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  • Clear Skies Ahead For American Airlines In 2016  [View article]
    No mention of RPMs, cost/depreciation of newly acquired aircraft, union demands nor the whole economy going into a recession.
    Jan 20, 2016. 05:12 AM | 1 Like Like |Link to Comment
  • Mesabi Trust Is Undervalued And With Iron Ore Price Upside And No Capex  [View article]
    At the current price of IO, no new production facility will be constructed to compete. The supply and demand dynamics are highly inelastic. CLF is maintaining its pellet plant at the MSB mine while divesting other properties. MSB recently declared a distribution and when the shipping season starts this Spring, with any new shipments to originate on Superior - the dynamics contra the pessimistic view could be dynamic - especially so with the depressed price of these shares. I have been adding to my position during this decline with the low price but limiting my overall exposure to a fixed $ position ratio to my total investment portfolio that is currently 27% cash. With interest rates continuing low and the need to maintain our local infrastructure, steel demand could grow with new housing continuing strong and need for appliances using sheet steel and low gas prices fueling demand for new autos and road construction - late 2016 - early 2017 could see a double to triple of the share price. $MSB $CLF
    Jan 18, 2016. 05:18 PM | 1 Like Like |Link to Comment
  • Shale Oil: The World's New Crude Oil Swing Producer  [View article]
    In economics, Ricardian scarcity comes into play. Oil production is highly inelastic in the short run. The marginal cost of production from a producing well is small. As soon as the cost to pump and deliver to its market point becomes higher than the market price there is no incentive to continue producing it. Some wells can be shut in. The fixed cost if not covered from previous profits then becomes a loss with resulting negative effects on the companies involved and difficulty maintaining interest payments on debt. There is no current inventive to explore or drill more wells in existing oil fields. I don't believe at today's prices that there is any incentive to look for more oil or drill new wells in existing production regions. With no new exploration, wells going dry and increased world demand from current low prices - a sharp reversal can occur. It may take several months to start seeing a significant reversal. When it starts, is could be very sharp.
    Jan 3, 2016. 02:29 PM | 4 Likes Like |Link to Comment
  • American Airlines Group: Finding A Better Way To Hedge Fuel Costs  [View article]
    $AAL Storage and location diversity allows a self hedge for some fuel cost volatility to earnings. Hedging costs would be a drag. The real need for the investor is to hedge the stock price. Options would be an alternative but the way I do it is by owning an oil company. It may not work smoothly with oil volatility currently but with the recovering price of oil, their shares would go up while AAL would also advance with the market. I own WLL to do it -with its current low price, any recovery in oil prices that could hurt the airline profit may be more than well offset buy its price rise.
    Dec 30, 2015. 05:07 AM | Likes Like |Link to Comment
  • Mesabi Trust says no distribution to be paid in November  [View news story]
    I've increased my number of shares a greater % than the % price decline. $MSB
    Oct 30, 2015. 10:26 AM | Likes Like |Link to Comment
  • Mesabi Trust says no distribution to be paid in November  [View news story]
    The big question is the cash flow of the current royalty payment. This needs to be balanced with the total future of distributions. The trust has a long time to go and its potential is from one of the richest iron ore deposits in the world near the heart of industrial production in the United States. Building construction, auto production and improving road, bridge and rail infrastructure will continue. As an inflation hedge this will continue to be a holding for me with the potential of again reaching its all-time high within 10 years.
    Oct 21, 2015. 08:14 AM | 1 Like Like |Link to Comment
  • Why You Should Buy Bank Of America And Forget About It  [View article]
    Too speculative on daily trade and in the long run we are all dead. Same story 5 years ago. Nothing more has changed much. I sold my position and increased my hi-yield bond funds that are rallying right now. I still have a "B" warrant position on BAC - its my $2 bet that this horse will come in for a double plus by 2018. $BAC
    Oct 13, 2015. 05:17 AM | 1 Like Like |Link to Comment
  • Bank Of America's Road To Value  [View article]
    Almost all of the book value is not marked to market. This can be observed whenever they do a major liquidation of real estate. I believe the book value is at least 10% undervalued and if totally liquidated could be as high as 20% undervalued. Real estate values have increased as much as 20% or more since the financial crisis. Foreclosed property sales continue to show prices well above the mortgage liability carried on the books. On book valuation - I believe the stock is terribly undervalued. They are now writing off drive up teller lanes and closed branches- this would only be minor decline in assets and the loss overstates operation costs decreasing tax liability on earnings.
    Oct 7, 2015. 05:21 AM | 6 Likes Like |Link to Comment
  • Bank Of America Class B Warrants: Only For The Brave  [View article]
    Where is the cash going to come from to exercise the warrants? If you don't have the cash and if you do not have a margin account you won't be able to exercise them and the marketability of the warrants may not exist! Current trading is very thin and approaching an all-time low. If you have a sizable position - I'm willing to take them off your hands. I am building a position and have room for taking all of them at $.05 Better to get something for them than to see them expire worthless.
    Sep 25, 2015. 05:29 AM | 2 Likes Like |Link to Comment
  • Is Warren Buffett Losing Touch? Bank Of America Is Not A Bargain  [View article]
    The odds are better with the "B" warrants that will be in the money and more on this prediction. $BAC
    Sep 19, 2015. 05:53 PM | Likes Like |Link to Comment
  • Whiting Petroleum - Looking Past The Drop  [View article]
    My initial position in WLL is to hedge against fuel costs for ALL. The market has taken its toll on both. The quality of their oil is not mentioned. Its almost a pure fuel coming right out of the ground without refining! Many years ago when oil was first discovered in the area, a woman showed me a sample of this light/sweet crude. She said they tried to put some in their tractor and it worked! $WLL $ALL
    Sep 11, 2015. 06:00 AM | Likes Like |Link to Comment
  • Will American Airlines Return To Its 52-Week Highs Soon?  [View article]
    Capacity utilization I believe has been a drag on profit margins. The additions of new aircraft will pay off in the future, especially so with more fuel efficiency. If fuel prices remain at the current level, next quarter would be a record breaker with the holiday traffic. $AAL
    Aug 26, 2015. 08:24 AM | 5 Likes Like |Link to Comment
  • Potential Catalysts Pushing American Airlines For The Remainder Of This Year  [View article]
    AAL has held its own by and large but the whole market has been flat at best for the whole year. Daily trade is volatile. Dividend payers have held better favor with a utility stock paying at least 3-4 times this company's payout rate. Playing the fuel cost volatility doesn't hold on a daily basis. I've been on the sell side, still hold some but would be tempted to add only if it slips below 40. $AAL
    Aug 13, 2015. 05:03 AM | Likes Like |Link to Comment
  • Top 6 Mexican Stocks Worth Buying  [View article]
    $GMK ADRs are about to be delisted on the NYSE. I sold out all my positions.
    Aug 11, 2015. 08:55 AM | Likes Like |Link to Comment
  • Record profit for American Airlines Group in Q2  [View news story]
    Why pay hedging costs for a guaranteed cost against profits from the contract commissions with such a large and diverse inventory of fuel. $AAL
    Jul 24, 2015. 08:49 AM | 1 Like Like |Link to Comment