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Larry Sohl

Larry Sohl
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  • MLPs -- Part 8: What to Own? ETF, ETN or Individual MLPs [View article]
    Thanks! Will do, will check K1's versus Fidelity. I only have limited experience selling the MLP's so far (I've been continuing to add to my positions). The few times I've sold, Fidelity did have the cost basis correct, but I hadn't held those positions for long and the sales weren't particularly complex. Although... I don't recall getting any documentation from the MLP to help me with a total basis adjustment.
    Jan 26, 2011. 09:51 AM | 2 Likes Like |Link to Comment
  • MLPs -- Part 8: What to Own? ETF, ETN or Individual MLPs [View article]
    Tax preparation is not that complex, even with the K-1 forms. I've had to deal with them for the past several years, and anyone using TurboTax can enter the information quickly and easily with no support from a paid tax preparation service. My only mistake was not waiting for the K-1 to arrive one year. I had forgotten about it, and they definitely aren't in your mailbox before January 31st.

    It's also key that you properly track the cost basis for MLP's. I use Quicken extensively, and as long as distributions are properly entered, cost basis tracking is accurate. My accounts are with Fidelity, and the only issue is that distributions aren't identified properly until after the end of the year. You don't know what percentage is a return of capital, and which portion is a dividend. At the end of the year once this is known, I'll go back into Quicken and adjust the entry. A pain? Yes. But I believe Fidelity goes back and adjusts their cost basis, also.
    Jan 25, 2011. 09:08 AM | 4 Likes Like |Link to Comment
  • Rare Earth Metal ETF Substitutes [View article]

    Another potential player....
    Oct 5, 2010. 12:39 PM | Likes Like |Link to Comment
  • Rare Earth Metal ETF Substitutes [View article]
    MolyCorp is in the process of restarting their Mountain Pass, CA mine, but it may not be fully functioning until late 2012, from what I understand. After their IPO, the stock has climbed 150% already. Other countries are also alarmed about China's reduction in rare earth export quotas, and MolyCorp won't be the only company out there pushing to start new mines or restart old ones. I've been keeping an eye on this stock as well, but it just seems pricey right now. Long term it may be a good play... who knows.
    Oct 5, 2010. 12:38 PM | 2 Likes Like |Link to Comment
  • Rare Earth Metal ETF Substitutes [View article]
    In a similar vein, you may want to take a very hard look at those companies who rely on those raw materials for their products. There are companies who are having a hard time obtaining the supplies they require to maintain full production rates. China has already shown a willingness to use their dominance in rare earth materials production as a political tool (see the recent incident with Japan over a Chinese boat captain). China's willingness to reduce exports of rare earth elements is in no small part due to their desire to give their domestic businesses a key (perhaps back-breaking) competitive advantage.
    Oct 5, 2010. 11:36 AM | 1 Like Like |Link to Comment
  • The Calm Before the Stock Market Storm [View article]
    "I can tell you with some certainty that this stalemate will not continue"... "As always, the chart tells the story".... As always? Really???

    Well.... as usual I'll state that I think I'm a skeptic who believes chartist theories are crap, but that's just my opinion. The real opinion-free test? Backtest the theories or predictions and see how they did. Of course, we rarely see this.... UNLESS the predictor/author happened to get one right, and then we see plenty of crowing. I see articles going back to early Q3 about 'bracing for impact' and concerns about the market dropping. Well... Q3 turned out pretty good.

    I understand that no methodology is 100% accurate in predicting the market. Hell, I'd be impressed if someone could prove that they were right 65% of the time! But alas... all I ever see is a slew of predictions with little or no followup tracking the accuracy of said predictions.
    Oct 5, 2010. 08:05 AM | 2 Likes Like |Link to Comment
  • Another Reason for Companies to Pay Dividends [View article]
    I too am curious. Although in my case (and hopefully many others!), most of my high yielding dividend stocks are held in Roth IRA's or 401k's that won't be affected by the potential change in dividend tax rates.
    Sep 29, 2010. 09:16 AM | 2 Likes Like |Link to Comment
  • 9 Stocks That Have Raised Dividends for 25 Years or More [View article]
    Ok... on those points I will agree with you across the board. I think maybe we both initially assumed that the other is at some 'extreme' of investing philosophy, but it sounds like we aren't. I also don't try to time the market. If I see a strong company with good prospects, and hopefully a steady dividend, I will continue to add to my position despite the daily fluctuations in the market. I've held Coca-Cola, Chevron, and other for years. And I agree 100%, trying to "time" the market is Russian Roulette.

    Cool. Now we're buddies. Let's do lunch. lol.
    Sep 22, 2010. 09:08 AM | 2 Likes Like |Link to Comment
  • 9 Stocks That Have Raised Dividends for 25 Years or More [View article]
    As long as "T" continues to have strong prospects, their dividend is stable, and you can count on some growth in the share price, great.... stick with it. But just assuming that your children and your children's children can count on "T" for eternity is questionable. I'm sure there are other families that years ago held "GM" stock... or "Bethlehem Steel"... or more recently "Enron".....or other greats that eventually worked their way to bankruptcy. Nothing lasts forever. You can't stick your head in the sand and keep doing the same thing forever.

