Today is a perfect example. TMV up over 5% and Reits, MLP´s dividend payers down. This tactic does require some supervision.
Agree. Just sold my UPRO at 88.1 on Friday after riding it from 70. I also hedge the taper tantrums and rate fears with TMV. NRF (and other Reits and MLPS) and TMV almost always move inversely. It has worked well for me for quite a while.
Here are some of my notes (mostly non financial) from the call. May be a few errors that will need to be updated when the transcript comes out:
1. Deconsolidating a number of CDO´s resulting in a $256 M NON CASH loss in order to acheive:
a) increased financial transparency and reduce complexity to allow investors to better understand business (see it for what it is NOT a mreit)
b) this will have NO impact on CAD
c) going forward this will be reported as income and no reverse engineering/reconciliation will be needed (transparency to investors)
d) objective is to get all CDO´s off balance sheet sooner rather than later and should expect more in 4Q
2. 0.21 dividend on 0.28 cad equals 75% pay out ratio = strong cash flow
3. Hamo "Asset management growth strategic focus either as part of NRF or spin off"
4. 47,000 registered reps selling Income 2 and Healthcare and expect momentum to pick up on capital raise and expect it to exceed 2013. Expect over $2M / day
5. Advanced discussion regarding a $300 M corporate investment into a premier "full service" NYC real estate company with class A office buildings that will increase access to investments in NYC and further improve capital raising ability (increased fees)
6. Plenty of liquidity available for future investments whether coming from the revolver, cash on balance sheet or potential new P/E partners or P/E fund distributions that have exceeded expectations. (I
7. Still see opportunity in manufactured housing even with the increased interest from other private equity players. Space still meets investment criteria: fragmented, low capex requirements and strong stable cash flows
8. Still strong opportunity in floating rate loans, great origination reputation and track record in securitization market. 83% are repeat borrowers.
9. Should expect new products to start being peddled in addition to Healthcare and Income 2. Hamo says "it is clear that the broker dealer can sell more than 2 products"
Exactly, if you are betting on the end of the world you had better be right because it only happens once. I personally do not think we are on the right track as a country but "the end" is not eminent.
I was one of the sellers. Sold my entire BWP position early this am after having owned it for over 2 years. Didn´t like this from the conference call: "the development of relatively new unconventional shale basins, especially the Marcellus, has and continues to reorder traditional flows of gas and interstate commerce, resulting in declining basis differentials across our pipeline systems. This declining basin differentials have put pressure on the value of transporting natural gas, which we have seen negatively impact our transportation revenues. In fact, when contracting this year and in the previous 2 years, we have seen reductions both in the rates we've been able to obtain under firm and interruptible transportation agreement and in the total amount of capacity that we've been able to contract. We expect this trend to continue in 2014 productive relative effective put pressure on our transportation revenues in the remainder of 2013 and 2014."
Many of you may have already seen this, but I just stumbled upon an site that appears to be legit (Brookside is currently largest holder) that shows major owners of NRF including those below reporting requirement of 5%. Google stockzoa, type in NRF, click on link. If anyone has contradictory information please share.
Thanks for the heads up. I see that now. Only had 1.31 million shares as of June 30 down from nearly 10 million in April.
I saw today that SAC is closing London office and cuts 6 US money managers. Could they be trimming position in NRF?