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lsk5689

lsk5689
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  • The Linn Energy 2-Step: Reinvest, Then Stop Reinvesting [View article]
    If rotating dividends into other safer or higher growth stocks is a good idea after
    five years, why isn't it a good idea after say, one year or after three months? Had I taken LINE dividends and bought more (or bought sooner) Chipotle or Apple or a hundred other growth stocks I would've be much better off. Had I bought more (or bought sooner) the likes of KMB or PG or MWE I would've been much better off. Of course dividends that are not re-invested can go into losers also. My point is you never know what will maximize your investments. Re-investing can be a successful strategy or a big flop.

    ps: after reading all the comments I believe jeffreyg3, dunwoody_joe, purpleboarder and cheeryble were saying the same thing.
    Jul 30 09:22 AM | 1 Like Like |Link to Comment
  • Reports: Apple facing EU tax probe, building huge ad team [View news story]
    Florida has a zero state income tax but it's property tax runs approx. 2.2% of assessed value, give or take, depending on the county. That's more than double the rate in Boston, MA.
    Jun 11 08:05 AM | Likes Like |Link to Comment
  • 10 Year Anniversary Of Buying And Holding Verizon [View article]
    Dividend Nut, if your LOW does nothing for the next 7 years the average gain (not counting the 1.5% dividend) will still be 10% thus beating the 8.5% for the last 10 years from VZ. I am not advising you against your LOW for VZ swap. It may indeed be time to shed LOW after its run-up. My point is there are many ways to skin a cat for best returns - yield, appreciation and combo of both, plus short-term trading and long-term holding. Since no one has that elusive crystal ball, diversification always comes to mind. If you like LOW, why not go halvsies with LOW and VZ? Or for that matter consider swaping LOW for Home Depot?

    Disclaimer: I hold LOW, VZ and T shares each comprising approx. 2-3% of my portfolio. I am also considering selling LOW soon.
    Dec 22 12:55 PM | 1 Like Like |Link to Comment
  • Your Own Worst Enemy: How To Prevent Ego From Destroying Your Portfolio [View article]
    You make a valid point Deja Vu. The only drawback on setting such a low threshold (1-2%) is the portfolio becomes unwieldy with too many stocks to follow. I prefer a 4-5% threshold.

    A great way to achieve this strategy is to break your portfolio into parts. I have a main account, a Roth account, and what I call a 'social security annuity account'. (I took early ss at 62 and am trying to invest the money so I can withdraw an amount equal or above the pay-out difference between ages 66 and 62 every year after reaching 66.) If the separate accounts are treated separately and not as the sum of the whole it is easier to keep the percent invested small. In other words, a 10% in one account is only 3-4% of the total. (Hope you got my drift. Not sure I explained this well.)
    Dec 21 09:37 AM | Likes Like |Link to Comment
  • Over-Loved MarkWest Under-Delivers [View article]
    I would love to see KMP bounce back, but I think EPD is a better buy. (I own both and MWE)
    Nov 13 02:31 AM | Likes Like |Link to Comment
  • Deutsche Bank's top picks as pipeline, MLP payouts exceed estimates [View news story]
    That's a good sign, but I'be seen other lists that excluded ETP, WES, ACMP and included EPD, PAA, KMP, WPZ and MMP.
    Nov 13 02:21 AM | Likes Like |Link to Comment
  • Kinder Morgan companies sink after scathing Hedgeye report [View news story]
    The stock market has become a flea market.
    Sep 4 11:35 AM | 7 Likes Like |Link to Comment
  • Another analyst throws in the towel on American Capital Agency (AGNC), with Evercore downgrading to Hold from Buy after a 2-month 40% decline (previous). In fairness to Evercore, the team upped MFA Financial along with this move, suggesting it prefers rotating out of the pure-agency REITs and into the hybrid players. AGNC +4.3% premarket. [View news story]
    Johathnthan... "The trick is to sell as soon as you see the monkeys giving their prediction and wait till the last monkey has put their prediction in and then BUY BUY BUY ! For AGNC, that time is now before the quarterly report comes in."

