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no2cattx

no2cattx
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  • Prospect Capital: Realty Income Added To Portfolio [View article]
    The problem is that when an MLP in an IRA is sold, part of the proceeds may be considered UBTI and taxed accordingly at higher rates than capital gains. I understand this has been discussed a lot on the Investor Village MLP board and also Real Ken has written a number of articles for SA on this subject. See for instance this one: http://tinyurl.com/b2s...
    Mar 11 05:19 PM | Likes Like |Link to Comment
  • Equity CEFs: The Most Undervalued And Overvalued Funds [View article]
    CEF Connect seems to be having a problem with some of what they are reporting for this fund. On the Distributions page they will only give one year of data. Probably safer to trust the documents directly from Allianz. http://tinyurl.com/am9...
    Feb 5 03:42 PM | Likes Like |Link to Comment
  • Equity CEFs: 9% Tax-Exempt Yields Being Given Away - The Greatest Story Not Being Told [View article]
    Sorry, in the above I meant sell low and buy high (fancy technical terms too obtuse for an old brain).
    Dec 18 02:01 PM | Likes Like |Link to Comment
  • Equity CEFs: 9% Tax-Exempt Yields Being Given Away - The Greatest Story Not Being Told [View article]
    Doug, thank you for yet another amazing article. Every week I look forward to hearing from you and expanding my knowledge of CEF investing.

    I am wondering what effect, in general, higher interest rates and inflation have on CEFs. I realize it will depend on which CEFs we're talking about, at least to some extent, but I am just asking a broad question based on my observations of herd mentality that causes so many investors to sell high and buy low. I don't have enough experience to know if this is an issue, say for the CEFs discussed in this article, and I know it may be 2014 or even 2015 before rates really start to rise, but any helpful comments would be appreciated.

    I also wonder about, for instance, having a portfolio made up entirely of CEFs. Hypothetically, if your CEF holdings are well diversified and include both option income and leveraged CEFs, CEFs holding bonds and/or equities, could a portfolio of only CEFs be constructed that would do as well as one that included stocks, bonds, ETFs and/or mutual funds?

    Thanks again for your fastastic articles.
    Vicki
    Dec 18 01:27 PM | 1 Like Like |Link to Comment
  • Equity CEFs: Eaton Vance Really Wants You To Own Its Option-Income Funds [View article]
    mike57dk, thank you so much for your precise and helpful reply. I really appreciate all the people on SA who are willing to help us learn.
    Dec 4 03:13 PM | 1 Like Like |Link to Comment
  • Equity CEFs: Eaton Vance Really Wants You To Own Its Option-Income Funds [View article]
    mike57dk, your information is very helpful to someone who is struggling to understand the tax ramifications of holding a fund such as ETY or ETB in a taxable account. Can you (or anyone) tell me where you found the approx. $500,000,000 figure for ETY's capital loss carry-forwards? I have looked at their most recent semi-annual report (6/30/2012), but don't find anything approximating that amount. I would like to be able to monitor this in future reports. Thanks, Vicki
    Nov 29 03:14 PM | Likes Like |Link to Comment
  • Equity CEFs: Eaton Vance Really Wants You To Own Its Option-Income Funds [View article]
    Another in a long string of very illuminating and educational articles, Doug. I, also, always look forward to reading your work. Thank you for helping me to be a wiser investor.
    Nov 29 11:29 AM | 2 Likes Like |Link to Comment
  • Protected Principal Retirement Strategy: CEFs Equals Closed-Ends Falling? [View article]
    Here are some more articles on ROC that really helped me to understand the nuances of this issue:

    Equity CEFs: The Best Return of Capital Funds (Part I)
    http://tinyurl.com/bs2...

    Equity CEFs: The Best Return of Capital Funds Part II
    http://tinyurl.com/cfc...