    I am not a daytrader. I don't make frequent portfolio changes. But I do regularly evaluate what I've got, and if there are other options that can give me a better return, I will make a change. Particularly if the Bush-era Tax Cuts expire this year, capital gains may start to become more attractive then dividends from a tax perspective.
    Sep 22, 2010. 09:03 AM | Likes Like |Link to Comment
  • 9 Stocks That Have Raised Dividends for 25 Years or More [View article]
    Well.... I'll agree with you on one point; we are not going to agree on how to invest. I am more in the "buy and hold" crowd, but counting on NEVER selling a stock seems ludicrous. Ignoring capital gains or the impact of share price seems ludicrous. I love my dividends, but I certainly don't turn down the major impact of a rise in the share price. The economic climate and a company's prospects change over time. Holding stock for 50 years, which you seem to advocate, without reevaluating your situation regularly is like financial Russian Roulette.
    Sep 22, 2010. 08:33 AM | Likes Like |Link to Comment
  • 9 Stocks That Have Raised Dividends for 25 Years or More [View article]
    So your plan is to not have to worry about the capital loss so your heirs don't have to pay taxes?? Seriously?? Yes... it's a paper loss until you sell.... but at some point you have to sell. It's ten years later and the stocks in question have lost value. Call me crazy, but I'd rather be collecting a decent dividend AND have me heirs have to worry about capital gains. Why? Because it means you actually made more money!
    Sep 22, 2010. 07:48 AM | Likes Like |Link to Comment
  • 9 Stocks That Have Raised Dividends for 25 Years or More [View article]
    But.... alluding to my point below... would you rather have more cash in your pocket from years 1-7, with the knowledge that you can reinvest in other options as you please, then to have to wait 8 years for the possibility of a stock finally surpassing another? Why not take your 7% for 5 years, and then put your profits into the 5%/growing stock?
    Sep 21, 2010. 04:31 PM | Likes Like |Link to Comment
  • 9 Stocks That Have Raised Dividends for 25 Years or More [View article]
    Perhaps it's the engineer in like me or the skeptic, but I like to run numbers. I ran several scenarios with the two hypothetical stocks (7%/constant vs. 5%/growing). I looked at reinvesting the dividends, not re-investing, growth in underlying share price, etc....and the results are consistent. You would have to hold the 5%/growing stock for at least a few years and sometimes much longer before you actually start to have more cash/stock value in your pocket at the end of the year then the guy with the constant 7% dividend stock. The best scenario for the 5%/growing stock is if share price rises to keep the stock at a 5% dividend. Is this realistic? Let's check the history.....

    I looked at a few of the stocks mentioned (just the first 3). Yes, LLY, CINF, and PBI have grown their dividends since 2000. What's it done for them? Both LLY and PBI's stocks are 1/2 of what they were in 2000. CINF has lost ~10%. 10 years ago, the yields on all these stocks were 1-2%. Now they are 5-7%. But much of your principal is lost. Clearly share price didn't rise in lock-step with the dividend payout.

    If all other factors are equal, I may gladly take the 7% dividend for now and continue to evaluate the company's prospects. At least I can guarantee that for the short term and possibly much longer I'll have more cash / stock value in my pocket. Every company and situation is different, however. I guess I'm just pointing out that many factors have to be considered, and dividend growth alone is no magic bullet.
    Sep 21, 2010. 04:27 PM | 1 Like Like |Link to Comment
  • Ten Reasons This Rally Is Ultimately Toast [View article]
    I'll admit.... I have strong anti-chartist sentiments, since I tend to believe that daily market swings have more to do with fear, greed, and emotion then some chart interpretation.

    That being said, let's pretend I'm from Missouri... Show-Me. Show me some data backtesting the theories regarding Bollinger Bands, Fibonacci retracements and the like. I would love to see some hard data demonstrating how successful (or un-successful) these strategies are. I would love to see some data demonstrating the relative success of a frequent trading system based on these charts/methods, versus the performance of a simple buy and hold portfolio. I'm an admitted skeptic, but will keep an open mind if it can be shown that chartist systems have some merit.

    Is there a website for this anyone knows of?
    Sep 16, 2010. 08:24 AM | 6 Likes Like |Link to Comment
  • At the Precipice: When Everyone's Fearful ... Sell? [View article]
    Ah, but later today the market is up 50 points, taking credibility away from the article. If there was an emoticon for scoffing, I'd plant it here. We've all become so short-sighted that we declare victory after a four hour trading window?

    Every permabear in the world starts to crow when the market takes a dip on any given day, and every permabull starts to crow when the opposite is true. My opinion... no one can reliably predict the day to day fluctuations in the market. The long term is different, because for the long term people tend to wake up and realize that stock pricing comes down to company performance, which is measurable and a bit more predictable.

    It seems to me that most of the 'pundits' on here writing articles are simply trying to make a name for themselves. Throw enough predictions out there, and some will come true. Then you can crow. If these pundits were so reliably accurate and such market wizards, I suspect they would have other things to do then publish these completely speculative articles.

    But then again, maybe I'm just cranky today. The machine is out of Mountain Dew and I'm in need of caffeine.
    Aug 25, 2010. 04:00 PM | Likes Like |Link to Comment