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TevisM

TevisM
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  • What Should I Do With American Realty Capital Properties? [View article]
    "I think you should either sell or buy more. Holding is a mistake here and a warning signal of indecisiveness. If you do not know whether to sell or buy, then you should sell."

    Thalidomide, I can't agree with your premise. I am not going to sell as I expect the price to recover. Even if the dividend is cut I will have a decent yield while I wait.

    On the other hand, I already have a full position. Adding any significant number of shares would take me over my allocation, per plan, for any position. It's a risk management thing: nothing "indecisive" about that.
    Nov 3, 2014. 11:25 PM | 2 Likes Like |Link to Comment
  • Dividends Are A Return Of Capital And A Return On Capital [View article]
    DM,

    "If I invest $10,000 in Company ABC and over my ownership tenure they send me $10k in dividends I would effectively consider my capital at risk at $0 ..."

    I disagree strongly. To have your original investment off the table is not the same thing as having no risk.

    To simplify lets say ABC is your only stock, it appreciated 20% while paying out $10K in dividends, which you put into a money market. We will ignore interest and taxes.

    Your account is now valued at $22,000 ($10K investment + $2K appreciation + $10K dividends). How much is at risk? The $12,000 still in the ABC stock, not $0.

    If a "Black Swan" event cuts the share price of ABC in half, your account value drops from $22K to $16K. That's a 27.3% loss in portfolio value. The dividend reduced the percentage loss - the portfolio would be down 50% without it - but it didn't reduce the amount of capital at risk.
    Jun 11, 2014. 07:58 PM | 1 Like Like |Link to Comment
  • Arena Pharmaceuticals: Strong Sell On Multiple Red Flags [View article]
    steady888,

    Your decision to sell your ARNA stock is the right one for you. I say this not because I agree with your reasons but because it is obvious that you bought ARNA without doing due diligence and do not understand what you bought. One tip off: "Oh yeah the cancer risk now in rats..." The rat tumor issue has been public knowledge since 2010 and was resolved before the approval of Belvique. It is not a "now" issue.
    Jun 7, 2014. 05:41 PM | 3 Likes Like |Link to Comment
  • Arena Pharmaceuticals: Strong Sell On Multiple Red Flags [View article]
    Clearly there has never been a weight loss drug "like Belvique" (it is a novel compound). As you say, FUDtracker, the CR article lacks credibility.
    Jun 7, 2014. 05:22 PM | 1 Like Like |Link to Comment
  • Arena Pharmaceuticals: Strong Sell On Multiple Red Flags [View article]
    Healthythoughts,

    Congratulations! After reading hundreds of your posts over the last year or so, I have finally found one I can agree with.
    Jun 7, 2014. 05:17 PM | 1 Like Like |Link to Comment
  • Seadrill: How High? [View article]
    "Rigoletto is an opera and not a person."

    Wrong! "Rigoletto" is both the name of the opera and the name of the court jester therein. If you are indeed here to "auto correct the fluff and misinformation..." please check your facts before posting.

    I hope that, unlike Rigoletto, you are not a hunch-back.
    May 30, 2014. 05:12 PM | 2 Likes Like |Link to Comment
  • Schorsch Hooks A Big Lobster [View article]
    @Craig,

    You are correct. Red Lobster represented 34% of Darden's real estate portfolio on a square footage basis per http://1.usa.gov/1mw1T0G (Page 18).

    Also ACRP bought only 500 of the approximately 700 Red Lobsters, albeit the best ones.
    May 29, 2014. 03:01 PM | 1 Like Like |Link to Comment
  • Buy Gold Now? What Every Income Investor Needs To Know [View article]
    The author lays out a plan to earn income on cash held by income investors. The strategy also makes sense for any investor who has accumulated cash in anticipation of a market correction. The availability of weekly strikes on GLD offers additional flexibility.

    The drop in GLD since the article was written has reduced the downside risk even more. As I write GLD is at $121.22 ask and the 6/21/14 $122 strike call is quoted at 1.37 ask. That's a 1.13% return in 23 days or 17.9% annualized. Not too shabby.

    The best way to enter such a trade is to use a "Buy-Write" order (your broker may call it something else; ask) where both the buy of the underlying security and the sell-to-open of the call option are executed simultaneously at a net debit you can specify with a limit order.
    May 28, 2014. 12:56 PM | Likes Like |Link to Comment
  • Altria Vs. Coca-Cola: Is Soda The New Cigarette? [View article]
    The author failed to include in his analysis Altria's 28.7% of SABMiller plc, one of the largest brewing companies in the world.
    May 20, 2014. 01:19 PM | 1 Like Like |Link to Comment
  • SolarCity: Solid Growth Prospects Make It A Buy [View article]
    @cyni

    "I truly hope you were the ones that bought the calls I sold... "

    So, you are either long SCTY or you are selling naked calls. Good luck with that.
    May 12, 2014. 10:29 AM | 1 Like Like |Link to Comment
  • Why Cisco Is Heading To $30 [View article]
    "Actual time frame estimate: None."

    Wrong. The author clearly says 12 to 18 months.
    May 12, 2014. 10:05 AM | 5 Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    Muskie,

    You have more than two choices. You could, for example, sell $20K worth of WAG and put the proceeds into one or more stocks with a 5% yield. Now you have $1000 per year income and still have $14K of WAG for capital growth. There are many more options.

    (And yes, if your WAG is in a taxable account you would need to sell more shares or get a higher yield to get your $1000 per year.)
    May 11, 2014. 05:48 PM | 1 Like Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    "Even if you got a much better rate on your dividends, BRK is much better than KO over the past 14 years."

    Fair enough if you are in the accumulation phase for those 14 years, but in the context of DVK's article, the dividends are used for living expenses. Please redo your comparison with quarterly sales of BRK to generate "dividends" equal to those from KO. Don't forget to include the transaction fees four times every year.
    May 11, 2014. 04:20 PM | 2 Likes Like |Link to Comment
  • Why Selling A Few Shares Is Not The Same As Getting A Dividend [View article]
    Butterfly,

    You are right: Stock prices (generally) drop when the stock goes ex-dividend. So what. Stock prices also rise before the ex-dividend date due to dividend capture trading. The price typically recovers before the next ex-dividend date.
    May 11, 2014. 04:09 PM | 1 Like Like |Link to Comment
  • Tesla, SolarCity, And The Birth Of The Lithium-Based Economy [View article]
    The author includes SolarCity (SCTY) but fails to explain any advantage for expensive lithium batteries in solar applications. Weight and size are not critical for fixed installations, and there are much cheaper options available which are also safer and more economically recycled. The PbC battery from Axion Power (OTCQB:AXPW) is one such technology. It is currently being evaluated in alternative energy applications, locomotives, and Class 8 trucks.

    I doubt if SCTY would be talking about lithium batteries if it were not for the family ties between SCTY and TSLA.
    May 10, 2014. 06:15 PM | Likes Like |Link to Comment
COMMENTS STATS
60 Comments
73 Likes