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ChrisJArsenault

ChrisJArsenault
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  • 'Boring Is Beautiful' For Savvy Senior IRA; Over 1% Per Month Through April [View article]
    You know, the creole tomato festival is coming up soon (in NO). Lots of chances for that adult beverage.

    OXLC versus ECC is something I've considered for awhile. Maybe I should stop wondering about OXLC and re-weight. FYI, I, too, have a mostly income portfolio, with about 25% in growth stocks. With your guidance and some of the other generous writers on SA, I am over 10% on the income side although I still watch the risk like a hawk.
    May 1, 2015. 03:47 PM | Likes Like |Link to Comment
  • 'Boring Is Beautiful' For Savvy Senior IRA; Over 1% Per Month Through April [View article]
    Stephen - Does anyone have any idea what OXLC is really worth? Assuming they have good projections of the actual credit risks (i.e., defaults), shouldn't they trade in a more limited range than the last 12 month slide from $17 to $15? If they are similar to ECC, then why are they trading at such a discount, as indicated by their "excess" yield when compared to ECC's 12%?

    I like OXLC, but I wish I understood why it slid so much in the last 12 months.

    Also, I like PCI due to it's HUGE discount to NAV. In addition to the distribution, it seems to be chipping away at the discount, giving the owner added capital appreciation. I guess some of the discount was due to the departure of the rock stars from PIMCO, but they weren't the ones managing the fund.
    May 1, 2015. 02:31 PM | Likes Like |Link to Comment
  • Oxford Lane Capital: Cash Flow Jumps, But So Do Paper Losses [View article]
    Steve - What exactly is "unrealized depreciation" as used in OXLC's PR? Is it a mark to market entry, or some depreciation based on a book formula not really connected to the outside world?

    It seems that the strong cash flow should continue for the near term, so I am having trouble with the book depreciation. Am I right to just worry about cash flow, which is why I am holding these securities in the first place?

    Thanks!
    Feb 11, 2015. 10:26 AM | Likes Like |Link to Comment
  • Credit Risk, Equity Returns: Interpreting Oxford Lane Capital's Financial Results [View article]
    Steve - And I mean this as a compliment - It would be nice if you were my next door neighbor and we could BS about CLO's and other investments. Currently all my neighbors only want to talk football. Fun, but not profitable!
    Dec 5, 2014. 06:50 PM | Likes Like |Link to Comment
  • Mortgage REITs lower amid higher rates [View news story]
    Last year, during the taper tantrum, REIT mngt was surprised by the speed and breadth of the interest rate move. Some calmer voices were saying that the moves weren't justified and called for a year end 10 year note around 2.5%. Although these calls were generally right and the 10 year stayed below 3% at 2013 year end, there was some real damage done to the balance sheets of the REITS due to hedging strategies which failed to anticipate this interest rate move.

    I do not think we are in for a repeat of last year. For one, REIT mngt seems to have factored in interest rate moves this year. In fact, many of the reits have failed to show much NAV increase when the 10 yr treasury interest rates fell to their 2014 lows. Why didn't the REIT NAV balance sheets show s full "bang for the buck"? The answer lies in their hedging strategy and deleveraging.
    It will be interesting to read the September 30 management reports and see what damage, if any, is actually being done by the current rate run up. I do not believe it will be on the same scale as last year. Time will tell.
    This being said, the current sell off can best be described as driving via the rear view mirror.
    Sep 18, 2014. 02:40 PM | 1 Like Like |Link to Comment
  • Prospect Capital: What Comes Next? Part 4 [View article]
    Once again, thank you for your valuable coverage of PSEC. I watch high yield companies for signs of change and/or weakness, but I first check with you if they are a BDC.

    I was wondering about the BDC industry in general. I've heard that banks are finally lending to middle market customers, and that the circulation of money is accelerating after the long post great recession lull. Do you agree with this comment, and how will it affect the pure interest income of BDC's?

    Thanks.
    Aug 26, 2014. 11:48 AM | 2 Likes Like |Link to Comment
  • 'Savvy Senior' IRA Off To Good Start In 2014: 4% Return In 1st Qtr [View article]
    I've also owned GGN for awhile - Basically, I like the Gabelli brand. No surprises with this one, and it does have exposure to real assets. There have been a few dividend decreases, but I think they are done with that for now.
    May 19, 2014. 11:11 AM | Likes Like |Link to Comment
  • 'Savvy Senior' IRA Off To Good Start In 2014: 4% Return In 1st Qtr [View article]
    Steve - Thanks for your advice through the last few years. Sold most of my ETV this morning - It's share price ($14.80) exceeded it's NAV (around $14.69). Soooo, I got to enjoy the historical 10% yield plus the 10% appreciation/collapse of the discount. Maybe I'll reinvest in EXG - this still has a discount to NAV.

