I also use an RSI above 70 as an indication of overbought and will not buy a stock while it is above that level. Also, while an RSI under 30 may indicate oversold, I'll wait for that stock to emerge from oversold territory. Just because a stock is oversold doesn't mean it can't become more oversold. Just pull up the history of any stock and observe how it reacts after hitting RSI extremes. Not infallible but helpful.
I'm staying away from anything that has anything to do with health care. There has to be chaos currently at the health insurers with the botched rollout of Obamacare. Keep in mind, the government's ultimate goal is single payer health care.(I saw Obama mention this in a speech) Think of what that means to insurers. As for drug companies: every other government controlled health care system has drastically squeezed the manufacturers to try to keep costs under control. Americans have provided research and development costs for the rest of the world with their 'excessive' cost of drugs. I think our government will do the same. Don't want to sound too political but sometimes a political agenda disrupts the private economy.
Yes, I still have the TC preferred. Since it's a mandatory convertible, it's really getting beat up. I try to hold one and only one speculative issue at a time. TC is it for now. It's about 1/2 of 1% of my stock portfolio so I'm not losing any sleep over it. Plus it keeps me from making any other risky bets until this one is resolved. Still waiting to see if Mount Milligan turns out to be the cash gold mine as was touted. The drop in gold prices hasn't helped. Also reinforces my wariness of companies with no E in their P/E.
Or one could invest in these natural gas processors: XTEX and WPZ. They're kind of like pipelines because as long as gas is being processed (for propane or whatever) they make money. The price of the nat gas or propane isn't their concern. So many ideas...so little money.
Ed, I intend to hold my CDPYF unless something goes seriously wrong with their business. As you know, I'm big on diversification even if it means less than optimal results. I started accumulating CDPYF in 2006 and it came through the 2008 debacle in pretty good shape because Canadian real estate was never in the same bubble as the U.S.. Currently, it's paying about 5.4% after the Canadians confiscate their 13% off the top as my stock account is taxable. My cost basis is $14.80 so I'm playing with the house's money on this one.
Ed, are you psychic? CDPYF took a 4% dump today on no news and normal volume. Report about 2 weeks ago seemed fine. Still holding but will watch closely.
I've been using BDCs as substitutes for bank common stock in the 'financal' portion of my stock portfolio. I hold FGB (a fund of BDCs) and have recently started positions in MAIN and PSEC. Of the three, MAIN is the only one with impressive capital appreciation if you go back more than one year but it also pays the lowest yield. I like the BDCs in a growing economy (however slowly) and have learned I might have to sacrifice capital appreciation as a tradeoff for high yield.
Just want to add my good wishes for Thanksgiving and Hanukkah. We could have done a lot worse than living at this time in this country. Wife is putting together lasagna.(doesn't everyone eat lasagna on Thansgiving?)
I'm one of those people who have held back making a complete position in SFL because of the FRO situation. I hold some but would like to add more. Waiting for the other shoe to drop but not certain it ever will.
I just jumped on the bandwagon too. Have been doing some housecleaning in my stock account. Sold half my IAE which isn't performing that well. Used the money to start a position in PSEC. Was going to add to my MAIN holdings but that stock is showing an RSI over 70 so I decided not to add at this point.
Iconoclastic, there are 2 main factors which determine shipping profitability. Demand and supply. Demand being up doesn't do much good if the ships are in oversupply. Historically, shippers have fallen into the fallacy of thinking "if I had more ships, I could make a bigger profit" . The resulting oversupply of ships kills the rates and nobody makes any money. The Baltic Dry Index being low tells me there's too many ships for the amount of cargo being shipped. We've seen this with dry bulk as well as crude oil and I don't see why any type of shipping would not be susceptible. The Baltic Dry Index (BDI) is the best measure of profitability in dry bulk shipping.
Stagg, article in recent WSJ stated about 40% of corn grown in the US goes into ethanol. I don't expect loosening of the ethanol mandate to effect food prices other than provide fatter margins for the middle men. I do expect it to take some of the pricing pressure off gasoline by lessening or eliminating the purchase of ethanol credits. This would, I believe, also fatten the refiner's margins.
Ed, haven't had any problem (yet) with the alcohol blended fuel in my '66 beetle or '99 Corvette. They say the main problem is corrosion of the fuel system but I haven't seen it. I use fuel stabilizer especially in winter when those cars aren't used much. With our daily driver Hondas, there's no issues either. And there's no additives used there.
This was a needed logical move. The ethanol lobby will scream 'pollution' but fact is you really shouldn't put more than 10% ethanol in vehicles made to run on straight gasoline. EPA's previous 'cure' was to make the refiners purchase credits (pay a fine) for not putting more than 10% alcohol in gasoline. This fine eventually is paid by the motorist who is paying for ethanol they are not getting. I like the idea of some ethanol in my gasoline, especially in winter when frozen fuel lines have become non existent.
Stagg, If you want a hint about where ENFR might go, look at TYY and TYG which are slightly leveraged (compared to MLPL) closed end funds. Each holds a basket of MLPs. I've been holding TYY for quite a while. Less reward but also less risk compared to MLPL. "you pay your money and take your choice".
My understanding was the release would be "early 2014". Going by the NRZ spinoff, you might expect it to be a little late with pricing very late in the process. I would expect NCT to be in limbo until then or maybe a big senior living purchase would wake things up.
So Jamisher let's see if I understand. You have no intention of making a contribution because you might be criticized but will just complain about others' offerings on anything but SFL. Seems to me you're a good candidate for the 'ignore' button. You should also use it on us.
Huff, the Halloween Massacre. I still have the scars from that one. What angered me the most was the newly-elected Canadian administration campaigned on leaving the Canroy tax system untouched. "If you like your Canroys, you can keep your Canroys" or something like that. LOL. I dumped all but one 'just in case'. The one I kept is Vermilion ( VET). My cost basis is $15.65 and this has been a good move. The thing I liked about this Canadian royalty is they only pay out a little over 4% yield but use the remainder to expand reserves. It's not a question of staking out a field and pumping it dry but being able to expand capacity instead of watching it dwindle.
As for the ethanol mandate: My impression is that reducing it would be a good thing for prices because refineries could meet the 10% ethanol without having to buy credits which exempts them from going over 10%. Ultimately, we consumers pay for everything including the credits for not putting ethanol in our gasoline. As I understand it, the geniuses in Washington established the mandated numbers assuming we would be using more and more fuel. While this hasn't happened, they never revised the mandated ethanol numbers forcing the refineries to buy credits to keep from going over 10% ethanol. you can't keep using higher and higher amounts of ethanol in vehicles designed to run on gasoline. 10% is about as high as you should go. Correct me if I don't see this right.