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jjmc2001

jjmc2001
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  • AT&T details closure of DirecTV deal [View news story]
    @Bwings,
    I made a hasty post and then followed it up with a hasty reply so please allow me to explain. My main reason for the post was to give kudos to a good contributor(Chris Demuth) who pointed out the way to play this in a mid April article. The collective effort of Authors and Commenters is what makes Seeking Alpha great.

    Full Disclosure: I have owned T off and on for many years and usually trade it around a core position. I often sell covered calls against part of my position. That position is unaffected by the DTV transaction other than I think it bodes well for the future of T.

    In a trading account I bought DTV on April 17 @ 86.75 per share. As of this moment I still own it but intend to sell Monday depending on where T opens. This was a trade for me as opposed to an ongoing investment position. So here are the details as I see them: Based on the T closing price of 34.29 I will receive 1.892 shares plus 28.50 in my account per share of DTV. Let's call that $93.38 per share. So that would equate to a 7.6% return from my purchase price of 86.75 (commissions ignored) and not quite the "about 8%" that I mentioned but T sold off a bit after I did my back of napkin calculation late Friday. Again this was a quick trade and thanks to Chris for pointing it out.

    While I don't owe you an explanation my posts were too brief and confusing and that was not my intent. I like T as an investment and think they are making some great strategic moves. Good luck in your investments.
    Jul 26, 2015. 10:56 AM | 2 Likes Like |Link to Comment
  • AT&T details closure of DirecTV deal [View news story]
    Haven't sold it.
    Jul 25, 2015. 11:29 PM | Likes Like |Link to Comment
  • Kinder Morgan - Buy It After The Recent Crash [View article]
    @Serico

    I am long KMI and a big believer in the long-term story. However the most important word in equity market investing is diversification. I have had more bad experiences than good ones when I forgot that word. Best of luck college is going to cost a lot more in the years to come.
    Jul 25, 2015. 07:23 PM | 1 Like Like |Link to Comment
  • AT&T details closure of DirecTV deal [View news story]
    A big thank you to Chris Demuth, an SA contributor who wrote an excellent article about buying DTV back in April. I am a long time holder of T but he opened my eyes to the DTV angle. Closed out that deal with about an 8% return in about 67 days. I encourage everyone to follow him.
    Jul 24, 2015. 10:08 PM | 6 Likes Like |Link to Comment
  • ConocoPhillips: This 5% Yielder Is On Sale, And Here's Why You Should Care [View article]
    Paul,
    those are great yields. The only problem is my cost in some of those names is much higher than current prices. With the exception of COP who just raised their Dividend by a penny I am sweating a dividend cut. Undaunted I am a buyer of the E &P guys at these levels. I also just bought some KMI warrants today. My take is the US production will fall slightly the last half of the year and the Iranians will take a while to come back up to the lofty levels people are talking about. If we can get the oil demand side back up a tad I still think we are close to the bottom in WTI/Brent. China needs to crank up the printing press and start getting their economy moving to get these commodity prices up.
    Jul 24, 2015. 05:43 PM | 1 Like Like |Link to Comment
  • Nokia, German automakers reportedly strike $2.7B deal for HERE unit sale (updated) [View news story]
    Just to recap. You buy something for $8 billion. Throw millions more into it and then sell it for $2.7 billion. Where is Steve Ballmer and Microsoft when you need them. I guess you can only shear that sheep once.
    Jul 21, 2015. 12:50 PM | 6 Likes Like |Link to Comment
  • ConocoPhillips: Dividend Obsession Hurts The Company [View article]
    @jerryof NC,
    Thanks for the reply but that is not what I said(or meant to say). the era of cheap discovery and production is over for the domestic E&P names. That is why companies like COP and MRO have been redeploying their Cap EX away from deep offshore plays and less stable international plays. Offshore deep drilling probably does not make a lot of sense at $50 oil hence the cut in that segment for COP. Bakken crude is not cheap to drill and produce but it is easily budgeted and last time I checked North Dakota was pretty stable politically. Also don't forget that COP has proven reserves that are not going anywhere and will be produced at the prevailing price when extracted.

