Annaly, Agency REITs Follow Junk Bonds Down As High Yield Diverges From Treasuries [View article]
Yes, last week's trend did not maintain itself. I think this industry/sector type ultra-high correlation sensitivity is a result of ETF and mutual fund flows, which lump so much high yield into one large pile.
2 Stand Out Mining Companies From The New York Hard Assets Conference [View article]
Simit, I didn't see you there, but I was there too. I shot some videos of a few presenters.
I did ask SVM about their 'muddy waters' and they stated they are got their accounting verified and had contracted with an Australian geological company to verify their geological survey of their assets. I guess only time will tell.
Several clips of miner CEOs are up at http://www.minerdig.com I will try to get some more up. I didn't critique these guys, but I can at least verify they were willing to be video-taped by me. Several did not want to be.
Updated Performance Review For 6 High Yield Canadian Oil And Gas Companies [View article]
Today, ERF announced that they were able to borrow $400 million at rates between 4.34 and 4.4 percent. The interest rates indicate to me that they were not seen as a credit risk, but it is hard to predict how this market with interpret this.
I am not much of a hedger, but I would imagine buying some puts would be an easy way to do it. Another option could be a small position in an ETF that is short treasuries, like TBT (a double short long term treasury fund).
I am pretty wary of these agency mREITs right now. They have had a very strong last few weeks, and I like to buy thinks on unjustified weakness. I am happy for all you mREIT longs, though, who regularly read these articles....these guys zig when the markets zag.
Recent Performance Review For 7 High-Yield Healthcare REITs [View article]
Well, there is a significant differentiating factor with auto insurance...in fact two, and this explanation may highlight what I think is wrong here.
First, I do not have auto insurance. That is because I do not have a car. Sometimes I rent a car, and then i get some auto insurance. Individuals that are obligated to obtain auto insurance must do so because they choose to engage in a restricted activity that requires a license and which is considered dangerous to both yourself and others. Moreover, the insurance you are most obligated to obtain is that which protects those other potentially injured people, and not yourself. But this mandatory health insurance provision would require everyone to insure themselves, regardless of your prior actions or omissions, or be in violation of federal law (even if you don't have a health issue and don't really care to ever see a doctor). Still, I could see how a special surtax could be imposed on foods deemed unhealthy and activities deemed dangerous that could pay for a subsidized social insurance (I am not saying this would be good, but it could be Constitutional).
Second, the extent of auto insurance you need is largely set by your State and not the federal government. If a state makes a bad policy decision on this or any other matter, that state will suffer due to smart citizens choosing to not move there or to leave the state, instead opting to live and work in another that made a preferred policy decision. When such choices are made at the federal level, the ability for the states to compete and establish the standard most consistent with the desire of the people is eliminated, and the people have nowhere to run.
Recent Performance Review For 7 High-Yield Healthcare REITs [View article]
Honestly, it is so irrelevant to the process, but I imagine that Presidents have pushed their agenda in such a manner before. I cannot imagine the comment, or ones like it, having any influence upon the Court. Also, I really do find this mandate strange in that it is particularly contrary to both strict textualist and progressive liberal ideology. Neither would be in support forcing a person to buy a service from a large private corporation or be in violation of a law (essentially, you start off as a violator and then have to correct your non-insured natural condition). If it was performed through a general tax and public option, that would probably pass the Supreme Court's test, if well drafted.
Recent Performance Review Of Warren Buffett's Largest Equity Holdings [View article]
Best holding is hard to say, and they are particular to Berkshire. For example, he bought KO at new coke, and that built in capital gain is a factor.
I do not know what he was thinking of buying. Buffett likes insurers, so possibly aflac or chubb, both of which are around $20b. Norfolk southern and CSX are two railroads that are around the right size, if he was considering further consolidating in rail, though I doubt that he would buy either. In the spirit of lubrizol, the mosaic company fits the size description, assuming the 22 bil is the present market value and not buffet's assumed buyout cost. Anyone else have any theories?
Recent Performance Review For 7 High-Yield Healthcare REITs [View article]
I am an attorney, and I did study Constitutional law with a Supreme Court justice, and it is my guess that the mandate to purchase private insurance or suffer a penalty shall be struck down. It is possible that the vote on the mandate will be unanimous.
As to the ability of the federal government to in some way influence healthcare, I think that the Court will not respond to individual lines of proposed benefits, but that I believe that the current Court would conclude that the healthcare sector is substantial enough for the federal government to create agencies dedicated to and institute minimum standards of care that would be tied to funding, and possibly further influence through some well written laws.
Timber REITs: Where Money May Actually Grow On Trees [View article]
Thank you for these numbers, LeeLee. Such thinning is often sensible both from a monetary and property maintenance standard. The decline in price you mention is significant. I believe pulp, chip-n-saw and timber-lumber prices will all eventually increase from these prices.
