Thanks. In my stock portfolio I have SLW and a little SAND, I think those are the best way to invest in precious metals.
I have way too much in oils and financials. I will be moving out of them very slowly.
Sounds like your portfolio is pretty concentrated, especially with VXX and TVIX in there.
I didn't red thumb you, but I am curious as to how your portfolio breaks down right now. Mine is about 60% stocks, 40% cash. Care to share yours?
What improvements in the fundamentals? Rates generally have been trending downward all year, and there is no event in sight that will change that.
Not really. SFL is more than the sum of its affiliates, although they do have a significant effect on both its operations and its stock price. I stand by my advice - enjoy the dividends, and be patient about buying. I'll expand on that, I don't think this a time that long term investors should be selling it. The dividends will allow you to build your cash reserve while you wait for a break in the market.
The "problem" with SFL is, was, and for the forseeable future will be, the affiliates, namely GOGL, SDRL, and FRO. Last year we saw some financial engineering where SFL bailed out GOGL. You could make a case that SFL got a decent deal, but time will tell - meanwhile, GOGL got a lifeline for sure. It seems highly likely that SDRL will need a similar lifeline in the next three years, while GOGL is far from out of the woods, and FRO wouldn't be able to last through a long downturn in rates, weither, although I don't expect a problem there for a while.
JF has proven that he will move money and contracts around his public companies in order to keep them all solvent, so the cloud of the affiliates will hang over SFL until JF either dies or goes to prison, two events that always seem near, but haven't happened yet. After that, who knows? I would love it if whoever took over simplified the whole capital structure, and the affiliates either got absorbed or much further separated from SFL, but counting on that is definitely a speculation.
Enjoy the dividends from SFL, and be very patient about buying it. Look for capital gains elsewhere. Although I haven't done it, I think bayman's strategy of selling the puts has some merit, you might want to look at that.
Although I always like your posts, Mark, I had sort of written you off as a sort of cranky superbear. But this time, I think you might be right. There seems to be a lot of sentiment for a bounce right here, it would be odd if such a consensus were right. I'm ready to buy some VGK, but I didn't buy any yesterday and I plan to wait a bit longer. Still, it's starting to look like pretty good value, on the currency play alone.
Musk is starting to look like a latter day John Fredericksen, wheeling and dealing with a web of interrelated companies, most of them losing money most of the time. JF's fish farming operation, which is supposedly quite profitable, is privately held. We'll see if that sort of thing happens with Musk.
A while ago you posted that you had sold everything, but since then your posts have suggested that you have some stocks in your portfolio. How much do you have in stocks? For me it is about 60% stock, 40% cash.
SFL owns more than 20% of FRO, and as such, FRO should be treated as an affiliate and FRO earnings included in SFLs. With these offshore companies accounting is always a roll of the dice, but I think the FRO earnings are includied in SFLs results.
That may influence SFLs decision to sell those FRO shares.
It also means the company is susceptible to a rise in interest rates. I am holding the SFL I bought late last year and early this year, but SFL has a lot of LIBOR debt.