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HackFab

HackFab
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  • Smith & Wesson Holding beats by $0.10, beats on revenue [View news story]
    Love my S&W revolvers.
    Jun 18, 2015. 04:11 PM | 1 Like Like |Link to Comment
  • Sears Holdings: A Young Berkshire Hathaway? [View article]
    Trust me, I was really trying to concentrate on the article and the comments, but I keep hearing this LOUD DOG barking in the back ground.....

    SHLD = toxic waste

    Disclaimer: Former holder of SHLD at the $170 level.
    Jun 16, 2015. 08:43 PM | 3 Likes Like |Link to Comment
  • Kinder Morgan Is Getting Hit By The Bears Again [View article]
    "you really think KMI leadership thinks this is a sub $40 stock?"

    My comment had nothing to do about the management's appraisal of the future stock price.

    It pertained to why an investor would exercise a warrant when the underlying security was trading for less than the strike price.

    Simply put: If I paid $3 for a KMI warrant that gave me the right to purchase the stock for $40 at any time up until 05/25/2017, or a total cost per share of $43 (warrant cost + stock cost)... Why in the world would I do that when the stock is currently trading BELOW the $40 strike price? I wouldn't. If I solely wanted the dividend, I would go into the market and just purchase the stock. Now if the stock price was above $43 (actually I'd want it well above $43), I might choose to exercise the warrant. And then be eligible to collect the dividend.

    "Why else would they buy back warrants?"

    There is nothing that would make me believe the price of KMI stock will be below the $40 strike at expiration. So I DO believe that at some point in time, the outstanding warrants will be exercised. Management is buying the warrants back at fire sale prices when they can. Buying them back will mean they will issue fewer new shares if/when the warrants are exercised. Which, among other things, means the amount of newly issued shares will not dilute the earnings per share, as much as it would without the buyback. For those that own the warrants, they don't get any dividends until they exercise them and actually own the stock.

    And to your point: IF the company buys back a large amount of the warrants (before they can be exercised), they will have fewer new shares to pay dividends on, which hopefully will have a positive effect on dividend growth (and EPS) past 2017. HOWEVER, the same is true IF the current stock price is below the effective cost of exercising the warrant. The company's dividend obligation should not increase, as they will not issued new stock to pay dividends on.

    I would imagine (and hope) that the company has some fancy algorithm that takes all these things (float, EPS, dividends, et al) into consideration, and gives the buy signal.

    On a side note, it would be interesting to know how many of the outstanding warrants have been exercised.

    Personally, I hope they DO buy the bulk of the warrants back. Because I don't believe the stock price will remain below the price where it's cost effective to exercise.

    Take Care.
    Jun 13, 2015. 04:02 PM | 1 Like Like |Link to Comment
  • Kinder Morgan Is Getting Hit By The Bears Again [View article]
    "I meant if people converted the warrants to shares....KMI would have to pay div on those shares."

    Okay.

    But why would anyone buy KMI at $40, when it's trading under that????
    Jun 12, 2015. 11:07 PM | Likes Like |Link to Comment
  • Kinder Morgan Is Getting Hit By The Bears Again [View article]
    "So for $43 you can lock in a $40 price tag all the way out to May 25th, 2017?"

    No. For $3 (if that's what you pay for the warrant), you get the right to purchase the stock at the strike price of $40. You can exercise this right at any time up until they expire.
    Jun 12, 2015. 04:27 PM | 3 Likes Like |Link to Comment
  • Kinder Morgan Is Getting Hit By The Bears Again [View article]
    "Rich does not want to pay dividend on $3 warrants. "

    From the SEC filing:http://1.usa.gov/11TuHoG

    "A warrant will not, prior to its exercise, confer upon its holder or such holder’s transferee, the right to vote or receive dividends, or consent or receive notice as stockholders in respect of any meeting of our stockholders for the election of our directors or any other matter, or any rights whatsoever as stockholders of Kinder Morgan. "

    You get no dividend by owning the warrants. They are similar to calls in that respect.

    Buying them back will limit the amount of stock they will need to issue.
    Jun 12, 2015. 04:24 PM | 16 Likes Like |Link to Comment
  • Bombardier considers third CSeries jet model [View news story]
    Tough nut to crack with Airbus and Boeing owning that large capacity single aisle aircraft market.

    Getting a large carrier (say Southwest) to swap from a know aircraft: The Boeing 737 to another would be close to impossible.

    Bombardier would do best in courting the likes of Frontier or other Republic carriers.
    May 22, 2015. 10:33 PM | Likes Like |Link to Comment
  • Pimco CEF wins proxy battle [View news story]
    Buying more every month.

    Who IS this Bill Gross guy??? (tongue in cheek...)
    May 10, 2015. 08:28 AM | 1 Like Like |Link to Comment
  • My Dividend Portfolio: Adding GE [View article]
    I'm with SteveTheHawk on this one. I'm in at $14.95, and have a decent capital gain, but the dividend has yet to be restored to the pre-cut (ya'll remember 'the dividend is safe' remark by Jeff?) level. I bought this to get a growing dividend. It's not growing for the next couple of years (eight quarters).

    Those that truly believe the GE BOD will do a good job of buying back AND retiring outstanding shares (they won't): I wish you the best of luck going forward.

    For now, I'm short calls against my position, with hopes of assignment.
    May 9, 2015. 10:08 AM | 3 Likes Like |Link to Comment
  • FAA orders fix for potential power loss in Boeing 787 Dreamliners [View news story]
    I find when I shut down my computer and then re-start, it runs better too.......
    Apr 30, 2015. 07:18 PM | Likes Like |Link to Comment
  • Kinder Morgan And 'Missing The Boat' [View article]
    Miss the boat? Not a chance. I'm water skiing behind it!

    Long KMI in my traditional IRA and adding when those nice divies roll in.
    Apr 30, 2015. 06:38 PM | 1 Like Like |Link to Comment
  • Ending A 13-Year Experiment In Dollar Cost Averaging And Dividend Reinvestment [View article]
    I hold GE stock in two accounts: My taxable trust account, and in my grandson's UGMA DRiP portfolio.

    I like the businesses of GE. I just don't like anything else about it right now.

    I am selling calls against my position, with the intent of getting assigned, as GE management has finally disgusted me to the point I can no longer own it. There are better companies, with shareholder friendly boards to be bought.

    However, in my grandson's DRiP account, I will keep the regular $50 monthly investments going (for now), with the hope he will outlive the present management.

    I am also having second thoughts about continuing with the DRiPs I have set up in his account. And may just transfer all the shares over to a conventional brokerage (that has no commission DRiPs). His account is at the value where he could get a certain amount of free trades every month, and with more and more companies increasing their DRiP fees, there is less value investing that way.
    Apr 28, 2015. 09:28 PM | 4 Likes Like |Link to Comment
  • Boeing declares $0.91 dividend [View news story]
    Thanks. I own BA. Was curious about EADS.
    Apr 28, 2015. 06:14 PM | Likes Like |Link to Comment
  • Boeing declares $0.91 dividend [View news story]
    I don't show EADSY (or EADSF) paying any dividend. Is it an annual dividend?
    Apr 28, 2015. 06:31 AM | Likes Like |Link to Comment
  • Holy Smoke - My Favorite Idea That Everyone Knows But Doesn't Understand [View article]
    "What if, what if, what if?????"

    I have a tin foil hat for those possibilities.....
    Apr 26, 2015. 01:18 AM | 1 Like Like |Link to Comment
COMMENTS STATS
1,242 Comments
1,705 Likes