Sorry keebon but we 'smaller government' proponents think the government already controls too much land. Without mentioning anyone by name, that's too much power to be in the hands of one man. And because of commission appointments and executive orders, it really is in the hands of one man.
Keebon, one good thing has come from the ethanol requirement in gasoline. When was the last time you heard of anyone having a frozen fuel line? Other than that, there's no benefit.
I find it amazing that in such an unstable area, the flow of oil remains unabated. I would have expected some or several countries to have lost their ability to export by now.
My theory is once the market sees a stable (for shipping) company paying a 30% yield (0.50 yield/1.65 current share price), the share price will be increased. At least that's the plan. (hasn't worked too well for NRZ's 18% yield though)
I use Fidelity and have bought GSL preferred and GSL calls with no restriction at all. Haven't tried to buy the common.
If I were to exercise the options, GSL common and preferreds would be 6% of my stock portfolio. That is equal to what I hold in NRZ. Probably would just sell off some of the calls and exercise the rest. In my world, 6% is too large a chunk to devote to a single company in such a volatile area as shipping.
Cirodrick, in liking WFC, you're in good company as WFC and USB are the banks owned by Warren Buffett. I use a bunch of their preferreds in my fixed income account.
Gambler, I'm in the process of trying to extracate myself from the mistake of thinking rising interest rates would be good for floating rate funds and flat rates, at worst, wouldn't hurt them. I was wrong. These flat to slightly rising rates have hurt floating rate funds like FFRHX, PPR, VVR and JRO with losses in capital just about eating up the yield. The only thing that saved me from disaster in that account is I inserted some preferred stocks bought at discounts even though I believed floating rate was the way to go. The lesson is : diversification trumps conviction. No matter how convinced that something is a sure thing, I try to limit my exposure so that the land mines (bad outcomes we didn't anticipate) aren't fatal.
cirodrick, I use cefconnect to try to dissect these closed end funds. True, they haven't distributed any return of capital. That was my estimate of what would be their options if the field wasn't appreciating in value. Their last distribution was 100% long term capital gain according to cefconnect. I don't know how they would account for money made selling options but I noticed none of their distribution was from income. IMO they rely on capital appreciation of their holdings.( my experience with selling covered calls is they are far more profitable in a rising market.)
I sold my HQL a while back when it became fashionable for office seekers to bash drug companies. The high yield far surpasses the dividends paid by biotechs. The only way to continue the high yield is distribute capital gains. But what happens if the stocks stop going up? IMO next step after that is reduce dividend or return capital. Currently not holding any drug companies but might look at ABBV for a sustainable yield. Or as sustainable as things get in that industry given patent expirations, failed clinical trials and other pipeline problems not to mention political interference. I spent my career in pharmaceutical research and it's a difficult business to do consistently well.
syz, the web site I use to obtain preferred stock info (call and maturity dates, rating, pay dates, perpetual or not, tax status of dividends etc) is quantumonline. You can add the last dotcom part as Yahoo won't let me. I always use it for researching preferreds.
Very good point Mark. After I finish dropping off grandkids at their various schools this morning, I'll call Fidelity and inquire if there is a direct way to access a given company's current bond prices on line. My guess is I'll have to get that information over the phone from their bond guys. Using your numbers, VNR's bonds would be the way to go keeping in mind bonds are higher up on the default ladder. Still too risky for me.
mud, the trick in buying preferreds is to deal with a company that's been beaten up but which you think will survive WITHOUT having to resort to chapter 11. The company might survive in a chapter 11 but usually the stockholders don't. As the the oil glut gets pushed further out, I was feeling less and less comfortable with my VNR preferred and switched to GSL preferred which, to me, seemed on better financial footing. When the market sets a 44% yield, it's telling you something. Bob is more patient than I. I would never have had the fortitude to hold NCT through the depths like he did. Paid off though.
keebon, Two reasons I didn't buy into CAFD. 1. When I did my research a few months ago, they only had one dividend to their credit and I wanted to see more of a history. 2. The LP at the end of their title. Trying to simplify things and avoiding partnerships when possible. I'm way ahead on BEP as it's a long term holding but underwater on HASI and YLCO and want to collect more experience with this type of investing before making more of a commitment.
Put in an order for a small position in GSLpreferredB. We'll see if it fills. My gut tells me to stay away from all shipping but the last conference sounded so upbeat. Management even seemed positive about the health of their counter parties in the leases. They wouldn't mislead the investors; right? LOL This would take the place of VNRBP as my gambling stock.
Keebon, you have a short term gain in NRZ? I'm impressed. My short term experience with NRZ has been painful. I'm overweight NRZ but haven't booked the tax loss because I don't want to be on the outside looking in on this stock. Even for 31 days. I'm not expecting anything to change other than the market realizing this isn't your run of the mill mortgage REIT. We'll see.
Bob, re VNRBP, I'm out because it feels more like gambling than investing. Not like 2008 when the preferreds of companies like MET were decimated. Those companies were basically healthy, VNR not so much. If I feel like gambling, I'll be back but upstream energy is the last place I want to be right now. That said, I still have my VET, ARLP and SSL which I've owned for so long, I still have a profit and don't want to attempt tax reporting for a partnership like ARLP because of many years of 'return of capital' distributions. One reason I try to avoid partnerships now.
"anyone doing anything today?" I sold off all my FGB and BTO which are funds in business development companies and banks respectively. I fully intend to buy them back in 31 or so days but then that's what I said when I sold KMI months ago and it hasn't happened. I try to collect tax loss credits as they're applicable forever (or until they change the tax code)
Much of the market's problems trace back to the collapse of oil. But that seems a willing act caused by the Saudi's refusal to back off production in contrast to what has been their policy for many years. How long can this situation continue? Even the Saudis with probably the lowest cost basis are not making enough to fund their government obligations and are resorting to selling bonds and even raised the possibility of selling shares in their national oil company. Other national producers such as Russia and Venezuela are hurting even more. Does anyone have an opinion on when this will end? Sorry for the non connstructive post but I guess I just had to vent.