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WE FOCUS ON ENERGY TRANSPORT AND INFRASTRUCTURE. BUY FIDUCIARY CLAYMORE MLP OPPORTUNITY FUND FMO

March 25, 2015

To View Current Positions Go To Core Portfolio Click Here.  Add us to your Favorites!  If you like us, hit the LIKE button below.

(Update:  Well, the Fed hag blurted out a few comments on Friday.  Man oh man is she a mess.  Folks I doubt the Fed will ever raise rates.  lol.  This economy is so crappy (despite what you hear on the liberal media) they may well cause a recession if they did increase rates.  We are holding all positions in the Core Portfolio.  I can’t even remember the last time we sold anything.  We are currently very high on the toll takers in the oil patch…..read the prior posts for more information.  Buy ARU is it gets close to $25.  We def. want to buy KMI when the price is right.  It appears oil will continue upward toward the end of this year.)

(Update:  Buy ARU IF it gets down to $25.00)

FMO is a closed end fund with a focus in energy transport and infrastructure.

It gives you a yield of just under 8% and IS leveraged to 25%.

FMO is a good candidate for the IRA account.  You should consider buying this today.  All of our recent purchases in oil and gas pipeline segments should be viewed as Long Term investments……….the energy markets are in flux and holdings can go down……but you will be happy down the road that you bought these.  Remember you want to buy when stuff is on sale.

Image result for gas pipelines

Under normal market conditions, the Fund will invest at least 80% of its Managed Assets in MLP entities and will invest at least 65% of its Managed Assets in equity securities of MLP entities. The Fund may also invest in common stock of large capitalisation companies, including companies engaged primarily in such sectors. The Fund may employ an option strategy of writing covered call options on common stocks held in the Funds portfolio. The Fund may invest up to 40% of its Managed Assets in unregistered or otherwise restricted securities, including up to 20% of its Managed Assets in securities issued by non-public companies. The Fund may invest a total of up to 25% of its Managed Assets in debt securities of MLP entities and non-MLP entity issuers, including securities rated below investment grade. The Fund may invest up to 25% if its Managed Assets in US dollar-denominated securities of foreign issuers. The Fund may invest up to 15% of its Managed Assets in securities of any single issuer. The Fund may invest up to 15% of its Managed Assets in royalty trusts.

http://guggenheiminvestments.com/products/cef/fmo

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Yes the markets are rigged:

http://nypost.com/2015/03/25/us-stock-market-is-just-way-too-riggin-easy/

So sad:  from http://www.zerohedge.com

… and now we have solved the mystery of why US households did not spend all those billions in “dropping gas price” windfalls – the answer is that they did in fact spend all this money.

On Obamacare.

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I guess we knew this already:

According to the CDC, 34.6 percent of all men in the U.S. are obese at this point.

lol This has been obvious for years…from http://www.zerohedge.com:

How in the world, it might be asked, is it possible that the chief beneficiary of the financial repression policies of the Fed is the very most affluent segment of society?  That is a salient question—-but don’t bother to ask the liberal Keynesians who run the Fed. They do not even have a clue that it’s happening.

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BUYING WMB IN IRA FOR 4.8% YIELD. GET KMI IF DROPS TO $40.00

March 23, 2015

To View Current Positions Go To Core Portfolio Click Here.  Add us to your Favorites!  If you like us, hit the LIKE button below.

(Update:  BUY FMO  More info to follow)

(Update:  Adding to BSJM if you can get under $25.00)

(Update:  BUY KMI IF….IF you can get under $40.00……. we may not get a pullback to the $40 level.  This is ok for the IRA.)

Today we are suggesting you look at WMB giving you just under 5%,  This is a long term investment that you should plan on holding ‘forever”.  You CAN buy this in the IRA.  I have pasted a lot of information below which gives you a good understanding of this position.

(WMB could go lower, or higher, who knows.  With the energy segment in flux nobody can predict the price.  But you should buy right now.)

I have copied some information below from the following article:

http://seekingalpha.com/article/2941556-in-search-of-high-yield-and-growth

Image result for wmb williams partners

Williams (NYSE:WMB)

Much like ONEOK, Williams is the general partner of a master limited partnership — Williams Partners L.P. (NYSE:WPZ), a large-scale infrastructure company connecting natural gas throughout North America. The company proudly claims: “We move 20 percent of the nation’s gas. We make energy happen.” The company also makes dividend payouts happen. Although the dividend was kept at just a penny per quarter from 2002 through 2004, Williams has since proven itself to have an increasing propensity to reward shareholders via cash dividends. The company has paid a higher dividend each year since 2005 and increased the dividend every quarter for the last 13 quarters.

