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depraved_miscreant

depraved_miscreant
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  • Equity CEFs: Terrific Opportunity In A Duff & Phelps Utility Fund [View article]
    A quick look shows that INF doesn't have a long history -- 2 yrs vs. ~9 1/2 for UTF. Also, UTF has ~16% debt/preferreds and is ~12 times the size of INF. The 1-yr NAV return for UTF is also slightly better (~20% vs. ~18%), but UTF uses a bit more leverage (~30% vs. ~23%).
    Sep 27 09:56 AM | 1 Like Like |Link to Comment
  • Equity CEFs: Terrific Opportunity In A Duff & Phelps Utility Fund [View article]
    From the financial reports, Nathan Partain runs both funds, but shares the duty with Deborah Jansen in DPG. I have owned UTF for some time, but the DPG vs. UTF portfolios appear different enough (despite some overlap, notably NGG) to own them both.
    Sep 24 11:46 AM | 1 Like Like |Link to Comment
  • Improving Economy Makes Counter-Cyclically Weighted Federated Investors A Sell [View article]
    "This author has overlooked a couple of big points re FII. Follow her advice with a large helping of caution."

    BTW, in my final paragraph, I did not mean to imply anything about any of Ms. Rogers's other articles. I simply believe that when recommending a short position in FII, she should have at least mentioned the company's history of generous special dividends on top of its ~3.7% regular yield. I would be surprised if a special is forthcoming this year end, but I wouldn't be completely shocked.
    Sep 23 01:56 PM | Likes Like |Link to Comment
  • Improving Economy Makes Counter-Cyclically Weighted Federated Investors A Sell [View article]
    It's not all headwinds for FII. The author neglects to mention that Federated has been waving the fees on its MM funds in order to maintain a positive return for shareholders. When the economy improves enough, short-term rates will eventually rise and Federated will reinstate its fees, although it might be some time before that happens. The resumption of those fees should drop right to the bottom line.

    There's probably truth in many of the author's points, but completely overlooking an important issue like the fee waver doesn't instill much trust in me with this article.

    I am still long FII, but now hold only a small fraction of my original position. I sold after the nice run up this summer with plans to possibly reenter, so I do concede that the author might be correct on the short-term direction of the share price. As for shorting FII, the author also neglected to mention that Federated has paid out several relatively large special dividends in the past few years, seriously increasing the risk of a short position.

    This author has overlooked a couple of big points re FII. Follow her advice with a large helping of caution.
    Sep 23 12:13 PM | Likes Like |Link to Comment
  • 20% Total Return Potential From This High-Yield Bond Fund [View article]
    CEF Connect lists annual portfolio turnover at 53%, normally something I don't like to see. In the case of HYI and its sector, nimble management looks like a plus -- providing they get it right. Nice article.
    Sep 18 10:01 AM | 1 Like Like |Link to Comment
  • PPL Corporation: Why You Should Avoid Its 4.9% Yield [View article]
    Yep. The debt load is high, even by utilities standards. I own PPL-pW, an 8.75% manditory convertible preferred (conversion date 5/1/14), I bought it with the idea that I could live with the PPL common, but now I'm looking to collect a few more divvies and then sell to capture at least a small capital gain. I would take a hard look at another similar convertible, though I don't know the likelihood of such an issue..
    Sep 17 09:12 AM | Likes Like |Link to Comment
  • Equity CEFs: ING Funds Get Axed Again [View article]
    Douglas, you have said on more than one occasion that you don't try to analyze the holdings of the funds, but rather follow the NAV. I have been tempted to stick a toe in with BCX, but I haven't because of your advice. I do look at the holdings and what I see for BCX are a few positions (e.g., BHP) that would account for the fund's poor performance, By and large, though, the top 10 holdings (which account for about 40% of the fund) don't fully explain it. Energy and commodities have surely underperformed, but I'm led to think that the fund management might be doing something awfully wrong. Still, a 12% discount in a sector which has been beaten down leads me to want to 'BUY LOW'. Opinion?
    Sep 16 02:18 PM | Likes Like |Link to Comment
  • Equity CEFs: A Legg Mason Fund At A Double Digit Discount Outperforming The S&P 500 [View article]
    I am also interested in Doug's take on the UNII.

