Forget About American Capital, Annaly Capital Is Still The Best Of Breed [View article]
It's cow patties as far as I am concerned. 2012, as I said, was an excellent year for them from a Net Income standpoint, $6.06/share. The GAAP number of $4.17 is materially distorted due to unrealized losses on derivatives used as hedges being included in GAAP net income. ($574 million in unrealized losses) The GAAP number is crap. Most of those losses will never be realized.
The same situation impacted NLY in 2011. $1.8 billion in unrealized losses was included in Net Income, making their GAAP number that year crap also.
Forget About American Capital, Annaly Capital Is Still The Best Of Breed [View article]
"ask yourself which company changed the major data points in their press release earnings headlines for the past 5 quarters, hiding more and more of the negative data, to get at the answer of which company is run better."
Cow patties. This is meaningless without evidence. Show the evidence. 2012 was a great year for AGNC. Show the evidence of your claims please. IMO, they are without merit.
Forget About American Capital, Annaly Capital Is Still The Best Of Breed [View article]
AGNC didn't have a great 3rd qtr. $.65/share net income, but a very good 4th qtr., $2.00/share net income. NLY's share price cratered in Oct. and Nov., when I sold it. That's what I'm talking about.
Linn Energy: Don't Believe The (Negative) Hype [View article]
Companies can create more stable cash flows with hedges. If they insure against lower prices, and prices rise, they can reap the benefit of the higher prices and let the hedge expire. It's insurance. If prices go lower, they sell the commodity for less money, but then collect on the hedge, so the cash flow comes out the same as if the price of the commodity was the same as the hedged price. I don't see how a hedge can hurt, unless it's not effective, which means they spend money without any benefit. But, it can definitely hurt their cash flow if they don't hedge and prices drop.
I see it as insurance, just like property or auto insurance. You are insuring against risk. And that to me is why the puts are not capital expenditures, but prepaid insurance, annual operating expenses, properly reported under Cash Flows from Operations, just where LINE reports them.
Linn Energy: Don't Believe The (Negative) Hype [View article]
"Nonresidents are required to file an Oklahoma income tax return when they receive gross income of at least $1,000 of Oklahoma source income."
I don't know. Makes it sound like a return has to be filed if you have at least $1,000, whether you owe anything or not. With the standard deduction and exemptions, you probably would not, nevertheless, the gross income sounds like before any deductions/exemptions to me.
Forget About American Capital, Annaly Capital Is Still The Best Of Breed [View article]
Agreed, Annaly did a lot better for the quarter. But, both AGNC and NLY lost value (comprehensive income) for the quarter. Both made money on a Net Income basis, all be it, NLY made considerably more in total. I don't know about per share, haven't seen the AGNC 10-K yet. Looks like it was just released yesterday.
I can't call either better than the other one at this point. NLY stumbled late last year, when I sold, and AGNC did very well during that time. Now AGNC is stumbling a bit. I think both have good long term futures.
But, congratulations to Annaly, and keep truckin'. I'm watching both for an entry point.
Linn Energy: Don't Believe The (Negative) Hype [View article]
What GAAP accounting standard requires the reporting of puts under Cash Flow From Operations?
I am aware of the standard that requires the changes in value of derivatives used as hedges, but not designated as such, to be reported in earnings in the period such changes occur, under unrealized gains/losses on derivatives. But that doesn't include amortization of puts. Put amortization is a realized expense, not an unrealized one.
But not aware of any standard that requires placing the puts under a specific section of the Cash Flow statement.
Also, I would assume GAAP requires the amortization of the puts to be placed under Depreciation - Depletion - Amortization and not under unrealized gains/losses on derivatives. It's just common sense. Putting it under derivatives is a misclassification of the expense, if it is true.
Linn Energy: Don't Believe The (Negative) Hype [View article]
Just wanted to bring some other information into the discussion as food for thought. A lot of folks were saying Wells or Raymond James was recommending the stock. I would hope so, as an underwriter of the stock, and who may own it at the moment. It's hard to find an objective opinion about the stock. Who ya gonna trust?
Linn Energy: Don't Believe The (Negative) Hype [View article]
"Hedgeye: We disagree. How LINN excludes the cash cost of put options from “distributable cash flow” by amortizing them through the unrealized loss on commodity derivatives line has neither been adequately explained nor justified (it's complex and most LINE investors don't understand it). "
That's odd. I would have assumed the amortization would be reported under Depreciation - depletion - amortization. I find this hard to believe, to be honest, that Linn reports the amortization under unrealized gains/losses on derivatives.
Something else that strikes me as odd is that LINE reports the cash costs of the puts under "Cash Flow from Operations", but reports the cash costs of acquisitions it makes under "Cash Flow from Investing Activities". IF they really view the puts as capital expenditures, and part of the acquisition cost, why don't they report the puts with the rest of the acquisition costs on the cash flow statement?
Linn Energy: Don't Believe The (Negative) Hype [View article]
Ok's state tax website is in link below. Looks like if you have at least $1,000 in OK source gross income you are required to file a return there. (Non-residents) It looks like there is an online filing option. My experience doing taxes with a tax prep firm was that most states have all the requirements listed on their website and it's not that difficult to figure out, if the software doesn't do it for you.
American Capital Agency Corp.'s Updated Dividend Sustainability Analysis (Through Q1 2013) [View article]
I have to disagree with you Warlord. True, the unrealized gains/losses on derivatives uses as hedges but not designated as hedges materially distorts GAAP Net Income/Loss almost every quarter, but after adjusting for that, I fail to see how that adjusted number is not credible.