Recently, Williams announced a $0.58 quarterly dividend, payable on March 30th. This increase was 44% higher than the previous year’s mark and 1.5% higher than the previous quarter. With a share price near $49, and an assumed annual payout of $2.32, this equates to a “current” yield around 4.7%. Of course the company is expected to increase its dividend prior to 2016.

On February 18th of this year, Williams reported full year 2014 financial results and updated its guidance. With respect to the dividend, the company expects to pay $2.38 per share during 2015 with 10% to 15% annual dividend growth through 2017. Once more you have the caveat of trusting assumptions and doing further research. However, as indicated for a starting baseline, let’s imagine 10% growth could be possible.

For today’s investor that might mean collecting $2.38, $2.62 and $2.88 per share — or nearly $8 total — over the next three years. Expressed differently, you might expect to receive 16% of your initial investment in the form of dividends through 2017. Much like ONEOK, this represents a reasonable investment return in its own right. Without capital appreciation, this would equate to 5% annual returns. Granted this would simultaneously require a dividend yield around 5.9%. If the future yield happens to be lower, say 5%, your total expected returns quickly approach double digits.

More info copied from another site:

If you are a long-term investor looking for growth and income, the GPs will generally be the way to go.  Their faster dividend growth rates make them more attractive as growth investments.  Also, unlike MLPs, GPs that are organized as corporations (such as WMB, KMI and OKE) can be safely held in an IRA or Roth IRA account without generating unrelated business taxable income. GPs can be pretty unpopular with MLP unit holders who feel that “their” cash is being disproportionately siphoned off to management (this is a common complaint against KMI by KMP shareholders).

http://seekingalpha.com/article/3029616-williams-companies-playing-the-gas-infrastructure-super-cycle

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So why isn’t the American Public demanding change????  From AP:

The 2014 General Social Survey finds only 23 percent of Americans have a great deal of confidence in the Supreme Court, 11 percent in the executive branch and 5 percent in Congress. By contrast, half have a great deal of confidence in the military.

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THEATRE.  The Illusionists. This “magic” production just ended here in Chicago but it you get the chance to see it in your city, run and get tickets.  This is an entertaining show with some great magic.  The kids will love it.

 

 

 

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‘SAFE’ AND CONSERVATIVE INVESTMENT FOR 4% IBDM

March 18, 2015

To View Current Positions Go To Core Portfolio Click Here.  Add us to your Favorites!  If you like us, hit the LIKE button below.

We are suggesting another defined maturity bond fund, this one from iShares.  Regular readers know that we also own several similar funds from Guggenheim.  There are NOT like a regular bond fund.  The defined maturity funds hold all bonds to maturity and refund your initial investment when they close the fund in 2021.  I like to buy these ‘on sale’ and today IBDM is at a .76% discount.

They provide you a rather low 4% yield.  No this is not going to make you rich but it’s a reasonable return compared to other investments available.  The shares can be sold at any time, if necessary.  Bottom line:  I consider these funds to be a safe and conservative investment.  Try to get at $99.55.  Do NOT pay more than $100.  (Update:  It looks like we will have to pay more than $99.55)

57% of the bond holdings are rated A or AA investment grade with the remaining BBB.iShares by BlackRock

Why IBDM?

1. Exposure to investment grade corporate bonds that mature between January 1, 2021 and December 31, 2021

2. Combine the defined maturity and regular income distribution characteristics of a bond with the transparency and tradability of a stock

3. Use to seek income, build a bond ladder, and manage interest rate risk

The legal name of this fund is the iShares® iBonds® Dec 2021 Corporate ETF.

INVESTMENT OBJECTIVE

The iShares® iBonds® Dec 2021 Corporate ETF (the “Fund”) seeks to track the investment results of an index composed of U.S. dollar-denominated, investment-grade corporate bonds maturing in 2021.

http://www.ishares.com/us/products/272342/ishares-ibonds-dec-2021-corporate-etf

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MOVIES.  Cinderella.  Even adults will love this.  Yes everyone has seen the story but not like this.  Disney brings their quality to the party and this thing pops on the screen.

