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ConocoPhillips Message Board

sollid_companiess_only 18 posts  |  Last Activity: Apr 21, 2014 9:49 AM Member since: Aug 24, 2012
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  • sollid_companiess_only sollid_companiess_only Jan 31, 2014 10:39 AM Flag

    I strongly anticipate that this terminal is a prelude in preparing for a lot of new business when the Panama Canal completes it's expansion in mid-2015. Here's why:

    Less than three miles from downtown Norfolk, Va., with convenient access to Interstates I-264 and I-464 at 1305 Atlantic Blvd., the Chesapeake TBT also enjoys close proximity to rail-serving yards on Norfolk Southern's high-density main line. The Chesapeake TBT is strategically positioned to serve Hampton Roads-served markets as well as markets overseas with its close proximity to nearby container terminals.

  • sollid_companiess_only by sollid_companiess_only Jan 31, 2014 10:36 AM Flag

    9:00 am Norfolk Southern opens transfer terminal in Chesapeake to serve shippers of dry and liquid bulk commodities (NSC) : Co has opened a new Thoroughbred Bulk Transfer terminal in Chesapeake. Thoroughbred Bulk Transfer terminals are specialized facilities that allow customers to transfer a large array of commodities between rail cars and trucks. TBT terminals are owned by Norfolk Southern and operated by independent contractors that are industry experts in facilitating safe and efficient bulk transfer and distribution. The facilities allow customers without rail sidings to receive the benefits of rail economics and service quality.

  • sollid_companiess_only by sollid_companiess_only Jan 31, 2014 11:39 AM Flag

    I believe that NSC is making great progress in preparation for the completion of the Panama Canal. Does anyone know how CSX is coming along with it's preparations? Here's the latest on NSC's progress:

    NSC Continues Expanding, Opens New Terminal.

    9:00 am Norfolk Southern opens transfer terminal in Chesapeake to serve shippers of dry and liquid bulk commodities (NSC) : Co has opened a new Thoroughbred Bulk Transfer terminal in Chesapeake. Thoroughbred Bulk Transfer terminals are specialized facilities that allow customers to transfer a large array of commodities between rail cars and trucks. TBT terminals are owned by Norfolk Southern and operated by independent contractors that are industry experts in facilitating safe and efficient bulk transfer and distribution. The facilities allow customers without rail sidings to receive the benefits of rail economics and service quality.

    I strongly anticipate that this terminal is a prelude in preparing for a lot of new business when the Panama Canal completes it's expansion in mid-2015. Here's why:

    Less than three miles from downtown Norfolk, Va., with convenient access to Interstates I-264 and I-464 at 1305 Atlantic Blvd., the Chesapeake TBT also enjoys close proximity to rail-serving yards on Norfolk Southern's high-density main line. The Chesapeake TBT is strategically positioned to serve Hampton Roads-served markets as well as markets overseas with its close proximity to nearby container terminals.

  • Reply to

    dividend increase

    by sharkbitemcnasty Apr 15, 2014 4:18 PM
    sollid_companiess_only sollid_companiess_only Apr 16, 2014 3:48 AM Flag

    7% sounds impressive, but it's only a penny a share per quarter. A penny's not too impressive.

  • sollid_companiess_only by sollid_companiess_only Apr 18, 2014 9:31 AM Flag

    Two years ago, I invested $7k in ERF shares. My holdings are in a self-directed IRA account, thus they don't get hit with the Canadian 15% tax/haircut. I have about 10 dividend paying quality energy stocks in this account. ERF has outperformed them all, yielding a gain of 72% over the last two years.

    Thanks ERF!

  • sollid_companiess_only sollid_companiess_only Apr 18, 2014 10:28 AM Flag

    Altria, Reynolds, and Lorillard pay into the program in amounts proportional to their respective market share. As a result of the program, Altria paid $400 million to quota-holders in each of the last three years, amounting to about 10% of free cash flow. Reynolds averaged a little more than $200 million per year, or 15% of free cash flow. Lorillard recorded quota-related charges of $120 million per year, or 11% of free cash flow. After these obligations are fulfilled by the end of this year, each company will experience a substantial increase in annual free cash flow.

