Buy Plains All American Pipeline For Dividend Growth [View article]
If two securities yield the same (or nearly so) the number of shares you can buy is irrelevant to the amount of dividend income you receive. 100 shares of a $100 stock yielding 6% pays the exact same as 200 shares of a $50 stock yielding 6%. So the ability to buy three times as many shares of T is irrelevant (the slightly higher yield isn't though of course).
Do your research author. HHC is not a new holding for Ackman. It was spun out from GGP a long time ago, Ackman has owned it since it was created, and has been the chairman of the board on it since it was created.
Can Americans Afford An American Standard Of Living? Part 1: A First World Standard Of Living Is Unaffordable [View article]
a $250 car payment? You can lease a cadillac for $250 a month. I think you aim a little high there.
I also think you're taking a city-centric view. Most people don't live in major metropolitan areas. I live in the Lansing, Michigan area, a city, the state capital, decent size, but not so large as your examples. Apartments in significantly more expensive East Lansing, home to MSU, one unit I have I rent for $700, the other $675. Thats with two bedrooms, so $350 a person for rent. East Lansing is the most expensive in the area too, Lansing you can get a 2 bedroom for $500 or less. I have some units in a very rural town in northern michigan too, $550 or $600 a unit. Two bedrooms again. All real estate is local of course, but your numbers seem off. If you're going to factor in a national average wage, you need to consider costs nationally, including in all the small towns where people tend to make less money. If you just want to look at a major city, you need to compare it to the average income for that city.
I agree. I have been loading up on Imax the last few days. I didn't go in all in one day incase this panic selling wasn't done. Cost averaging.
Fact is, they're a growing company with no competition. They've got domestic growth and overseas growth. One quarter without a really good IMAX release does not mean the format is dead. More and more movies are going IMAX, more and more moviegoers are deciding it is the only way to see superior films. Even the iPhone competes with Android. Nothing competes with IMAX. It is THE premium movie format.
WSJ Omits Major Part of GGP Valuation... With David Simon's Help [View article]
Isn't the nice run up on HHC amazing? I sold some immediately after the spinoff, wish I hadn't. Wish I'd sold all my GGP (After buying at $1) and bought HHC instead. I never dreamed it would get up to the 60s.
I like pipeline MLPs, I don't find it boring at all.
If you look at Natural Gas there seems to be a lot of elasticity in supply. As usage goes up, prices go up, but then more supply is brought online in all the new shale discoveries, and prices settle back down.
So, being long the commodity might not pay off as well, NG simply isn't as scarce as crude. Not unless we get a law against fracking or something.
But, with your "tollroad pipeline" that is a play not necessarily on the growth of the value of the underlying commodity, but merely in the growth in the usage of that commodity. I think there will be a strong secular trend to more NG usage with vehicle conversions, more power generation, and straight up population growth. More of a volume increase, than a price increase, and more fares paid on that tollroad.
As for taxes. I also own some straight real estate, you can use depreciation in real estate to offset gains in MLPs, or MLP depreciation to factor out rent income. One passive income source can offset another.
Watching Dividends Rise: Putting Together a Focused Dividend-Growth Portfolio [View article]
I'm big in this too, I think this is the best way to make a buck in the current economic environment. Lots of reits, like FRT and WRE that have increased long term, natural gas MLPs. I keep some of my portfolio in more speculative areas (brazil anyone?) but a good portion I go for dividend growth with it. Yield on Cost is definitely my favorite metric. I used www.dividend-calculato... which has nice YoC calculators to see future earnings, I get really excited when a YoC passes 100%. It can eventually happen.
The Logic Behind Bill Ackman's Purchase of General Growth Properties [View article]
See CBL, they're like GGP but without the same degree of debt problems (ie a smaller load and thus-far financing success). They're also still paying their dividend (albeit at a reduced rate, still the yield is above 20% right now).
As for GGP, the key thing as I see it is the positive cash flow. I cannot see commercial real estate values falling that much, because they tend to be based on rents, and rents are still there. Unlike residential real estate which is valued based on some esoteric need to live in a certain place with certain amenities, commercial real estate is valued based on how much money it brings in on a monthly basis.