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Corrupt government still lying trying to tell you there is virtually no inflation.  Thats crap.  Depending on where you  live the REAL inflation rate is between 7% to 14%.

http://www.chapwoodindex.com/  (full article)

Butowsky began calculating the Chapwood Index in 2008. Using social media, he surveyed his friends across the country to determine what they bought with their after-tax income. He narrowed the list down to the most frequent 500 items and asked his friends in America’s 50 largest cities to check the prices on those items periodically. The Index shows the fluctuation in each city in the cost of items such as:
Starbucks coffee, Advil, insurance, gasoline, sales and income taxes, tolls, fast food restaurants, toothpaste, oil changes, car washes, pizza, cable TV and Internet service, cellphone service, dry cleaning, movie tickets, cosmetics, gym memberships, home repairs, piano lessons, laundry detergent, light bulbs, school supplies, parking meters, pet food, underwear and People magazine.

The Index forces middle-class Americans to recognize that their dependence on income increases pegged to the much-lower CPI virtually guarantees that they will run out of money before they die, because people are living longer and there is a huge difference between the CPI and the real world.

As an example, the CPI rose 0.8 percent in 2014. But in Boston, the Chapwood Index shows that the real cost of living increase was 10.7 percent. This means that if you work in the Boston area and got an 0.8 percent raise in your salary, it wasn’t nearly enough to cover the increase in your day-to-day expenses.

It was especially bad in San Jose, CA , where the Chapwood Index shows a 13.7 percent rise in the cost of living. Even the city with the lowest increase, Colorado Springs, CO , showed a 6.6 percent rise, a 5.8 percent higher than the CPI.

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10 Charts Which Show We Are Much Worse Off Than Just Before The Last Economic Crisis

http://theeconomiccollapseblog.com/archives/10-charts-which-show-we-are-much-worse-off-than-just-before-the-last-economic-crisis

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INVEST LIKE THE BILLIONAIRES!!!!! AND WATCHING WMB

 March 10, 2015

To View Current Positions Go To Core Portfolio Click Here.  Add us to your Favorites!  If you like us, hit the LIKE button below.

I am constantly cruising the net for new ideas in income investing.  I came across this site which lists dividend paying stocks held by billionaires.  How Fun.  Check it out.  I am NOT putting any money into this thing but you can review all their holdings for potential buys  (we have been looking at one of the holdings for several months…we may to buy…see below.) .  Don’t you love America.

Image result for billionaires

http://www.ibillionaire.me/ibd/

The iBillionaire High Dividend Index curates a basket of 50 high dividend stocks held by a select pool of billionaires. Derived from publicly-available regulatory filings and limited to U.S.-listed stocks, it is rebalanced quarterly.

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You will love this gossipy story:

http://www.zerohedge.com/news/2015-03-15/clintons-furious-obama-after-valerie-jarrett-linked-email-leak

Clintons Furious At Obama After Valerie Jarrett Linked To Email Leak

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Do you think stock buybacks are a good thing??  Read this article:

http://www.marketwatch.com/story/those-stock-buybacks-are-just-another-wall-street-scam-2015-03-12

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We are avoiding these sectors:  REIT, muni bonds, preferred stocks, utilities, or long term bond funds,  Never buy an annuity.

WMB is going ex-dividend tomorrow.  We are WATCHING TO BUY.  More information to follow if decide to proceed on this oil investment.  Overall Markets:  We are seeing a pullback in the markets, but I don’t see any significant plunge.  Hold positions.  Rising rates are BAD for stocks and everyone is nervous.

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ADD TO PFLT. FLOATING RATE LOAN SECTOR.

March 8, 2015

To View Current Positions Go To Core Portfolio Click Here.  Add us to your Favorites!  If you like us, hit the LIKE button below.

This corrupt government continues to publish bull crap jobs numbers.  Of the 295,000 jobs listed in the report, 40% were fabricated out of thin air based on the “birth-death” model that they use.  And the rest of the jobs are bartenders, and remodeling of apartments, NOT houses.  This is pure BS.  Be aware.  If you want to know more go to this link:

http://theeconomiccollapseblog.com/archives/nearly-full-employment-10-reasons-unemployment-numbers-massive-lie

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Investors have been anticipating rising rates for years……….yes for years.  And it has not happened.

Now the good (but manipulated and fake) jobs report on Friday has everyone thinking that maybe, finally, rates really will go up….probably very slowly.  Who knows.  And my always wrong crystal ball certainly doesn’t know.

My strategy has been to own PFLT PennantPark Floating Rate Capital, a business development company that invests primarily in floating rate loans.  We have had this in the Core Portfolio for a long time steadily collecting a very nice yield, currently 8%.  Not bad.

The interest rates on floating rate loans adjust to keep pace with rates…so you receive a higher yield.

