Can Chimera Keep Paying A Monster 16% Dividend? [View article]
Please, no more stupid reader comments on hedging with puts while keeping the yield.... per Rookie's comments, there is no free lunch to be had here as puts on high div stocks are (very generally speaking) proportionately more expensive.
What Leucadia Sees In Jefferies Group And Mueller Industries [View article]
The bullish investor case may be overly focused on the (mostly resolved?) European debt issues while ignoring the potentially bigger risk/threat that mid-size firms like Jeffries may face in terms of their access to (and cost of) funding. How would the company be valued if "trading" revenues materially declined (due a major reduction in all debt financed trading positions) and Jeffries was left to rely principally on fee income from its (very strong) investment banking business?
Mongolian Growth Group: A Pick And Shovel But Not For Commodities [View article]
Investment Check List 1. Good Investment Thesis - CHECK! 2. Great Board of Directors - CHECK! 3. Curent Market Cap as a % of Deployed/Deployable Capital - Ugh....Bueller? Bueller?
Greenlight Capital Re's CEO Discusses Q3 2012 Results - Earnings Call Transcript [View article]
Great company/investment vehicle. Unfortunate that the liability guys do not appear to be as good as the asset management guys. Maybe Einhorn should fix this....starting at the top of the organization. It is frustrating to have great investment results muted by stupid risk/underwriting decisions.
Why Sears Holdings' Bonds Look Attractive Now [View article]
This author is a punter. Other punters may follow him over the cliff, but would be better off listening to guys like commentator nd01nd (see above) who anaylzes the ranking of the debt and available collateral.
These 3 CEFs Can Give You Berkshire Hathaway At A Discount [View article]
OK, the current discount on BIF is about 20% (the high is a little higher), the 52 week average is close to 17% and the 52 week low is greater than 12%. Accordingly, one could argue that, despite i) very high management fees (arguably not justified by value added performance); ii) persistant large discounts to NAV (possibly absent any material manager action to remedy); and iii) a fairly inactive (and easily replicated) portfolio, that investors should consider relatively short-term trades (vs. "investments") in these funds when they approach the respective historically wide range of their discounts in the hope that such discount(s) revert to slightly lower "mean discount(s)" to NAV. Was this your SPECIFIC investment thesis? If so, I missed it. Hypothetically, if one managed a family trust, perhaps one would consider doing so through a CEF so that one could get retail investors/suckers to pay the majority of one's fees/expenses.??? To be clear, I am NOT saying that this is the case here, but I am at a loss for a better explanation. I hope smarter people can clue me in so that I don't miss any other great investment opportunities.
These 3 CEFs Can Give You Berkshire Hathaway At A Discount [View article]
Waiting for the NAV of these funds to approach par has been a value trap for YEARS now. Is the auther aware of ANY catalyst that will change this? Is ANYONE aware of a material/effective action taken by the manager to meaninglfully narrow the discount? I'm not. I vaguely recall that, at certain times, some of these funds have held sizeable cash positions at the same time that the respective share price was well below NAV. Some managers would use the cash to earn an essentially risk free return via buying back the shares in order to push the price to a more appropriate/par level. I anyone aware of a non-Horejsi shareholder friendly rationale for not doing so (when faced with such large/persistent discounts to NAV)? I'm not, but I would greatly appreciate someone's expert advice on this as well, since I am just an ordinary joe. Like my old german grandfather used to say "If you don't have anything smart to say, please don't say anything at all."
Given the number of comments on valuation, readers should consider valuing NNN REITS like LSE with respect to CORPORATE BONDS (instead of vs.more conventional REITS with greater operational and financial risks). Why? Because NNN REITS are a lot like portfolios of secured bonds. Specific to each NNN lease, if the tenant pays, you have a senior (bond like) claim (and credit exposure) to the tenant with potential upside at lease end (if property appreciates) and downside protection (at least you still own the real estate) if your credit tenant defaults (better yet, some leases might actually be affirmed in bankrupcty!). Compared to a portfolio of similarly rated unsecured bonds (with term financing), you might (?) decide that LSE is a bargain. Pretty simple stuff, but do your own research and consult an expert (hopefully better than the scumbag sell side research guys... Ha Ha) before proceeding.
Safe Bulkers' Recent Financing: Another Intelligent and Shareholder-Friendly Deal [View article]
to clarify......you typically do NOT "deduct" the LIBOR leg of a floating-to-fixed interest rate swap. as a general example: a borrower typically has a floating rate loan (paying libor + credit spread). to hedge against potentially higher future libor rates, the borrower enters into an interest rate swap where he pays the fixed swap rate and receives libor. you do not subtract libor (from the borrower's financing cost) because its a "wash" (he effectively pays it to the bank to meet the interest payment on the loan). the net effect (i.e. cost to the borrower) is the full generic fixed swap rate, plus the credit spread (only) on the libor based loan.
Can Chimera Keep Paying A Monster 16% Dividend? [View article]
Nokia's Revival: The Ship Has Sailed [View article]
What Leucadia Sees In Jefferies Group And Mueller Industries [View article]
Mongolian Growth Group: A Pick And Shovel But Not For Commodities [View article]
1. Good Investment Thesis - CHECK!
2. Great Board of Directors - CHECK!
3. Curent Market Cap as a % of Deployed/Deployable Capital - Ugh....Bueller? Bueller?
Greenlight Capital Re's CEO Discusses Q3 2012 Results - Earnings Call Transcript [View article]
This $7 Pharma Stock Yields 8% - Buy On Dips [View article]
Washington-Based REIT: Dividend Champion Has Its First Dividend Cut In Over 50 Years [View article]
Does It Really Pay To Invest In High-Yield, Closed-End Funds? [View article]
Stocks With 10% Dividend Yields Owned By Leading Investors [View article]
Why Sears Holdings' Bonds Look Attractive Now [View article]
These 3 CEFs Can Give You Berkshire Hathaway At A Discount [View article]
These 3 CEFs Can Give You Berkshire Hathaway At A Discount [View article]
Cresud's Value Is Anchored In Real, Attractive Assets [View article]
In Brazil, take a look at Adecoagro (AGRO).
5 Crown Jewel REITs Paying 'Great Repeatable' Dividends Over 5% [View article]
Safe Bulkers' Recent Financing: Another Intelligent and Shareholder-Friendly Deal [View article]