    How the companies can put the cash to use
    Dividends are the most obvious use of the extra cash. Tobacco stocks attract a wide following of dividend investors because of their ample free cash flow and willingness to pay out a high percentage of earnings. Altria yields 4.9%, Reynolds yields 4.7%, and Lorillard yields 4.3%. If these companies were to use the extra cash to increase their dividends, the market would likely reward the stocks with higher valuations.

    However, tobacco companies may have other ideas for using the extra cash flow. Now that the bulk of the industry's major legal liabilities are behind it, a new wave of consolidation may emerge.

    Good luck to all you MO's out there!

  • Reply to

    ERF Has Done Ok By Me!

    by sollid_companiess_only Apr 18, 2014 9:31 AM
    sollid_companiess_only sollid_companiess_only Apr 18, 2014 3:09 PM Flag

    Hardmetalman, since you are picking one point on a graph for exactly two years ago, let me be more specific. I purchased my initial lot of ERF shares on EXACTLY the following date, 7/18/2012 (From Fidelity IRA). I purchased this lot at EXACTLY $13.24 a share and have had the dividends dripped ever since. The stock even dropped below $12 on a couple of occasions.

    Yes, you are correct when you state that two years ago the pps of ERF was around $19.72. However, the price did fall off dramatically, shortly thereafter, and ERF shares stayed in the range of $13 to $15 a share for a period of about 12 months, from May 2012 to May 2013, the period in which I bought my initial lot. And for a year I dripped while the pps was below $15.

    Actually, that makes my gain of 72% even better as I did it in less than two years, by about two months. But if you want to be a nit-picker and insist the the two year period then I'll grant the correctness of you assumption. I should have been more exact in my initial post.

  • sollid_companiess_only sollid_companiess_only Apr 20, 2014 3:10 PM Flag

    Second Continuation:

    Single Taxpayer example (you can crunch out the numbers yourself for a married couple):

    Let’s assume that we have Joe, a single retired taxpayer. He only has two annual sources of income, $15k from Social Security and an annual withdrawal of $10k from his Traditional IRA account. When he prepares his Federal Tax return you’ll see that he’ll owe no taxes at all, to include no taxes on his Traditional IRA withdrawal of $10k. Rule number one is, if a Social Security recipient’s income is $25k or below ($32k for marrieds), then none of his Social Security is taxable. That leaves Joe with an adjusted gross income of $10k, but he gets a minimum standard deduction of $6.1k ($12.2k for marrieds) and a personal exemption of $3.9k ($7.8k for marrieds), this leaves him with no taxable income at all. Joe withdrew $10k from his Traditional IRA and paid no taxes on it and he can repeat the process year after year until his account is exhausted. That’s the same tax advantage that the Roth holders receive. But Joe also was able to deduct thousands each year, during his working life, as he could use his Traditional IRA investment as a write off against his taxes. A Roth investor couldn’t do that.

    In so many cases, the Traditional gets a much better tax break than the Roth investor.

    The reason I wrote this is to help ERF investors figure out how to REALLY MAXIMIZE their investment returns. But investors need to keep fully aware of the tax advantages offered by Roths, Traditionals, and they need to keep tabs on their own retirement situation.

    Good luck to all ERF investors!

  • sollid_companiess_only by sollid_companiess_only Apr 19, 2014 11:03 AM Flag

    Don't pay any Canadian or US taxes on your dividends. To obtain max performance of ERF returns, is to cash them in now. Take your profit or loss. Use the proceeds from your ERF sale and reinvest the proceeds in ERF stock in a self-directed Roth IRA account. Drip all your ERF dividends. You'll avoid both Canadian 15% taxes and US 15% taxes for the rest of your life on both your capital gains and dividend. Such a simple and obvious solution.

    In the self directed Roth account, you'll still be able to buy or sell your shares and invest in other stocks if you desire. The only drawback to the Roth is that you have to wait until you're 59 1/2 before you can withdraw your money. But that may represent years and years of tax free capital gains and dividend income.

