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  • These Top Choices For Preferred Shares Will Bring Nearly 9% Yields To Your Income Portfolio [View article]
    Fantastic! WOW! Thank you. Great work.

    I could only add, for your followers who will contribute to their Roth on Jan 2, a late December update would aim the contribution at the then best opportunity.

    Appreciate your in depth research.
    Sep 28, 2015. 05:42 PM | 1 Like Like |Link to Comment
  • The New York Mortgage Trust Poker Game [View article]
    Quarterly pay, high yield stocks will, most of the time, drop in price on ex-date and the following few days to a week, not because the stock is less valuable, but because the pre-ex-date run up in price is caused by dividend harvesters, not by investors, fundamentals, or technicals. The law of supply and demand at work, and nothing else. Demand for the distribution, not the stock, causes the price to increase for about a month before Ex-date. Then the demand reverses, leaving too much supply, as these distribution buyers sell on or after Ex-date. The typical move is about a 2-1/2 times the amount of distribution as price drops during the great sell off. Then price muddles around for a month, and starts a slow climb. The climb increases about a month before the next Ex-date, and crashes again on and after Ex-date.

    Look at the three or five year charts for High yield Quarterly pay stocks, and see it play out over and over. Look at the big picture, the forest, the long term, rather than get fixated on a short term fluctuation resulting in a judgment that causes a perception of what is not really happening.

    Income investments are long term accumulation of substantial shares paying distributions. Think retirement, and the length of time one will spend in retirement. That is the focal length of time one should apply to the stock. One cannot retire on what happens to a stock in days, weeks, or even months, but on what happens in decades and scores of years.

    Shorter term fluctuations in the economy, what is in and out of favor, variances in earnings, and whether it comes from interest collected on mortgages, or sales of real estate, or both, are all irrelevant when viewed as imperceptible movements in ten, twenty, and thirty year charts. Income investing is not for those interested in the daily drama of news headlines, bobble heads, and intermittent changes. Income investing is not for those who buy and sell according to emotion, panic, and euphoria. Income investing is for those who keep their focus on the furthest horizon, the long term goal of being financially independent in a long retirement. Income investing is a focus on income, not price appreciation and price depreciation day to day. Look down the road ten, twenty, thirty years, and patiently accumulate the necessary shares to pay the income that will produce financial sufficiency. Then be happy that a drop in price will not panic one out of all the income for the duration of retirement.
    Sep 25, 2015. 03:23 PM | 7 Likes Like |Link to Comment
  • The New York Mortgage Trust Poker Game [View article]
    The short sighted lack understanding of American business. Those who can't stand the heat in the kitchen should withdraw. Those who can't see the forest for the trees, the long term for the headlines that blind them, will do better somewhere else.

    At today's close of $6.67, the $.96 annual distribution yields 14.4%. That will increase by reinvesting the distributions. At lower prices, the reinvested distribution will purchase more shares than it would have. Knee jerk reaction, or far horizon vision. Is the sky falling, the economy no longer in need of what this business provides, or is it a cloud passing by? For better or worse, or just a fair weather investor. We will relook this in three to five years and see how it played out. Did the buy, hold and reinvest strategy win the long term, like the tortoise, or did the fall out at a little unpleasant news win the investment game? Did NYMT reduce the distribution because the word of the Fed should be honest, because this is an acceptable way to deal with the risk of a rate increase? RIC's have one year to distribute income, and can do so later rather than sooner if the Fed changes the game. Companies can hold onto income as needed, and use it until they are required to distribute it. Did the world end, or did NYMT manage our assets for the long term instead of the perceived short term? To those who leave, thank you. To those who stay, thank you, but let us remember that NYMT should open $.24 below today's close because of the distribution. The value was not lost, because we still own the stock, plus on Ex-date we own the distribution. I look forward to my $1500 distribution being reinvested on 10-26, more shares to pay more distributions on the next quarter's Ex-date.
    Sep 23, 2015. 06:36 PM | 13 Likes Like |Link to Comment
  • MORL Dividends Decline But The 25% Yield Is Still Compelling [View article]
    Given the declining prices, and declining distributions, do you expect a recovery within three to five years?

