Sorry but S&P just lowered CVXs credit outlook stating "We note that the company has significantly more debt than in the last cyclical downturn while oil and gas production are at similar levels."
Obviously you are the 'idiot'
Dude/gal__TBT is a leveraged inverse fund (and a poor one at that except for a swing trade). When the mkt tanks generally thre is a flight to quality (treasuries, a strong currency, sometimes gold). For example TLT a non-levered 20 yr plus Treasury ETP currently is up +1.45%, Swiss Franc +.94% and Gold +1.40%.
As safety goes are you referring to 'credit worthiness', the ability to pay the dividend or share price stability?
They would slash/eliminate the common dividend b4 the preferred. Keep in mind that as a 'fixed rate' instrument they exhibit 'negative convexity'. That means the share price will react more negatively (faster) to a rise in general/equivalent rates than a similar decrease.
All 3 are currently priced below 'par'. So it would seem some of this is already priced in.
You may want to look at 'RNP' a closed end fund (CEF) trading at approx. 16-17% below NAV. The distribution rate is quoted wrong by Yahoo. Since they commonly use leverage the dist is approx. 8.43%.
The High Yield market is reflecting the future defaults in weaker capitalized 'Natural Resource' sector companies. A number have already missed 'preferred dividends' and or slashed/eliminated common dividends to enable making debt and loan commitments. Some CEFs that specialize in this area have completed rights and preferred offerings in order to raise coin to step in distressed scenarios.
The natural resource bust combined with 'tax selling' have presented opportunities in these CEFs.
"backwardation" mode, which reflects extremely negative forward expectations for the stock market."
That is exactly opposite what that means___the vIX futures currently reflect the view the market will become less volatile after DEC until May of 2016. Which is exactly what would be expected considering 'seasonal trends'
How many times do I have to brain slap you b4 U stop posting this mis-information.
Look Moron ‘Contango’ is forwadation (not backwardation) the forward curve is an upward slope because the futures price is higher than the cash/spot price. This is a ‘Normal’ market scenario.
Why don’t you restart ur education at the 3rd grade level__maybe this time around you will learn the basics of comprehension!
I could have mentioned the TRUPs (KTP & PFH). I might consider them if I wasn't already overweight in JCP btwn debt & equity and retail (FSRPX) in general.
nickspinner• Nov 17, 2015 2:21 PM
That's the least of our worries.
Molycorp is one of the greatest ripoffs of all time. Many, many investors have been badly damaged by Molycorp's malfeasance. I, for one, have lost close to $18,000. Molycorp management needs to go to jail for a long time for its crimes.
Interesting he/she this nickspinner__always seems to be whining and wanting someone to be fired or jailed!!
What I find interesting here is the 2023 bonds are trading at $0.75 and have been trending downward (indicating some worry of either repayment or downgrade)__the common shares look like the market is pricing in a dividend cut. Yet WIN is indicating they have the cash flow to support the former two and now a share repurchase.
Except for vehicle fuel costs and running backup diesel generators upon outages__just how does lower oil prices meaningfully affect WIN ?
"The vast majority of equities are held in the 'street name'. The company does not know what type of account, the broker does."
There have been changes regarding transparency of share owners (esp after 9/11). While there have been differences between countries__summits held after that event have led to more universal application for registration. Another impetus was a number of companies wanting increased knowledge of share owner demographics. Before these changes one could expect registration would stay at the ‘Registrar /Transfer Agent’. Now for example; Union Pacific__you cannot participate in the ‘DRIP’ with street registration but must identify your shares with the company.
Since KMI itself does not offer a DIP; I think it is safe to assume registration is only known to Computershare (excepting SEC filing regs).
The he/she does not even understand the difference between a 'stochastic' and a 'statistic' yet posts his/hers crud analysis as if it should be trusted. Search back for all the 100-95% event guarantees that never occurred!