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surfgeezer

surfgeezer
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  • The Dividend-Growth-Devoid Income Portfolio [View article]
    The way you check CEF's ability to pay you is looking at the Undistributed Net Investment Income.
    I mostly use CEF.com to screen for CEFs. I consider UNII to be one of the most important metrics, as well as history of the NAV.

    A consistent -UNII is a very good sign the div will be cut, but it usually takes a few quarters. That is something I will trade on, price no.
    Aug 21 02:43 AM | 1 Like Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    Well you are right, it is very dangerous to mix trading and Income strategies. That said, as an Income/value investor the companies ability to generate the Income they pay me is my main concern, lower prices are buying opportunities for me. A limit stop is just something I would never use. Far more likely to SELL a Put and try to buy cheaper, especially if it is for something like an estimated earnings miss or a quarterly problem.
    Aug 21 01:00 AM | Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    Gotta say options, used in a very limited way have been very good to my Income, I use them for a targeted DRIP with my portfolio. Nothing better than picking stuff up cheap from price change scared investors.
    Aug 20 04:34 AM | 1 Like Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    Agree with you both. Smart guys folks, IMO. Just doubt we will see that kind of 2008 stupidity for a very long time. People do learn, unfortunately they just devise new ways to be stupid! LOL
    Aug 20 04:31 AM | 3 Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    B3-same situation. Look VERY HARD the MLP's. Just saying good yield and Distrib growth + no taxation when cost basis is reset? BDC's also excellent, if tax bracket is low. BDCL added to my pops.
    Aug 20 04:03 AM | Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    Agree with a lot of what you say Doug. I look after my dad's. Tough job, he ONLY looks at " what he could sell it for" to determine how " well " we have done. It flat does not matter that if he looked at his flow it could pay for his help with his real life when his health requires it, whereas " wealth" means nada. Oh well.
    That said, I also agree high yield has to be looked at long term. It does no good to get 15% if you sell for a 12% loss. The sustainability and the growth of the Income matters. What does not however is others people's belief that today's price change will continue. It won't. Price gains AND losses ARE temporary. Hard to get people to believe it. WHY I keep hammering if you actually focus on the whys and how's of the Income, and ONLY buy when the herd is running the other way- it works. The herd are mostly just running with the herd, they are occasionally even right. But overall, bet the OTHER way.
    Aug 20 03:56 AM | 6 Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    Gotta just say, first I loved this article Adam. Second, I disagree on not focusing on Income young.

    I focused on Income young. Not because I was in ANY way smart, but because my reality forced it. That said, by NOT focusing on Capital gains and INSTEAD focusing on Income, my Capital gains have been very good. MORE important, IMO, the passive Income has grown well. They are very much correlated in ways I admit I do not understand. But focusing on the Income, and I can not OVER emphasis how that does NOT just mean yield, you actually end up with very good Capital gains. Div growth does matter, it just is not a be all cure. Chowder says it well with a combo, that is indeed variable to each.

    Secondly, passiveIncome growth is not a skill set that is just instantaneously available. Like most skill sets, it takes practice.

    You are spot on when you talk of how hard it is to hold when the market ( read most other people ) think it is " dead money ", even though the the actual income is barely moved. It is tough. It can indeed be futile and self defeating. Knowing the difference takes time and experience. Admitting you screwed up is tough, so is telling the market kiss my azz. It is a skill set that takes time and screw ups to really sharpen. I obviously say it badly. Do it young is my advice, because I the end THAT is the skill you need to retire well.

    If I may throw another skill set in to the mix, I would add using leverage.


    Another hard skill. Again I use leverage extensively, but again I also NEVER use leverage for just price gains. Yep, it is another weird non sequential argument. Leverage means price movement is exaggerated. WHY it is bad to use it that way! LOL. Use it the "safe" way- for enhanced Income and it is fine. Again, another not easy to articulate skill set.

    Flame away Wall St, price change sucks. It is my SECONDARY weapon. I like yield spread, coupled with leverage. Pure math. The price change is for the DRIP with options, selling price insurance to people who have no clue what I am trying very hard to say-price change sucks as a path to retirement.
    Aug 20 03:26 AM | 6 Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    B&H-first recognize how lucky you are to not care about your Income, you are certainly giving away plenty in the name of " price risk".
    Second understand MANY are not so fortunate, for very good reasons, not "lazy" or "stupid".

