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  • A 6-Position Portfolio For High-Yield REIT Investors [View article]
    Sold the OHI 40$ Sept Puts today, N price is 37.33$. We will see.
    Mar 2, 2015. 01:30 PM | Likes Like |Link to Comment
  • A 6-Position Portfolio For High-Yield REIT Investors [View article]
    After NRE spin NRF goes to .375c, but NRE gets .05. Total is up over 6%, but NRF's is going down.
    not a fan
    Mar 2, 2015. 01:25 PM | Likes Like |Link to Comment
  • A 6-Position Portfolio For High-Yield REIT Investors [View article]
    Agree, both AA and D. I have rolled all most all my mREIT exposure ( AGNC, ARR ) to MORL, for both the yield bump and diversity. I have zero problem with price volatility and would just remind D, there is no Total Return without a sale and unreal time periods or prices mean little to many.

    I no longer consider NRF an mREIT.

    I do have PMT as another speculative play that I see as having very different risk/reward as a repo based financing mREIT has.

    For me diversity is key because I screw up too much!
    High yield helps cover that ;)

    Being long NHI, OHI for years also does not hurt.

    Some parts enhance share growth, and some parts div growth, both together equals Income growth, my only game- price is for other folks to play with. Why I do not bother with tracking total return.
    Mar 2, 2015. 02:53 AM | Likes Like |Link to Comment
  • A 6-Position Portfolio For High-Yield REIT Investors [View article]
    Interest is taxed same as Ordinary, so not much difference for most REIT divs.
    Agree though, extra juicy in Roths, or IRA's
    Mar 2, 2015. 02:33 AM | Likes Like |Link to Comment
  • A 6-Position Portfolio For High-Yield REIT Investors [View article]
    I agree Adam. After hearing earnings and the spin NRE details, I expected a price bump. When it went down, I sold the 21$ March Puts and will be happy with a 18.97$ net price. Soon to be 1.50/18.97 sub 8% yield. If I waited for my better net priced September Puts, I would miss the NRE shares forward going yield.

    NRF, for the unknowing will begetting another div cut. From .50c a quarter to .40c with the NSAM spin, because NSAM pays .10c difference, and now with the NRE, NRF goes down to another 2.5c. Yes the NRE .5c is actually a total bump for all three, and they did not discuss NSAM increasing, but NRF by it self looks ugly.

    NRF will be three different things and IMHO, a pain in the butt, Course I whined when R Kinder turned my KMP and EPB into one KMI.

    Ironic, I bought NRF because they were internally managed and the CEO talked of what an advantage it is ( still believe that personally ) and then he spins it out. Kinder initially sold MLP's for the great tax delays, and then promptly forgot it.

    Diversity rules.
    Mar 2, 2015. 02:29 AM | Likes Like |Link to Comment
  • BDC Results Q4 2014: Part 1 [View article]
    Thanks Buzz, you lay it out excellent and it is much appreciated. Looking forward to my NMFC and TCAP comparisons.
    Here's hoping ARCC stays below 17$ on March strike.
    Mar 2, 2015. 01:46 AM | 1 Like Like |Link to Comment
  • Building A $100,000 High-Yield Income Portfolio From Scratch, Adding Position 1: Prospect Capital [View article]
    SD-" I got in to make high income while hopefully PRESERVING my principal. The latter aspect has not happened." just saying that is an incomplete sentence, or I would agree with it. Missing the "so far" at the end. We will both see. I agree and do not recommend PSEC to friends BTY and still long also- ahh what a world.
    Mar 1, 2015. 11:01 PM | 1 Like Like |Link to Comment
  • Building A $100,000 High-Yield Income Portfolio From Scratch, Adding Position 1: Prospect Capital [View article]
    SD-I agree it is a very good pick that even though a lower yield than PSEC, has a more than adequate positive DGR to make up for the lack of yield. MAIN is my biggest ROTH position as far as the value stuff, but it is also one I really wish I had never "taken Profit " with. Why I am reluctant to sell, thinking I can get in cheaper, later. Chowder said it best, selling a flower for a weed, to many times. I usually skip the Capital bump now.

