it by rail or truck. Therefore the value of oil as it reaches the Gulf is worth market price. The difference (less cost) will be reflected as an increase in price per barrel.
    Apr 3 10:46 AM | Likes Like |Link to Comment
  • As Pres. Obama weighs approving the Keystone pipeline (TRP), a recent series of energy mishaps, including a spill in Arkansas from a pipeline owned by Exxon (XOM), aren't helping the pro-pipeline cause. The administration isn't saying how the spill is affecting its thinking. Yet a larger spill from a train in Minnesota last week drew little criticism, even as oil pipelines carry far more crude and have fewer leaks per mile. [View news story]
    Here is how I see the dilemma.
    The key beneficiary in extending the XL pipeline is Canada and not the USA. Completing the pipeline from Canada to the Gulf of Mexico provides Canada with a more efficient way to ship their land locked oil product through to a shipping port.
    Today the cost of getting their oil to a shipping location causes the price of Canadian oil to sell at a significant discount to other world market oil.
    That makes the USA, Canada's primary outlet and beneficiary for its oil due to the geographic relationship between the two.

    If the pipeline is completed through to the Gulf of Mexico the price of Canadian oil will immediately improve and the USA will no longer be the logical outlet for Canadian oil, swinging the benefit equation to Canada and not the United States. Our cost will actually go up.
    So the Presidential decision rests on jobs for American workers and improving the American economy short term at the expense of higher oil prices for Americans long term.
    I believe the decision is clear, build the pipeline, create American jobs, improve tax revenue and the economy with Americans paying the going rate for oil.
    I predict the President will deny or delay the decision because he is not focused on and has a history of not wanting to create wealth but distributing it even at the expense of middle class workers.
    Apr 2 12:29 PM | 2 Likes Like |Link to Comment
  • Fundamentals Could Push Bank Of America To $18 In The Next 12 Months [View article]
    Dave,

    Based on your disclaimer, It seems to me you do not have enough conviction in your own analysis to own any BAC shares. Isn't 47% return in one year enough to convince you to invest? What rate of return would it take for you to put some money to work. Obviously you uncomfortable with your assumptions. If true, which ones?
    What is it that am I missing??
    Mar 22 02:14 PM | 3 Likes Like |Link to Comment
  • Bank Of America Certainly Did Not Fail Shareholders [View article]

    Josh,
    There is nothing in your article that has not been expressed before.
    I think this topic is well spent.
    Mar 20 02:13 PM | Likes Like |Link to Comment
  • A Word Of Caution About Bank Of America's Share Buyback [View article]
    I agree with all Four (4) points expressed above.

    Thank you for clarifying your position.

    Your point #4 adds a much different view than one can interpret from reading your original commentary.
    I suspect that waiting for the "show me" timeframe to purchase BAC shares would not be productive.
    Mar 18 08:56 PM | 2 Likes Like |Link to Comment
  • Bank Of America: No Dividend Increase, No Worries [View article]
    Hopefully you've learned something. Management has to decide what is best for the Company. They are not in place to provide dividend income to those that want it when they want it. You have done the right thing for yourself. You sold your shares because you were disappointed the bank did not increase their dividend and that was your prerogative.
    If dividend income is what you seek or need BAC is not for you at this time. There are many utilities that can provide more safety and substantially more dividend yield.
    The bank management team acted in the best interest of both the bank and it's shareholders.
    The comments to date have been in support of the bank actions. Certainly you should be able to accept there might be another viewpoint.
    Mar 18 12:35 PM | 1 Like Like |Link to Comment
COMMENTS STATS
22 Comments
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