NOTE:  If you do not own a floating rate position you should consider buying.  PFLT is scheduled to go ex-dividend March 13 and it is very possible you could get shares at a lower cost….BUT with the sudden concern about rising rates these funds may head higher.  You may want to buy NOW.

I plan on adding to our PFLT holding.  We also hold PHD in the Core Portfolio which you could consider….and BKLN is another option.

I have copied part of an article from morningstar.com below which describes this segment of investments.

Image result for FLOATING RATE BONDS

Bank-Loan/Floating-Rate Funds

The Bull Case: Bank loans–or floating-rate loans–behave differently from most other bond types. Conventional bonds have fixed interest rates, and that means they’ll tend to lose value when prevailing bond yields rise; the presence of new bonds with higher yields decreases demand for the older, lower-yielding bonds. By contrast, the interest rates on bank, or floating-rate, loans adjust on a regular basis to keep pace with short-term interest rates. That means that when bond yields go up, bank-loan owners receive a higher yield–not immediately, but eventually. For that reason, bank-loan securities may also appreciate in value during periods of rising interest rates. Moreover, considering that interest rates often increase in periods of economic strength, bank loans may also appreciate during a rising-rate period because investors assume that there’s less of a risk that the companies borrowing via the bank-loan market will have trouble meeting their obligations. Finally, investors have been pulling assets from bank-loan funds over the past year, to the tune of $21 billion in outflows in the one-year period through December 2014. The fact that other investors have been leaving doesn’t automatically mean that there’s no froth in the sector, but big outflows from a given category can be a contrarian indicator. 

What Could Go Wrong: Bank loans face risks under a few different scenarios. One is what we’ve experienced recently: When interest rates decline, the returns from bank-loan funds will be meager alongside investments with greater interest-rate sensitivity. As intermediate- and longer-term bonds have rallied on interest-rate declines over the past year, bank-loan funds have done just a little better than stand still, gaining only 1.6%, on average, versus a nearly 5% return for the Barclays U.S. Aggregate Bond Index. Perhaps the bigger concern with bank-loan funds, however, is if the economy were to weaken unexpectedly. Because many bank-loan borrowers have low credit qualities, they’re at greater risk of default in a weakening economic environment. The typical bank-loan fund lost 30% of its value in 2008’s financial crisis, for example. Given their junky credit profiles, bank loans aren’t likely to provide as much diversification in an equity-market sell-off as high-quality bonds would. 

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From zerohedge.com

Once again Congress is likely to do something stupid.  Really, really stupid.

 

Sometime next year Social Security’s $150 billion disability-insurance program will become insolvent. The program, which offers income supplements to those who cannot work full time due to physical or mental disabilities, has buckled as the number of beneficiaries has soared to more than 11 million in 2014, from 3.8 million in 1984. The bipartisan Social Security Advisory Board has urged reforms.

You can’t explain this away as “demographics” (e.g. people getting older); that’s not the answer at all.  Further, not only have the self-reported rates of work-limiting disability not changed materially in 30 years but the reported rate of on-the-job injuries has come down materially.  Whatever you may think of OSHA, the fact is that “the job is getting done” in that regard.

But Congressional loosening of benefit requirements, and more-importantly allowing people to remain on disability effectively for life once they gain it (less than 1% of the people on disability return to the workforce in any given year) make the problem one that is utterly intractable without major changes.

In addition we must consider those who become disabled through either intentional personal conduct or willful refusal to follow through on a rehabilitation program.  Today you can literally smoke meth or suck down bottles of booze for decades, utterly destroy your health, and then go on disability, receiving what amounts to a $24,000 a year income between your SSDI payments and eligibility for Medicare at zero cost.  That’s not bad, and you can then turn around and make up to about $13,000 on the side without losing any of those benefits!

I will note that these gimmes are also non-taxable, meaning that we’re talking about a middle-class living for which you need do exactly nothing.  There are a whole host of people making $30,000 a year that take home less than the person on “disability.”

There are in fact people who, through just bad luck or otherwise no fault of their own, find themselves unable to work.  Then there are those who legitimately are hurt on the job.  Part of your Social Security taxes that are paid in by you every pay period is supposed to go toward the possibility that one of these things will happen to you.

But it is utterly outrageous for you to be able to buy fire insurance on your house and then intentionally burn it down to collect the money.  That is considered arson and a crime.

But that is, in effect, what we permit with this program when we allow disability claims for people who are unable to work due to self-inflicted and intentional injury, such as disability caused by the ingestion of drugs or alcohol.