    I still write Put's on MAIN, the dips just don't last long enough for them to hit strike ( ok, I get my Premium even earlier and get my juicy yield there). Agree a little overpriced but this last Earnings was also just good stuff. I normally barely skim theirs, but was worried about energy exposure. They are Houston based. If a 30$ Put gets a Premium above 8% yield I will sell it. Somehow doubt it. ;)
    Mar 1, 2015. 10:47 PM | Likes Like |Link to Comment
  • Building A $100,000 High-Yield Income Portfolio From Scratch, Adding Position 1: Prospect Capital [View article]
    What a fascinating look see at asset's and how they make their money, but it did not show operations flow, that pays the divs. It did show nice appreciation and since they are primarily a trading fund that is very good for operations. i also would not worry about any small ROC.

    Really interesting to a wierdo like me how they are working their asset's. Did you notice the heavy plays in the repo market? Same stuff mREITs do. Don't get me wrong, I have mREITs just would not have expected it here. Like I said the "Bond" is just marketing for the traders that run it, has nothing to do with the hierarchy of the Income.

    You do need to keep an eye on the fed however, just like an mREIT. Those 3 month Treasuries, swapped for way future dated and higher yield could get spanked.
    Good luck
    Mar 1, 2015. 10:26 PM | 1 Like Like |Link to Comment
  • Bogle's Views On Retirement Income [View article]
    Just silly of me to even comment here, but it is a rainy sunday and I was looking for another comment when I came upon RAS- "I paid far less than that in SS "deductions".
    Therefore I are getting something for nothing."

    SS is best looked at as an Insurance pool. People that pay in also die. Their money is in the pool still and earning the terrible returns SS is stuck with by being forced to lend to our Government.

    My union is not, but the job does make people tend to die early. The combo of getting better returns and having people die before they get repayment of their "total Return" money is powerful. We keep, much like SS, a very clear record of exactly what I and my employer's have contributed in my name, and my Pension is based solely on that. 2% a month of my contribution, or 1% of the combination of the contractors and mine. Yep that's right, a month.

    BECAUSE the "pool" has done well AND people die before " Total Return" is exhausted. Just saying again, SS is an easy fix IF people get off the soap box and compromise a little.

    We obviously run it a little different also. A retiree can opt for more money up front and, if the wife signs off, she gets nothing after his death. If they take less up front, she can only get half after he dies, till she dies. Also a reason the pool has grown better. We give nothing to surviving children or people messed up at birth.

    Just saying you are not "taking" some one else's bene's. It is a pool everyone that works feeds into. The extraction rates and criteria are set by political dialogue, just like our Union. But we do not have big money clouding the rhetoric. No one is saying they are "stealing" my money to put it in the pool. Their are no "politicians" to blame, it is us in room deciding the big things and an elected committee of half electricians and half contractors that run the pool we are both able to receive the benefits from. We build stuff, the pool gives us the economy of scale to hire people that are skilled at what they do-manage money on average far better than us. Yes a few people MIGHT do better on their own, most would not. For a country, just like our much smaller union where we actually KNOW one another, it is important that all have a minimum, no matter how dumb they are early in life when saving and compounding really matter.

    E Pluribus Unum matters in America. We can and do value independence, they are not polar opposites and in many ways Independence of thought and rhetoric is a true strength, until it gets in the way of actually getting something done. Then compromise works best. Our SS is, as usual a lousy compromise with a minimum standard of living AND we have other things like Roth's and IRA's to help the Independently minded, as well as of course just straight up taxable saving and investing. No one section should be vilified in a vacuum.

    I do not feel a tiny bit guilty for collecting a great 2% a month on what I put in to my Union or to SS.
    Mar 1, 2015. 06:56 PM | 4 Likes Like |Link to Comment
  • Bogle's Views On Retirement Income [View article]
    Christine-""when that price appreciation stopped and went negative, the leverage bites very hard in reverse."

    And _that_ is the real issue."

    um, no it is not IF you are not a trader.

    Today's pricing on your Income is fairy dust. Just a reality Wall St hates to admit.

    People are trained to look at the "value" of their say 401K statement and that is supposed to tell them "when" to retire. Bogle is right- you really should NOT retire on "value", you should retire on INCOME generated or you are THEN, and ONLY then, captured into watching the value/fairy dust phenomena.
    Income simply is not as volatile as pricing. It just is not. Again a lesson learned when my rents kept going up during the recession and my RE temporarily lost half their "value". In hindsight, the "Total Return" in 2010 did NOT mean crap, as does today's. Why I keep repeating you can NOT have a "total Return" without a sale. Today's pricing WILL be different than tommorows, I have NOT made or lost money from day to day, it is fairy dust, the INCOME flow continues INDEPENDENTLY.