    I am investing and reinvesting under the assumption that when the Fed increases interest rates, so will mortgage rates increase. Fall out of equilibrium, then work back into equilibrium. Businesses must make a profit. Investors must make a profit. I am investing under the assumption that mortgages, REIT's, CEF's, BDC's, and MLP's are all essential parts of the economy, therefore interest rate spreads, profits, and investments will eventually all come back into alignment after this aberration. Which means now is a good time to invest and reinvest before equilibrium is regained.

    Appreciate your thoughts on the three to five year out look.
    Sep 23, 2015. 04:42 PM | 2 Likes Like |Link to Comment
  • MORL Dividends Decline But The 25% Yield Is Still Compelling [View article]
    Perhaps you should wait until Ex-date on or about Oct 12. Price/value should open at $.7103 below previous close as the "large" distribution is extracted from the prior day value.

    The present increase in price is merely the typical run up by the distribution buyers in anticipation of the "large" distribution. As the distribution is subtracted from the value of a share, and magnified by all the dividend buyers selling on or within a couple of days after Ex-date, the price will fall, potentially as much as two and a half times the amount of the distribution, before regaining equilibrium close to the discounted price below NAV. The run up before Ex-date is the law of supply and demand at work, presently meaning that demand is greater than those who want to sell their shares. On and immediately after Ex-date, supply exceeds demand, resulting in a decreasing price, especially in light of two decreasing "small month" distributions that follow.

    We should be aware that the headline, the article title showing 25% Yield, is wholly unrelated to most of us, since we did not happen to buy on that date. Had one purchased at the 52 week low of $12.75, yield would be about 27.53%. Had one invested at the 52 week high of $22.32, yield would be about 15.73%. These yields for income should offer a channel within which one could expect future distributions, but no guarantees. As always, reinvesting the distribution will lower actual cost per share, and increase yield on original investment. At the current rate, annual distribution should double about every 4-1/2 years.
    Long MORL in IRA and ROTH.
    Sep 23, 2015. 04:26 PM | 3 Likes Like |Link to Comment
  • New York Mortgage Trust Took A Bath Recently, But It Got The Dirt Off [View article]
    Worthy goal. I'm with you! Keep up the good work.
    Sep 17, 2015. 12:41 PM | Likes Like |Link to Comment
  • UBS ETRACS Monthly Pay 2X Leveraged Closed End Fund ETN: A Pragmatic Approach [View article]
    Thanks for all your work and research. With all the nay sayers, I feel the bottom line is to ask if CEF's are an essential or non-essential aspect of the American economy and business. I feel that CEF's are absolutely essential. Therefore, whatever is necessary to keeps CEF's in business, making a reasonable profit, providing the essential financial service, will in fact happen. Without CEF's, business growth and growth of the economy would be detrimentally affected. Given that CEF's are essential, I agree with your model of long term growth, in spite of variations from equilibrium. The fact that they are RIC's, pay no income tax, must distribute pass through taxable income to share holders, the distributions will be larger that income tax paying corporations, and the NAV will be unlikely to change dramatically because they cannot legally retain capital to grow NAV. Price and distribution will return to a mean norm and continue to fluctuate above and below that equilibrium level.

