Implications Of Fed Tightening For Equities [View article]
Anyone remember the FBI investigating left wing movements in the late '60s, early '70s? Before going to work for the Texas Highway Dept. at the start of the summer of 1968, I had to sign a form stating I was not a member of any of the left wing organizations listed on the sheet. Can't remember who they were now, except the SDS and the Black Panthers.
The pendulum has swung 180 degrees opposite now, hasn't it?
Use Linn Energy To Build Income Now [View article]
Hi TwistTie. I'm just wondering if a portion of the annual acquisition costs is included in maintenance cap ex. It should be, IMO, since part of the acquisition cost is to replace existing production. Is that cash cost deducted from EBITDA, as it seems to me it should be, as a part of maintenance cap ex.?
The portion of cash used for the part of an acquisition which only replaces existing production is not available for distributions, in other words, and shouldn't be part of DCF, IMO.
The mortgage REITs are lit up bright red (MORT -1.9%), again led by American Capital Agency (AGNC -3.5%) and American Capital Mortgage (MTGE -3%), with Annaly (NLY -3.1%) not far behind. Yes, the 10-year Treasury yield is a 3 bps higher, but there's also rare action in Fed Funds futures, now pricing in a whopping 50 bps in rate hikes by this time 2016. AGNC presents at the JMP Conference at 2 ET. [View news story]
"O" is up 40% since I bought in Nov. 2012. Think I may stick with the equity REITs and look for another entry point on another one of them.
On the other hand, maybe not. Decisions, decisions. :)
Forget About American Capital, Annaly Capital Is Still The Best Of Breed [View article]
Well, it would seem to me, with that type of thinking, i.e. material distortions of economic reality should not be corrected, but used to the advantage of the investor, that we should do the same for all public companies and distort all the earnings, if I am understanding correctly.
Financials need to present a fair picture of the economic reality of the transactions that have been entered into, and present that picture as accurately as possible. When a company reports an $.88/share loss for a quarter, but the actual results are a positive $1.30/share income, something is very wrong with the picture being presented. I don't see any justification for wanting to keep the distortions and throw out reality, except greed perhaps. Many investors are being mislead and probably selling their shares at that point, potentially at a loss. They are relying upon totally worthless information and it is injuring them financially as a result. Seems reasonable to me that the company and auditors could be sued for putting out false financial information, and causing the losses of net worth.
I really don't understand the thinking behind not wanting to change material distortions.
Use Linn Energy To Build Income Now [View article]
I think this is a good article, making some good points. But, each year, as LINE makes acquisitions, a portion of those reserves acquired are being used to "replace" and maintain current production in the future. Not all of it is for an increase in production, is it?
So, my question is: does LINE's $110 maintenance cap ex include those acquisition costs which are simply to replace current production?
See the link. It states on page 20, under "E&P Companies" : "EBITDA also needs to be assessed in the context of reserve life on proven developed reserves and adjusted for CAPEX needed to sustain production."
Is LINE allocating a portion of the cost of each year's acquisitions to maintenance cap ex for the portion of the acquisition which will merely replace existing production?
Intel: Haswell Release On June 3rd Could Be Huge [View article]
What I can tell you is that the Turbotax software is bloated compared to the 2001 version. My screen goes black for 3 or 4 seconds each time I select something, then it comes back. grrrrrrr. The damn software is very, very bloated. The Turbotax was faster on my old HP pc I bought in 1998. No joke. Leave it to MS and its compatible software to screw things up and make things run slower.
If you want to serve your customers, ask what they want, don't choose for them, i.e. bloated software as I have described. We want easy to use, stable, no hesitation software to work with. Not software that stalls for a few seconds as the squirrel is running around the cage trying to catch up, and what you type or click doesn't register. grrrrrrr
Linn Energy: Don't Believe The (Negative) Hype [View article]
Got it figured out rlp2451. Thanks alot. Very much appreciated. Didn't have to open up the form. Haven't figured out how to do that yet. Just started working with the software today. But got it figured out from the interview. Thanks.
Linn Energy: Don't Believe The (Negative) Hype [View article]
" TT should be able to do it, but I am not that familiar with it, But you could enter the info manually on the respective forms if you have to (look at the "Additional Guidance" page to see where each line item goes. For example, 13I goes to Form 1040, Schedule E, Line 19."
