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  • Clearwire Competition May Intensify As Crest And Dish Continue To Oppose Sprint's Bid [View article]
    Buzzy could be right, but I think Sprint will improve the offer. Not because Crest will force it to - Crest has neither power nor leverage. Not because Dish will influence them - the Dish offer is obviously a inferior. Because Sprint has to do business in the future and many customers are also shareholders. The offer is truly not fair, but there are no other 'real' bidders, so I guess that makes the offer, in fact, fair.

    The thing that you need to understand (Crest et al.) is that if Sprint gobbles up Clearwire in an 'unfair' deal, all that excess value goes to Sprint Shareholders, which Clearwire shareholders will become. You have the same stock...same value...just a different ticker! There may be small differences, but are they material?

    So...Where's the beef?
    Mar 25 04:39 PM | Likes Like |Link to Comment
  • Annaly: Continuity, Confirmation And Dividends Will Keep This Stock A Solid Buy [View article]
    Thank you, RS.

    In a capitalist society such as ours, it is essential that the allocators (us) keep the aggressive tendencies of the managers that we want to be aggressive, in check. Management (Philosophically - not specifically ours) will quickly move to maximize their benefit, and capital allocators must be prepared to keep the situation in balance, or things invariably go off the rails and a good thing for all turns into a bad thing for all. The worst thing that can happen in a capitalist society is that people say "They're making me money - I'll cut them all the slack they ask for." This is a recipe for disaster, in my opinion.
    Mar 21 11:26 AM | 3 Likes Like |Link to Comment
  • Annaly: Continuity, Confirmation And Dividends Will Keep This Stock A Solid Buy [View article]
    Look, RS. We both are obviously long, management has just changed, and now we are presented with something that doesn't smell right. And the nonsensical 'supporting arguments' make it scarier.

    Everyone refrained from judging Bernie Madoff...until the day came. How can a little light possibly hurt management? How can pushing them to do the right thing be anything but supportive of them?

    I think Welly has everyone's best interests in mind, but maybe is a little more 'corporate' than Mike was and is listening to lawyers. That is not always a wise thing to do.

    This is a situation where those shareholders who have remained with the team, despite the may who have bolted for slightly higher returns, stand up for their company! This proposal is not in managements best interests either, long term. Let's get them to do the right thing.

    Update: Unless, of course, they can provide a sensible and defensible reason that this is in everyone's best interest.
    Mar 21 11:07 AM | 2 Likes Like |Link to Comment
  • Annaly: Continuity, Confirmation And Dividends Will Keep This Stock A Solid Buy [View article]
    Jonk - The discussion is not about how much they pay themselves. Noone is proposing changing that. It is about transparency.

    The proposal is whether they want to spin out a management firm rather than managing internally. It's about moving risk from managers to shareholders. It's about shielding shareholders from data points that they SHOULD HAVE.

    I agree with you that I am not unhappy with what management is paid as long as it's aligned with shareholders interests. I disagree that this is any way to go about it. This is a very bad thing for shareholders.

    Is management so thin skinned that "fingerpointers" bother them? If so, then I'm doubly concerned!
    Mar 21 10:48 AM | 4 Likes Like |Link to Comment
  • Annaly: Continuity, Confirmation And Dividends Will Keep This Stock A Solid Buy [View article]
    "However, this immediate financial benefit is not the exact motivation behind this proposal. The shift of management to an external manager would no longer require Annaly Capital to disclose its top executives' compensations, which have been a source of anxiety for its shareholders. Shares of Annaly Capital fell 1% on the announcement of proposal."

    This is the real gist of the issue. Management doesn't want shareholders fretting over what they pay themselves. Let's at least be honest about that. There is no other 'hard' benefit, except for maybe additional fees in operating two entities where there are now one.

    And that 'issue' is NOT in shareholders best interests. Therefore, the reason for the general annoyance.

    Look, the team can do whatever they like. Their governance is insular. That's OK. The hope is that they will continue down the path of delivering value for shareholders. The risk is now they have some cover for any unethical things that they might do in the future. That WILL weigh into investors decisions,and smart managers today are choosing transparency.
    Mar 21 10:39 AM | 2 Likes Like |Link to Comment
  • Annaly: Continuity, Confirmation And Dividends Will Keep This Stock A Solid Buy [View article]
    Why can they not write off expenses paid to management? That makes no sense! Any expense of running a business can be subtracted from the profits to arrive at taxable income. IS there some differential? You need to back up this statement.