    Similarly, BDC's, REIT's, and MLP's will all evolve toward their normal levels, at times being more in favor with investors, at times being less in favor. The aging of America assures an increasing demand for income producing investments. The long term will force all of these back into equilibrium. They are all essential aspects of the economy.
    Sep 10, 2015. 06:21 PM | 14 Likes Like |Link to Comment
  • New York Mortgage Trust: Still Not Convinced? [View article]
    If NYMT paid a hundred times those expenses, and still distributed the current amount of taxable income at the current price and current yield, what does it matter??? Why be concerned with the means used by management so long as management continues to meet the distribution goal of $.27/1.08. This is an investment in a steady stream of income distributions. Mine is not to second guess management, or micro-manage what NYMT does to maintain the steady distribution. I believe they established the goal of $.27 per quarter, govern their operations accordingly because they are owners receiving distributions just like us, because they have a good job and enjoy the benefits of keeping that job, and it is not in their own best interest to destroy their shares of stock and their livelihood. Consider from their point of view how very important it is to maintain the distributions, and rest your mind from worrying about things we cannot change, and really do not want to change. Let them do the job the best way they know how, and enjoy the quarterly income. Or, if one does not agree with the management, sell the shares and invest in a management with which one does agree. Ultimately, any investor is only ever investing in the management and employees who are sole determiners of the value and worth of the investment.
    Sep 8, 2015. 03:53 PM | 2 Likes Like |Link to Comment
  • New York Mortgage Trust: Still Not Convinced? [View article]
    So the whole country is full of houses sitting empty? Homes are being built, adding to the inventory. Even if homes are not owned by the occupier, they are owned by someone most likely renting it out and paying a mortgage. So if renters have increased in the less flamboyant economy, they still live in homes owned by someone. Do the banks own all the empty homes? Who is buying the multitude of newly built homes? What statistics are indicating that there are fewer homes owned? And isn't that one of the assets of NYMT, buying homes, renting them out, and waiting for an improved market in order to sell them at a profit? So even these have an owner. It is also why there is confusion about NYMT's ability to pay distributions, because "book value" is partially tied up in real estate assets that are not showing as "interest income." Yet, rent and sale of those assets provide sufficient taxable income to require at least the current distribution of taxable income.
    Sep 8, 2015. 03:38 PM | Likes Like |Link to Comment
  • New York Mortgage Trust: Still Not Convinced? [View article]
    Given from above statements that you want $200 of monthly income, $2400 annually from each investment, you would need a substantial number of investments to cover monthly retirement expenses. I am in total agreement with your approach/plan. However, I do not find enough dependable, good quality, high yield investments to make the goal of complete financial freedom. Might you share your list? I would appreciate your input.

    It may be that I am working toward investment income more than covering all expenses, not counting Social Security and income from part time job as a tax profession. Potentially, if I added all sources of income together, I am about triple covered now, but I plan to live comfortably through several market cycles and recognize that high yield is subject to reduced distributions with any severe economic down turn, so what I am accumulating through a buy, hold, and reinvest everything strategy will survive even the "perfect storm." Considering the market's sixteen year cycles, we need protect ourselves for what may happen in another twelve years.

    Thanks for your discussion. Again, if you are so inclined, sharing your list of top managed, high yielders will be appreciated.
    Sep 8, 2015. 03:23 PM | 3 Likes Like |Link to Comment
  • New York Mortgage Trust: Still Not Convinced? [View article]
    I am with you, except that I am not looking for the company to "grow shareholders' equity." Presuming you are talking about NAV, income investors do not want price or equity growth, but we do grow our own equity by reinvesting distributions. At the present yield of about 16.9%, growing my own equity through reinvestment will double my number of shares and my income in about 4-1/4 years, effectively halving my cost per share, if the company grows no equity and price does not appreciate. Income and high yield grows through reinvesting of distributions. NYMT is a pass through entity, pays no income tax, therefore must pass through virtually all of its taxable income, so cannot grow its equity/NAV by retaining income like a taxable corporation. It is up to the individual investor to grow equity, number of shares, income, and yield on original investment by reinvesting distributions over a period of time. NYMT offers a wise investor the opportunity to grow equity, to double one's number of income paying shares, about every four and a quarter years, or effectively double income yield in that time frame. This is what retirement income planning is all about. To date I have added about fifty percent "equity" to my NYMT account by reinvesting. A steady, patient, undramatic, buy, hold, and reinvest strategy will produce retirement income, and does not depend on market fluctuations or price variances, only on number of shares held and paying distributions.
    Sep 7, 2015. 07:51 PM | 9 Likes Like |Link to Comment
  • New York Mortgage Trust Took A Bath Recently, But It Got The Dirt Off [View article]
    True. Lots of short sighted opinions. After the dust settles, say three years from now, let us see how the strategy of buy, hold and reinvest compare to the emotional upheaval of falling price and sell off. It would seem to be difficult for sellers to have income. Steady as she goes. Patience over panic, and I'm adding over two hundred income producing shares every quarter. As price stays low, reinvesting adds more shares than price appreciation.I have no intention of selling the goose that is laying the golden eggs. Because of reinvesting, my current yield on original investment is over 20%. Can only hope price stays at 6.39 through the end of October for our next reinvestment for a 16.9% yield on those shares had I paid for them out of pocket. But then my average cost per share due to reinvesting is at 5.45, and getting lower each quarter. Long, patient, and steady wins the race for retirement income.
    Happy investing while the traders have their drama!
    Sep 7, 2015. 06:44 PM | 1 Like Like |Link to Comment
  • New York Mortgage Trust Took A Bath Recently, But It Got The Dirt Off [View article]
    When discussing distributions, amounts, covering, and potential to maintain future flow, we should be computing what the IRS requires a RIC, Registered Investment Company, to compute, what percentage of which aspect must be paid by what date, and comparing the IRS Regulation required distribution of taxable income to the current company distribution.

