KCN

Understanding the 'Q' Recovery

Or, infinity turned up - vertical.


On Aug 18 11:29 AM Tony Petroski wrote:

> The author: "Internationally, decades of outsourcing business to
> India and China can alternatively be viewed as building the future
> prosperity of those nations. We may soon reap dividends from that
> investment."
>
> An interesting and optimistic take on "outsourcing." Where do I get
> the dividends from my "investment?" If you ask me, we should invest
> even more so our future returns will be even bigger.
>
> I continue to call for an ampersand-shaped recovery, &. We start
> backwards, then we rise a bit and move slightly forwards before starting
> down and backwards again, then straight down to return to where we
> started.

Two Citigroup Income Generating Option Strategies

It is only $20 per contract, so most of us would wind up writing large number of contracts to generate any significant income. Wait on citi until reverse split so each contract brings about $200. If you can't, why not just buy the stock and play daily h/l swings which are bigger than option premiums?

Strategy is good, but the underlying security is not.

Robert Shiller on Charlie Rose

When man the animal became "social" through "natural selection", there was a genetic compact to better the tribe, which has now grown to a nation and approaching the whole world. It is "natural" to evolve for some basic equality of life, liberty and pursuit of happiness.


On Aug 09 10:41 AM Kodi wrote:

> Professor Shiller et al appear to endorse a philosophy of economic
> "un-natural selection" whereby citizens bent on personal survival
> and prosperity will subsidize the dependent segment of society at
> an increasing level to minimize socioeconomic inequality. Those motivated
> to leverage their future by investing in education, working multiple
> jobs and forgoing frivolous purchases will be required to share more
> of their hard-earned bounty with the dependency class. It doesn't
> take a Yale professor to see that entitlement begets entitlement.
> American society is replete with examples where subsidizing slothfulness
> for the sake of economic equality resulted in greater dependency,
> not greater inovation and productivity. Professor Shiller advocates
> capitalism while encouraging socialism.

Speculators Stabilize Oil Prices: Here's Proof

From Ryden's profile:

I am a commodities/macro speculator. I've been trading for my own account for about 12 years now so I must be doing something right.

According to USO website, it holds three contracts with assets a bit more than 2 billions dollars. USo does not represent the role of speculator, hence, the whole article is a dilusional and self serving. USO has lost 43% since inception, while Ryden is doing something right. It is obviously not what USO does!

Kinder Morgan's Dividend Payout Rate Is Unsustainable

Paul,

You are making a classic mistake in comparing depriciating and depleting asset based MLP to a corporaton. MLP by its articles of formation may be required to pay out all the cash flow or 90% of the cash flow... In theory, and in time, all MLPs would have exhausted depriciation and depletion, but it still may be able to generate cash flow, possibly indefinately as fully depriciated pipe may still work and there is a demand for its connectivity.

Kinder Morgan's Dividend Payout Rate Is Unsustainable

MLP_Noob

1. With Turbo Tax, K-1 is straight forward for most MLPs. However, it pays to know what a partnership is, and how it is taxed, as well as the role of limited partner.

2. If UBTI exceeds $1000 (I think from all MLPs combined, not a MLP), you pay taxes from the tax-sheltered account, and it is originated by the custodian of the account. Not all custodians are happy to do this.

3. No comment.

On Jul 31 04:13 PM MLP_Noob wrote:

> Very impressed with the knowledge/experience of the commenters here
> (perhaps the point is made and its time to give the author a break).
>
> I find MLPs attractive but the discussions on tax complications elsewhere
> scary. So a few newbie questions:
> 1) Folks holding MLPs in taxable accounts: is the K-1 a big pain
> come tax time? or not?
> 2) Folks holding MLPs in tax sheltered accounts: have you ever had
> more than $1000 UBTI reported? What's the consequence? Typically
> what acct size should one have to worry about this?
> 3) Recommendations for solid MLPs would be much appreciated. I am
> looking at NAT, KMR, EEQ, LINE.
> Thanks
> MLP_Noob

Kinder Morgan's Dividend Payout Rate Is Unsustainable

I agree with your comment, especially for Paul to go do his MBA. I can say the same for my investment in MLPs and not just KMP but a few.

MLPs are weird animals and any MLP can go in difficulty like any business, especially, those involved in E & P, just look at CEP. If oil/gas demand crashes, there is no use of pipes, nor enhanced recovery etc. Oil majors can pay high distributions if they were to restructure to MLP, though probably unmanagable. So the majors sell off assets that can be managed in MLPs. SXL is one example.