Cutting that off alone would not resolve all the problems but it sure would go a long way toward helping.  So would requiring medical exams on an annual basis by physicians paid for by the government instead of “private physicians” who have every incentive to find someone “disabled.”  Indeed, independent studies have found that a very material percentage of the people on disability have the ability to perform some sort of  remunerative work.

If we shift funds to the Social Security disability fund from the Social Security retirement fund it will simply will hasten the day on which the retirement fund goes broke and is unable to pay promised benefits.  Shifting money around from one bankrupt program to another is not only bad policy it’s an act of fraud and one we must not tolerate as a society.

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BUY THIS BRAND NEW ETF. TOTL. SPDR DOUBLELINE TOTAL RETURN TACTICAL ETF. (Watch EPD for buy at $31) ((Hookers and drugs added to GDP-no this is not a joke))

Sunday March 1, 2015

To View Current Positions Go To Core Portfolio Click Here.  Add us to your Favorites!

(Update Friday:  The amazing FAKE jobs report has everyone afraid that the Fed will start raising interest rates….the real unemployment rate is about 11%.

If you own muni bonds, preferred stocks, utilities, or long term bond funds, make damn sure you have sell orders in place so that you don’t get hurt.  We sold our muni bond positions several weeks back.)

You can’t make-up this stuff:

First it was Italy which, as we reported last week, had decided to “boost” its GDP by adding the estimated impact of cocaine and hookers. And now, riding on the coattails of this economics gimmick designed solely to make the economy appear more solvent, it is Britain’s turn, whose Office for National Statistics will also add add up the “contribution” made by prostitutes and drug dealers.

http://www.zerohedge.com/news/2014-05-29/how-britain-calculates-its-hooker-gdp-boost-60879-prostitutes-x-25-clients-week-x-%C2%A36

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Adding to BSJL Bond Fund IF it gets below $25.00

Buying Corporate Bond Kinder Morgan at $98.00.  Cusip 494550BN5

Kinder Morgan Energy Partners is a toll collector with 85% of its revenues being fee based in nature. They have the premiere pipeline assets in the U.S. — the largest energy infrastructure in North America. As America brings and produces more energy onshore in the U.S., there are going to be more requirements for energy infrastructure. So the growth within this industry should be very powerful.

(Update March 4:  The stock market wants to go UP.  Despite crappy economic news……. the low interest rates and Companies buying back stocks will keep markets going higher.  The higher dollar is hurting our only gold position but we hold for the dividend.)

Go Here for the prior post which describes our new buys in the oil patch.

(We own two DoubleLine funds in the Core Portfolio, click here to read our prior post.)

Here is a new income ETF from my favorite family DoubleLine.

Image result for doubleline total etf

SPDR DOUBLELINE TOTAL RETURN TACTICAL ETF.  I suggest you buy the multi-sector fixed income etf TOTL.  The estimated return is a rather small 3.5% but it is a great conservative and safe investment in the bond arena.  This is a good addition for the conservative part of your portfolio.

This position would be a good “parking spot” for excess cash that you may have laying around.  You don’t have to tie up the money for years and you can sell at any time you may need money.

There are numerous higher risk investments listed in the Core Portfolio if you want higher yields.  Remember:  A single position should NEVER represent more than 4% of the portfolio.

Here is a link to the video if you want more info:

The investment seeks to maximize total return. Under normal circumstances, the fund invests substantially all of its assets in the State Street DoubleLine Total Return Tactical Portfolio (the “Portfolio”), a separate series of the SSgA Master Trust with an identical investment objective as the fund. As a result, it invests indirectly through the Portfolio. Under normal circumstances, DoubleLine Capital LP (the “Sub-Adviser” or “DoubleLine”) will invest at least 80% of the Portfolio’s net assets in a portfolio of fixed income securities of any credit quality. The fund is non-diversified.

We continue watching EPD for a buy………at lower prices.

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You need to read this.  From the New York Times.

The market has been rising — for the most part — since March 2009, in no small measure because of that policy, which makes stocks and other assets relatively attractive, compared with low-yielding fixed-income instruments. Ms. Yellen’s prepared testimony seemed aimed at keeping the market calm — not only now but whenever the Fed actually decides to raise interest rates.

Recently, the market has been rising despite a barrage of corporate reports that might suggest that stock prices are overextended. After all, growth in both revenue and earnings for the last quarter has decelerated. For the 440 companies in the Standard & Poor’s 500-stock index that had reported by Wednesday, revenue for the fourth quarter rose only 1.5 percent over the period a year ago, compared with a 4.1 percent growth rate for the third quarter at the same point in the previous earnings season, Mr. Yardeni said.

