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cpa28761

cpa28761
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  • Dividend Champs With Yields As High As 9.1% [View article]
    Cramer, is it possible that you are NOT differentiating between local (on French nationals) withholding and withholding under tax treaties with sovereign governments? I received a distribution on my TOT holdings on January 13, 2012. The withholding was 15% for which I will receive a dollar-for-dollar credit when I file my 2012 tax return in the USA.

    Long: TOT
    Jan 18, 2012. 01:08 PM | 1 Like Like |Link to Comment
  • Is ExxonMobil A Good Investment For Retirees? [View article]
    James, there are two missions for a retirement portfolio. First is enough income to meet immediate cash needs. Second is a hedge against inflation. Some investments, such as dividend growth stocks can meet both. Long story made short, every investment must be evaluated on its individual merits and on its place within a total portfolio.
    Jan 16, 2012. 10:57 PM | 2 Likes Like |Link to Comment
  • Is ExxonMobil A Good Investment For Retirees? [View article]
    Allow me to disagree as one who has been retired for a year. There are sectors better suited to retirees than others. I have no qualms about 24% of my common stocks in consumer staples with 1% in technology. The strategy of using market baskets within each sector is one that I endorse, as well.

    BTW, no one has mentioned European oils. They yield much better than their USA counterparts.

    Long CVX, RDS.B, TOT
    Jan 16, 2012. 10:52 PM | 1 Like Like |Link to Comment
  • 6 Investment Grade Corporate Bonds To Explore [View article]
    varan, you are presuming that fund managers can do better than the value of the individual securities they hold. In May 2007, I purchased a Wal-Mart bond with a 5.875% coupon for 99. As of this writing, it has a market price of over 123. If I combine the coupon payments with my 24.46% "appreciation", I have a total return approaching 12% per year. However, the bond will be worth no more than 100 at maturity. If I sell now to cash in on my gain, what do I do with the money to get a similar yield on a credit of the same quality but to pay 123. Hence, my appreciation is illusory. How can a fund manager do better? How can a fund manager maintain total return in excess of coupons over any extended period?
    Jan 16, 2012. 10:19 PM | Likes Like |Link to Comment
  • 6 Investment Grade Corporate Bonds To Explore [View article]
    It depends on the available tools. I buy individual bonds thru Fidelity. Their screening tools are better than those of Merrill Lynch and Smith Barney with whom I had or have accounts as well. Of course, the "full-service" guys want the investor to be reliant on the broker so he can earn his commission.
    Jan 16, 2012. 12:10 PM | Likes Like |Link to Comment
  • 4 Undervalued Dividend Stocks To Buy, 1 To Avoid [View article]
    >>>On the positive side, Novartis maintains positive revenue, net income, and EPS growth and it maintains an impressive patent portfolio that is unrivaled by many of its competitors.<<<

    That's why we invest in drug companies. Compare their patent portfolio to that of LLY, which you recommend as "good and safe".

    >>>Novartis' balance sheet ...shows dwindling cash reserves along with inflated short-term and long-term debt levels<<<

    In the period where cash "dwindled" from US$8.8 Billion to a mere US$5.6 Billion, short-term debt went from US$16.6 Billion to US$10.1 Billion. Long-term debt went down as well. NVS is hardly a company that "is bleeding cash and is dangerously running low."

    Long: NVS
    Jan 16, 2012. 10:15 AM | Likes Like |Link to Comment
  • 6 Investment Grade Corporate Bonds To Explore [View article]
    varan, the current yield on FGMNX is 3.15%. The "cumulative performance" of the fund, which has been from 7% to 8% over the last four years, is derived from rising premiums on underlying securities. As the securities approach maturity, the premiums will evaporate.

    The risk with any bond fund is that when interest rates rise, the value of underlying securities falls. As some investors stampede for the doors, to stem their losses, the fund manager will have to liquidate securities at declining prices. Those who stay with the fund will share the losses equally with those who bolt for the door.

    Keep in mind that a fund can never be more than the securities it holds. Fund managers have no alchemy that will make two plus two plus two equal seven. This particular fund has a 45 basis point expense ratio. Its managers must earn 45 basis points more than the securities in the fund to equal the return of the securities in the fund. Not gonna happen, will it?
    Jan 16, 2012. 09:09 AM | 2 Likes Like |Link to Comment
  • 5 Great Utilities For Robust Dividend Income [View article]
    jarco, do you give any weight to the regulatory environment in which ED operates?
    Jan 14, 2012. 12:18 PM | Likes Like |Link to Comment
  • McDonald's To Stay Above $100; Wendy's And Yum! Are Riskier [View article]
    Kingkang, the same could be said of most companies. Growth is seen in emerging markets. The USA and western Europe are saturated for YUM, MCD, and many companies that don't even compete with those two.

    Long: MCD
    Jan 13, 2012. 08:54 AM | Likes Like |Link to Comment
  • McDonald's: Will This Dividend Champ Continue To Perform Over The Next Decade? [View article]
    It would depend on a number of factors. In MCD's case, the increase may be attributable to the market's appreciation of the stock having been undervalued. To me, the business model and how it will drive the future earnings is the key.
    Jan 10, 2012. 10:10 PM | 2 Likes Like |Link to Comment
  • Coca-Cola: A Conservative Dividend Stock For 2012 [View article]
    I would like to see more companies adopt the PEP approach of paying dividends on the first business day of each year rather than in December.
    Jan 10, 2012. 09:01 PM | 1 Like Like |Link to Comment
  • Fast Food Titans: Yum Can Beat McDonald's In 2012 [View article]
    sune, time will tell. However, I don't see people embracing fried chicken, pizza, or taco's as healthy choices.
    Jan 10, 2012. 08:55 PM | Likes Like |Link to Comment
  • McDonald's: Will This Dividend Champ Continue To Perform Over The Next Decade? [View article]
    >>>I honestly hope to see an opportunity in the next one to two years, ideally at $85 or lower, to initiate a position.<<<

    How many companies are in your current portfolio that you would not like to buy at 15% less than they are trading at today?

    Long: MCD
    Jan 10, 2012. 08:48 PM | 1 Like Like |Link to Comment
  • Coca-Cola: A Conservative Dividend Stock For 2012 [View article]
    Robert:

    FWIW, KO has its annual meeting in April and the payment may be made to coincide with that. Personally, the issue of whether a company pays dividends in April or in March, is not worth much thought in considering it as an investment.

    Sheldon

    Long: KO & PEP
    Jan 8, 2012. 08:49 PM | 1 Like Like |Link to Comment
  • 5 Buy And Hold Forever Dividend Stocks [View article]
    And here, Dave, we find common ground. I would not add to my MCD position at this point. I bought it as an income stock, but I have no problem with it having become a growth stock. I will hold it, but, especially since it has become my number 2 holding, I see no compelling need to add to my position.

    I don't use stop loss orders either. If there is a "flash crash" situation triggered by computerized trading, there is no assurance that a stop loss at 90 will not execute at 70.

    I agree too that MCD coffee is very good. I wonder if money could be made by selling the beans in groceries.

    Sheldon
    Jan 7, 2012. 03:53 PM | Likes Like |Link to Comment
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