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Uncle Pie

Uncle Pie
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  • Randgold Resources Is The Perfect Fit [View article]
    No doubt Randgold has excellent financial metrics. One small fact worth mentioning is that all their properties are in Africa. I don't know how to put a number on those risks, so I decided not to invest in Randgold. In spite of their healthy financial metrics.
    May 17, 2015. 12:12 PM | 1 Like Like |Link to Comment
  • Canada - Significant Untapped Oil Production [View article]
    Syncrude, the oil sands consortium operated by Imperial Oil (Exxon Mobil's Canadian subsidiary), already upgrades its bitumen to a light sweet crude which sells pretty much at parity with WTI. Especially if you live in the midwest, there is possibly some of their product in your gas tank right now.

    It's odd that the environmentalists demonize Canada's oil while the mile-long trains carrying coal out of the Powder River Basin every day are completely ignored. The carbon footprint of Canada's oil industry is a fraction of the carbon footprint of North America's coal burning power plants.
    May 17, 2015. 11:34 AM | 4 Likes Like |Link to Comment
  • Canada - Significant Untapped Oil Production [View article]
    Mr. Goalkick, You are saying that if the Keystone pipeline were built, Canadian heavy oil would be exported, even as the Gulf coast refineries continue to import heavy oil from Mexico and Venezuela? So a tanker full of heavy crude from Venezuela would unload its cargo in Houston for the US market, and then refill its hold with heavy crude from Canada, and take that oil somewhere else? Is that what you are saying? How does this make any sense?

    Pipelines are Republican? Does that mean that BNSF's tank cars are Democratic? To the best of my knowledge, pipelines are just pipelines and tank cars full of oil are just tank cars full of oil.
    May 17, 2015. 11:21 AM | 7 Likes Like |Link to Comment
  • Canada - Significant Untapped Oil Production [View article]
    Notwithstanding the shale oil boom, the US must still import over 5 million barrels of oil per day. In 2014, the largest supplier to the US was Canada, at 37% of our imports. Next were Venezuela with 16%, Saudi Arabia with 15% and Mexico at 11%. As the article says, conventional oil production in Canada is declining as production from the oil sands rises. So America's largest source of oil from our largest supplier is the oil sands.

    Unfortunately America's politicians would prefer to rely on unstable and repressive regimes like Venezuela and Saudi Arabia for our energy supply, rather than rely more heavily on Canada, a stable, reliable and friendly democracy right next door. As a result we have the Keystone Pipeline on hold for 6 years until Mr. Obama finally vetoed it. We see about one half the US Navy involved in and around the Persian Gulf, we see our nation bombing and invading one nation after another in the middle east, and we see trains carrying oil through populated areas exploding repeatedly. Does this policy make sense?

    Long various Canadian energy companies, for a long time.
    May 17, 2015. 08:11 AM | 14 Likes Like |Link to Comment
  • Exxon Mobil And The Buying Opportunity [View article]
    Dear rselva,

    If you'd like some in depth research on oil stocks, and on stocks in general, consider opening an account at Merrill Edge. That's the deep discount do-it-yourself online division of Merrill Lynch, priced to compete with Fidelity, Schwab, Etrade, et al. The benefit is that you get access to much of Merrill Lynch's global research, AND stock reports from Morningstar and Standard & Poors. I've had an IRA account with them for over a dozen years and it's worked well. Last time I looked they were paying a bounty for new assets. Skip the online gossip and have a look at some professional opinions. disclosure: no relationships with Bank of America Merrill Lynch apart from the above referenced IRA acct.
    May 15, 2015. 11:00 AM | 3 Likes Like |Link to Comment
  • Piling On Andrew Witty [View article]
    Keep in mind that GSK is highly levered: debt is 61% of total capital. Which magnifies their 20% return on assets into a 144% return on equity! (according to the Financial Times tear sheets). They've been levered for quite a long time.

    long GSK
    May 15, 2015. 08:02 AM | 1 Like Like |Link to Comment
  • International Dividend Momentum Is All About Emerging Markets [View article]
    Does it concern you that of DEM's top ten holdings, about one half are Russian?

