Hey, c'mon now, give HSBC a break! Since they got caught red handed in money laundering and can no longer participate in that anymore (at least for a bit), the criminal banksters have to find another way to game the system and make money. No game easier to play than front run stocks before issuing a timely upgrade or downgrade.
Excuse my spamming your post again, but another alternative to HLSS that deals with MSRs and has a high yield and trading at a value price today is NRZ. Earnings in a few weeks, and I expect them to be good. Their last dividend included a special, and no way would they do that if earnings were not up to snuff. Every time I've bought NRZ below $6.20, I've had the opportunity to sell it around $6.50 within a few months, and also netted a dividend in the process.
For those that are unfamiliar with HLSS, before buying this in a taxable account be aware that it is a PFIC (passive foreign investment company). Being classified as a PFIC brings on an unusual tax treatment for anybody holding shares where you have to file a QEF the tax year you buy HLSS. All in all, I think HLSS is definitely best left for retirement account like IRA or Roth.
Happy birthday wisejman, you are getting wiser by the year it seems! I'm holding onto my RWM shares that I've had the past few weeks. Still think the market downturn is coming soon. We'll see.
I'm in the same boat in needing a certain flow of income. Try to have a mix of growth versus (I hope) stable high yield cash flow. As for which other upstream LPs are left that still show great promise...well...wish I knew! I still hold a big chunk of VNR and just hope at this point they can get their act together. Also own some of the VNR preferred.
So you like RSO again? That was one of my favorite stocks from 2008 - 2012. Nice run and nice dividend, even during the crisis. I read they did another securitization finally. So Jonathan Cohen is inspiring more confidence then? Is REXI still getting a sweet deal?
2 steps forward, then 1.5 steps back. World bank knows how to exert pressure enough to get their way in the short term.
As you say, the best buy would be to travel back in time to buy QRE yesterday, hah. It's crazy cause I was looking for a place to put the proceeds of my PSXP sell. In the end, it came down to ARP, BBEP, and QRE for half the money, and I ended up choosing ARP a few days back. Now obviously I wish I had bought QRE, just that all the issues dogging them turned me off of them in the end. I almost went with BBEP but now very glad I did not. BBEP has some issues with their distribution coverage, and now they are issuing a lot of units to buy QRE. There could be cost savings down the road for sure, but there are a lot of moving parts that BBEP will have to navigate. Kind of makes my head spin.
That's kind of baked into the current $14.40 price I think. I agree with wisejman that GARS seemingly offers good value here. I bought in today.
I don't know about making a bundle, but buying NRZ below $6.20 in the past has always resulted in decent profit taking opportunities a few months later. I bought more also.
I'm glad I decided to buy ARP now instead of BBEP. To be honest, wish I had bought QRE and could do a quick cash out and then buy ARP, but oh well. A lot of uncertainty and moving parts to BBEP now, would make me nervous combined with the distribution coverage miss.
Wow, and to think just a few days ago I was trying to decide which LP to invest in between ARP, BBEP, and QRE. I ended up choosing ARP. Would have been nice to have picked QRE though. Make that quick gain and then buy ARP.
I agree that this potentially was more about trying to get Germany to toe the line on Russian sanctions than anything else. I don't see the Fed blassting JP Morgan or Bank of America for their scary derivative leverage right now.
After looking into GARS (thank wisejman), I can see why you feel so strongly about it being undervalued. I think I'll try to buy some tomorrow in the low $14.40 range. As you note, being approved for the SBIC license is cherry for a small cap BDC like GARS or MRCC.
Absolutely, location of the infrastructure is the biggest key to a successful midstream. It can be a really taxing chore to read up on the all proposed new projects and which areas of the country are projected to be the best producing to even try to figure out which of the midstreams are the ones to own. At some point, I just try to have some faith in the executives of the more successful ones to keep on top of the ball. I own EPD and PAA (along with PAGP), and would not mind buying some MMP, just not at the current all time high price. If I could just find one in the sweet spot of paying out over 5% while also looking well positioned for future growth, I would be a happy guy.
I agree that even the most disciplined and diligent of high profile investors can really step in it from time to time. One of the investor titans I most admire is Seth Klarman, and he recently put a bunch of money into Banco Espirito Santo shortly before all the bad news was announced and the stock price plummeted. That must have hurt.
That's a nice increase though, now paying around $1.20/year in distrubutions. What would be your best guestimate about further distribution increases over the next 12 or 24 months. I know a lot depends on drop downs and potentially doing a SPO to raise more money which means more units to pay out. The math gets tricky to even try to project. Would you think 15-20% distribution growth is still possible for the next two years even with the 50/50 IDR split now in place?
Yeah, it's weird why ARP is yielding so high compared to all the others. Hard to find another one that yields even 10% these days.