Even with added mall vacancies, the cash flow puts a floor on the property value, like a dividend does with an equity.
GGP's business model is in fine condition, they can afford to service a normal monthly payment on their debt, and have cash left over to pay a dividend. The only thing they can't afford is a one time balloon payment at the end of a short term loan. So because they can't refinance commercial real estate values are going to plummet and no one is going to want properties that bring in hundreds of millions of dollars in rent? I find that reasoning suspect.
High Yield Investment Trusts: Big Returns, Added Risk [View article]
Why The Bond Bubble Is Very Dangerous To mREITs And MLPs [View article]
Except, I too agree that bond yields have bottomed. In any case, the interest rate risk is so high I wouldn't own any treasuries at these levels.
Annaly: Bullet-Proof Dividend Thanks To Convertible Senior Notes [View article]
Really? Hmm... might want to look into who owns CIM.
Buy Plains All American Pipeline For Dividend Growth [View article]
Bill Ackman's New Q3 Bets [View article]
Can Americans Afford An American Standard Of Living? Part 1: A First World Standard Of Living Is Unaffordable [View article]
I also think you're taking a city-centric view. Most people don't live in major metropolitan areas. I live in the Lansing, Michigan area, a city, the state capital, decent size, but not so large as your examples. Apartments in significantly more expensive East Lansing, home to MSU, one unit I have I rent for $700, the other $675. Thats with two bedrooms, so $350 a person for rent. East Lansing is the most expensive in the area too, Lansing you can get a 2 bedroom for $500 or less. I have some units in a very rural town in northern michigan too, $550 or $600 a unit. Two bedrooms again. All real estate is local of course, but your numbers seem off. If you're going to factor in a national average wage, you need to consider costs nationally, including in all the small towns where people tend to make less money. If you just want to look at a major city, you need to compare it to the average income for that city.
IMAX: Where's the Love? [View article]
Fact is, they're a growing company with no competition. They've got domestic growth and overseas growth. One quarter without a really good IMAX release does not mean the format is dead. More and more movies are going IMAX, more and more moviegoers are deciding it is the only way to see superior films. Even the iPhone competes with Android. Nothing competes with IMAX. It is THE premium movie format.
It is way oversold here. Double bagger easy.
WSJ Omits Major Part of GGP Valuation... With David Simon's Help [View article]
MLPs: The Stealth Commodity Play [View article]
If you look at Natural Gas there seems to be a lot of elasticity in supply. As usage goes up, prices go up, but then more supply is brought online in all the new shale discoveries, and prices settle back down.
So, being long the commodity might not pay off as well, NG simply isn't as scarce as crude. Not unless we get a law against fracking or something.
But, with your "tollroad pipeline" that is a play not necessarily on the growth of the value of the underlying commodity, but merely in the growth in the usage of that commodity. I think there will be a strong secular trend to more NG usage with vehicle conversions, more power generation, and straight up population growth. More of a volume increase, than a price increase, and more fares paid on that tollroad.
As for taxes. I also own some straight real estate, you can use depreciation in real estate to offset gains in MLPs, or MLP depreciation to factor out rent income. One passive income source can offset another.
Watching Dividends Rise: Putting Together a Focused Dividend-Growth Portfolio [View article]
The Logic Behind Bill Ackman's Purchase of General Growth Properties [View article]
As for GGP, the key thing as I see it is the positive cash flow. I cannot see commercial real estate values falling that much, because they tend to be based on rents, and rents are still there. Unlike residential real estate which is valued based on some esoteric need to live in a certain place with certain amenities, commercial real estate is valued based on how much money it brings in on a monthly basis.
Even with added mall vacancies, the cash flow puts a floor on the property value, like a dividend does with an equity.
GGP's business model is in fine condition, they can afford to service a normal monthly payment on their debt, and have cash left over to pay a dividend. The only thing they can't afford is a one time balloon payment at the end of a short term loan. So because they can't refinance commercial real estate values are going to plummet and no one is going to want properties that bring in hundreds of millions of dollars in rent? I find that reasoning suspect.