Seeking Alpha

ish2876

ish2876
Send Message
View as an RSS Feed
View ish2876's Comments BY TICKER:
Latest  |  Highest rated
  • Evaluation Of My Position In Textainer Group Holdings: Sell, Hold, Or Add? [View article]
    You wrote:
    "Outstanding shares

    The number of outstanding shares has increased from 49M in 2011 to 57M in 2014. I am not overly fond of this development, since it dilutes my ownership of the company."

    This statement is a red herring. You said in an earlier paragraph that you initiated your position in August 2013. According to the September 2013 6k filing, there were 56,353,998 shares outstanding and 56,712,156 now. That is a difference of only ~360,000 shares. Since TGH is approved to issue up to 140,000,000 shares, this is an increase of ~00.26%, 1/4 of 1 percent. Hardly worth of a "dilution" claim unless you own several million shares maybe.

    You are correct in that the shares outstanding increased by 8M since 2011. A few hundred thousand were used to pay executives and other debt holders. The balance was used to generate funds to purchase additional containers which in turn generates more top-line revenue. When this trickles down to the bottom line, the increased EPS should result in a higher share price and hopefully, increasing dividends to shareholders. I still don't see the dilution with that outcome.

    As for the issue of the dividend, any return of capital is not treated the same as a "qualified dividend". In a return of capital, the value of the investment you made decreases every time you receive a payment because the capital is being returned to you. This is not considered an investment gain of any type because it is not in excess of the original investment. Investors are not taxed on this return until it begins to exceed their original investment value.

    So for example, if you invested $100 to start with. Then for the next 10 years part of the income you received included a capital return of $10. After 10 years your investment would be $0. But if you held on to the stock and were given the same $10 in year 11, it would now be taxed as regular income since there is no investment basis left. And if you sell it, you must subtract out of your basis the capital that was paid back to you thereby triggering potentially higher capital gains.
    Aug 14 11:57 PM | Likes Like |Link to Comment
  • Exxon Mobil: Is It One Of The Best Dividend Picks? [View article]
    Seems like most of the authors on SA dont have any positions in the stocks they tell us we should buy. So what is it that you authors invest in? Just sayin....
    Feb 25 01:35 AM | 1 Like Like |Link to Comment
  • SOMETIMES PARANOIDS GET IT RIGHT - By Charles Payne [View instapost]
    Charles,
    Interesting opinion piece but I'm not sure who the paranoid one really is here, Perkins or you. I would argue that we have actually improved as a civilization. For example, if we look back at the Romans, the ruling class tried to collect taxes from the poor to enrich themselves. Failing that, they were either bonded into slavery, permanently separated from their families to support the initiatives of the rulers, or very simply killed. I believe we have come a long way from those days.

    I agree that the 1% have generally worked very hard and were successful. However, I don't know that they have worked any harder than the most of our society. The difference was that the 1% usually had a vision that they turned into a reality. To use your own example, the hot dog vendor is not very likely to be in the 1% but yet he is a working class hero because he had a vision and stood on the cold NY street corner from sunrise to late into the evening selling dirty water dogs for $1 a piece to realize his vision. Did the vendor pay full price for his kids college? Doesn't matter. I think some of the data on your chart representing views of the 1% is quite telling. I'm curious as to why only 28% of the 1%'s believe that everyone should have a college education....

    I agree that the media has created some of this fervor. But the venom is populated on social outlets and internet sites that some of these 1%'s created. So they are in a sense, victims of their own success. Doesn't make it right, only more in your face. Kind of like the new CEO for GM sitting with Michelle tonight. What's the message?

    I believe that society would be better served if the right would stop ranting about this and focus on more pressing problems. For instance, the open violence in our public places. Maybe that is a driving reason why mall traffic is down instead of blaming it on the economy. They're not safe anymore. Pot is slowly becoming the law of the land. When I was young, my dad would give me a sip of his beer once in a while. Will recreational users of pot do the same with their kids? I can't wait for the ACLU to jump into action on the first lawsuit where someone gets fired because they failed a drug test in a state where recreational use of pot is legal regardless of their employer rules.

    I was diligent enough with what I earned to be able to retire in my early 50s. I really don't hear any of my middle class friends railing about this or feeling threatened by an economic war. They care deeply about their own circumstances and their way forward. They also care deeply about the plight of others and help generously at the local level. This isn't just about 5% of the population, this impacts all of us, including the 1%'s. I worry every day about where I'll be a year from now. I think most of us do to some extent. But I think we're all a little tired of the rhetoric between the two sides. It's too divisive. Sometimes I think its purpose is like a cancer, regenerate itself for its own sake.

