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elliot_mllr

elliot_mllr
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  • Linn Energy: Don't Panic About The Distribution [View article]
    MMarrkk:
    The partnership distribution isn't "non-taxable"; it's tax deferred. And when one has a zero basis the distributions may not be considered entirely a long term capital gain; there may be some recapture included, which cannot be offset by released suspended passive activity losses because the position has not been sold.
    Elliot Miller
    Apr 21 10:54 AM | Likes Like |Link to Comment
  • Vanguard Natural Resources: An 8.4% Yielder To Consider As An Alternative To Linn Energy [View article]
    What is VNR's hedging portfolio like?
    Elliot Miller
    Apr 18 10:25 AM | Likes Like |Link to Comment
  • I'm Buying W.P. Carey For The Long Haul [View article]
    Mr. Thomas:
    You very appropriately explained why WPC is a better buy/ hold than ARCP, but how about O? Why do you prefer WPC to O?
    Thanks.
    Elliot Miller
    Apr 15 12:43 PM | 1 Like Like |Link to Comment
  • Linn Energy: Is This The Bottom? [View article]
    Not only is Achilles correct about Cramer being very short term oriented, but Cramer's suggestion that his listeners should "swap out" of Linn and into Kinder Morgan, shows how little Cramer understands or cares about fundamentals. The use of the verb "swap" indicates that Cramer thinks that the trades are with two equivalent companies. Nothing is further from the truth. KMP may be a valid investment but one does not "swap" into a midstream pipeline,terminaling, storage and processing company from an upstream exploration and production company. These are two vastly different investments in two vastly different business models, with vastly different risks and vastly different reward opportunities. If the market sold off in reaction to Cramer's comment, Mr. Market needs his head examined.
    Elliot Miller
    Apr 14 02:55 PM | 13 Likes Like |Link to Comment
  • Linn Energy: Don't Panic About The Distribution [View article]
    If indeed Cramer, rather than operational fundamentals, was the cause of a decline in the LINE unit price then that is a reflection of the idiocy of crowds. First of all, Cramer is not an investor: he is an entertainer who thinks and preaches like short term trader. Secondly, it says much about Cramer's lack of MLP knowledge if he recommends selling an upstream MLP and buying a midstream MLP as if they are equivalents. They are in entirely different businesses, and that fact did not enter into Cramer's so-called reasoning at all.
    Elliot Miller
    Apr 14 10:31 AM | 7 Likes Like |Link to Comment
  • A Quantitative Look At IDRs And Their Impact On MLP Growth [View article]
    It is certainly counter-intuitive.
    Apr 12 11:30 AM | 1 Like Like |Link to Comment
  • Is The Linn Energy Distribution Safe? [View article]
    There are two points raised in this article that deserve mention.
    One is that the author mentions the SEC inquiry but ignores the facts that the inquiry never progressed into a formal investigation and no action was taken against Linn.
    The other is the reference to Cramer's charitable trust selling its LINE units. MLP units are not appropriate vehicles for trading because of the tax structure of the asset class. Where, as with Linn, the distributions are entirely returns of capital, basis is reduced and gains are increased or economic losses may be transmuted into gains; and there may be recapture taxed at ordinary income rates depending on whether it is offset by released suspended passive activity losses. Because Cramer held his units in a charitable trust, these real world problems for individual investors did not confront him, and he didn't have UBTI to worry about because there was no component of partnership earnings and profits in the distribution. Therefore, Cramer--who thinks like a short term trader, not a long term thinker or investor--can indulge his short term horizon and trading proclivities while most individual investors cannot (or at least should not).
    Elliot Miller
    Apr 8 02:47 PM | 8 Likes Like |Link to Comment
  • 6 Basic MLP Lessons From The Q1-14 Data [View article]
    Factoid:
    There are some smaller but interesting niche midstream MLPs missing from your analysis. Examples are MMLP and the compression partnerships such as EXLP and USAC.
    Also, since the cost of capital is such an important constituent of CAGR and companies seek to lower their cost of capital by eliminating IDRs, wouldn't that impact your view of GPs? Admittedly that is a "story" factor rather than a statistical one.