For equity REITS, the failure to reflect the appreciation in real estate value is a flaw which looks like will be corrected in the next 5 years. But, for mREITS, after adjustment, I fail to see how the adjusted GAAP number is not credible. You never look at just one measure to determine the health of operational performance, not even FCF or AFFO.
Besides that, FCF and AFFO are calculations taken from GAAP financials.
Linn Energy: Don't Believe The (Negative) Hype [View article]
If we want to talk about motives, Raymond James, Wells Fargo, UBS, Stifel Nicolaus, Merrill Lynch, and Smith Barney have all been or are currently underwriters in LINE and/or LNCO stock, and no doubt, some hold the stock as an investment currently. They have a monetary interest in seeing the stock do well. Check out the 8-Ks.
Linn also has a credit line with Wells Fargo. See page 113 of the 2012 10-K.
Linn Energy: Don't Believe The (Negative) Hype [View article]
Fidelity lists 4 firms recommending buy: Raymond James, Smith Barney, Stifel Nicolaus, UBS.
Three neutral: GMI, Merrill, Lynch, Zacks
One underperform: Columbine Capital Services
Four Sell: Ativo Reserach, Ford Equity Research, Jefferson Research, and Thomson Reuters.
The four "buy" firms are not included in Fidelity's Equity Summary Score. Fidelity has a very bearish opinion of the stock. Says its accounting practices are very aggressive.
Forget About American Capital, Annaly Capital Is Still The Best Of Breed [View article]
The same situation impacted NLY in 2011. $1.8 billion in unrealized losses was included in Net Income, making their GAAP number that year crap also.
Forget About American Capital, Annaly Capital Is Still The Best Of Breed [View article]
Cow patties. This is meaningless without evidence. Show the evidence. 2012 was a great year for AGNC. Show the evidence of your claims please. IMO, they are without merit.
Forget About American Capital, Annaly Capital Is Still The Best Of Breed [View article]
Linn Energy: Don't Believe The (Negative) Hype [View article]
I see it as insurance, just like property or auto insurance. You are insuring against risk. And that to me is why the puts are not capital expenditures, but prepaid insurance, annual operating expenses, properly reported under Cash Flows from Operations, just where LINE reports them.
Linn Energy: Don't Believe The (Negative) Hype [View article]
I don't know. Makes it sound like a return has to be filed if you have at least $1,000, whether you owe anything or not. With the standard deduction and exemptions, you probably would not, nevertheless, the gross income sounds like before any deductions/exemptions to 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]
I can't call either better than the other one at this point. NLY stumbled late last year, when I sold, and AGNC did very well during that time. Now AGNC is stumbling a bit. I think both have good long term futures.
But, congratulations to Annaly, and keep truckin'. I'm watching both for an entry point.
Linn Energy: Don't Believe The (Negative) Hype [View article]
I am aware of the standard that requires the changes in value of derivatives used as hedges, but not designated as such, to be reported in earnings in the period such changes occur, under unrealized gains/losses on derivatives. But that doesn't include amortization of puts. Put amortization is a realized expense, not an unrealized one.
But not aware of any standard that requires placing the puts under a specific section of the Cash Flow statement.
Also, I would assume GAAP requires the amortization of the puts to be placed under Depreciation - Depletion - Amortization and not under unrealized gains/losses on derivatives. It's just common sense. Putting it under derivatives is a misclassification of the expense, if it is true.
Linn Energy: Don't Believe The (Negative) Hype [View article]
Linn Energy: Don't Believe The (Negative) Hype [View article]
That's odd. I would have assumed the amortization would be reported under Depreciation - depletion - amortization. I find this hard to believe, to be honest, that Linn reports the amortization under unrealized gains/losses on derivatives.
Something else that strikes me as odd is that LINE reports the cash costs of the puts under "Cash Flow from Operations", but reports the cash costs of acquisitions it makes under "Cash Flow from Investing Activities". IF they really view the puts as capital expenditures, and part of the acquisition cost, why don't they report the puts with the rest of the acquisition costs on the cash flow statement?
Linn Energy: Don't Believe The (Negative) Hype [View article]
http://bit.ly/179raK0
Linn Energy: Don't Believe The (Negative) Hype [View article]
https://ttlc.intuit.com
American Capital Agency Corp.'s Updated Dividend Sustainability Analysis (Through Q1 2013) [View article]
For equity REITS, the failure to reflect the appreciation in real estate value is a flaw which looks like will be corrected in the next 5 years. But, for mREITS, after adjustment, I fail to see how the adjusted GAAP number is not credible. You never look at just one measure to determine the health of operational performance, not even FCF or AFFO.
Besides that, FCF and AFFO are calculations taken from GAAP financials.
Linn Energy: Don't Believe The (Negative) Hype [View article]
Linn also has a credit line with Wells Fargo. See page 113 of the 2012 10-K.
http://bit.ly/11noBmn
Linn Energy: Don't Believe The (Negative) Hype [View article]
Three neutral: GMI, Merrill, Lynch, Zacks
One underperform: Columbine Capital Services
Four Sell: Ativo Reserach, Ford Equity Research, Jefferson Research, and Thomson Reuters.
The four "buy" firms are not included in Fidelity's Equity Summary Score. Fidelity has a very bearish opinion of the stock. Says its accounting practices are very aggressive.