    Think about it, especially if you're a young investor. Tax free capital gains and dividends can compound investment income dramatically over time.

  • sollid_companiess_only sollid_companiess_only Apr 19, 2014 12:23 PM Flag

    There are other great tax advantages to opening up either a Roth or Traditional IRA with ERF shares included in your account.

    Both Roth and traditional IRAs qualify for an annual federal 'Savers Tax Credit'. The government pays you for saving for retirement.

    There are limits as to how much you can contribute annually to a Roth or Traditional IRA:
    1. $5500 if you're single and under 50 years of age, $6500 if you're over 50 years of age.
    2. $11,000 if you file Married/Jointly and you're under 50, $13,000 if you're both over 50.

    Finally, don't limit yourself to thinking of only about a Roth. The self-directed Traditional IRA has some advantages that a Roth doesn't. The big advantage is that anything you contribute to your Traditional IRA can be subtracted, as an adjustment, from your Federal 'Adjusted Gross Income', for tax purposes. As an example, say that your total income for a given year was $50,000 and you contributed $10,000 to a self directed Traditional IRA, you could subtract that $10k from your income. And your Adjusted Gross Income would be $40k instead of $50k. You'd save approximately $2,000 in taxes in this example.

    Whether you're young or old, you need to take advantage of all the tax benefits that self directed Roth/Traditional IRAs offer.

  • sollid_companiess_only sollid_companiess_only Apr 20, 2014 1:31 PM Flag

    Continuation of previous post.

    As I previously posted, there are many retirees who invested in self directed Traditional IRA accounts who, just like Roth IRA investors, will pay no taxes on their Traditional IRA withdrawals. Furthermore, during their working years, they can contribute up to $13 toward their Traditional IRA and save up to $3k a year in federal taxes. If this is the case, then the Traditional IRA owner gets everything the Roth owner gets, plus much more. That $3k tax annual tax savings adds up over a career, and the Roth owner doesn’t get that adjustment to gross income.

    So, the question at hand is, “How can a Traditional IRA investor prudently make annual withdrawals from their account, without having to pay taxes on it?” In fact it’s done legally, through the current IRS laws, and it’s a very common practice. It can occur for either single or married taxpayers who withdraw money from their Traditional IRA. The situation is best illustrated with a short example of a single retired taxpayer (but it applies to married taxpayers also).

    Continued again on next post:

  • sollid_companiess_only by sollid_companiess_only Apr 18, 2014 10:27 AM Flag

    Altria Group, Reynolds American, and Lorillard are about to have a lot more cash to spend. Some three-quarters of a billion dollars will start flowing to the three largest tobacco companies' bottom lines as federal tobacco quota legislation rolls off. Read on to discover why the windfall exists and what it means for your investments in Altria, Reynolds, and Lorillard.

    Tobacco quota expiration
    The infusion of cash due later this year to Altria, Reynolds, and Lorillard is a result of the expiration of the Tobacco Transition Payment Program, or TTPP. The TTPP was signed into law in 2004 and is set to expire in the second half of 2014.

    The TTPP's origins lay in the Great Depression. In one of his many economic experiments, Henry Wallace created a federal program to limit the quantity of tobacco grown in the U.S. and to moderate a minimum price for the crop. The program was designed to aid struggling farmers during the depression by increasing the value of their crop. Producers were given quotas and could only harvest up to a certain amount of tobacco.

    However, after decades of declining tobacco consumption, many quota-holding farmers were struggling to stay afloat at the turn of the millennium. As a result, tobacco-state politicians passed a 2004 federal bill that established an industry-funded buyout of tobacco quotas. Manufacturers and importers were forced to pay $9.5 billion to quota-holders over 10 years, ending in the third quarter of 2014.

    Continued in a reply to this post

  • sollid_companiess_only sollid_companiess_only Apr 21, 2014 9:49 AM Flag

    As I posted in this thread, each individual/family must analyze their own situation and determine what's best for themselves. You have done that and decided on a Roth, good for you. There are so many working people who go all their lives without thinking about investing for retirement/education/estates or about the utilization of 401k's/Roths/Traditionals. You've got to take advantage of all the tools at your disposal.