    If you are at SA, you are no longer just letting someone else manage your money, you can let go of price entirely if your plan is to not trade. If you wish to trade and try and get some nice Capital bumps ( I do a little ), THEN you can start putting today's pricing as a priority- for the TRADING, not the Income.

    I look at Capital as a TOOL, to build Income, not the other way around like Wall St wants me to.
    Mar 1, 2015. 05:41 PM | 4 Likes Like |Link to Comment
  • Bogle's Views On Retirement Income [View article]
    Ian-sorry late, and I just read-"By contrast, a portfolio of DGI stocks will be paying an ever-increasing dividend over time, so based on the initial amount invested, you will continue to get more income. Over many years this should not only beat inflation, but also beat any high-yielding investment you could replace it with."

    What is wrong with that statement, is the same problem I have with Brokerage statements- They are required to list new shares, bought with a DRIP as having a cost. I took accounting, I get they do have a cost, but from an Income growth perspective it is irrelevant, and actually gives an advantage in perceived "results" to a company that keeps the money internally and drives price per share up. DGI, with a low yield also benefits from this same "accounting" phenomena.
    The initial investment can be the same, they can grow from a "Total Return" point of view the same, but the statements will show the no or low yield as having a much lower "cost" basis, just because so much less of the "Total Return" is NOT shares. It WILL "show" a MUCH better "profit". BUT, and I can not over emphasize enough, that is UNREALIZED without a sale! Yes you don't pay taxes on unreal gains and that MAY be a big deal, BUT you are in fact giving up REAL Income for a POSSIBLY better unrealized growth.
    How much do you trust the herd pricing is a core consideration when you do that? It is at the heart THE most relevant question.

    Shares count in the Income formula. A high yield that is DRIP'd can in fact grow the Income with zero DGR, BECAUSE they use shares to grow. The reality is starting at a higher yield means you should have lots of "leftover yield" to buy shares with-ANYWHERE, if you do like Dave and I, and selectively DRIP.

    Why I keep my own spread sheets and KNOW what my "real", IMO, "cost" is.

    Just saying the Income formula is I=Shares X Divs, and EITHER side of that X growing MEANS Income growth. The Div growing absolutely helps the price growing, but hurts the share growing. Hurting the Income growth, so much of your "Total Return" starts tilting toward price appreciation, that means NOTHING without a sale except a warm feeling of having the herd validation and can in fact be taken away by the said herd pricing-quickly.
    Mar 1, 2015. 05:11 PM | 1 Like Like |Link to Comment
  • Building A $100,000 High-Yield Income Portfolio From Scratch, Adding Position 1: Prospect Capital [View article]
    Nah. They got hurt bad there in 2009 and have reduced exposure. They lend to some service companies, but not their biggest problem.
    Feb 28, 2015. 04:43 AM | Likes Like |Link to Comment
  • Fantastic Results Reinforce Northern Tier Thesis [View article]
    Agree. NTI does not need a Capital pop for something new and is giving up steady toll booth revenue.
    Not a fan.
    Feb 28, 2015. 04:40 AM | 1 Like Like |Link to Comment
  • NorthStar Realty - The Value Creation Continues - 10% Upside At Least [View article]
    That no mention of NSAM fees increasing or div increase bugged me. Seems like managing a separate entity would help their fees. @ less than 2% yield a very skinny cow!. Hoping for a few cents on div soon. NSAM was supposedly the "big" div grower, yet nada so far.

    Don't really like it looks like a div cut for NRF. Nice the new NRE combined will be a raise in total, but a new researcher will see a div cut on that symbol, just like with NSAM spin.
    Seems to me if want price to go up, you would not want two div cuts on the record for a symbol. Not very far apart

    Long NRF since before the split of NSAM and actually bought because they were internally managed, like MAIN and NHI, I consider it an advantage.

    That said I am adding ;). Sold the March 21$ Puts today, net 18.90$
    Feb 28, 2015. 04:27 AM | 1 Like Like |Link to Comment