agree, a small 5% buy back would have been smart.. they still have that $50m from the Feb pfd unless they invested it already.. oh well, foreign bonds are just out of favor and discounts are high,, also I think CEF disc are higher now due to the perceived new "risk" of lack of liquidity in fixed income and uncertainty w fed/foreign feds.. meant to say fall "ala TEI" not TEF, Templeton fund cut of dist.. I see other LM CEF's (Western Asset ones) cut dist slightly.. we'll see.
listed to the conf call as well.. no reaction in the share price today.. 15.86, xd today, still under NAV of about 18.18. "global bond market difficult, inv grade, high yield up, sov bond currency hurt the most w dollar strength.. Brazil very weak w Petrobras storm etc.. Portugal up on ECB buys.. MX, SA, Hungary all ok, " comments avail on legg mason website cef's. for review, 4/24/15 conf call notes or replay. almost half of the dist and special for 2015 fisc year. is short/lt cap gains.. so it remains to be seen if beginning in 11/2015 if they can pay the dist from income or if they cut it or have more cap gains? or pay ROC... they feel outlook is stable to slightly positive, who knows though.
Next XD wb 6/17 of .47 comprised of .13 regular and .34 "extra".. no description of "extra" I am guessing bal of positive UNII? No new update of Holdings since 3/31,, conf call says no anticipate changes to inv positioning..
so to me, the way I see it,, if they can't earn the income going fwd w no cap gains to dist.. then we could get a cut to dist. the pfd being invested to produce more income may help. I guess we won't know till Oct ? don't like this uncertainty here in the dist outlook the way I interpret it. holding, not adding, due to big disc to NAV, good mgmt. historically. A small part of div income portfolio. If they cut after Oct, it may?? fall ala TEF .
I put these notes in mostly for my reference, due your own DD, glta, Bea
cleaning up the debt makes it easier to sell or merge etc. ? that is my take, no company would be willing to buy w debt outstanding..but who knows, all these companies are scrambling and it is not getting any better any time soon. the low cost producers are already starting to drill and plan more drilling (PXD in Permian 2 rigs a month be added) it is going to take a while to sort out for sure. watch your preferreds, not familiar w this one , but some carry a provision that the pfd can face amt can be exchanged for shares too! That happened to Arcan, a CA company,, they exchanged all their debt/pfd for stock, crushed the stock to .02, someone came in and is buying them out now w debt out of the way as their assets were attractive. Bea
Sentiment: Strong Sell
its a krapshoot to be sure, debentures moved from 21 to 40 as oil price went up, have held since 1st q report, about 39.50 today.. of course at this point it is a pure speculation and penny stock in the hands of our bankers and the price of oil to decide if we continue.. I don't need the tax loss, holding for now.. sad mess for sure. Bea
ISD seems like a good one thanx, I had been looking at PRU's GHY also, more int'l. of course important to diversify etc . glta Bea.
well it seems like they may also cut dist again, was able to pay .075mo down to .07mo and some of that is return of capital too! ( see CEF connect for deets) to me it seems like there are other better options, if I want a leveraged closed end fund, I want one that is earning it's interest/monthly dist at least, and possibly pay a little extra year end w good performance or cap gain. I think the big disc to NAV that Barron's focus article today points out is because there is dist cut potential here. I would use the bump up to sell and switch into something else from say Pimco. Bea
this interest rate volatility coupled w foreign currency swings, central banker concerns seeing interest rates lower (Aussies, others, maybe Canada soon..) will make for some more interesting opportunities this year,, may add a little more BWG if weakness continues. almost a 14% disc to NAV here.. april 30 holdings should be out soon? they are overdue for a quarterly update on this fund. I copied the 3/31 holdings, will compare to the new one when released, see if I can figure out changes/where they put the 50m pfd money from Feb with the disc to nav, I agree w mr B, they should buy some shares but they probably wont since it reduces AUM and fees.. glta.. Bea
there certainly is a great rising rent pattern in the IRT properties,, they are one of the few newer growing reits that has delivered FFO and covered div w FFO. w housing pricing rising faster than rents (if you can even find a house/condo to rent!) should allow for some good pricing power going forward. as they improve on the properties, they probably can command even higher rents. there is probably room for more consolidation in the apt reit space as well as there was in healthcare and office. I am sure if RAS could get 11-12sh for IRT they'd sell.
still skittish on o/ng/mlp's the whole bunch but it has come down a lot and seems a better value than it was ,NTG may be decent soon as well. like the NG focus of the holdings... putting in some well under ask limit orders gtc for 2wks, may #$%$ some w fed volatility and sell in may crowd starting up again. Bea
makes sense to me, however that would reduce funds under management and hence fees to LM (!) lol. I looked at the new BWG holdings release of 3/31/15 and just didn't feel like comparing it to the last one to figure out what if anything they bot w 50m pfd levg added. can i't they just put out an update or brief market pulse on it? makes me mad.