On Jul 31 11:04 AM rdp1 wrote:

> Hard luck story....I bought my first shares of
> KMP in April 2000 at a split adjusted price of 19 when the MLP was
> paying 32.5 cents per
> share. Today KMP is 52 and pays 1.05 quarterly. Over the years I
> have added to the position, so my average cost is 31. In 9 years
> I have received approximately my cost back in distributions and paid
> a small amount of taxes. KMP is up over 50 % and the distributions
> add another 100 %....
> and I still hold the security. And this is at a time when the DOW
> and S&P are down...
> I love KMP and I especially love Rich Kinder.
> Paul, suggest you request Seeking Alpha have more customer testimonials
> to the beauty of investing in MLP's, because obviously you have no
> idea what you are writing about. Perhaps an MBA might be in order...or
> some common sense.

Kinder Morgan's Dividend Payout Rate Is Unsustainable

Can somebody tell this guy to read up the tax code on MLPs? REITs? Trusts?

If he keeps writing, may be his university will take the business degree back!

Book Review: Trading Options at Expiration, by Jeff Augen

The reason for mathematical inefficiency to exist is small volume, and small number of players in expiring options. However, investing with options as strategy point of view, sometimes a small loss is a better choice than letting option come to maturity. I don't know if this makes any sense... But, I use options to generate about 25% a year basis return, and I will trade an option that minimizes my exposure in equity anyday.

GE Results Validate Theory: Severe Economic Contraction

GE and Obama are two different subjects.


On Jul 18 11:43 AM yank wrote:

> "Once healthcare is reigned in"
> Dream on my friend. If you think Comrade Obama and Commissar Biden
> can control healthcare costs I have a bridge I want to sell you.
> Go back to the history books. FDR tried to spend his way out of a
> depression and it took a World War to finally end it. There is no
> successful example of a country ANYWHERE spending its way out of
> a severe contraction (i.e. Japan in the 1990s). I was trained as
> a hospital administrator and the health care "reform" policies being
> pushed by Obama are rubbish.

GE Results Validate Theory: Severe Economic Contraction

GE is five businesses cobbled to gether. It needs to break itself up in five companies spin-off to the shareholders and obviously Immelt quits or becomes the chief of medical business. This will bring GE capital to its reality, and NBC-Universal to stop being a mouthpiece and engage in real news/entertainment business. Presently, what we have is bunch of managers supported by fictious numberheads perpetuating a nightmare.

FDIC Regulation: Reason for Alarm

Racki is cherry picking. He does not consider that Ken Lewis wanted to buy Merril. BofA more than likely assured the money to buy Merril and Ken thought he was getting Merril for free! The books they did not want public are the Merril and not BofA.

What about AIG, WaMu, Fannie & Freddie? Should they be better regulated? Of course! Were they ? No.

I think Mr. Racki would be better off pulling teeth than write about his political crap.

Cuomo's Revelation: Bernanke and Paulson Strongarmed BofA's Purchase of Merrill

Merril Lynch was the best crooked company around. Honestly, nobody wants to see Merril's books...

BofA was loan guranteed so that it can buy off Merril. BofA thought this thing is coming nearly free - greedy buggers! Feds and Treasury told them a deal is a deal, if BofA broke it, they will break BofA salvaging Merril at BofA's expense. I think it was Catch 22 all around. It was easy to sacrifice BofA than the Western financial system. Lewis did not figure smart, and is goosed.

BofA, Wachovia, BB&T allnon-NY banks and even WFC were getting too big affecting the NY crowd, may be?

The $7 Trillion Rally

On the spot. The money Govt. put in never existed in private economy. Yes, the conservatives distort facts and they fundamentally believe in two class system. The major headache for Conservatives under Clinton was that lower classes were able to go to nice places impinging on their style. When Clinton left, we had surpluses coming out of ----. Republicans, after stealing two elections, made sure that there was none. The game for conservatives is simple: mine is mine and you have none, so I am rich beyond your imagination.


On Apr 19 08:44 AM bullpasture wrote:

> What a joke! I didn't know that financial pundits smoked "funny stuff"
> so early in the morning...... Quick get your resume into CNBC. They
> need all the help they can get to "pump up" the the happy outlooks
> since Jim Cramer was so humiliated by the obvious truth.
>
> By the way this statement of yours containing "...stimulus bill passed
> earlier this year will only retard the economy's recovery, since
> it boils down to government grabbing a huge amount of the private
> sector's money..." is inane and shows you are ideologically fixated
> as a "knee jerk" conservative. Haven't you grasped the fact that
> the "money" you worry about the government grabbing doesn't yet exist
> and won't be taken from the private sector in taxes and instead it
> is created with the Fed's "Quantitative Easing" after the treasury
> prints up some more treasury bills and notes to be purchased by them.
>
>
> Good grief (says Charlie Brown). Get a life!

Note to Nassim Taleb: You Can't Kill Off Black Swans

The Manual of Ideas is run by the very people - the hedge funders - who were instrumental in creating this mess. Now, they want to control Taleb and discredit him. The unknown mouthpiece of this article goes on criticizing the second book by Taleb as money making adventure, but simply forgets that he is soliciting clients through the same article! Liar's poker!