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AlbionWood

AlbionWood
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  • Equity CEFs: QQQX And JLA Merger Opportunity [View instapost]
    I'm in JLA already and the price appreciation is nice, but I bought it for income. If I understand correctly, I will end up with less income post-merger, so will have to decide whether to sell the QQQX and redeploy.
    Jun 6, 2014. 06:40 PM | Likes Like |Link to Comment
  • BofA bullish on three REITs [View news story]
    Just a hunch: BAC picked up some of those $12 shares of $ARCP in the recent offering.
    Jun 2, 2014. 12:19 PM | 8 Likes Like |Link to Comment
  • American Realty Capital Properties: Bigger And Bigger, Cheaper And Cheaper [View article]
    dchalstron, that sounds like deliberate market manipulation, perhaps legal but definitely shady. Selling at $12 to fat-cats and then campaigning for a higher market price - how is that ethical? This raises serious questions about my investment in this company.
    May 29, 2014. 05:08 PM | 4 Likes Like |Link to Comment
  • American Realty Capital Properties: Bigger And Bigger, Cheaper And Cheaper [View article]
    I worry when the company sells its own stock for less than the market price.
    May 29, 2014. 11:42 AM | 11 Likes Like |Link to Comment
  • Now Is The Right Time To Consider Northern Tier Energy [View article]
    There must be something more going on with the selling yesterday. Programmed dividend-harvest trading? Tax-loss harvesting? Stop-loss triggering? Surely an intelligent investor would not hold for a 77-cent dividend and then sell after a $2 drop.

    By the way, I often follow your second method, as a way of buying good dividend stocks at discounts. Usually the ex-div drop goes just a bit below the dividend amount, but sometimes there's a larger plunge, like yesterday's. Those can provide great entry points.
    May 16, 2014. 11:14 AM | 1 Like Like |Link to Comment
  • Places To Hide When It All Goes Down [View article]
    Look harder. I agree there not as many obvious buys are there were a couple years ago, but there are always good buys to be found somewhere. And again, YOC isn't going to help you make those decisions.
    May 15, 2014. 05:02 PM | Likes Like |Link to Comment
  • Places To Hide When It All Goes Down [View article]
    My investment goal is dividend income, so we are in exactly the same boat. I am not a trader and do not advocate "constantly buying and selling." You seem to have either misunderstood my argument or confused me with someone else.

    Yield-on-cost does not "work" in the sense of providing useful guidance for investment decisions. It may help tell you something about the decisions you made in the past, but it does not help you decide what to do right now. In fact it can prevent you from making good decisions, because it focuses your attention on the past instead of the future. That is pretty much always a mistake when investing.

    Certainly I don't mean to imply that all of us dividend-income-investors must constantly chase yield; that is often a mistake. Nor do I imply that we must always rebalance our portfolios. Buy-and-hold is fine, if it accomplishes your goals; you are basically saying you don't need to make decisions any more. All I want to say is that yield-on-cost is not a useful metric if and when you do need to make an investment decision.
    May 15, 2014. 04:57 PM | 2 Likes Like |Link to Comment
  • Places To Hide When It All Goes Down [View article]
    Because that only works if you are prescient. If you can accurately and consistently predict the timing of market corrections or bear markets, then you can switch from equities to cash and back again, beating every other investment strategy. The only catch is, you can't.
    May 14, 2014. 12:08 PM | Likes Like |Link to Comment
  • Places To Hide When It All Goes Down [View article]
    First rule of engineering economics: Always Forget the Past. What you paid for something is utterly irrelevant to its current value. Yield-on-cost is a direct violation of this rule and leads to bad investment decisions. It does make you feel good, though.
    May 14, 2014. 12:01 PM | 3 Likes Like |Link to Comment
  • Prospect Capital Suffers A Flash Crash [View article]
    Nice buy. Sometimes those "stink bids" work pretty well!
    May 14, 2014. 11:23 AM | 2 Likes Like |Link to Comment
  • Potash Corp.: A Textbook Example That Contrarian Investing Works [View article]
    I did buy POT when the extreme volatility began to subside, and have been rewarded with 20% to 25% appreciation so far. With the generous dividend, this is likely to be a long-term hold for me. I love buying dividend growth stocks on sale.

    Also bought MOS around the same time, and it's up only 13% for me, with a lower dividend yield, but still looks like a good long-term holding.
    May 13, 2014. 05:18 PM | Likes Like |Link to Comment
  • GT Advanced, Rubicon gain on Dougherty coverage launches [View news story]
    We've already had a couple of them. GTAT has been heavily shorted for about 2 years, and something like half the float was short back when it was under $4. Somebody must have lost a lot of money.
    May 13, 2014. 05:05 PM | 1 Like Like |Link to Comment
  • Nuveen To Consolidate Its Equity Option Income Funds: What Does It Mean? [View article]
    Thanks very much to Left Banker and the always-helpful Doug Albo for these insights. As a holder of both JLA and DPO (both after reading Mr. Albo's articles and following up with more research), I have a keen interest!

    It sounds like we are cautiously optimistic about the prospects for JLA up to the merger, but it also sounds like the reason I bought it in the first place - tax-advantaged high income - might diminish afterward.

    Now I must decide what to do with DPO. It's up 36% since I bought, reflecting the leverage on underlying. Would very much appreciate any thoughts about the prospects for the new unleveraged fund DIAX - in particular, how will the distribution be affected?

    I'm in both these funds - and several EV funds as well - primarily for the tax-advantaged income. I bought them all at double-digit discounts to NAV, figuring that makes them even more defensive. So far, so good. There are worse calamities than having to sell at a nice profit, pay capital gains tax and redeploy elsewhere... but it does mean more work at a time when I'd rather be doing other things.
    May 5, 2014. 02:07 PM | Likes Like |Link to Comment
  • What's The Probability That This Dark Horse REIT Wins? [View article]
    And the quote is "liars, damned liars, and statisticians."
    Apr 22, 2014. 12:41 PM | 2 Likes Like |Link to Comment
  • Ensco Plc: Is A 6% Yield Enough To Overcome The Risks Involved In Holding The Shares? [View article]
    Barrons article includes three main reasons for the predicted price drop, and one of them is... more deepwater drilling and production. I guess before we see that $75 oil, we are likely to see $45 RDC...
    Apr 11, 2014. 02:11 PM | Likes Like |Link to Comment
COMMENTS STATS
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