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  • Resource Capital Corp. Announces Effectiveness of Reverse Stock Split [View article]
    From what I can find, it is more likely that the post-reverse-split ANNUAL dividends amount will be 4x.16 ($0.64 annually) than the other way. If so, that will be a measly yield of ~2.92% and the end of RSO in my portfolio!
    Sep 2, 2015. 12:39 PM | Likes Like |Link to Comment
  • Resource Capital Corp. Announces Effectiveness of Reverse Stock Split [View article]
    Does anyone have any idea what the quarterly dividends might be on the reverse-split stock? I can't find it anywhere except a vague reference to $0.16 last June.
    Sep 1, 2015. 09:35 AM | Likes Like |Link to Comment
  • REITs Are 23% Cheaper Than They Look [View article]
    Dane, as a person who uses numbers extensively in my investing, I fully agree with your thesis. In fact, that is the unstated premise behind my MRHY investing system --- I get a fairer shake for my money with Medium Risk, High Yield stocks. The higher priced blue-chip stocks don't do so, and the higher risk stocks are just that, higher in risk than I like to take. High yield is not necessarily higher risk. Such stocks just need to be researched thoroughly and "the wheat separated from the chaff".

    In fact, it is my contention that any calculation of average (mean) should be based upon a weighted average! Mere adding together of basic unweighted numbers and then calculating the mean (average) is frequently NOT the best way to go. However, even in calculating weighted averages, items outside (about) 1 standard deviation should also probably be omitted or adjusted.
    Aug 31, 2015. 10:25 AM | Likes Like |Link to Comment
  • What Value Are Credit Ratings? [View article]
    Why all the repetition of words in the header and the first few paragraphs. Just to increase word count?

    And, YES, I view all credit ratings with skepticism, including my own. I am a multi-millionaire but my personal credit rating is only 743. Apparently I don't use my credit cards enough, and pay off my credit card bills on their due dates by auto-pay????? Instead of getting good marks for careful use of my cards, I get down-graded for that, with slight regard for my total assets!

    Please also note my bio here on SA. I created my own investment strategy MRHY (Medium Risk, High Yield) because I don't trust the rating agencies and believe there are many good investments that are under-rated by them. I look for those investments, so the ratings given by the agencies are good for one thing --- to point me to the kinds of under-rated investments that really do work for me
    Aug 30, 2015. 08:54 AM | Likes Like |Link to Comment
  • 56% Annual Return With LRR [View article]
    RW --- Your second sentence is exactly correct and points out the error in your first sentence! Any annualized return is compounded for the entire length of time it is held on deposit. Your first sentence states what is called "simple interest".

    Think of it! Would you want to leave the periodic interest just sitting there doing nothing, or would you want to have it reinvested at the end of each period????? So, the first period's interest would sit there for X-1 periods, the second for X-2 periods, etc. That is not the "annualized interest" that most people refer to when they invest!

    BTW, I am going out of town for a couple of weeks. Please don't answer this comment! It hurts my head to think of people ever investing at "simple interest"! I wouldn't and I don't believe you would either!
    Aug 14, 2015. 10:43 PM | Likes Like |Link to Comment
  • 56% Annual Return With LRR [View article]
    rip2451 --- the answer is about $111.54! Please refer to my formula. (1.013)^365 = 111.54435. It would be about $12,442.14 after 2 years. But that is not the question here. Please go back and re-read the original question. No wonder I have a portfolio of about $2,000,000 and so many others have much smaller amounts. Also please note that the answer is in percents. 111.54435% is 1.1154435 as a fractional number.
    Aug 14, 2015. 10:23 PM | Likes Like |Link to Comment
  • 56% Annual Return With LRR [View article]
    Congratulations wild bill 2!!!!! Your answer is not exactly correct, but it is closer than most of the so-called investment experts who have weighed in on this subject! You can only sell the stock once. You can, however, collect a little interest by reinvesting it in a bank or another stock.

    Most of the rest of you get an F in financial investing and interest calculation!
    Aug 14, 2015. 10:02 PM | Likes Like |Link to Comment
  • 56% Annual Return With LRR [View article]
    $1.00 plus a little interest on that $1.00. Doesn't anyone on this site understand simple arithmetic? Take this to an actuary if you don't believe me!
    Aug 14, 2015. 09:56 PM | Likes Like |Link to Comment
  • 56% Annual Return With LRR [View article]
    Whichever But that gain is a ONE time thing. You can't annualize a one-time deal unless you use compound interest. YOUR numbers will work out only if you assume that you are getting that 6 cents each and every time period of the days/weeks/months/years involved.

    rip2451, your mathematics is totally wrong! You can't mix compounding with mere multiplying. That would be like multiplying apples by grapes. For compounding, the formula is (1+i)^n where 1 represents your original amount of money, i is your interest rate and n is the number of time periods for which you want to calculate.