    That said congratulations.
    Aug 20 03:03 AM | 3 Likes Like |Link to Comment
  • Supply-Side Versus Keynesian Economics [View article]
    So Corporations although bestowed the rights of a "person", including full ability to contribute to politics by the Supreme Court, should not pay for the use of our system then, even though they never die like people? No infrastructure, military protection, legal enforcement of laws costs at all?

    Wow, not much of an advantage there!

    Talk about begging to be a slave, unbelievable.
    Aug 19 01:44 AM | 4 Likes Like |Link to Comment
  • Fifth Street Senior Floating Rate's Recent Material Equity Offering And Its Impact On NAV [View article]
    If you are looking for a lot of price appreciation you are in the wrong sector. BDC's issue more shares with appreciation, and put the money to work.
    Aug 18 11:18 PM | 5 Likes Like |Link to Comment
  • Morgan Stanley: Kinder Morgan deal an overall plus but with some downside [View news story]
    P/E means little. How much does a pipeline right of way and pipes really depreciate? Like a house rental, the Cap Ex takes care of it virtually forever. Back out the depreciation, then look at earnings.
    Aug 18 10:44 PM | 2 Likes Like |Link to Comment
  • PetMed Express: A High-Yield Small Cap Cashing In On A Booming Industry [View article]
    Great points CK. Internet retail is a tough biz. My particular med was on sale and the cheapest, but next med I will still search and compare price. I am registered and they did a good job on delivery, so I will be comparing against them and again offering my vet a chance. Will be interesting as we see the internet info change the world, why I have been staying away from consumer stocks. Seems like a tough biz, getting tougher.
    Aug 16 05:05 PM | Likes Like |Link to Comment
  • PetMed Express: A High-Yield Small Cap Cashing In On A Booming Industry [View article]
    Yes, but. My vet has same offer- until I told them pet express's price. The tune changed and at first he was indignant that their retail ( on sale and part of the earnings miss?) was cheaper than his wholesale price. Then he tried to infur it was Chinese made meds. Bottom line, he wrote the prescription and I bought from Pet Med, why I clicked on article.
    Just saying scale matters and very tough for vets to compete.
    Not long, will have to dig a lot more still, but 4.8 is getting close to my minimum so starting to.
    Aug 16 04:43 PM | Likes Like |Link to Comment
  • Evaluating Preferred Stock Funds For Your Retirement Portfolio [View article]
    Glad to see Income articles on SA. That said it was very focused on price change.

    Just saying as a retiree, I focus on the Income, not the wealth because I personally do not like the idea of depending on trading for my retirement Income.

    I use FFC and HPI in the CEF space. Both have the all important positive UNII that I demand from all my CEF's. Added to FFC last week, decent discount now. About as far as I go with the price worrying is buying low.

    I do agree the rates are declining pretty much for everything, not just the Preferreds. The Muni's and even my BDC's are all grappling with it. Even with div cuts, and the Preferreds have not while a couple Muni's CEF's and one of my BDC's have, the net Income available to me, from DRIPing shares has gone up. So, to me anyway, the effective yield spread is still very strong compared to most investments.

    I do like CEF funds hold a wide spread of companies throughout the economy for diversification. I also like leveraged funds since it adds to my Income and I ignore the price volatility it adds. I also boost my Income with leverage and would NEVER use leverage for trading. Why I can be sanguine on price change is it is simply not the primary reason I buy stocks. It is a helpful tool sometimes.

    SPY may have had a better "Total Return", but it is meaningless unless you sell to capture it-NOW. Just saying for retirees, Income is what matters, so that's what I look at.

    10K in SPY would have gone up to 16,839$ or 17,082$ in a DRIP last 3 years.
    FFC only 13,657$ or DRIP 14,142. A difference of 3,182$ or 2,940$, of opportunity cost.
    BUT, SPY has an REAL Income of 296$ or 316$ while FFC has 921$ or 1,211$ per year WITHOUT a sale involved! No sweating prices, just collecting checks every month in FFC's case. That's a useable 100$ a month for every 10K if a pre retiree had DRIP till retiring today. Where exactly would they put the 17K now for solid Income? Sidelines waiting for the "dip"?

    SPY's price and theoretical "total return" will change tomorrow, I don't think FFC's div will.

    Again just saying investors really need to make a decision on their personal primary goals, and if it is Income, only use price for buying. Wall St hype to be obsessed with price IMO.
    Aug 13 02:02 AM | 1 Like Like |Link to Comment
  • Evaluating Preferred Stock Funds For Your Retirement Portfolio [View article]
    Disagree about FED.
    Aug 13 12:17 AM | Likes Like |Link to Comment
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