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Brad Denny

Brad Denny
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  • Coming Week's Market Movers: U.S. Credit Downgrade vs. Accelerating EU Contagion [View article]
    Sounds like I touched a nerve.
    Aug 7, 2011. 01:03 PM | Likes Like |Link to Comment
  • Coming Week's Market Movers: U.S. Credit Downgrade vs. Accelerating EU Contagion [View article]
    Perhaps it is time for a thorough revision of the income tax code designed to eliminate tax evasion and aid job creation. Some will say that will never happen, given the current unbridgeable political differences and destructive political climate.

    But, there is one reason to believe that it might. All of the Bush tax cuts will be eliminated automatically at the end of 2012 unless the Congress votes to retain them and President Obama signs the bill into law, with devastating consequences, not only for credit ratings but for the fiscal health of the nation.

    So, the hammer is in place. What is necessary is the political courage to wield it and lead us out of this mess. George Washington, Abraham Lincoln and Franklin Roosevelt all had such courage. I believe Barack Obama does as well and will provide the necessary political leadership to get it done as the cornerstone of his campaign for re-election.
    Aug 7, 2011. 11:47 AM | 1 Like Like |Link to Comment
  • Debt Downgrade: S&P Could Be the Big Loser [View article]
    Perhaps it is time for a thorough revision of the income tax code designed to eliminate tax evasion and aid job creation. Some will say it will never happen, given the current unbridgeable political differences and destructive political climate.

    But, there is one reason to believe that it might. All of the Bush tax cuts will be automatically eliminated at the end of 2012 unless the Congress votes to retain them and President Obama signs the bill into law with devastating consequences, not only for credit credit ratings, but for the fiscal health of the nation.

    So, the hammer is in place. What is necessary is the political courage to wield it and lead us out of this mess. George Washington, Abraham Lincoln and Franklin Roosevelt had such courage. I believe Barack Obama does as well and will provide the political leadership necessary to get it done as the cornerstone of his re-election campaign.
    Aug 7, 2011. 11:37 AM | 7 Likes Like |Link to Comment
  • Standard & Poor's Drops a Bomb [View article]
    Perhaps it is time for a thorough revision of the income tax code designed to eliminate tax evasion and aid job creation. Some will say it will never happen, given the current unbridgeable political differences and destructive political climate.

    But, there is one reason to believe that it might. All of the Bush tax cuts will be automatically eliminated at the end of 2012 unless the Congress votes to retain them and President Obama signs the bill into law, with devastating consequences, not only for credit ratings but for the fiscal health of the nation.

    So, the hammer is in place. What is necessary is is the political courage to wield it and lead us out of this mess. George Washington, Abraham Lincoln and Franklin Roosevelt had such courage. I believe Barack Obama does as well and will provide the necessary leadership as the cornerstone of his campaign for re-election.


    and will provide the political leadership necessary to get it done.
    Aug 7, 2011. 11:18 AM | Likes Like |Link to Comment
  • Think Twice Before You Sell Those MLPs [View article]
    Ditto to question raised by MPT failed. Is the cost basis of MLP's stepped up to current value at death of the owner? What about MLP's held in a trust at the death of the beneficiary?
    May 6, 2011. 09:03 AM | 4 Likes Like |Link to Comment
  • Why Future Asset Bubbles Can Be Expected [View article]
    Punk_Ash is onto something. Too many college kids graduating with unmarketable degrees is a good example of "unproductive investment." Other examples are 10,000 sq ft. houses owned by wealthy, retired couples who only spend three months a year there because they have two other houses in warmer climates and shattered tanks and personnel charriers rusting away in the desserts of Iraq etc.

    Excessive leverage, fraud and entirely inadequate regulation by the government certainly had roles to play in the financial meltdown. I suspect that the prevalence of unproductive investment over productive investment also made a significant contribution.

    Brad Denny
    Nov 14, 2010. 11:09 AM | 4 Likes Like |Link to Comment
  • Boeing's Unimpressive Dividend Yield: Great Company, Overvalued Stock [View article]
    The alternative view (which I hold) is that, in preserving cash, Boeing is doing exactly the right thing considering the competitive challenges it faces from Airbus, Bombardier, Embraer, the desire of other nations to enter or re-enter the airplane manufacturing business (China, Russia) and the enormous expense involved in developing new and more energy efficient airplanes to market (787, larger 747, and re-engineered or all new 737). With the airplane replacement cycle about to get underway, Boeing is properly viewed as a growth stock that pays a dividend. What's not to like about that?

    I am long BA.
    Oct 22, 2010. 10:16 AM | 2 Likes Like |Link to Comment
  • A Closer Look at Microsoft: Undervalued or Unsustainable? [View article]
    I am neither a technology buff nor an economist, but I read this investment critique of Microsoft with a high degree of understanding. I don't know about Microsoft, but I am certain that Daniel Wong's skills should command a high value in the marketplace.

    Brad Denny
    Oct 11, 2010. 08:42 AM | 1 Like Like |Link to Comment
  • Economic Nonsense From Ezra Klein at The Washington Post [View article]
    Mike Shedlock pretends that the distinction between right and wrong (in economic terms) is a simple one and he knows the answer.

    But recent history suggests that the calculation is more complex. The most significant parrallel between the runup to the crashes of 1931 and 2008 is the extreme concentration of wealth among the richest 3-5% of the population. Both instances were followed by a crash of dramatic proportions.