    On the basis of aligning Seeking Alpha computations with IRS requirements, we produce a same to same comparison. The company, if it is to maintain its RIC status, not pay income tax, not pay tax penalties, has virtually no option, no lee way on what it distributes. It does determine when it distributes its taxable income, and can postpone distribution greater than its "normal" to cover a future quarter when it is expecting less due to new investment not yet paying on invested secondary stock issues. It can manage the time, but not avoid the annual amount required to be distributed. The company is still limited in the time frame in which it must distribute its annual taxable income, which is the reason that additional or special distributions some times occur at the end of a company's fiscal year.

    With the complexity of multi-faceted NYMT assets, some income is from interest, and some from sale of capital assets, none of which can correctly be forecast by anyone outside the company's accounting department. Management will manage all investments and determine the best alternatives, best time to sell what assets, best time to buy assets, best time to invest. We can only offer faith or lack of faith in the ability of management to maintain the rate of distribution to which we have become accustomed. We typically show faith through a strategy of buy, hold, and reinvest, or we should not be invested in NYMT.

    This is an income investment, a long term accumulation of potential retirement distributions, with no plan of selling the "principle," the shares of the trust upon which future distribution per share will be based. RIC's are generally high yield because they must, according to IRS Regulation and their agreement to abide by the requirements of the Regulations, distribute taxable income to avoid loosing RIC status and having to pay income tax at the approximate 40% rate. Therefore, the 40% which would have been paid in income tax increases the distributions of a RIC to "high yield," leaving none of the income within the trust for future investment or growth.

    Distributions leave little to no capital/undistributed income within the company to use for future growth, so a RIC can borrow/leverage and/or offer secondary share offerings to raise capital. This fact of life for RIC's seems to be widely misunderstood, as if there was some alternative available to management. Therefore, RIC's are not definable as stocks likely to appreciate in price. Any purchase for the purpose of price appreciation is a complete lack of understanding of RIC's. Their function is income growth, not price appreciation.
    Sep 4, 2015. 05:36 PM | 3 Likes Like |Link to Comment
  • Yes, MLPs Are Still Building New Infrastructure [View article]
    Thank you. So many commenters and stock traders are focused on the short term, daily news, and fluctuations, that few can see the forest instead of the one tree blocking their vision.

    Population continues to grow. Demand continues to grow. Have-nots continue to desire more, bigger, and better and those that have also desire more. Growth in business, stock price, yield, distributions, investments, and indexes is inevitable. Divergence from the norm will get called back into equilibrium. Stock trading by emotion will result in losses, while buy, hold, and reinvest will win, just as the tortoise beat the hare. Being a slow and steady turtle may not be as exciting and dramatic as dashing about, screaming that the sky is falling, the world is ending, the stock market is crashing, but the end results of patiently saving and investing in the long distant future will yield a better outcome than fear, worry, negative thinking, and selling when lower prices and stock market crashes are actually making opportunities. At company, industry, or individual level, steady as she goes will win the race.

    If I get a bit fearful when the market goes out of kilter, I remember that in 1950 the S&P was at 19, and now, in spite of 40% and 60% "corrections," it is now 100 times that. If MLP's waited until the market was topping to build infra-structure, opportunity would be missed, demand would not be met, supply would be limited, and customers would find a better supplier. Those who are planning ahead for better days will be better prepared when demand increases, as it inevitably will.

    Thanks for looking to the future.
    Sep 2, 2015. 06:10 PM | 1 Like Like |Link to Comment
  • Oxford Lane Capital Has 'Got Some Splainin' To Do' [View article]
    Thanks, Steve.
    Hope you will write additional documentaries as each new bit of info is revealed. I've been in OXLC for the long haul, consistently reinvesting all distributions in additional shares. It would not be for the best to find management playing funny money, or avoiding proper reporting of inside information, so we certainly hope they will be forth coming, above board, and transparent, but it has already been ten days since the announcement, and no explanation. Did they stick their head in the sand, or assume that the holders of the company are better off ignorant?
    Aug 19, 2015. 02:32 PM | Likes Like |Link to Comment