I figured it out. It's working now. Thanks for the help. I just had to type in Box 13, code T and enter nothing. It then took me to the next screen where it asked me for the specific info.
Linn Energy: Don't Believe The (Negative) Hype [View article]
You're saying it can walk you through the boxes I mentioned, multiple entries? Turbotax was walking me through it, but the letter "T" for box 13 has multiple codes and amount, for example, Box 13, code T1 for $89, Box 13, code T2 for $85, Box 13, code T3 for $29, etc.
If it were just one number for Box 13, letter T, turbotax could handle it. You're saying TaxAct can handle the multiple T codes and amounts?
There's no place in turbotax to put code "T1", or "T2" etc. All it can handle is the letter "T".
I'll call Turbotax tomorrow, but I'm not expecting any help.
From what I've read on the SA forum, I thought and hoped I could do it with tax software. Doesn't appear that way to me. Not as easy as everyone said it was.
So, I'm not making enough money from PTPs at this point to make it profitable to be in one, due to the tax prep. expense it's gonna run me.
Linn Energy: Don't Believe The (Negative) Hype [View article]
I think I'll have to take my taxes to a CPA. Box 13 of my K-1 for VNR has numerous letter codes with amounts, as does Box 17, and Box 20. Turbotax Premier can't handle it or explain how to enter them. Have looked at the Turbotax help forum, but see no solutions. Drat! $75 down the tubes for nothing.
Forget About American Capital, Annaly Capital Is Still The Best Of Breed [View article]
"they lost money"
RS, on a GAAP Net Income basis, AGNC had a positive $231 million versus Annaly's $870.278 million. Adjust GAAP for the junk and AGNC had $258 million versus Annaly's $464.417 million. Neither lost money for the quarter.
On a comprehensive income basis, AGNC lost ($557) million and Annaly lost ($179.716) million. Both lost money on that basis, however these are unrealized losses based on loss in value of MBS they both still hold. Annaly's MBS lost more fair value during the quarter than AGNC's did. [( $865.15) vs. ($837)]
To me, you are still comparing apples to oranges, AGNC's comprehensive net loss to Annaly's Net Income. You simply can't do that.
Linn Energy: Don't Believe The (Negative) Hype [View article]
Zeus, I don't follow you. Capitalizing the puts is required by GAAP, as is marking to market the value of them after they have been purchased. The fair value of a put on the day it is purchased is the purchase price. That cost should be capitalized if it has future value to the company. Capitalization and amortization are accrual and GAAP accounting terms. As Hedgeye has stated, they don't have a problem with LINE's GAAP accounting or its SEC reports.
"Ellis: “Our accounting is in strict adherence to GAAP measures.”
Hedgeye: We agree."
My understanding is that the problem is with how LINE calculates distributable cash flow, or DCF. LINE doesn't include the cost of the puts in that calculation, and some think that it is an annual and repetitive cash outlay which should be included in maintenance capital expenditures, instead of included in growth capital expenditures.
I don't see how capitalization and amortization relate to that. http://bit.ly/19dvog9
Forget About American Capital, Annaly Capital Is Still The Best Of Breed [View article]
Thanks for the support. I'm sure FASB has reasons for the way FAS 133 is written, but it really distorts the numbers when derivatives are used for hedging but not designated as such. Inspite of the writes up I've done about this, I am a fervent supporter of FASB and GAAP. But I really feel the profession is losing some credibility when the numbers are so far off. I was shocked to see the general sentiment among investors on this forum towards GAAP when I first arrived. It's still disheartening, but some of it is very understandable.
Implications Of Fed Tightening For Equities [View article]
Implications Of Fed Tightening For Equities [View article]
The pendulum has swung 180 degrees opposite now, hasn't it?
Use Linn Energy To Build Income Now [View article]
The portion of cash used for the part of an acquisition which only replaces existing production is not available for distributions, in other words, and shouldn't be part of DCF, IMO.
