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CincinnatiRick

CincinnatiRick
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  • Kinder Morgan: A Good Example Of Why Investors Should Never Pay Attention To Wall Street Analysts [View article]
    Well, you can't treat Uncle's situation as strictly an LTCG proposition....the recapture of depletion is at his ordinary rate. Nevertheless, you are correct that his math is bogus...just a little less so than your projected $210 figure would indicate.

    But I think you miss the essential fact here that the object is to vent and complain...and by threatening him with intervention by a competent tax professional, you are undercutting his pleasure. And so your effort to instill rationality suffers much the same fate as those here who have attempted to rebut and correct his ignorant statements regarding Romney's tax situation. We do not know if Romney is a tax cheat but we all do know that income of a US citizen earned anywhere in the world is subject to US income taxation.
    Aug 21 01:02 PM | 3 Likes Like |Link to Comment
  • Pacific Coast Oil Trust Opportunity [View article]
    The point is NIMBY triumphs...it's not the jobs of those pushing this measure that will be lost...they don't want those jobs and the associated industry. It's only when the bill, first for the loss of tax revenue and then for taking private property comes due that they will have a problem.
    Aug 20 11:09 AM | 2 Likes Like |Link to Comment
  • Why This Is The Most Hated Bull Market Of All Time - Understanding The Folly Of Financial Engineering [View article]
    Failure of analogy. Games end. You and I will end. The economy and markets do not. The rents may not always be as fat and reliable, nor from the same properties, but they will be paid.
    Aug 17 02:14 PM | Likes Like |Link to Comment
  • This High-Dividend Stock Yields 7%-Plus, Will Up Its Dividend By 12% To 14% [View article]
    Ditto EXLP: Same question. Business enterprises do not exist in a vacuum. When touting stocks (excuse me, MLPs in this case) it would seem compulsory to explore both the moat and the competition in the space. Failure to include these comparisons leaves this piece no more useful than a presentation by the firms PR flack.
    Aug 17 02:03 PM | 2 Likes Like |Link to Comment
  • Royalty Trusts And The ETF Retirement Portfolio [View article]
    The perpetual trusts are almost all monthly payers (DMLP being an exception). With the income spread out across 12 months, you will see a drop on XD but they rapidly recover.

    The trick to the perpetual trusts is that, at the time they were set up, depletion was anticipated to have seen them terminated a long time ago. But enhancements in recovery technology have extended their life spans far beyond anything imagined...and there is no end in sight. With the alternative of these perpetual trusts (some yielding 10%) I would not even look at these time-limited expedients.

    Long and strongly recommend DMLP, CRT, SBR, MTR. Have also previously held SJT and HGT. DMLP, CRT and SBR also have the advantage of not burdening unit holders with much, if any, of the costs of development and production...those costs being largely borne by the producing company rather than apportioned to the trust holders.
    Aug 17 01:42 PM | 1 Like Like |Link to Comment
  • Does Kinder Morgan's Deal Call MLP Growth Into Question? [View article]
    Dumped KMI at 40. Looking to reinvest in likely takeover targets in the midstream space and could come back to KMI through that back door. I expect that they will be bid up, with a big fish like KMI better able to compete. I don't see where you can go wrong...even if some of these MLPs are not taken out, they pay handsomely and business is booming.
    Aug 14 05:40 PM | 2 Likes Like |Link to Comment
  • Here's The Alarming Table Kinder Morgan Doesn't Want You To See [View article]
    Dumped KMI @40. Will deploy the proceeds to likely KMI acquisition targets among the midstream MLPs and collect the ample distributions while I wait the windfall. Great plan, in theory....now we'll see how it actually works.
    Aug 14 04:52 PM | Likes Like |Link to Comment
  • Nobody Does It Better Than Kimco, I Feel Sad For The Rest [View article]
    Yea, unless one is ideologically committed, within a REIT portfolio, to have representation of all subtypes, the argument that KIM is "best of breed" for the shopping mall subtype has limited merit against the overarching reality of changes in consumer buying habits and preferences. Moreover, "best of breed" in REITdom ought to have a substantial component of both yield as well as room for its increase. And thus, I'm with dondiego, in having sold out of KIM (as well as WRI and EXL) with a modest LT cap gain in all three cases and would even go further to question the "best of breed" designation for KIM. In any case, it is the "breed" itself that I no longer favor.

    What I would not question is both the quality and dedication with which Brad Thomas patrols this sector of the market and I continue to rely upon him where REITs are concerned....just not this time.
    Aug 11 02:19 PM | 2 Likes Like |Link to Comment
  • Kinder Morgan Energy Partners In The Bargain Bin, Again [View article]
    Understand the angst of those with large cap gains on KMP that thought they were going to be washed out with the step up in basis for their heirs. Nevertheless, the logic for the business enterprise (cost of capital and expansion prospects) is compelling...there's a lot of prospective bolt-ons at bargain prices out there that would be immediately accretive. Hopefully this move will provide the rising tide to lift all boats in the same harbor.