    So are you saying now is the time to sell or BUY?
    Jul 11 09:18 AM | 1 Like Like |Link to Comment
  • Annaly Capital (NLY) is downgraded to Hold from Buy at BAML. The move - after a near-30%, 8-week decline in the stock - may prove particularly ill-timed after Bernanke last night eased fears about higher interest rates. Shares +2.4% premarket along with the rest of the mREIT sector. [View news story]
    Yeah. They're probably patting themselves on the back since they didn't tell anyone to sell.
    Jul 11 09:08 AM | Likes Like |Link to Comment
  • More on the Wunderlich downgrade of the mREITs (REM +1.2%), (MORT +1.3%): The "lack of liquidity reached crisis levels" on Friday, says the team. "Price discovery has become a very uncertain process and we believe there is a risk that some entity - be it a mREIT or a hedge fund - could fail to meet margin requirements ... while we hope to be wrong in this case, equity investors need to be mindful of the potential downside scenarios." [View news story]
    Reits buy mortgage backed securities with borrowed money at short term rates and collect payments at long term rates. The difference (rate spread) is profit. Recently the Fed hinted at easing QE which caused a rise in long term rates. The short term rates were unchanged. Am I the only one who thinks this scenario should have increased the rate spread and therefore Reit's profits?
    Jul 8 04:50 PM | 5 Likes Like |Link to Comment
  • Linn Energy (LINE) CEO Mark Ellis disputes the assertion in the negative Barron's article that its units may be worth far less than the current quote: "We've had three different analyses done... None of the valuations [is] anywhere close to what was represented over the weekend in the Barron's article." LINE plans to raise its dividend ~6.2% this year, not cut it. LINE +1%, LNCO +1.3% premarket. [View news story]
    Barron's like every other magazine, blog, newsletter has to publish or perish. Writers think of more sh*t to say than I can shake a stick at. I find little credulity in their recitations and don't subscribe to any. Problem is the "junk" moves markets and there isn't any way to anticipate an article and stay ahead of it. So we suckers have to ride the tempests (in a teapot) out.
    May 7 11:39 AM | 4 Likes Like |Link to Comment
  • American Capital Agency (AGNC -7%) is not far off session lows as the earnings call is set to get underway momentarily (webcast) (slides). Anybody selling or short may want to prepare themselves for CIO Gary Kain laying out very clearly how the rise in rates and the large secondary hurt Q1, but that book value has already strongly rebounded in Q2. [View news story]
    Rebounding from here. Just like the last cliff dive.
    May 3 11:41 AM | Likes Like |Link to Comment
  • General Electric To Yield 6%? [View article]
    I definitely like the 24 call over the 23 for the reasons you laid out. I prefer taking less premium than risk capping gains by getting called, especially on the heels of good news. In GE case the extra dollar potential gain (June 24 vs 23 strike) only amounts to .40 less premium (.66 vs .26).

    Long GE, currently not selling calls against the long position.
    Apr 8 01:05 PM | Likes Like |Link to Comment
  • General Electric To Yield 6%? [View article]
    Re: "You could repeat this trade (covered call) each month ...when your shares are called away...

    No you can't. When your shares are called away you don't own them anymore. To repeat the covered call trade you would have to re-purchase the shares at a higher price. depending on how much higher, you may not be so inclined.

    Covered calls carries the risk of capping gains if the stock price rises. If the stock climbed to $26 in three months you would then face the prospect of rolling the call at a $3 loss or re-purchasing shares for $3 greater than the sale price. In this case you may want to consider selling lower strike puts or just moving on to another name.
    Apr 8 08:36 AM | 3 Likes Like |Link to Comment
  • Apple: The Absurdity Of Market Expectations [View article]
    Lexus is far and away the best car I have ever owned. Six years new and drives like it's coming out of the showroom and not a cent spent on repairs.

    ps: At a P.E. of 8x earnings, after the hedge funds are through driving AAPL, down they will drive it right back up again. Dividend raise, buy-backs, possibility of a stock split (wouldn't that be nice) all point skywards.
    Jan 26 01:24 AM | 2 Likes Like |Link to Comment
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