    As far as oils demise my investment horizon is the next 20 to 30 years (hopefully) and I do not see demand for Oil disappearing anytime soon.
    Jul 20, 2015. 09:39 AM | Likes Like |Link to Comment
  • ConocoPhillips: Dividend Obsession Hurts The Company [View article]
    Let's move on folks. COP has repeatedly (since the spinoff) said they will support the dividend and that is exactly what they are doing. They have cut back the higher cost parts of their Cap EX but will still add to domestic reserves with the pared back budget. Plenty of reserves in the ground and they will find more just not as soon as if the oil price was $100. I am long MRO and COP in the E&P sector. Been trading E&P stocks for decades and one thing I am sure of is that the price of oil can be hard to forecast in the short term but I am betting real money that it will go up long term and the COP share price will rise with it. In the meantime I will buy more with my dividends. I don't believe in the tooth fairy nor do I subscribe to the geopolitical conspiracy theories that some of our posters ascribe to. The simple reality is that oil is becoming more expensive to find and produce and there is a lot of it in places that are not politically very predictable. That is what makes investing in this sector interesting.
    Jul 19, 2015. 06:55 PM | 6 Likes Like |Link to Comment
  • Ensco says ConocoPhillips drillship contract terminated [View news story]
    If you read the fine print COP only pays if the rig is not re-deployed to another company. That seems unlikely in the current oil price environment so COP is stuck. Obviously they chose to take the beating rather than spend more $$ chasing a higher cost offshore well.
    Jul 16, 2015. 05:16 PM | 2 Likes Like |Link to Comment
  • American Realty jumps as activist remains a bull [View news story]
    I hope he is right as it was my worst idea of 2014. I am still painfully long and awaiting the dividend announcement so we can get this share price normalized and see where the share price shakes out with its peer group. I am guessing it will trade at about a 1% higher yield than O.
    Jul 15, 2015. 12:51 PM | 7 Likes Like |Link to Comment
  • ConocoPhillips: This 5% Yielder Is On Sale, And Here's Why You Should Care [View article]
    RE: Assisted living Cost.

    If anyone can direct me to the place where I can live in one of those for 2,000-3,000 per month I need to make a reservation. I have paid the bills on two of those for elderly relatives and they were nearly $5,000 per month. One in Illinois and one in Missouri. They were both nice but basically small apartments with 3 meals per day and someone to call if you fall. I am hoping my COP dividends grow so they will pay for my stay.
    Jul 14, 2015. 03:32 PM | 2 Likes Like |Link to Comment
  • Ruger Will Move Sharply Higher [View article]
    Thanks for the article. In response to a couple of the comments there have been an additional driver to growth in this sector. Concealed Carry is now available in almost all states. That has led to a surge in handgun ownership. Many concealed carry permit holders end up owning multiple weapons.
    Jul 11, 2015. 12:58 PM | 1 Like Like |Link to Comment
  • Kinder Morgan Will Continue To Increase, Not Lower, Its Debt Load, And That's A Good Thing [View article]
    @Karl
    Whether the White House likes it or not we have millions of miles of pipelines in this country doing exactly what they were designed to do: move product cheaply. The Keystone fiasco is a result of the President continuing to pander to the environmentalists who think they can stop mining in Canada by stopping the pipeline. There are a lot of pipelines that are being built and approved right now in the US. And they should be.
    Jun 12, 2015. 03:25 PM | 11 Likes Like |Link to Comment
  • Keep Manhattan, Just Give Me The Countryside [View article]
    @dsb
    In the upper Midwest the current Owner/tenant relationship has been shifting to a more sustainable business model in terms of rents. High cash rents are not sustainable but many have adapted a "flex" rent program wherein a base rent is established and the owner shares in upside based on overall revenue per acre. Since the revenue is based on crop price * yield this model is fair to both parties over time if properly structured. I have owned farmland for over 3 decades in various Midwest locales and we had some tough years but I am unaware of good farmland sitting fallow in our vicinity. Owning farmland does require reinvestment and maintenance of your asset. For example, drain tiles, terracing, and irrigation are normally the landlords responsibility but with those investments yields increase along with rent. There are many crop alternatives and even when corn and soybean prices are down a well managed farm can generate some cash flow. Poorer quality land can raise grasses, hay, or be fenced to rent as cattle pasture. Additional revenue can be gained by leasing hunting rights. Like any real estate investment it takes active management. Not sure about this ETF but there are Billions being invested now by private equity funds in Midwest farmland.
    Jun 12, 2015. 09:02 AM | 2 Likes Like |Link to Comment
  • Nokia Finally Selling HERE Maps. Does It Matter To Shareholders? [View article]
    Typo alert:"$15.35 billion in current assets (3.7 billion euros)" Should be $13.7 billion euros.
    thanks for the article. I am long NOK common with a short covered call position. I share your conclusion. My opinion is the stock may get a quick jump up if the HERE price exceeds $3.5 billion. I will view that as a selling opportunity as I think the future is going to very murky post merger for several quarters if not years.
    Jun 4, 2015. 03:37 PM | 1 Like Like |Link to Comment
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