    Basically, I am trying to milk 8% out of my IRA and have some capital growth. It appears to align somewhat with your investment goals. So thanks for your research and leads!
    May 19, 2014. 10:57 AM | 1 Like Like |Link to Comment
  • Linn Energy: Get Ready For Another Hedgeye Short Attack [View article]
    Albert - What weight do you give to the noted value investor, Leon Cooperman, owning more than 10% of ARP? Thanks.
    May 16, 2014. 10:26 AM | 3 Likes Like |Link to Comment
  • Prospect speaks to accounting concern; lenders step up [View news story]
    Wow, $9.17!! Wish I woke up a little early today!
    May 13, 2014. 12:11 PM | Likes Like |Link to Comment
  • Prospect speaks to accounting concern; lenders step up [View news story]
    Thank you, PSEC, for trying to calm the waters with your published statements. I worked for a utility once that was in a similar (accounting) bind. In fact, the financial talking heads compared our company to Enron. The stock went down over 40% due to vapid talking heads scaring folks. Our management issued a statement clarifying the situation, at which point I bought heavily (24 hours later, just to be clear of insider trading rules.) Well, a few months later, the stock had recovered 100% and the vapid talking heads moved on.

    Just focus on the facts.
    May 13, 2014. 12:05 PM | 3 Likes Like |Link to Comment
  • Prospect Capital's Dividend And Net Asset Value Sustainability Analysis (Post Fiscal Q2 2014 Earnings) - Part 2 [View article]
    Scott - I will be looking for your article. Although I liked the $10.20 price this morning (as compared to NAV), I am curious/apprehensive about how the reclassifications will affect NII and the dividend coverage.

    If the investments are consolidated, will they have to be marked to market (MTM)?

    BTW, although in my experience CEO's/CFO's may pressure their auditors for a certain accounting treatment. they still rely on their outside auditors best judgment (especially after SarbOx).

    Chris
    May 8, 2014. 12:08 PM | 1 Like Like |Link to Comment
  • Prospect Capital's Dividend And Net Asset Value Sustainability Analysis (Post Fiscal Q2 2014 Earnings) - Part 2 [View article]
    First Rate, Scott!!!
    Apr 7, 2014. 08:01 AM | 7 Likes Like |Link to Comment
  • Dividend Portfolio Approaching $20K Annual Income [View article]
    I have been "retired" since 2006. I started out after retiring with a financial advisor who had a one size fits all approach. Although he may have been "right" in his approach, my portfolio was way too volatile for my comfort (i.e., 100% long all the time, including 2008-09). I enjoy using dividends and my pension for living expenses while still allocating 30% to the future. My point is that each portfolio has to work for the investor and give him or her some level of comfort.
    Apr 2, 2014. 03:58 PM | 1 Like Like |Link to Comment
  • Dividend Portfolio Approaching $20K Annual Income [View article]
    Cash King:

    First, thanks for sticking your neck out and writing these articles. I enjoyed both the article and the comments, so I have added you to my list of authors I follow.

    Second, I follow a modified income strategy which I'd like readers to comment on. I have divided my portfolio into 70% income and 30% growth, although there are hybrids, of course. If my growth picks exceed 30%, then I rebalance, and I do the same with my income stocks. BTW, the reason I picked the 70% level is that this level gives me plenty to live on, with some reinvestment. Comments?

    Third, I have one suggestion - CEF's. CEFL is along this line but I'd like to discuss CEF's which sell at a discount, have stable NAV's, and kick out over 9% annually, paid on a monthly basis. These CEF's use leverage (they can borrow at the institutional rate, which I think is around 2%) and covered calls to amp up the return on their high yielding stocks. This offers diversity from Mreits and BDC's (although I don't know how many of these stocks are held by these CEF's - they are not in their top ten holdings, though.) (Examples include eaton vance ETJ, ETV,& EXG).

    These CEF's offer some exposure to the market (capped by their covered call strategy) along with high income. If the market goes down, the CEF dividend provides a cushion until the underlying dividend stream decreases. The CC strategy cushions downdrafts and moderates updrafts from the market. The diversification is also an advantage. And, this is one way to get "margin" in your IRA, and at the institutional rate to boot!

    Final comment - This SA site appears to be read by like minded income investors - I appreciate everyone's comments and experiences!
    Apr 2, 2014. 11:49 AM | 1 Like Like |Link to Comment
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123 Comments
126 Likes