    To properly annualize that ONE TIME gain of 1.3% with daily compounding of the interest, you would have to take (1+i)^365.1428 times .06 (don't forget about leap year). In other words 1.013 to the power of 365.1428 = 111.75% *.06 = $6.705 . For monthly compounding, use 1.013 to the power of 12 = 1.168% *.06 = 7 cents. For quarterly compounding, use 1.013 to the power of 4 = 1.053% * .06 = 6 .3 cents = and for annual compounding 1.013^1 = 1.013% * .06 = 6.08 cents.

    Whatever values you use in your compounding must then be multiplied by the number of shares involved to determine the total impact of the deal. Do you now see why I say that this deal isn't worth doing? It also shows why authors shouldn't mess with compound interest! (ROFLMAO)
    Aug 14, 2015. 02:01 PM | Likes Like |Link to Comment
  • 56% Annual Return With LRR [View article]
    wild bill 2, your comment is exactly where (among others) I find fault with this article. With the current prices and dividends, what is the point of even doing this deal. To my mind, it appears that the only people who will actually gain much from it are the legal personnel involved (and probably the managements)!

    UNLESS the author can cite facts and numbers to back up his 56% gain assertions, I remain suspect about the value of this entire situation!! I would say, "Count me out" except that I am already in by virtue of the QRE and EROC stocks that I bought a couple of years ago, to my present utter unhappiness! Who would have thought that those purchases would lead to my financial involvement in such a complicated and tangled mess! (:-{
    Aug 14, 2015. 10:08 AM | 1 Like Like |Link to Comment
  • 56% Annual Return With LRR [View article]
    You have to go back at least a week on this one to find the deal presented in this article. If it is that time sensitive, why even publish it now? It is what I call OBE (overtaken by events)!

    As to annualizing it while basing it upon today's prices, how else is a person to evaluate it? Either give us current news or indicate somewhere in the published article that the situation is changing rapidly. As Wimpy used to say, "Sell me a hamburger now and I'll pay you next week." If I don't pay you next week, you can have the hamburger back then.
    Aug 13, 2015. 12:13 PM | 3 Likes Like |Link to Comment
  • 56% Annual Return With LRR [View article]
    Do you have any reply to my comment about your arithmetic? And, where in the world did you get a 56% gain from this deal? I got started in this whole sorry mess when I bought QRE. QRE sold out to BBEP in a bad deal for me, and BBEP looks like it is going down the same road. I am only continuing to hold these stocks because of their extremely high dividends. I have unrealized LOSSES from these stocks of ~80%! Regardless of what happens to them in the future, I stand to LOSE significantly!
    Aug 13, 2015. 11:17 AM | 3 Likes Like |Link to Comment
  • 56% Annual Return With LRR [View article]
    In fact, as of this moment, VNR is going for $9.01 and LRE for $4.91. $9.01 times 55% equals $4.9555555, and $.10 divided by $4.91 equals 2.04%. Hardly work doing the deal!
    Aug 13, 2015. 09:52 AM | 2 Likes Like |Link to Comment
  • 56% Annual Return With LRR [View article]
    Chris, my arithmetic does not jibe with yours. I show the deal to be at a 2.45% premium for LRE, not a marvelous deal at all. As of yesterday, VNR was selling for $9.13 and LRE for $4.90. At 55% of $9.13, a single share of LRE will get the equivalent of $5.02 in VNR shares. $5.02 minus $4.90 equals 12 cents. $.12 divided by $4.90 equals a 2.449% premium, not 13%.

    Things may change in the interim while we wait for the final results, but 2.449% does not equal 13%.
    Aug 13, 2015. 09:40 AM | 2 Likes Like |Link to Comment
  • Invesco Mortgage: When The Math Is Wrong Do NOT Stay Long [View article]
    Mr. Author, just because your personal values system mandates that you sell this stock and you are irritated about it, that doesn't mean that the company in question is entirely in the wrong. Maybe some modifications of your values are needed, especially since you are operating in a very imperfect world!
    Aug 12, 2015. 10:55 PM | 1 Like Like |Link to Comment