    Second, why would management be limited in the amount of shares they can own today? Are you saying that management WANTS to require themselves to own more shares and cannot as things are?

    None of this makes any sense at all!
    Mar 21 10:34 AM | 2 Likes Like |Link to Comment
  • Annaly: Continuity, Confirmation And Dividends Will Keep This Stock A Solid Buy [View article]
    I'm sorry, how is that different?
    Mar 21 10:30 AM | 1 Like Like |Link to Comment
  • Annaly: Continuity, Confirmation And Dividends Will Keep This Stock A Solid Buy [View article]
    I think you're right, and I disagree. You can choose to use the word 'fingerpointers' or you can note that transparency and honesty go hand in hand. We see time and time again that those who shy away from accountability often go down the wrong path, while those who embrace it simply cannot and do not. (Well, at least their mistakes generally seem more honest and shareholder-serving.)

    I don't support this at all and will definitely weigh this heavily in any decision to move my REIT money around. Very heavily. Mike Farrell would probably not have considered such an unfriendly idea. I'm sure Welly can point to the advice of a thousand lawyers to make her case, but I simply don't like it or trust it. End of story.
    Mar 21 10:28 AM | 4 Likes Like |Link to Comment
  • Annaly Capital: Less Pre-Payments, More Profit Potential, More Secure Dividends [View article]
    Interesting comment. I'm long NLY and have no plans to move to AGNC, but I have to make the case that, for REITs as a whole, greater risks is of no meaningful consequence. Taking risks is a good thing, given how little there really is. Avoiding them, in this context and degree, is sort of stupid. We're talking about interest rate spreads here - not developing new markets or business strategies. Therefore, greater risk will necessarily produce greater rewards over the long term, albeit with wider swings (Sweet!) in the short.

    Back in my hole now.
    Feb 28 03:27 PM | Likes Like |Link to Comment
  • Sprint Is Making Significant Strides In Its Turnaround [View article]
    Sprint's not betting too heavily on the iPhone. They made that bet over a year ago and it's paid off in spades. Even if their iPhone sales trail off, and they will, much like any fad, Sprint has honored the bulk of it's commitment, and still has other outlets to dump excess inventory. It was a risky deal when they did it, but now, it's done and it worked. Good on em.
    Feb 7 09:16 PM | 2 Likes Like |Link to Comment
  • Annaly Capital's Q4 Results Show Decline Rate Slowing [View article]
    Tim - They will replace the sold assets with new assets - just like they always do. Don't really understand how you see this as a negative. The market price for such assets has not risen, has it? I think it's dropped to the floor! And even if it does rise, they can only buy what they can buy, right? A bank can only lend it's deposit times it's leverage rate - a product that's fairly steady over time for NLY.

    Welly and team are managing masterfully, and while many jumped in at the peak of the 'black swan' and might be feeling lousy, the fact of the matter is NLY offers a great return, has weathered this slim spread period very well, and still beats the pants off virtually any other dividend-paying entity. Heck, my purchases that are two years old are well in the black - and that was the worst time to buy.

    As to the $12 to $15 range for the rest of the year - I doubt it will drop much lower than where it closed today. So there we have it - your guess versus mine. Let's see who has to eat their words.
    Feb 7 06:27 PM | 3 Likes Like |Link to Comment
  • The FCC Disses The Clearwire Auction [View article]
    Spectrum is to wireless what copper is to wired. If you have a shortage of wire the right length, gauge, and price, you will have transmission problems. You're right that there is plenty if spectrum to go around, but it is artificially (and wisely a that) allocated by sovereign nations.

    As the nation's demand for more bandwidth increases, and it is increasing, things tend to become depleted. Technology can solve much of the problem, but bandwidth, and therefore, spectrum, is essential. It is the raw material for wireless communications. How it is fabricated by policy and technology enhances it, but it is still prerequisite.