    Equity CEFs: Demystifying Return of Capital Distributions by Eaton Vance
    http://tinyurl.com/axo...
    Nov 28 01:28 PM | Likes Like |Link to Comment
  • Equity CEFs: The Best Return-Of-Capital Funds, Part II [View article]
    Doug, or anyone, how do we evaluate these funds for possible distribution cuts. All of them have made cuts, most of them more than once in the last 2-3 years, and there seems to be a definite downward trend. Only INB stands out as not having made a cut since 9/2009. Without being able to rely on such measures as ROC, earnings and UNII, how does one monitor their health going forward?
    Nov 8 12:38 PM | 1 Like Like |Link to Comment
  • Equity CEFs: The Best Return-Of-Capital Funds, Part II [View article]
    Doug, I have recently become a follower and am very grateful for the education I am getting from your articles. I would like to invest in some of the funds mentioned in this article but the vast majority of my investing has to be inside my IRA accounts, where of course the tax-advantaged nature of these CEFs is lost. I may buy into one or two of them anyway, since the yield and growth potential are hard to ignore, but do you have any suggestions for CEFs that are more suited to already tax-advantaged accounts? If you have already written such articles I would appreciate their titles or links or dates so I can search for them.
    Again, your work is much appreciated.
    Nov 7 01:25 PM | Likes Like |Link to Comment
  • Don't Be Afraid To Put MLPs In Your IRA [View article]
    Here is a statement from Linn Energy (LINE), that makes it pretty clear what they think is UBTI:

    "Any net income or gain of LINN allocated to a tax-exempt organization, including an employee benefit plan, will constitute unrelated business taxable income of that organization."

    http://tinyurl.com/955...

    This quote is taken from the 2nd amendment to their Form S-1, dated 9/24/12, for their pending IPO of LinnCo, page 14. On pages 13 and 14 they compare how distributions are handled for LINE, which is an MLP, and LNCO, which will be taxed as a C-Corp, thus avoiding UBTI and K-1 issues.
    Sep 26 04:15 PM | Likes Like |Link to Comment
  • Protected Principal Retirement Strategy: Retiring Without A Million-Dollar Nest Egg - Part VII [View article]
    akaralph, many thanks for your hard work on this series. I have been doing my homework on your CEF suggestions above and have a question about IGD. A large portion of their monthly distributions is ROC, so I did your suggested constructive vs. destructive calculation for the last 5 months and each time, the NAV was lower after the distribution than before. I like this fund but need to find something to reassure me about their ROC. You say their recent ROCs have been constructive. Can you please help me understand this? I do not question your expertise; just want to better understand how this works. Appreciate your time.
    Aug 11 04:37 PM | Likes Like |Link to Comment
  • Protected Principal Retirement Strategy: Retiring Without A Million-Dollar Nest Egg - Part IV [View article]
    akaralph, thanks so much for all your hard work on this series. I own several MLPs and SDRL. I see that NATDF states on its web site that it announces its distributions in US$ but pays in Norwegian kroner (NOK). My list of withholding tax rates gives a 25% rate for Norway. Does anyone know if that applies to these distributions? I know SDRL does not withhold anything from my distributions. I will e-mail NATDF's Investor Relations, but would appreciate hearing from anyone who might know the answer. Thanks!
    Jul 31 02:56 PM | Likes Like |Link to Comment
  • 13 Emerging Market Dividend Stocks Worthy of a Closer Look [View article]
    According to GOL's web site, after suspending their dividend in August 2008, they paid no dividends at all in 2009 and only one dividend payment in April 2010 of R$ 0.70, which at today's rate is worth $0.419413 USD. At this moment their share price is quoted on Yahoo as $13.81 USD. This makes their annual yield 3.037%. I cannot find anything on their web site to account for any other payment to add up to an 11.3% yield, although I wish I could. I think some sites, including Yahoo, must be multiplying that one payment times 4. Google shows a dividend of $0.40 USD and a yield of 2.87%.
    Feb 10 03:51 PM | 3 Likes Like |Link to Comment
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