The mortgage REITs are lit up bright red (MORT -1.9%), again led by American Capital Agency (AGNC -3.5%) and American Capital Mortgage (MTGE -3%), with Annaly (NLY -3.1%) not far behind. Yes, the 10-year Treasury yield is a 3 bps higher, but there's also rare action in Fed Funds futures, now pricing in a whopping 50 bps in rate hikes by this time 2016. AGNC presents at the JMP Conference at 2 ET. [View news story]
On the other hand, maybe not. Decisions, decisions. :)
Use Linn Energy To Build Income Now [View article]
http://bit.ly/1668USd
Forget About American Capital, Annaly Capital Is Still The Best Of Breed [View article]
Financials need to present a fair picture of the economic reality of the transactions that have been entered into, and present that picture as accurately as possible. When a company reports an $.88/share loss for a quarter, but the actual results are a positive $1.30/share income, something is very wrong with the picture being presented. I don't see any justification for wanting to keep the distortions and throw out reality, except greed perhaps. Many investors are being mislead and probably selling their shares at that point, potentially at a loss. They are relying upon totally worthless information and it is injuring them financially as a result. Seems reasonable to me that the company and auditors could be sued for putting out false financial information, and causing the losses of net worth.
I really don't understand the thinking behind not wanting to change material distortions.
Use Linn Energy To Build Income Now [View article]
So, my question is: does LINE's $110 maintenance cap ex include those acquisition costs which are simply to replace current production?
See the link. It states on page 20, under "E&P Companies" : "EBITDA also needs to be assessed in the context of reserve life on proven developed reserves and adjusted for CAPEX needed to sustain production."
Is LINE allocating a portion of the cost of each year's acquisitions to maintenance cap ex for the portion of the acquisition which will merely replace existing production?
Intel: Haswell Release On June 3rd Could Be Huge [View article]
If you want to serve your customers, ask what they want, don't choose for them, i.e. bloated software as I have described. We want easy to use, stable, no hesitation software to work with. Not software that stalls for a few seconds as the squirrel is running around the cage trying to catch up, and what you type or click doesn't register. grrrrrrr
Linn Energy: Don't Believe The (Negative) Hype [View article]
Linn Energy: Don't Believe The (Negative) Hype [View article]
I figured it out. It's working now. Thanks for the help. I just had to type in Box 13, code T and enter nothing. It then took me to the next screen where it asked me for the specific info.
Linn Energy: Don't Believe The (Negative) Hype [View article]
If it were just one number for Box 13, letter T, turbotax could handle it. You're saying TaxAct can handle the multiple T codes and amounts?
There's no place in turbotax to put code "T1", or "T2" etc. All it can handle is the letter "T".
I'll call Turbotax tomorrow, but I'm not expecting any help.
From what I've read on the SA forum, I thought and hoped I could do it with tax software. Doesn't appear that way to me. Not as easy as everyone said it was.
So, I'm not making enough money from PTPs at this point to make it profitable to be in one, due to the tax prep. expense it's gonna run me.
Linn Energy: Don't Believe The (Negative) Hype [View article]
Forget About American Capital, Annaly Capital Is Still The Best Of Breed [View article]
RS, on a GAAP Net Income basis, AGNC had a positive $231 million versus Annaly's $870.278 million. Adjust GAAP for the junk and AGNC had $258 million versus Annaly's $464.417 million. Neither lost money for the quarter.
On a comprehensive income basis, AGNC lost ($557) million and Annaly lost ($179.716) million. Both lost money on that basis, however these are unrealized losses based on loss in value of MBS they both still hold. Annaly's MBS lost more fair value during the quarter than AGNC's did. [( $865.15) vs. ($837)]
To me, you are still comparing apples to oranges, AGNC's comprehensive net loss to Annaly's Net Income. You simply can't do that.
Linn Energy: Don't Believe The (Negative) Hype [View article]
"Ellis: “Our accounting is in strict adherence to GAAP measures.”
Hedgeye: We agree."
My understanding is that the problem is with how LINE calculates distributable cash flow, or DCF. LINE doesn't include the cost of the puts in that calculation, and some think that it is an annual and repetitive cash outlay which should be included in maintenance capital expenditures, instead of included in growth capital expenditures.
I don't see how capitalization and amortization relate to that.
http://bit.ly/19dvog9
Forget About American Capital, Annaly Capital Is Still The Best Of Breed [View article]