  • sollid_companiess_only sollid_companiess_only Apr 20, 2014 11:45 AM Flag

    Rthomas, first of all, let me congratulate you on your foresight of putting your ERF shares into a self directed Roth IRA. As I previously posted, you’ll save yourself 15% on the Canadian tax, 15% on the US dividend tax, and 15% on any capital appreciation that you’ll gain over the years. No taxes for you sir, congratulations.

    However, you do make a very wrong assumption about self directed Traditional IRA’s when you post, “The difference between a Roth and Traditional IRA is whether you want the tax benefit now or in the future." A lot of people think that is the case, but it’s not always.

    Approximately 50% of retirees, who prudently withdraw a portion of their Traditional IRA savings, will also never pay any taxes to Canada or to the US for dividends/capital gains. But besides paying no taxes on their Traditional IRA, they receive a great tax advantage that Roth IRA holders don’t. Traditional IRA investors can write off up to $13,000 annually, as an adjustment to their Federal income tax return.

    This could mean an annual tax savings of up to $3k for each year of their working/contributing life, $3k each year for your working career can add up to a lot of money. Again I emphasize, 50% of these investors will never be taxed a penny on their Traditional IRA, either before the investment or after prudent withdrawals from their Traditional IRA. A lot of investors don’t realize this. But I know this because I’m a trained/tested/volunteer tax preparer who prepares approximately 50-100 returns each year for the elderly.

    So, the question is, “How can you invest in a Traditional IRA and still pay no taxes on your withdrawals. Because of the length of the answer to this question, I’ll continue in a response to this post.

  • Reply to

    ERF Has Done Ok By Me!

    by sollid_companiess_only Apr 18, 2014 9:31 AM
    sollid_companiess_only sollid_companiess_only Apr 19, 2014 9:00 AM Flag

    Let me clarify. If you hold ERF in a taxable account, your dividends are subject to a 15% Canadian withholding tax plus they will be taxed again by the US at a 15% rate. You may be able to reclaim your 15% Canadian tax withholding as a credit on your US tax return. However, if you have your ERF shares in a qualified US retirement account, Canada will not withhold their 15%. See Enerplus home page for 'Tax Info for U.S. Investors and you will see that this has been the case since 2011. See excerpt below:

    For 2011, if Enerplus shares are held in a taxable U.S. account, the dividend is subject to a minimum 15% Canadian withholding tax that is withheld prior to any monies being paid to shareholders. U.S. investors may be able to receive a foreign tax credit with respect to this withholding tax. Where shares are held in an IRA, withholding tax should no longer apply.

  • Reply to

    ERF Has Done Ok By Me!

    by sollid_companiess_only Apr 18, 2014 9:31 AM
    sollid_companiess_only sollid_companiess_only Apr 19, 2014 9:40 AM Flag

    For full info from ERF home page, on the 15% Canadian tax, google 'Enerplus tax info for U.S. Investors'.

  • Reply to

    ERF Has Done Ok By Me!

    by sollid_companiess_only Apr 18, 2014 9:31 AM
    sollid_companiess_only sollid_companiess_only Apr 19, 2014 10:03 AM Flag

    The solution, for max performance of ERF returns, is to cash them in now. Take your profit or loss. Use the proceeds from your ERF sale and start up a self-directed Roth account with ERF shares. Drip all your ERF dividends. You'll avoid both Canadian 15% taxes and US 15% taxes for the rest of your life. Such a simple and obvious solution.

  • Reply to

    ERF Has Done Ok By Me!

    by sollid_companiess_only Apr 18, 2014 9:31 AM
    sollid_companiess_only sollid_companiess_only Apr 19, 2014 8:41 AM Flag

    "you will get withholding of 15% regardless what type account you have ~"

    That's not true, you need to investigate and save 15%. Canada does not withhold the 15% tax, on dividend payouts, if your stock is held in a U.S. retirement account.

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