    My conclusion, contrary to the "trickle down" theory underlying the Reagan/Bush/Republican point of view, is that concentration of wealth aided and abetted by tax cuts for the rich does not work. It is productive of more wealth for the rich and cost of living hikes for the rest of the population that can only be afforded through debt, leading to the inevitable crash.

    I would respectfully suggest that the true "wealth of nations" comes from a productive population which is gainfully employed. That circumstance in turn allows well being to be widely shared and even great wealth to "trickle up" to the most capable and well positioned entrepreneurs.

    Brad Denny
    Oct 10, 2010. 11:03 AM | 4 Likes Like |Link to Comment
  • Intel Prepares for Swarm Computing Age [View article]
    For those of us whose desktop computers running Windows XP damaged in the McAfee authored back in April, the Intel takeover of McAfee is insignificant beside the question of whether or not Intel will make good on claims against McAfee.

    We had two computers damaged and had to have them repaired. We filed a claim for reimbursement three months ago and are still waiting. Does Intel's deal with McAfee include responsibility for those claims? Or will corporate America walk away from legitimate claims?
    Aug 21, 2010. 10:03 AM | 1 Like Like |Link to Comment
  • Energy Transfer Partners, L.P. Q2 2010 Earnings Call Transcript [View article]
    Thanks to getz04 for the explanation of the other side of the transaction. I listened to the tape of the earnings call and read the transcription and did not pick that up, so either I did not read carefully enough or it was not stated with sufficient clarity.

    Whether other unit holders voted to sell based on the same lack of information, I do not know. Perhaps they concluded that a "reasonable assumption" of future dividend increases was not sufficient reassurance. Particularly since the directors of ETP could have raised the dividend immediately based on the reasonable assumption that a rosy future outlook and the existence of fewer units outstanding warranted an increase.

    What is ETP going to do with all the extra cash? Given the move of some directors from ETP to Regency and the inherent conflict of interest between the interests of the limited partners vs the interest of the general partner (ETE) one has to wonder. With ETP down 4.8% yesterday it is apparent that a lot of unit holders shared these concerns.
    Aug 10, 2010. 06:13 AM | Likes Like |Link to Comment
  • Energy Transfer Partners, L.P. Q2 2010 Earnings Call Transcript [View article]
    My comment above was incorrect with respect to the percentage drop. It was actually something like 2.75%, which is bad enough. Regardless, the question remains the same. Do the directors of ETP and its managing partner ETE have any responsibility to act in the best interests of ETP unit holders?

    Leaving aside all the rosy talk, what actually happened today? How is ETP compensated for giving up its 49.9% interest in the Mid continent Express (MEP) pipeline?
    Aug 9, 2010. 08:01 PM | Likes Like |Link to Comment
  • Energy Transfer Partners, L.P. Q2 2010 Earnings Call Transcript [View article]
    I must be missing something here and apparently I am not alone among ETP unitholders, as, despite the glowing report related above, ETP units were down over 4% today. The reason seems fairly simple. ETP's 49.9% interest in MEP was exchanged by its managing partner ETE in return for controlling interest in Regency Energy Partners.

    ETE wins big on both counts. ETP unitholders seem to wind up with nothing to show for giving up ETP's interest in MEP. ETP unit holders voted with their feet. All the reports of a glowing future don't make up for what appears to be a transaction that leaves ETP unit holders out in the cold.

    Perhaps someone from ETP could explain to its unitholders what actually happened and why. And also indicate whether or not directors of ETP have a fiduciary responsibility to act in the best interest of their unit holders. Since several of those directors have moved over to Regency, there is ample reason to be concerned that they may have been acting in their own interests rather than in the interest of ETP unit holders.
    Aug 9, 2010. 07:55 PM | Likes Like |Link to Comment
  • Rooseveltian Reflections on Financial Reform [View article]
    The comments above all come down on the side of a business community that operates without regulation and is inherently self correcting. History, common sense, and the fallibility of people (who after all are the ones who operate businesses) make it clear that that is nonsense.

    The notion that what is good for General Bullmoose is good for the nation is patently false. The reverse is much more likely to be true. Business benefits enormously from the prosperity of the people as a whole. The great mistake of the last 40 years has been the sacrifice of that general prosperity in favor of allowing the extreme concentration of wealth which business has chosen to bestow on its executives and directors.

    The shareholders of publicly listed businesses (who are the owners) have not benefited from the vast expanse of wealth generated by business. Directors are compensated to absurd levels for little service and turn around and reward management with equally absurd salary and benefit packages.

    A lack of regulation of business is not the mother of prosperity for the nation. It is an invitation to personal profiteering by business insiders, and it is that opportunity which tilted the scales toward the recent financial excesses and near collapse.
    Mar 7, 2010. 09:37 AM | 14 Likes Like |Link to Comment
  • More on Sovereign Risk and Semi-Sovereign Risk [View article]
    Thanks for the hint, Buzzer. I am a saver and I've already had the fleecing. But, I am not leveraged, my house is still standing and I don't intend to let anyone else be in charge of my destiny, not Goldman Sachs, not Moody's and not politicians including the Tea Party.
    Feb 28, 2010. 12:13 PM | Likes Like |Link to Comment
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