Seeking Alpha

Balance sheet guru

Balance sheet guru
Send Message
View as an RSS Feed
View Balance sheet guru's Comments BY TICKER:
Latest  |  Highest rated
  • The Frankenstein Fund - The End Of The Beginning [View instapost]
    Ignore the BDCL July dividend and buy just after ex dividend date.The stock will go down MORE than the value of the dividend. Yes, you will have to wait for the next dividend,but you start at a lower price.
    Jul 2, 2015. 03:29 AM | Likes Like |Link to Comment
  • Seeking Alpha Contributors And Commenters Pick The Best Dividend Growers For The Next 5 Years [View article]
    Absolutely correct. There is a Canadian Hedge Fund that does just that. They only buy solid dividend grower who increase the dividend every quarter over many years. They will even buy stock with dividend increase at a 2% level. Most of their profits come not only from the dividend but from capital gains in the high teens averaged over many years. Shocking but true. We need to get the formula down perfectly o find the healthiest dividend and earnings growers and isolate those names. Any tool that can help do this would help. Please suggest your formula and tools to use for the best results in screening.
    Jul 2, 2015. 03:18 AM | 3 Likes Like |Link to Comment
  • Analyzing The First Trust Health Care AlphaDEX ETF: How Did It Do It? [View article]
    There is so much turnover that FXH has poor tax efficiency. You have not considered that in erosion of earnings and thus return due to taxes. FXH is only good for a pension plan.
    Jul 1, 2015. 04:22 PM | 1 Like Like |Link to Comment
  • Annaly Capital Is A Steal At $9 [View article]
    Yes, it can drop more. The current fixed rate long portfolio will get crushed while the short rates go up and the NAV WILL drop further.
    Jul 1, 2015. 02:14 PM | 1 Like Like |Link to Comment
  • The Frankenstein Fund - The End Of The Beginning [View instapost]
    What you are doing is fine and dandy, but you are taking individual stock risk in LNCO, WMC, OXLC and WMC. Why not just stick to MORL, BDCL and MORL and maybe CEFL. I have problems with CEFL in that the closed end sector in a large market downturn will get crushed as it did in 2008. You can try MLPL as a hedge against rising energy prices as a contrarian.

    I assume that you bought SLVO as a hedge against higher rates. Please explain.

    NOTE: IB is ruthless in selling you out without a phone call.
    You are treading dangerously a the edge of margin. Don't stretch tis too far otherwise you will ruin a good thing.
    Jul 1, 2015. 01:55 PM | Likes Like |Link to Comment
  • Annaly Capital Is A Steal At $9 [View article]
    Beauty in the eyes of the beholder until rates rise and they cut their dividend.
    It has happened before and can happen again.
    Jul 1, 2015. 12:52 PM | 7 Likes Like |Link to Comment
  • MORL's Still Attractive Dividend Yield May Exceed 30% [View article]
    This is a big trap and stay away.
    Jul 1, 2015. 11:36 AM | 1 Like Like |Link to Comment
  • MORL's Still Attractive Dividend Yield May Exceed 30% [View article]
    "After rates start to make a move higher i.e. after a couple hikes I believe we'll see mREITs start to climb back up as their spread potentially increases."

    HUH?? The opposite happens. The short rates will go up and the long fixed rates either stay the same or slightly go up and the fixed rate holdings erode if higher rates go up in the current portfolio.

    Either way if rates go up you lose. The question becomes, "how long can I collect very high dividends before they get cut to balance off the loss in my principal?
    Jul 1, 2015. 11:36 AM | 1 Like Like |Link to Comment
  • Annaly Capital Is A Steal At $9 [View article]
    A rise in rates will erode profits on NLY's LEVERAGED spread. When that happens the stock and other mREITS could drop further. NAV at this point does not mean much when the spread is compromised and that is the danger here. Ont he other hand BDC's generally borrow at a floating rated and lend out at a much higher floating rate. Better bet there for higher returns without the the extreme danger of principal eroding.
    Jul 1, 2015. 11:28 AM | 3 Likes Like |Link to Comment
  • MORL's Still Attractive Dividend Yield May Exceed 30% [View article]
    What happens if you margin MORL, and BDCL together at let's say 1.5X. Who will give margin on these? If you go to IB to margin at around 1% your yield will be amazing assuming that you don't get wiped out before your compounding takes effect. You must DRIP with this plan.
    Jun 30, 2015. 01:32 AM | Likes Like |Link to Comment
  • MORL's Still Attractive Dividend Yield May Exceed 30% [View article]
    BAML gets bearish on mortgage REITs
    Jun 17 2015, 08:24 ET | By: Stephen Alpher, SA News Editor Contact this editor with comments or a news tip. In the middle of a tough run for the mREIT sector, BAML picks four to downgrade from Neutral to Underperform.The operating backdrop for mREITs remains challenging, says BAML, and higher rates, widening spreads, and increased volatility will continue to pressure shares. A flatter yield curve, says BAML, means potential dividend cuts.American Capital Agency (NASDAQ:AGNC) -1.3%, CYS Investments (NYSE:CYS) -1.5%, Hatteras Financial (NYSE:HTS) -1.1%, Dynex Capital (NYSE:DX) -1% premarket
    Jun 30, 2015. 01:03 AM | Likes Like |Link to Comment
  • I'm Not Buying The Panic, This 9% MLP Yield Is Secure [View article]
    Quack, quack quack!
    Jun 30, 2015. 12:57 AM | 2 Likes Like |Link to Comment
  • X-Raying CEFL (Part 3): Interest Rate Sensitivity [View article]
    Stay away from these unpredictable closed end dogs. In down markets they will sell for huge discounts.That is the way it was in 2008. Don't be tempted by the high dividend payout. BDCL and MORL may be more appropriate to hold longer term.
    Put them in you pension and after compounding and reinvestment, you will own the stock for nothing in about 4-4.5 years.Whatever the shares sell for at that time is just icing on the cake. By reinvesting the dividends and buying more stock your cash flow will jump dramatically 4 years from now. If you close your eyes and don't look at the principal volatility you will own a massive cash cow to wait out the reinvestment of dividends period (4-4.5 years) to pay for the stock. Stick $1,000,000 in each BDCL and MORL and you will be laughing to the bank in 4-4.5 years no matter what the stock price is.
    Jun 29, 2015. 08:33 PM | Likes Like |Link to Comment
  • Alliance Resource Partners - A Look At Distribution Sustainability [View article]
    Anyone have some option strategies regarding Alliance? Do we sell puts 15% out of the market?
    Jun 29, 2015. 10:55 AM | Likes Like |Link to Comment
  • Is There Alpha In ALFA? [View article]
    Consider buying the ETRACS S&P 500 VEQTOR Switch ETN (VQTS), ALFA and GURU and away you go!
    Jun 28, 2015. 02:38 PM | Likes Like |Link to Comment