    Thanks for the effort you put into these helpful analyses.
    Elliot Miller
    Apr 5 12:12 PM | 1 Like Like |Link to Comment
  • Linn Energy: Making Sense Of The Recent Decline [View article]
    One other fact to be considered is the substantial incentive Linn management has to succeed and to do the right thing for its unitholders and Linco shareholders. Mark Ellis, the CEO, has in excess of a million LINE units; Kolya Rokov, the very smart and creative CFO, has over half a million; Michael Linn, who is still a director, has more than half a million, and another director has in excess of six hundred thousand units. They spend all day every day figuring out what to do to enhance the company's results and the unit and share prices.
    Elliot Miller
    Mar 31 03:51 PM | 15 Likes Like |Link to Comment
  • Several Reasons Why I'm Staying Bullish On Units Of LRR Energy [View article]
    Ms. Ingrassia:
    It would be helpful to know what percentages of reserves and of production are of oil and of gas, whether the gas is wet or dry and the details of LRE's hedging portfolio. While those data are certainly available, it would be beneficial to a reader to see them in an article such as this.
    Elliot Miller
    Mar 31 09:57 AM | 3 Likes Like |Link to Comment
  • 17.8%-Yielding CEFL - Diversification On Top Of Diversification, Or Fees On Top Of Fees? [View article]
    There is another issue here: liquidity. In his reply to a Comment referring to the limited liquidity in CEFL shares, Prof. Brofman says that the ability of a holder to have his shares redeemed cures this problem. But in order to have shares redeemed one must tender a minimum of 50,000 shares, and if the holder has less than 50,000 shares he/she must wait for his broker to accumulate the minimum number from other shareholders in order to achieve the redemption.
    Elliot Miller
    Mar 30 09:46 AM | Likes Like |Link to Comment
  • Linn Energy Just Can't Catch A Break [View article]
    critterlitter:
    You are correct that sentiment has headed south without any further change in the fundamentals. That's due to the short term thinking and lemming like behavior of traders and analysts and commentators like Cramer. Look at what has happened to the biotech sector recently. Look at the once love affair then not-so-love affair with Apple. Look at Tesla. Sectors and companies fall in and out of favor with analysts and institutions irrationally. If you are a fundamental income investor just tune out all the noise and collect your monthly distributions from Linn.
    Elliot Miller
    Mar 29 10:49 AM | 3 Likes Like |Link to Comment
  • Linn Energy Just Can't Catch A Break [View article]
    Jerry:
    Thanks for the kind words.
    You seem to have a wise and healthy attitude towards investing--as opposed to trading--and congratulations on knowing yourself well and in effectively executing your discipline. I have had Linn units since 2008 and I bought more last year, which increased my average cost (unadjusted for returns of capital) from $16.20 to $18.04.
    Elliot Miller
    Mar 28 02:40 PM | 4 Likes Like |Link to Comment
  • Linn Energy Just Can't Catch A Break [View article]
    adecinvestor:
    You may be too harsh regarding rw1270. He is probably a non- analytical, unsophisticated or inexperienced investor who is frightened and acting emotionally, not rationally.
    Elliot Miller
    Mar 26 06:02 PM | 4 Likes Like |Link to Comment
  • Linn Energy Just Can't Catch A Break [View article]
    Add to the unsophisticated the authors of the Bloomberg. One of them interviewed me for the article. I gave him a 45 minute resume about MLPs. He seemed nice enough but it was clear that he was given an assignment for which he had little background or understanding.
    I find it fascinating that JP Morgan and Howard Weill changed their previously positive ratings based on a single quarter's results. That may be fine for trading vehicles, but MLPs are not appropriate investments for short term thinkers (like Cramer, to the extent that he thinks at all). MLPs have particular tax characteristics that render them far more suitable for long term investors than short term traders. And to the extent that these downgrades provide a buying opportunity for long term holders they owe a debt of gratitude to the short term thinking analysts.
    Elliot Miller
    Mar 24 01:26 PM | 41 Likes Like |Link to Comment
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