American Capital Agency Earnings: Decreases Costs, Increases Margins, Leverage And Book Value [View article]
I believe their formula is riskier than NLY's, but that risk did correspond with greater reward in terms of a higher past and present yield and greater share-price appreciation. At least that risk is not for nothing. They do say the proof is in the pudding, and Mr. Kane has made some prize-winning pudding in the past.
Annaly Beats, Increases Leverage, But More Dividend Cuts Are Looming [View article]
in addition to jpmist's apt comment, that .92 is a GAAP number, which many of you do know is not the best metric for these mREITs. The unrealized portion is not at issue regarding taxation, and so it does not require distribution to prevent taxation. The remainder would be $0.54, 90% of which would be $0.486, but NLY tends to pay out above the 90% mark.
If I were to guess, which I will do now, it will probably pay somewhere between 95% ($0.513) and 105% ($0.567), with the average between those being $0.54, or a 1-cent reduction, but always like pleasant surprises.
Annaly, Agency REITs Follow Junk Bonds Down As High Yield Diverges From Treasuries [View article]
A Primer on Agency REITs and 6 That Currently Yield Over 12% [View article]
2 Stand Out Mining Companies From The New York Hard Assets Conference [View article]
I did ask SVM about their 'muddy waters' and they stated they are got their accounting verified and had contracted with an Australian geological company to verify their geological survey of their assets. I guess only time will tell.
Several clips of miner CEOs are up at http://www.minerdig.com I will try to get some more up. I didn't critique these guys, but I can at least verify they were willing to be video-taped by me. Several did not want to be.
Updated Performance Review For 6 High Yield Canadian Oil And Gas Companies [View article]
Updated Performance Review For 6 High Yield Canadian Oil And Gas Companies [View article]
Recent Performance Review For 5 Liquid, High-Yield Agency Mortgage REITs [View article]
I am pretty wary of these agency mREITs right now. They have had a very strong last few weeks, and I like to buy thinks on unjustified weakness. I am happy for all you mREIT longs, though, who regularly read these articles....these guys zig when the markets zag.
Recent Performance Review For 7 High-Yield Healthcare REITs [View article]
First, I do not have auto insurance. That is because I do not have a car. Sometimes I rent a car, and then i get some auto insurance. Individuals that are obligated to obtain auto insurance must do so because they choose to engage in a restricted activity that requires a license and which is considered dangerous to both yourself and others. Moreover, the insurance you are most obligated to obtain is that which protects those other potentially injured people, and not yourself. But this mandatory health insurance provision would require everyone to insure themselves, regardless of your prior actions or omissions, or be in violation of federal law (even if you don't have a health issue and don't really care to ever see a doctor). Still, I could see how a special surtax could be imposed on foods deemed unhealthy and activities deemed dangerous that could pay for a subsidized social insurance (I am not saying this would be good, but it could be Constitutional).
Second, the extent of auto insurance you need is largely set by your State and not the federal government. If a state makes a bad policy decision on this or any other matter, that state will suffer due to smart citizens choosing to not move there or to leave the state, instead opting to live and work in another that made a preferred policy decision. When such choices are made at the federal level, the ability for the states to compete and establish the standard most consistent with the desire of the people is eliminated, and the people have nowhere to run.
Recent Performance Review For 7 High-Yield Healthcare REITs [View article]
Gold Miners Suffer Leveraged Declines Compared To Gold [View article]
Recent Performance Review Of Warren Buffett's Largest Equity Holdings [View article]
I do not know what he was thinking of buying. Buffett likes insurers, so possibly aflac or chubb, both of which are around $20b. Norfolk southern and CSX are two railroads that are around the right size, if he was considering further consolidating in rail, though I doubt that he would buy either. In the spirit of lubrizol, the mosaic company fits the size description, assuming the 22 bil is the present market value and not buffet's assumed buyout cost. Anyone else have any theories?
Recent Performance Review For 7 High-Yield Healthcare REITs [View article]
As to the ability of the federal government to in some way influence healthcare, I think that the Court will not respond to individual lines of proposed benefits, but that I believe that the current Court would conclude that the healthcare sector is substantial enough for the federal government to create agencies dedicated to and institute minimum standards of care that would be tied to funding, and possibly further influence through some well written laws.
Recent Performance Review For 7 High-Yield Healthcare REITs [View article]
Timber REITs: Where Money May Actually Grow On Trees [View article]
American Capital Agency Earnings: Decreases Costs, Increases Margins, Leverage And Book Value [View article]
Annaly Beats, Increases Leverage, But More Dividend Cuts Are Looming [View article]
If I were to guess, which I will do now, it will probably pay somewhere between 95% ($0.513) and 105% ($0.567), with the average between those being $0.54, or a 1-cent reduction, but always like pleasant surprises.