    It used to be that differences were settled face-to-face around the table. We obviously are now in a different time. But I still believe that this issue is best summarized by something Harry Truman said, “It is amazing what you can accomplish if you do not care who gets the credit.”
    Jan 28 02:55 PM | Likes Like |Link to Comment
  • Selling Puts Of High-Dividend Stocks For Maximum Yield [View article]
    If you are really long on a company, why go through all these gyrations and added risk with the possibility of assignment at a price higher than the market. Why not just buy a simple call at the money or 1 tick above. Your risk is what you pay for the call, which at the money is generally cheap.
    Jan 16 09:16 AM | Likes Like |Link to Comment
  • J.C. Penney: 'Desperation' Is A Stinky Cologne [View article]
    Kind of like the commission you get for writing this article. And we can't even browse. Once we open it you get paid regardless of the content. Hmm.....
    Jan 15 04:29 PM | 5 Likes Like |Link to Comment
  • Orange juice groves survive frigid U.S. blast [View news story]
    "It was the Dukes. It was the Dukes!"
    Jan 7 11:05 AM | 5 Likes Like |Link to Comment
  • Earn A 7%-Plus Yield From This Biotech And Healthcare High Dividend Stock [View article]
    My understanding is that the so called dividend is treated as regular income rather than a qualified dividend since it is generated by a REIT. So that is a misnomer as well.
    I agree with Jabby. The article is very informative and is well researched. It would stand on its own. Too bad you did yourself such a disservice.
    Jan 5 09:30 AM | Likes Like |Link to Comment
  • Why Boston Beer Company Will Brew Up Solid Returns For Long-Term Investors [View article]
    I don't see anything here relating to the title. Why will it grow? New product line, better margins, reduced distribution costs.... this is just regurgitation of past results with no clear reasoning for the future. So what!
    Jan 4 09:39 AM | 2 Likes Like |Link to Comment
  • Vodafone's Dividend Under Pressure After Completing The Verizon Wireless Deal [View article]
    So the plan is to increase the dividend from $1.09 to $1.18 in 2014??? Might have to go out and buy myself a 30 pack of Busch beer to celebrate.
    Dec 11 04:55 PM | Likes Like |Link to Comment
  • Blue Chip Stocks Yielding Over 4% Today [View article]
    Bob,
    Are you taking any steps to hedge for currency risk? The expectation next year is for a stronger dollar vs. major currencies next year due to very low inflation. A stronger dollar would reduce the yield after the conversion from the native currency. I have taken a position in a currency etf for protection.
    Thanks for the article. I've been long WBK for several years and enjoyed the 5-1split in 2012 as well as the great dividend.
    Dec 11 09:49 AM | 1 Like Like |Link to Comment
  • Cheap, But Not For A (Good) Reason: Celanese Offers High-Quality Growth [View article]
    TI,
    There is another significant crunch on earnings and growth going forward. The pension plan is underfunded and the retiree medical plan is unfunded.

    Here is part of a letter from Mark Rohr:
    "Earlier this year we completed a thorough review of both our retirement plans and the retiree medical plan. This review confirmed that changes are needed. While the Celanese pension plans are underfunded, we have actively managed them and they have generated nice returns. However, even with these returns, Celanese must continue to make substantial contributions to fund ongoing benefit payments, which detracts the company's ability to invest in the company's growth. Also of concern is our unfunded retiree medical plan."

    As a result, they have frozen all pension plans and ended the retiree medical plan benefit for those that have not yet retired.

    With this significant liability, I respectfully disagree that at this time Celanese offers good growth potential. BTW, I have no position in Celanese and I don't work for them or their contractors except to say that I live down the road from one of their plants.
    Nov 8 10:13 AM | 1 Like Like |Link to Comment
  • Ringing The Register (Part 1): 12 Dividend Stocks To Consider Cashing In [View article]
    Rick,
    You are not forced to liquidate your holdings when taking an MDR. If your IRA is held with the Fidelitys or Vanguards of the industry, in most cases you can do like kind exchanges into a taxable account without having to sell your holdings.
    Nov 8 09:22 AM | Likes Like |Link to Comment
  • Why Investors Should Invest In Canada And Its Second Largest Bank [View article]
    Kenny,
    In keeping with the title of the article and your disclosure, why don't you have a position in TD?
    Oct 27 07:31 PM | Likes Like |Link to Comment
  • Bogle On Favoring Dividends And Capitalizing Social Security [View article]
    Dave,
    Risk to me is the loss of a reasonable income producing opportunity. For example, if research uncovered a stock that paid a 6% dividend but was highly leveraged, would I initiate a position just for the sake of asset allocation or a high dividend just because it may meet the income requirement of the metrics I use to screen.
    There is discussion here about SS being an annuity or fixed income product. Yet without a clear understanding of one's expenses, consensus seems to be to maximize returns. To me, investing in DG stocks is not much different in theory than fixed income provided the goal is income. The goal is steady return with some expected increase to at least keep up with inflation. Very similar to the SS scenario. So for the true income seeker, dividend stocks act as a proxy for fixed income. Is it so bad to sell a long profitable position to buy what is considered a fixed income position. Which is a better position; a 30 yr treasury yielding 3.7% or buying JNJ at $90 with a yield to cost of about 2.7%? It all depends on the need and the answer is probably in the middle.
    I perceive my biggest risk to be that I will have to dig into my principal instead of relying on living off of the income my portfolio throws off in addition to the other sources of income available like SS as a total package. I am an old school investor. I believe one of the comments mentioned something about developing a plan. I view this as the cornerstone of my retirement and without it I would have no direction. Maybe thats the biggest risk. At the least, your article has formulated a lot of thought for many. Thanks and good luck.
    Oct 27 10:24 AM | 1 Like Like |Link to Comment
  • Bogle On Favoring Dividends And Capitalizing Social Security [View article]
    What you should consider, and what I have done is to change the pie chart. Instead of positions I developed an estimate of my monthly expenses and let that represent 100% of the pie chart. Then I filled in the amounts from various sources as the slices. It was much easier to identify holes and then chose how I wanted to create the funding based on risk and available vehicles. It matters very little to me what my allocation is if I can generate the income I need with as little risk as is reasonable and without regard for capital gains that can only be realized by selling positions.
    Oct 27 12:25 AM | Likes Like |Link to Comment
COMMENTS STATS
22 Comments
19 Likes