Seeking Alpha


Send Message
View as an RSS Feed
View surfgeezer's Comments BY TICKER:
Latest  |  Highest rated
  • Desperately Seeking Yield Through Equities Redux: Part 11 - Wrap Up [View article]
    Great series, thank you. I especially agree with being diversified.

    My one quibble would be your statement on leverage-"As long as things are going smoothly, the leverage may offset administrative costs. On the other hand, in a nasty downturn the leverage compounds an investor's losses."

    It does more than just offset expenses, it increases income. That simple. The math is easy once you know the yield spread (difference between interest cost of funds and income received) and % of leverage.

    The problem becomes when people try to interject "total return" to the income received-they are separate and yes price does move more. Putting price change in the equation is always risky and it is a very different risk than if the biz model can support the payments to you.

    Leverage has been given a bad name by investors who gamble on price change as their main model because of the problem you describe, however using leverage and due diligence on the payments is a different matter and is how I increase my income
    Apr 10, 2013. 10:11 PM | Likes Like |Link to Comment
  • Capture A 9%-Plus Yield Now From This Oversold, Undervalued Dividend Stock [View article]
    Apr 9, 2013. 01:56 AM | Likes Like |Link to Comment
  • Desperately Seeking Yield Through Equities Redux: Part 10 - The Issue Of Context [View article]
    Always good stuff, thanks
    Apr 9, 2013. 01:12 AM | Likes Like |Link to Comment
  • Desperately Seeking Yield Through Equities Redux: Part 10 - The Issue Of Context [View article]
    Trekking , look at KMR, EEQ as ways to be in the LP without problems in IRA.
    Apr 9, 2013. 01:11 AM | 1 Like Like |Link to Comment
  • A Real Dividend Growth Machine: Q1 2013 Review [View article]
    DGM- good comment, do not be sucked into political BS.

    Having said that, tunaman is flat incorrect on a factual basis. The FED is not "printing money" it is giving electronic credits to the RESERVES of banks. So the effect is to increase the Reserves, not increase the supply or "devalue" our money. They are in fact getting the Reserves back to normal to withstand a future shock, since Wall St new exotic trading vehicles that were sold as "insurance" to replace the need for Reserves utterly failed. The core reason for the depth of the recession was the lockup of the financial system, the actual "value lost" from sub prime loans was no worse than the dot com price bubble ( because "free markets" pricing DOES bubble and plunge).

    He is correct that if the FED had not acted as "lender of last resort" the ensuing "free market" panic and liquidity lock up would have devastated the country and the worlds interconnected financial system. Again WHY we and the rest of the world has Central banks.

    Strongly recommend reading Bernanke's new book to anyone interested in getting their opinions from facts.
    Apr 8, 2013. 10:27 PM | Likes Like |Link to Comment
  • A Real Dividend Growth Machine: Q1 2013 Review [View article]
    Exactly correct Minty. I applaud the article overall but my method for showing portfolio annual performance minus's new money fo both the Income and NAV.
    Mathematically it is still a problem if the money was added first or end of year, but at least I am not congratulating my own contributions.
    It is only for me that I do this, so I guess the important thing is being consistent, but you are correct the % will decrease and future performance comparisons less valid.