    No positions
    May 14, 2015. 10:33 AM | 1 Like Like |Link to Comment
  • The 3% Club: 20 Non-REIT, Non-MLP Dividend Stocks Yielding Over 3% (Part 4) [View article]
    "Eversource Energy"? I looked it up and see that it the new name for the old Northeast Utilities. NU ranks near the bottom for customer satisfaction, according to the Hartford Courant. Methinks you'd find better choices among quality dividend payers if you widened your net to include companies domiciled outside the United States. McDonalds isn't doing too well either, these days, as Americans finally wake up to the hazards of junk food. Your graph clearly shows the decline in their sales and earnings. A few names to consider among non REIT, non MLP dividend payers: ANZBY, BHP, NSRGY, RHHBY, SGAPY, BCE, UL, RY, BNS, PBA. And here's an American one: SE.
    May 14, 2015. 08:16 AM | 2 Likes Like |Link to Comment
  • Surprise... Strong Swiss Franc Fails To Sink Economy [View article]
    Income investors should consider owning shares of Swiss companies which pay dividends in Swiss francs as a part of their portfolio.

    Long Nestle, Novartis, Roche and Swisscom.
    May 14, 2015. 08:06 AM | 1 Like Like |Link to Comment
  • Exxon Mobil And The Buying Opportunity [View article]
    Is Exxon really replacing its reserves, or is it slowly liquidating itself? The company says it is replacing its reserves, but a closer look shows that nearly one half of the new resources are in the shale oil fields which have a very steep decline rate. Shale wells produce 2/3rds of all the oil they will ever produce in just the first year. Have a look at this article:

    no positions
    May 14, 2015. 08:01 AM | Likes Like |Link to Comment
  • Why I Could Not Help Purchasing Total [View article]
    Be sure to buy French stocks like Total in a taxable account so you can get a tax credit to offset the French withholding tax, which is very high. The Turbotax Premier software handles this well, in my experience.

    Long TOT (in a taxable account)
    May 13, 2015. 02:31 PM | 7 Likes Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    Mr. Bikerguy,
    Sure I've had investments bought out which produced a capital gain and a capital gains tax liability, but the Kinder transaction was COMPLETELY DIFFERENT. For my 3500 unites of KMP, there not only a long term capital gain of about $175,000 taxed at 23.8% but also ORDINARY INCOME of about $175,000 which is taxed at 39.6%, and ordinary income cannot be offset by losses elsewhere in the portfolio.
    So for my 3500 units of KMP I owed about $42,000 in LTCG tax and about $70,000 in ordinary income tax. That's about $112,000 I had to pay ONLY because Mr. Kinder wanted to get stepped up basis on KMP's assets for his KMI. Now KMI will not have to pay corporate income taxes for about 14 years (according to Merrill Lynch, Morningstar and others) while the KMP holders are stuck with the bill. My 3500 units of KMP were yielding over 7% and worth about $280,000 before Mr. Kinder launched his Tax Torpedo. So my tax bill was about 40% of what my total investment was worth at the time of the announcement, and I get to invest the money left over, and be lucky to get 4 or 5% on it instead of the 7% I was receiving.
    Mr. Kinder's transaction benefited KMI at the expense of KMP. Mr. Kinder alone determined the price KMP holders got, there was no attempt to put the assets up for a competitive auction and there was no attempt to obtain a fairness opinion for the benefit of KMP holders. That's why the Kinder transaction was COMPLETELY DIFFERENT from your ordinary corporate takeover.
    May 13, 2015. 01:16 PM | 1 Like Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    Much of the tax bill incurred by long term holders of Kinder Morgan Energy Partners was NOT long term capital gains, taxable at rates up to 23.8%, but ORDINARY INCOME (recapture tax) taxable at rates up to 39.6%.

    Any KMP holder who wasn't already in the highest tax bracket would find themselves in the highest bracket after they got hit by Mr. Kinder's Tax Torpedo.
    May 13, 2015. 08:29 AM | 1 Like Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    Canada did not have MLPs which "crashed" overnight. They had income trusts, which were able to distribute all their profits to shareholders and avoid corporate taxes if they did so. Much like REITs. Mr. Flaherty, the finance minister at the time, dealt them a blow by requiring them to convert to taxpaying corporations after a 4 year transition period. This they did. Of course there was a knee-jerk reaction in the market, but most of the former income trusts became respectable dividend paying C Corps, and continue to soldier on.
    May 12, 2015. 06:42 PM | Likes Like |Link to Comment
  • Is There A Dividend Bubble: Kinder Morgan Edition [View article]
    I dumped my Kinder Morgan holdings because there are plenty of other securities out there with comparable yields and comparable growth potential with which I am much more comfortable. Having invested with Richard Kinder for 15 years and gotten shafted, I do not trust the man.
    I like companies that pay dividends or distributions they can afford and which can grow over time. There are many good companies out there. Why bother with a controversial, iffy proposition like Kinder Morgan?
    May 12, 2015. 01:51 PM | Likes Like |Link to Comment