    Now, we all know your real issue is Sprint, not Spectrum. I'm going to do a bit of speculating myself and proffer that you're a concerned T or VZN holder, and you should be (concerned). The idea of being beholden to just T and VZN is something one should fight with all their energy - just as one would if it were S and VZN, or whatever.

    Dan Hesse has made some spectacular moves since he has been on the job. Most of that goes unrecognized because T and VZN have the lions share of the wealth and the market. However, Sprint has the benefit of agility and not being beholden to the status-quo and that gives them a profound edge in the technology driven world. Son sees this, Eric Prusch sees this, Charlie Ergen sees this. You don't. That's OK - you may ultimately be right! Nonetheless, I'm putting my money on the fact that Sprint+Clearwire+USCel... will provide better coverage, faster speeds, and better service all for a fairer price when all is said and done. And that is why consumers will favor them and they will win, or at least grow much faster than those who will be shrinking.
    Jan 10 12:53 PM | 5 Likes Like |Link to Comment
  • Sprint (S) reportedly feels no pressure to increase its $2B, $2.97-a-share offer for Clearwire after Dish (DISH) proposed $3.30, and thinks a bidding war is unlikely. Despite Sprint owning just over 50% of Clearwire, the latter is duty bound to consider the offer from Dish, which might receive support from Crest Financial, Clearwire's second-largest shareholder with 8% and a vocal critic of the Sprint bid. [View news story]
    That's true, but it still doesn't preclude shareholder suits, especially when other offers, frivolous as they may be, are coming in. Sprint surely does not need to feel pressure from Dish, and there certainly will not be a bidding war. However, Sprint is going to need to reconsider the number. I believe it will - maybe meet Crest halfway or something like that. If it does not, it will still prevail, but the badwill will dog them for years to come and will cost them far more in the long run.
    Jan 10 11:08 AM | Likes Like |Link to Comment
  • "It's hard for me to imagine that what Dish wants is Clearwire ... It could be a chess move to get a partnership with Sprint," opines Bernstein's Craig Moffett. Jefferies and Macquarie also think Dish's (DISH +2.1%) $3.30/share offer for Clearwire (CLWR +7.7%) is an attempt to cut a deal with Sprint (S -1.4%), long named as a potential 4G partner but currently in the midst of selling itself to SoftBank (SFTBF.PK). Macquarie adds a $3.50-$3.75/share Sprint bid might be needed to get Dish and dissident shareholders to back down. PCS +1.8%. LEAP +0.9%[View news story]
    I don't know.?.? I makes sense on one level, but when you factor in Dish, I don't think so. But an interesting thought, to be sure.
    Jan 9 01:32 PM | Likes Like |Link to Comment
  • "It's hard for me to imagine that what Dish wants is Clearwire ... It could be a chess move to get a partnership with Sprint," opines Bernstein's Craig Moffett. Jefferies and Macquarie also think Dish's (DISH +2.1%) $3.30/share offer for Clearwire (CLWR +7.7%) is an attempt to cut a deal with Sprint (S -1.4%), long named as a potential 4G partner but currently in the midst of selling itself to SoftBank (SFTBF.PK). Macquarie adds a $3.50-$3.75/share Sprint bid might be needed to get Dish and dissident shareholders to back down. PCS +1.8%. LEAP +0.9%[View news story]
    I disagree.

    1) What does Dish have that Sprint could be remotely interested in? Cash and Debt are all they have, and Sprint's got that. Satellite customers? Please! Management? Double Please!

    2) I understand the Dish offer is to take the prime spectrum for $3.30 and leave the rest with CLWR. That's like me offering $100 over your asking for your used car, but I only want the motor - you have to deal with junking the rest. Who'd do that?

    3) Dish is a toxic culture. Do you think for a minute that CLWR would get involved on that ball of yarn? Do you think that Hesse would want to inherit Charlie? Like he doesn't have enough problems.

    4) Charlie is just rattling Sprints cage because he can. He has no straightforward reason to make such a bid except to create eddies in the current.

    No! Sprint needs nothing that Dish has to offer and Clearwire should neither be interested, except insofar as it gets Sprint to raise their bid to something a bit more fair.

    I understand Dish wants Spectrum so that it can offer it's customers Internet Service, but there is simply no good deal for Sprint here.
    Jan 9 12:53 PM | Likes Like |Link to Comment
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