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elliot_mllr

elliot_mllr
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  • Is The Master Limited Partnership Tax Status At Risk? [View article]
    Brusejfern:
    You can also add MWE to the list of MLPs that have acquired its GP and eliminated IDRs, thereby lowering its cost of capital.
    Elliot Miller
    Sep 19 04:27 PM | 1 Like Like |Link to Comment
  • Update: Linn Energy Does Another Asset Swap With Exxon [View article]
    But Credit Suisse says it will be accretive starting in 2015, given the lateness in 2014 or the beginning of 2015 for the closing of the transaction. Because the accretion will not be used to increase distributions, but rather to reduce debt, does not detract from the benefits of the deal to Linn.
    Elliot Miller
    Sep 19 04:17 PM | 5 Likes Like |Link to Comment
  • Update: Linn Energy Does Another Asset Swap With Exxon [View article]
    It closed down 5 cents, which is essentially unchanged. I think that the market views the transaction as Credit Suisse does, as incrementally positive for Linn, but not really large enough to be a needle-mover.
    Elliot Miller
    Sep 19 04:13 PM | 2 Likes Like |Link to Comment
  • Linn Energy Overpaid For Exxon's California Production [View article]
    Credit Suisse disagrees with the author and characterizes the transaction as positive for Linn.
    Elliot Miller
    Sep 19 04:09 PM | 12 Likes Like |Link to Comment
  • Legacy Reserves Makes A Bet To Change The High-Yield Upstream MLP Model [View article]
    rlp2451:
    Thanks. Presumably there will be no write off for intangible drilling costs attributable to the non-operated working interest .
    Elliot Miller
    Sep 18 02:26 PM | Likes Like |Link to Comment
  • Legacy Reserves Makes A Bet To Change The High-Yield Upstream MLP Model [View article]
    Mr. Plaehn:
    It will be interesting to note the tax impact of the new IDR structure. It is not clear whether the working interests being acquired are operated or non-operated, and whether intangible drilling cost write offs are attributable to the working interests.
    Elliot Miller
    Sep 17 02:47 PM | Likes Like |Link to Comment
  • Surging Marcellus Output With Utica Upside Makes MarkWest A Solid Buy [View article]
    kruk:
    GST is an upstream producer and MWE is a midstream operator. They are not comparable or substitutes for one another.
    Elliot Miller
    Sep 16 03:56 PM | 3 Likes Like |Link to Comment
  • Inflation Is Killing My Retirement: How I'm Dealing With It, Part 2 [View article]
    Mr. Schneider:
    Martin Midstream will likely increase its distribution from $3.17 to $3.25 in the next quarter. And after Breit Burn acquires QR Energy its distribution is likely to go up to $2.08.
    Elliot Miller
    Sep 16 03:51 PM | Likes Like |Link to Comment
  • Overvalued Enterprise Products Partners Will Lag Peers For The Next Several Years [View article]
    Mr. Plaehn:
    EPD may not be an aggressive growth story but it is one of--if not the-- safest MLPs around. It has a low cost of capital because it pays no IDRs and it is without a doubt the most diversified MLP, operating in every conceivable segment of the American oil and gas industry. It is well managed and very unit holder friendly, supported by the Duncan family, and its management have large personal stakes in the company as well. If one owns aggressive growth MLPs, EPD should be a part of that portfolio as well, to balance it and provide safety.
    Elliot Miller
    Sep 16 03:45 PM | 14 Likes Like |Link to Comment
  • Linn Energy: A Resilient, High-Yield Income Investment With Potential To Surprise Investors [View article]
    The inevitable volatility that accompanies interest rate increases is especially pronounced in the case of MLPs, which constantly issue new debt. Generally, that is a short to medium term phenomenon, and for those who can cope with it, it's a good time to buy.
    Elliot Miller
    Sep 16 03:16 PM | 9 Likes Like |Link to Comment
  • Learning To Dislike MLPs [View article]
    River18:
    I must respectfully disagree that owning LINE in a taxable account "forever" can have "huge" tax implications. If one owns units in an an MLP long enough that the unit holder's basis has been consumed by returns of capital distributions, then the distributions are taxed as a long term capital gain with a maximum tax of 23.8%. That's not such a huge tax to pay. And if the units are held until the owner's death (that's really "forever") then the estate gets a stepped up basis.
    All in all, that's not a terrible tax consequence.
    Elliot Miller
    Sep 15 10:58 AM | 5 Likes Like |Link to Comment
  • Medley Capital: BDC Risk Profiles [View article]
    BDC Buzz:
    I suspect that a pull back my occur after the Fed stops its QE 3 purchases in October. I have some dry powder in reserve awaiting that development.
    Elliot
    Sep 11 02:46 PM | Likes Like |Link to Comment
  • Hercules Technology: BDC Risk Profiles [View article]
    BDC Buzz:
    I certainly understand your reluctance to take a large position in a company with the substantial premium over NAV that HTGC has. However that premium (to me at least) is warranted by the careful and prudent and long term thinking internal management, which has a large position in the shares personally; by a portfolio consisting of 91% first lien debt securities and 9% equity positions in a widely diversified and interesting group of companies; and especially by its positions in the various components of the life sciences industry (biotechnology tools, specialty pharmaceuticals, surgical devices, drug discovery and other healthcare services). As cash in my retirement accounts becomes available I'll continue to buy HTGC, notwithstanding the large premium to NAV, and my other favorites (NMFC, MCC, and TCPC). If the company continues on its present course the premium should stay relatively intact, and in any event I'm in for the long run. Besides, a 7% yield seems priced right.
    You and Dividend Sleuth do a great service to investors and to the BDC industry by your sterling contributions to SA in this field.
    Elliot
    Sep 11 02:27 PM | 2 Likes Like |Link to Comment
  • Medley Capital: BDC Risk Profiles [View article]
    BDC Buzz:
    As always, thanks for the cogent analysis.
    Since I recently sold PSEC (and KCAP) because of my concern regarding the percentage of the portfolio in CLOs, and increased my position in MCC (and NMFC and TCPC and HTGC), it's nice to see that posture validated.
    Thanks again.
    Elliot
    Sep 9 01:21 PM | 1 Like Like |Link to Comment
  • TICC Capital: BDC Risk Profiles [View article]
    exP.E. guy:
    I certainly agree with the fact that we each have our own tolerance for risk and our own individual definition of what we perceive risk to be.
    I wanted to make two points in my above exchange and perhaps did not articulate them adequately.
    The first is that the typical investor--even one as experienced and time committed as I, and even including most wire house analysts--cannot conceivably match the knowledge or intuition of someone on the ground in negotiating and considering a BDC's investment in a CLO. Compared to an equity position or first lien, second lien or subordinated debt, CLOs are opaque. We have no ability to analyze the individual or aggregate credit quality in the portfolio or the risk in the particular tranche acquired, so we need to rely entirely on the BDC management and its ability to do risk analysis and resist going for the lower tranche in order to cover dividends. Many of us don't put much store in the rating agencies any more. As someone who was in the trenches you can judge what an outside investor cannot regarding CLO purchases.
    The second point I wanted to make is that your perception of the safety of CLO investments is different that that of the market and it is the market that values the share price of a BDC.
    I for one, and I can speak only for myself, was uncomfortable when a BDC the shares of which I owned, such as PSEC and KCAP, devotes a significant portion of its portfolio to CLOs, which is why I sold both stocks although I enjoyed their yields while I owned them.
    Elliot Miller
    Sep 8 03:12 PM | 1 Like Like |Link to Comment
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