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Chamois16

Chamois16
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  • Investors' Primer For Kinder Morgan [View article]
    Excellent article, and I agree with your added comment above about -non-taxation of stock dividends. I believe there is one IRC provision, however, that if the issuer offers shareholders a choice of dividends either in cash or in stock, both are taxable
    May 5, 2013. 12:02 PM | Likes Like |Link to Comment
  • How Serious Are Magnum Hunter's Accounting Issues? [View article]
    Good discussion here in the comment section. Thanks to all
    Mar 7, 2013. 10:57 AM | 1 Like Like |Link to Comment
  • Seadrill And Freeport-McMoRan Copper & Gold: Growth And Income, Low Valuation And Upgrades [View article]
    Seadrill (SDRL), the stock under discussion, is not a limited partnership. Seadrill Partners (SDLP) is a separate entity
    Mar 6, 2013. 04:37 PM | 1 Like Like |Link to Comment
  • Seadrill And Freeport-McMoRan Copper & Gold: Growth And Income, Low Valuation And Upgrades [View article]
    "SDRL currently offers an annual dividend yield of 5.39%"

    I think it's currently more like 9%
    Mar 6, 2013. 03:38 PM | 1 Like Like |Link to Comment
  • Investment Ideas From IEA's World Energy Outlook [View article]
    But on sale of KMP from the taxable account, the accumulated reduction in cost basis is recaptured as ordinary income, while on sale of KMR, it is taxed as a capital gain, presumably long term, so KMR, under current tax law, can be significantly more tax efficient than KMP.
    Nov 24, 2012. 01:17 PM | Likes Like |Link to Comment
  • CEF Weekly Review: Cohen & Steers Quality Income Realty [View article]
    Thanks, Joe. My point is that we don't know what KYN's NAV was at COB Friday 16 November. $26.44 was the NAV (XKYNX) COB on 15 November, being reported only weekly as of Thursdays.

    Your link is to Navistar (NAV). Thanks again for these weekly reports
    Nov 19, 2012. 02:34 PM | Likes Like |Link to Comment
  • CEF Weekly Review: Cohen & Steers Quality Income Realty [View article]
    Thanks for the summary. You seem to be comparing KYN's Friday closing price with a Thursday NAV, since the latter only updates weekly at the end of that day. I suspect KYN's portfolio value recovered significantly on Friday along with the price. Link to KA NAV: http://bit.ly/MHfKhh
    Nov 18, 2012. 09:16 AM | Likes Like |Link to Comment
  • 3 Low-Debt, High Yield Financial Dividends Raking In Profits [View article]
    Thanks for the article, but how can the "payout ratios" for HQH and HQL be only ~30%, when the ICA 1940 requires that 90% or more of regulated investment company net investment income be distributed, and the tax code requires even more (98%) to avoid the excise tax? Both require at least 98% of CG be distributed in the current year, which is the majority, if not all, of these two funds' znnualized distributions. TIA!
    Aug 22, 2012. 10:46 AM | Likes Like |Link to Comment
  • ADX Vs. GUT: Fundamental Analysis Isn't Ideal For CEF Share Price Valuation [View article]
    "Fundamental analysis appears to be a sub-optimal valuation technique for investing in publicly-traded shares of closed-end funds ("CEF")." -Joe

    Imo, fundamental analysis of a CEF portfolio is important, if not essential, to determine the appropriate NAV and probable NII, not market price or distribution rate. I would put it ahead of technical analysis in evaluating the quality of a CEF for investment. Timing may be something else.
    May 27, 2012. 10:03 AM | Likes Like |Link to Comment
  • MLPA: Another C-Corp. Double Taxation ETF [View article]
    But doesn't that deferred tax liability remain on the books until the ETF sells its portfolio? Many investors will add the amount of deferred tax liability back to the stated NAV to determine the effective discount of ETF market price to value, believing that their holding period for the ETF will be less than the ETF's holding period for its portfolio,

    Don't forget too that ETN have "hidden costs" in the form of accrued tracking fees, note financing charges and periodic resets
    May 18, 2012. 04:04 AM | Likes Like |Link to Comment
  • Some Possible Logic Behind The KMR-KMP Yield Spread [View article]
    I think your partial share problem is your broker. Mine credits KMR partial shares to each historic purchase lot to 4 decimal places. It may not matter in an IRA, unless you elect to with draw KMR shares in-kind at some future date, which might produce a lower tax liability on sale from a taxable account.
    May 17, 2012. 02:10 PM | Likes Like |Link to Comment
  • Some Possible Logic Behind The KMR-KMP Yield Spread [View article]
    Hi again; I think the distinction is "upon selling the units." At that time the difference between adjusted cost basis, which could then be zero, and the purchase price is taxed as ordinary income, but until sale, the tax-deferred distributions upon reaching zero, become currently taxable as LTCG

    There does seem to be an issue mentioned above by another poster, as to whether the step up on death applies to the entire difference between adjusted cost basis and market price at death, or just to the difference between purchase price and death price, with the taxable amount due to cost basis reduction passing through as a liability to the heir. Most investors seem to assume the former, since the tax code appears contradictory. Thanks for the response.
    May 17, 2012. 02:04 PM | Likes Like |Link to Comment
  • Some Possible Logic Behind The KMR-KMP Yield Spread [View article]
    I should have been clearer in my final comment in the post above. No MLP cost basis can go negative, because at zero basis, the distributions become fully taxable. The cost basis for KMR lots will never touch zero, so taxation should not occur until sale of shares
    May 17, 2012. 12:45 PM | Likes Like |Link to Comment
  • Some Possible Logic Behind The KMR-KMP Yield Spread [View article]
    I think there are some significant errors in this article. For one example, when an MLP cost basis reaches zero, distributions will not be taxed as ordinary income, but as long term capital gains.

    One reason for a small difference in KMP/KMR pricing is that KMP reinvestments are made at ex-d unit prices, whereas the exchange rate for KMR distributions is determined by the pre- xd share price, averaged over the measurement period.

    I don't see where the cost basis for KMR can ever go negative, since the original purchase price for each historic lot is divided by an ever increasing number of shares. Thus, zero cost basis is an asymptote for each lot which can never be reached.
    May 17, 2012. 12:12 PM | 1 Like Like |Link to Comment
  • The Perfect Income Security: An Update On Tortoise Energy Infrastructure Preferred CEF [View article]
    I agree the portfolio is a sound one, but instead of the preferred, why not just buy the NTG common shares, which yield more than 6% and are tax deferred until sale of the holding, when they will be taxed as capital gains rather than ordinary income?

    These energy MLP have a growth rate of about 6% as well, giving an average annualized total return of 12% or more for the common shares trading as NTG (13.3% last year. for the whole group)
    Apr 29, 2012. 12:26 PM | Likes Like |Link to Comment
COMMENTS STATS
114 Comments
97 Likes