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addisonsm

addisonsm
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  • MKM Partners chief technician offers MLP buy and sell selections [View news story]
    Correct. Ended a 26 year love affair with KMP and Richard Kinder.
    Mar 26, 2015. 05:24 PM | Likes Like |Link to Comment
  • MKM Partners chief technician offers MLP buy and sell selections [View news story]
    I assume he is worried about the price of oil staying low into 2017 when SDLP has two rigs that could come off lease.
    Mar 26, 2015. 05:22 PM | 1 Like Like |Link to Comment
  • Orange juice futures spike 21% in 72 hours [View news story]
    Like oil, the price variance isn't based on supply and demand so much as traders riding the tape down, then turning around and riding it back up. If anyone buying a contract was required to take delivery, then the futures would reflect demand.
    Mar 25, 2015. 11:05 AM | Likes Like |Link to Comment
  • Blood In The Water - Time To Buy BP Prudhoe Bay Royalty Trust [View article]
    LOL. Trading an oil royalty trust? Whew! Good you got out.
    Feb 26, 2015. 07:32 PM | 1 Like Like |Link to Comment
  • Blood In The Water - Time To Buy BP Prudhoe Bay Royalty Trust [View article]
    You can verify the following with the Trust management, but essentially, the last verification of the production capabilities showed that they would meet the minimum production levels until at least 2027 which was the 25 year projection at the time. The opportunity here is increasing oil prices balanced against your investment and the eventual shutdown of the Trust. You can develop your own model with all the various assumptions, but the key is the verification of the life of the field. It will continue to produce after that point on a declining basis (I have heard, but not verified seven to eight years on a declining basis) but the decline is irrelevant until the production actually starts to decline. I plan on watching this for something that looks like a bottom in oil and then committing. As for the distribution declining quickly in four years, I would suggest that the statement is made in contrast with the facts relating to the production life of the field. There is money and income to be made here, just don't jump too quickly.
    Feb 26, 2015. 07:30 PM | 1 Like Like |Link to Comment
  • Ramping Up Reform In Brazil [View article]
    I can't speak to the rail system, but the highways are modern, if one uses four lane divided with cloverleaf interchanges as the criteria for modern. I traveled to most of the major cities throughout the country and did not observe a problem with the highway system at any point. As for rail, I don't know what that would do plus/minus the economy, but they seem to be doing fine from a manufacturing point of view. I'll leave the political analysis to you, but it does tend to weaken your position in light of the misstatements regarding highway infrastructure.
    Dec 15, 2014. 05:41 PM | Likes Like |Link to Comment
  • Cramer's Lightning Round - The Shorts Have Been On The Wrong Side Of LinkedIn (9/9/14) [View article]
    Not sure I understand your response. Can you elaborate?
    Sep 11, 2014. 09:44 AM | Likes Like |Link to Comment
  • Here's The Alarming Table Kinder Morgan Doesn't Want You To See [View article]
    No, just lazy.
    Aug 12, 2014. 01:14 PM | Likes Like |Link to Comment
  • Here's The Alarming Table Kinder Morgan Doesn't Want You To See [View article]
    The incentive to Kinder to restructure like this was significantly enhanced by the thought that Hedgeye would auger in with their short position. Keep in mind, this time it isn't maintenance they are talking about, so the tune has changed. They shorted, tried to manipulate the market and got their head handed to them. Even if they are right, their credibility is lost on anyone who holds one of the Kinder companies. If they wanted to actually have an impact they should have gotten a reliable source to front the article. Or maybe they know that. Maybe they did try and get a reputable source to front for them. We'll never know because the rabbits have all moved to different hutches and won't be identifiable later.
    Aug 12, 2014. 01:10 PM | 23 Likes Like |Link to Comment
  • Kinder Morgan +20%, KMP +27% premarket on merger news [View news story]
    Take a look at the chart for KMI.WTS on Friday. Apparently someone knew something starting at 2pm through the close.

    On balance, I don't like the deal because I lose the tax deferred status on some shares (others have had their principal returned already) and I have a capital gains tax exposure on the cash payout. On the plus side, the income stream increases, but it is now taxable for a net of roughly equal. I would have been happier if they had offered a full, pro-rated exchange of KMI for KMP with no cash, but they have their reasons I'm sure.

    Clearly those who purchased KMI/KMP/KMR before the announcement are in good shape. I have owned KMP since 1990 and was disappointed to learn that even forever stocks have an expiration date.
    Aug 11, 2014. 08:56 AM | 11 Likes Like |Link to Comment
  • Dividend Growth Safety Superstars - 2012 Update [View article]
    The Trust and Guardian accounts that I manage have different requirements for dividends (and KMP turns into dividends after the capital has all been returned). There isn't a lot of difference between KMP and KMR if one uses a DRIP plan for the KMP. I did start buying KMI about three years ago because of their commitment to raising their dividend through 2016. After that we'll see. The last time I checked, the total return for the KMP was about 20% a year including cash distributions and the eventual dividends.
    Jul 20, 2014. 10:20 PM | Likes Like |Link to Comment
  • Cramer's Lightning Round - I Like Nike (7/10/14) [View article]
    He, like a number of other people that recommend securities doesn't always get it right. Last time I checked, the good analysts hit four out of ten times correctly, but cut their losses by getting out of the bad choices early. Cramer's recommendations are nothing more than a data point among many for a particular stock. The investor uses the information to do further research and make selections that may or may not have been recommended by Cramer. He has been correct enough that I have made a lot of money on his recommendations, but I certainly didn't buy all of them or even a relatively small percentage. His suggestions to buy or avoid are worth looking at closer and then, depending on the available information, heeding his advice or avoiding it. Dismissing him out of hand makes me wonder just who you do believe makes recommendations to your standards?
    Jul 11, 2014. 08:39 AM | 5 Likes Like |Link to Comment
  • American Realty Capital Properties's Valuation Is Lower Than Its Peers - While Justified, It Still Is A Buy [View article]
    I do not have any shares. I was looking for an opportunity to invest and was disappointed with ARCP. I'm a long term investor and this stock doesn't have the attributes of a good long term investment IMO.
    Jun 3, 2014. 04:28 PM | 1 Like Like |Link to Comment
  • American Realty Capital Properties's Valuation Is Lower Than Its Peers - While Justified, It Still Is A Buy [View article]
    My apologies. Which comment was off the mark? Ignoring the elephant in the room doesn't change the fact, nor does a rationalization change the facts either. REITs have a long history of having a story right up until the end. Losses heading into the ownership of the Red Lobster stores seems like a bad beginning. Add in the fact that 81% of the RL stores that they just purchased are on leased land and the number of stores that will be closed still hidden and this remains a dangerous investment from the outset. Your assessment that my comments are "so far off the mark" don't change anything. There are too many other investments that have similar yields, covered shareholder payments, and yes, a history of increasing dividends, to get involved with this company.
    May 31, 2014. 12:48 PM | 2 Likes Like |Link to Comment
  • American Realty Capital Properties's Valuation Is Lower Than Its Peers - While Justified, It Still Is A Buy [View article]
    Maybe I missed something, but where is the explanation for the earnings failure? Without spending a lot of time comparing the three companies, ARCP is losing money, and not an insignificant amount at that. No rationalization for the losses, no comment on hope or the future. The dividend isn't secure by any stretch of the imagination. I am looking for investments that pay reasonable returns, have a history of raising the dividend/payout, and make enough money to cover the dividend. This doesn't appear to be it.
    May 26, 2014. 03:18 PM | 8 Likes Like |Link to Comment
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