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American Capital Agency Corp. Message Board

salipenta 3 posts  |  Last Activity: Dec 15, 2014 12:31 PM Member since: Jul 3, 2002
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  • Reply to

    10.45 and on the way to insolvency

    by goskiing99 Dec 15, 2014 10:23 AM
    salipenta salipenta Dec 15, 2014 12:31 PM Flag

    yes, it is dead money for a very long time. I am however concerned about them staying afloat with such high debt. Remember, the Saudi's strategy is to bankrupt a lot of the American oil plays. I think Linn might be one of them. I like another poster on this thread have a significant amount of "dead money" in this one.

  • salipenta salipenta Oct 13, 2014 8:27 AM Flag

    well, the way I see it is I've already "lost" on paper so I have 2 choices. I can either sell my position, realize the loss and lick my wounds. Or I can collect the dividend, average down and wait for price appreciation again. I believe in the latter.

    Over the very long term this will do very well. The Saudis are deliberately lowering the prices in order to destroy the booming US oil industry but I don't think that will last very long. The days of the middle eastern oil barons are numbered. Combine that with the inevitable plunge in the USD and I have my reason for investing in oil and gas trusts and MLPs. Timing may be off but who thought we'd see $85 oil again?

    Best of luck to you.

  • salipenta salipenta Oct 10, 2014 9:39 AM Flag

    haha.... as good a reason as any. I've heard musings that MLPs and trusts are down because interest rates are on the rise hence money is moving into fixed income. Really? So one will sell an 8-10% yield in VNR for a 2-3% fixed income investment? I think not.

    Sentiment: Buy

19.36-0.19(-0.97%)Aug 28 4:00 PMEDT