    Long KMI and numerous MLPs in the space...hopefully some of the aforementioned acquisition targets.
    Aug 11 01:19 PM | 3 Likes Like |Link to Comment
  • Why This Is The Most Hated Bull Market Of All Time - Understanding The Folly Of Financial Engineering [View article]
    The neo-Marxist "class warfare" and "capitalist oppression" meme is intellectually thin and entirely inconsistent with reality. That said, I can appreciate the thought that the concentration of wealth is not healthy for either social peace or the ability of the economy to provide productive and challenging opportunity for the great mass of people (those phenomena possibly being one and the same).

    The 1%, as everyone else, care for their own self interest. And, just as the man who invented the "social safety net", Prince Otto Von Bismarck, they are the proprietors of the Welfare State. Call them "compassionate conservatives" or "limousine liberals"...they're the same "quality" folks. And they have contempt for the wingnut gadflies of the left (who aspire to do their charity with other people's money) and those of the right (who want to quibble about the cost of social peace and who can only feel good about themselves by looking down on their social and economic inferiors)."

    But let's be candid: governmental intervention in the terms of the employment contract or supplementation through the tax system (such as EITC) is simply a different and less obvious means of doing one's charity with other people's money and/or purchasing social peace. Requiring payment for labor, in excess of what would be its actual economic value in a free market, affords a glorious feel-good twofer, arguing that it is beneficial for the economy (perhaps even necessary to avoid a disaster) as well as disguising the redistribution of wealth and therefore enhancing the esteem of the recipients of political intervention who otherwise would be branded as welfare recipients.

    So I reject the notion that businesses that pay less than "a living wage" are offsetting their costs on the public when employees qualify for various government benefits. Those benefits simply augment rather than supplement the economic value of their labor. McDonalds, for instance (and since it is currently the poster child for complaints), made its profit by providing products the public (for reasons I do not pretend to understand) wants, using materials and personnel costing in the aggregate less than the products sold. They did not make the profit "off the backs" of their staff any more than they made it off their suppliers, for instance, by underpaying them. If you take that line of thinking to its logical conclusions, they are shortchanging everyone they deal with...including their customers (who they theoretically ought to charge less).

    In asking that employees share in the profits without having provided a share of the capital invested, you are simply trying to do charity with other people's money. If you want to share in the profits, one needs to acquire stock...either in the open market or as a part of your compensation package (the latter is an option that I think corporations should do more and would be well advised to facilitate).

    The concept of a "living wage" is a gross fallacy in that what is a living wage will vary dramatically depending on the circumstances of the individual employee. It is not the responsibility of an employer to tailor compensation to the needs of an employee. The job is what it is, based on the market value of the labor, and it is the prospective employee who must determine whether or not the compensation meets their needs. Moreover, it would be illegal for an employer to give preference to prospective employees who are only "low need" individuals and equally illegal to compensate staff based on their individual and personal circumstances.

    Full disclosure: I have no position in McDonalds and cannot fathom why my wife is still enamored of it.
    Aug 9 12:45 PM | Likes Like |Link to Comment
  • Is Monmouth Ready To Run? [View article]
    Right...same logic here. I took a modest gain from my 9.5 basis. There are better fish in the sea.
    Aug 8 02:19 PM | 1 Like Like |Link to Comment
  • Why This Is The Most Hated Bull Market Of All Time - Understanding The Folly Of Financial Engineering [View article]
    "If a person has half a brain, good health, and lots of self-control there are not many ways to lose here."

    Since half this country does not have enough income to pay any federal income tax and 25% are on the dole in some form, there are obviously many who find a way to lose. That half a brain and the self control you reference are higher hurdles than you think.
    Aug 8 02:14 PM | Likes Like |Link to Comment
  • Blackstone Had A Great Q2, The Dividend Was Higher, And Performance Has Been Outstanding [View article]
    Got the K-1 (on line) about 10 days before the filing deadline. It is a very complex K-1 as they go (compared to the more typical ones from pipelines) because of the foreign income. But not near as bad as Oaktree (similar partnership) which was 23 pages and didn't come till June.
    Aug 5 09:58 PM | 1 Like Like |Link to Comment
  • Aflac: What's The Story With Risk Management? [View article]
    The author may be "comfortable" and optimism may be warranted regarding risk management but I don't see how one can discuss Aflac without discussing the yen and Japanese government fiscal policy in depth.
    Aug 4 11:30 AM | 2 Likes Like |Link to Comment
  • KKR: A High-Yield Dividend Stock With Reasonable Growth Potential [View article]
    Not all K-1s are hardly created equal. Tax prep software will handle most quite nicely. But PE firms like BX and OAK will tie you in knots with a huge amount of auxiliary information that will matter for some people and not for others....depending on both the size of your holding and other more generic aspects of your financial situation.
    Jul 31 10:17 PM | 1 Like Like |Link to Comment
COMMENTS STATS
356 Comments
638 Likes