    BTW, CEF Connect puts SCD in a 'Non-US/Other-Global Growth & Income' category, yet lists the holdings as 100% USA. GSK and VOD are ADRs and are listed among the top 10 positions, so this fund does have something of a global flavor.
    Sep 14 10:24 AM | 2 Likes Like |Link to Comment
  • A Number Of Concerning Catalysts To Consider Before Creating A Position In Altria Group [View article]
    I believe FCF Yield is correctly calculated so:

    FCF / Market Cap = FCF / (Current Price x # Shrs Common)

    P/FCF = 1 / FCF Yield

    I wouldn't trust the FINVIZ #. I prefer to calculate it myself. If debt is included, then the metric is FCF / Enterprise Value

    I agree with don re CF / Assets. I especially like to see a high Gross Profit / Assets, which indicates an efficient use of capital.
    Aug 26 09:32 AM | Likes Like |Link to Comment
  • A Number Of Concerning Catalysts To Consider Before Creating A Position In Altria Group [View article]
    I find fault with the author's P/FCF ratio of 73.24 for MO. I like to look at the inverse, FCF Yield, for which I get 5.5%. The inverse of 5.5% is 18.18. This is calculated using equity market cap only, debt not considered.

    FWIW, Yahoo!'s Levered FCF Yield for MO is 7.5%, which makes me believe I'm closer to the true number than is the author.

    Longtime MO long....
    Aug 26 07:47 AM | 1 Like Like |Link to Comment
  • Why Falling Prices Should Be Welcomed By Preferred Stock Investors [View article]
    Thank you, Doug, for taking the time to respond so extensively. In fact, I am in preferreds for the long haul. I was fortunate to have the nerve to hold my nose and buy several in early 2009. In the case of the TRUPS, I thought I sniffed out a possible short-term trade.

    I asked for caveats and you obliged. Thanks for setting me straight and for all your enlightening articles. It's time to buy your book.
    Aug 12 06:43 PM | Likes Like |Link to Comment
  • Why Falling Prices Should Be Welcomed By Preferred Stock Investors [View article]
    Morgan Stanley has several Trust preferreds (MWH, MWG and MWO, to name a few) which are now priced below par and which all yield in the neighborhood of 6%. Because of the new treatment of Tier 1 capital, I believe it is reasonable to expect them to be called within the next two years, if not sooner, adding a capital gain to the total return. Any opinions on these securities ? Caveats ?
    Aug 12 10:53 AM | 1 Like Like |Link to Comment
  • Tech Billionaire Jeff Bezos Grossly Overpaid For This Dinosaur [View article]
    The building and real estate are not part of the deal, nor are several other pieces of WPO. This deal is newspapers only -- the Post and others.
    Aug 9 10:06 AM | 1 Like Like |Link to Comment
  • MLP Closed End Funds: Attractive For Yield Oriented Investors [View article]
    FWIW, in addition to CEF Connect and CEFA linked within the article, here's another source of CEF info:

    http://bit.ly/121ZMaU
    Aug 6 09:14 AM | Likes Like |Link to Comment
  • Equity CEFs: What Rotation? Bond CEFs Still Dominate Premium Valuations Over Stock CEFs [View article]
    Douglas, I went to the CHW website and viewed a listing of the entire portfolio. You said 'mostly high yield corporate bonds' (@29% of the fund), yet many of the names I see would appear to be investment grade or near IG names (no, I didn't check Moody's). The maturities of all bonds are listed (most < 10 years) but coupon rates are not. Do you have a source for that info or is deep research required ?
    Jul 11 11:20 AM | Likes Like |Link to Comment
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