I was thinking if LT/ST gains are evaporating, they are going to use the leverage to increase income so they don't go into paying out ROC like so many cef's do/or so they don't have to cut the dist. which seems unlikely at this time. juicy disc to nav for sure. would add a little more if under $16.
I like LM mgmt./mgrs.. may nibble on CBA soon as well, NG focus mlp fund lower leverage than most also disc to NAV.
I hope the fed and world events drive some more volatility into the income markets like the taper tantrum did so I can pick up some things as I am in mostly cash now. Bea
we'll see what the fed does, all this volatility in world income markets creating op's. remember to stay diversified. I was looking at HHY but it is very coal/energy/oil service laden (about 15% or so) and I don't think the pain there is over, although Brookfield now managing, they usually do a good job. PFL, PCN also seem good/under pressure, maybe a chance to nibble there too.
to be honest, mostly in cash these days, picking a few opportunities here and there. maybe one of those seeking alpo articles will crush the price of some of my watch list names like they did to PHK, which has recovered somewhat. well, glta, take care Bea
hi Ed, a lot of insider buying.. not sure if it is early yet or not as I feel oil has more pain, no one is really cutting production anywhere...but this one is a probable survivor. it is on my watch list along w a few others. still smarting from argent pain! hang in there. Bea
sorry to post here, the board for NTG is NA at this time..
, the Tortoise fund that invests in NG MLP's, has landed on my radar,, however one item in their Factsheet has me concerned.. there is tax liability in NAV today of 26.61 of 6.02.. would that be due if fund merged/liquidated? unlikely I know, but concerning.. any comments would be appreciated. Bea. (Factsheet info follows..)
Fund at a glance
at 3/31/2015 unless noted (unaudited)
Total assets (including leverage) $2,061.8 million
Market price $24.06
52 week range $23.51 - $29.94
Deferred tax liability included in NAV $6.02
I guess I like the "progress without dilution" if it indeed can be carried out as per the presentation. I have to laugh, these AU/AG companies all share names like the oil patch folks when you read the board/directors/insider bio's. I see they hired some more folks for Lincoln Hill project as well. An interesting name. Bea
the metrics to analyze o/ng/ngl change daily, sometimes in a moment, including technology, logistics, infrastructure to the fields, geopolitics, day trading, speculation etc. These articles can be useful for background etc but usually they have an agenda imo.. nothing wrong with oil/ng/ngl in the ground in a safe country in a perpetual trust, still believe there are better price to come on these, holding a small position in NDRO w others on my radar including PBT, ROYT, VOC, CRT. trusts will move fast if/when things turn.
I hope they wait for the right opportunities.
will be tough sledding for rest of year, posted some thots on Canadian stock hse boards.. sad mess. I will hold as a spec warrant on o/ng prices, net of debt it could still fetch $1-2 price total, some small asset sales coming to reduce debt, may keep bankers happy w hedges we have, till Dec at least. they squandered too much on Eagle Ford imo, despite great potential in WY w Devon and KS/OK/other TX properties for infills, workovers, etc, wanted to play w big boys, lost. so many others did as well though.. big messes out there, TBTEF, PEYTF, LSTMF (which I sold at $1.40 on last run up after their div cut) Surge, Long Run,, when the biggies fall where everyone is hiding out like CVX, EOG, Cimarex, XOM, BNE.TO, VET, RDS etc it will be time to sniff around. at this point I am only long ANGYF and small amt of NDRO and mostly closed end funds and pfd's which have done well for me, and cash, STIP small amt. looking at ASA now. take care. Bea the Baggage holder here..
apparently they are hedging the EU and Poland, not other currencies. currency wars as countries export deflation massively. this will probably not end well.. think of all the countries w US$ denom debt now having to pay 20-40% more in interest etc.. even a lot of CN companies are hurting w Loonie down 20% .. looking at ASA for some small added gold shares exposure now. they have been around forever and focus on better gold miners, CEF at a discount. thank you for JGH, I like Nuveen, a good operator, will look into it to diversify intl bond exposure a little.. glta. Bea
sorry, what I was saying is his influence in PIMCO is no more and time to move thinking he is remotely involved or can sway shares .. there are 137m shares outstanding of this fund alone, w over 500k avg daily volume, market could easily absorb 1-2m shares, if he sold all at once, it would probably be to an institutional investor..no one will have enuf shares to change the bylaws. biggest holders are institutions. better to focus on the opportunity the share price seems to represent now in many CEF's w market in interest rate/FED/ currency-forex/ EU/JP/CA QE flux. good article in Barrons by Guggenheim guy this week about op's in floating/high yield etc. personally I added some PFN and BWG this week .Bea