    Having a family and wanting to enjoy that, limited our personal savings rate to an average of 10 to 15 %. It is balance we all must choose, but having had many medical problems I only put so much faith in the future. A "rich" future does not just include money and today is not something to be wasted, many experiences can not be replicated in old age.
    Apr 8, 2013. 09:59 PM | 2 Likes Like |Link to Comment
  • When Do The Bears Admit They Are Wrong? [View article]
    AS= Gold has zero earnings, why would you call zero earnings sustainable? It is a fear and political trade, nothing more.
    Earnings ARE rising and sustaining increasing payouts, by my companies at least- why would the price not also?
    Strongly recommend you actually READ Bernanke's new book, instead of relying on gold bug pump. He articulates 3 different ways to reduce the Fed's balance sheet AND the fact he does NOT have to at all!. The balance sheet produces INCOME, something gold does not, and the Income mostly goes to taxpayers-oh the horrors! LOL. It is simply increased Reserves- a very good idea that we relearned in the meltdown.
    Apr 8, 2013. 09:21 PM | Likes Like |Link to Comment
  • Bear Of The Day: Rentech Nitrogen [View article]
    I do it in both and my taxable. LOL took to long reading the article and only got .90c for my 32.50 April Put. Find out April 20th.
    Apr 4, 2013. 12:33 AM | Likes Like |Link to Comment
  • Muni Bond CEFs Take A Beating Again [View article]
    Yep, after Electrician went back and got an AS in biz from my local college. Helps reading the statements and the language.
    Apr 4, 2013. 12:28 AM | 1 Like Like |Link to Comment
  • Bear Of The Day: Rentech Nitrogen [View article]
    Brad I use TDA and options are allowed in IRA if cash secured. Just saying sometimes the best use of dry powder is options. So today, if you had 3,250$ available, you could sell the April 32.5 for 1. That would put 100 in your acct today and if RNF is still below 32.5 on April 20 you would get it for a net of 31.5.
    just saying options are an option most people do not use
    good luck
    Apr 3, 2013. 03:11 PM | Likes Like |Link to Comment
  • Bear Of The Day: Rentech Nitrogen [View article]
    Good way to go Joe, i had sold the 42.5 and then 40 for April back when it was peaking, have since rolled them like you suggest. hopefully both turn arounds go as planned.
    Apr 3, 2013. 03:02 PM | Likes Like |Link to Comment
  • Bear Of The Day: Rentech Nitrogen [View article]
    Dang, sorry to hear you will not be here much Chris. I to have been reading SA less and it is better for your health. Will be signing up for your letter.
    Apr 3, 2013. 12:55 PM | Likes Like |Link to Comment
  • Oiltanking MLP: Currently Overpriced And Paying General Partner Way Too Much [View article]
    Had to correct this, sold my dads holdings of OILT on 3/26 for 52.83, wish now I had sold mine also! LOL. Ugly today. Try not to trade to much but the yield had dropped too much and wanted to put the profit (70% in less than a year) toward his Margin.
    Apr 3, 2013. 12:41 PM | Likes Like |Link to Comment
  • Muni Bond CEFs Take A Beating Again [View article]
    Scooter-"Comments on Unrated/Not rated Bonds showing in various CEF's? "

    When I go over to CEF's s tab on the Individual CEF I also check out their top ten holdings, # of holdings, ratings, etc-
    I don't pretend to know the all the nuances, but I do try to make sure they have a good team checking these things out. Why I look at NAV history. Why I like funds with lots of holdings, so they are not to concentrated. I also make sure I am not to concentrated by having 3 National-PMX,MHI,EVN and 5 of my state PZC,PCK,NKX,NUC,NAC. Some of those are currently not making EPS=Dist, but I am still holding and watching without DRIPing. I also use CEF for my Foreign bond holdings in my IRA's, again depending on their expertise and ability to access things I can not and to diversify.
    Currently my taxable is about 1/3 tax free, 1/3 tax deferred (MLP), 1/6 qualified and 1/6 ordinary divvys.
    Just my method that allows me to sleep well.
    Agree it is a bit of a job, but it beats working in construction like I used to do and, for me now, is funner and much better from a taxation point of view.
    I am also a landlord, so I tend to look at things differently. While I agree and consider the NYSE a crap table if you are in it for price change and trading, my method is to more look at the Income generated and treat my stocks like tenants. I seldom worry about the prices I could sell my rentals for-it is about making sure the rent comes in. So I just consider the NYSE a seperate building with lots of tenants that are easier to kick out if they screw up and are mostly giving me rent raises without me even asking. Diversity is both safety and a limiter on reward. I like my Income to come from lots of small streams. Retirement, Rent, Stocks
    Apr 3, 2013. 12:12 PM | 2 Likes Like |Link to Comment
  • A Simple Model For Predicting mREIT Dividends [View article]
    Actually, I have found my mREIT's do the opposite of market-usually.

    I believe, in the past at least, investors understood a rapidly increasing economy and GDP/Interest rate jump would be detrimental and vice versa.

    Why I keep them, part of a hedge against my generally bullish view.

    Expect no change from Fed before unemployment hits 6.5% and THEN they may start decreasing the MBS buys. Bernanke has been excellent on saying exactly what he is going to do, I expect it to continue.
    Apr 3, 2013. 01:40 AM | Likes Like |Link to Comment