Comparable numbers for earnings were an annual increase of 5.9 percent in the fourth quarter, versus a 10.4 percent rise at the same point in the previous earnings season. The strong dollar, falling oil prices and a sluggish global economy have all taken their toll.

What’s worse, guidance for future earnings turned extremely pessimistic. Bespoke Investment Group examined 1,680 publicly traded companies that reported earnings between Jan. 12 and Feb. 19. After subtracting downgraded guidance from upgrades, it found that, on average, companies had downgraded their earnings prospects by “a ridiculously low” net 9.5 percentage points. Corporate guidance hasn’t been that bleak since the end of the financial crisis in the first quarter of 2009.

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Sectors to AVOID due to the potential of rising rates.  If you own these, be sure and place sell limit orders:  preferred stocks, utilities, municipal bond funds and LONG term bond funds. Never buy an annuity.

MOVIES.  FOCUS.  Boring piece of crap.  Avoid.

SEARCHING FOR OIL INVESTMENTS IN THE BARGAIN BIN. BUY OKE. 5%. BUY PAA. WATCHING EPD TO BUY. ADD TO MEMP

February 23, 2015

To View Current Positions Go To Core Portfolio Click Here.  Add us to your Favorites!

HOORAY!!!!!

Jonathan Gruber, the consultant who said ObamaCare became law due to the “stupidity of the American voter,” was fired from the board of the Massachusetts health exchange on Wednesday.Gov. Charlie Baker (R) asked Gruber, an MIT professor, to resign, along with three other members of the board, according to the governor’s office.

All three complied. WBZ-TV in Boston first reported the news. 

In the fall, Republicans jumped on a series of videos that surfaced of Gruber commenting on ObamaCare, using them to argue the law was passed through deception.

MORE GOOD NEWS

The IRS’s inspector general confirmed Thursday it is conducting a criminal investigation into how Lois G. Lerner’s emails disappeared, saying it took only two weeks for investigators to find hundreds of tapes the agency’s chief had told Congress were irretrievably destroyed.

Investigators have already scoured 744 backup tapes and gleaned 32,774 unique emails, but just two weeks ago they found an additional 424 tapes that could contain even more Lerner emails, Deputy Inspector General Timothy P. Camus told the House Oversight Committee in a rare late-night hearing meant to look into the status of the investigation.

“There is potential criminal activity,” Mr. Camus said.

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(Update:  We are Still watching EPD to buy.  But it is still heading down.  Wait and watch.)

(UPDATE Thursday:  Plains All American  BUY PAA)

Plains All American Pipeline, L.P., together with its subsidiaries, is engaged in transporting, storing, terminalling, and marketing crude oil, natural gas liquids (NGL), natural gas, and refined products in the United States and Canada. The company operates in three segments: Transportation, Facilities, and Supply and Logistics. The Transportation segment transports crude oil and NGL through pipelines, gathering systems, trucks, and barges.

(Update:  Sectors to AVOID due to the potential of rising rates.  If you own these, be sure and place sell limit orders:  preferred stocks, utilities, municipal bond funds and LONG term bond funds.  You should be looking to BUY PAA and EPD we may buy…floating rate bond funds are also ok.)

(Update:  We continue looking for opportunities in the oil patch.  JPMorgan has upgraded MEMP which we hold in the Core Portfolio.  ADD to this position.)

http://seekingalpha.com/article/2949706-memorial-production-partners-2015-should-be-a-strong-year?isDirectRoadblock=false&uprof=46

That said, he sees little chance of a distribution cut for Memorial Production Partners (MEMP) given its strong hedge book and liquidity position, which is a part of his rationale for upgrading the stock from Neutral to Overweight, with an $18 price target:

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A note to my readers:  We like getting ‘comments’ in response to our posts….and we get a LOT.  WordPress the host of this blog sends the majority of the comments to moderation because most of them are in fact spam.  I have been deleting the majority of these comments.  I have even had complaints that readers are not seeing their comments published.  But from now on I am going to selectively publish those comments that appear to be valid.  If you want to promote your website, critique my spelling, or complain about how the site loads, do not send me spam….but if you have valid comments send them in.  Let’s see how it goes.

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While oil is plunging we have been trying to pick up bargains in the oil industry.  The assumption here is that oil has turned around and we want to buy now assuming that prices will trend up.

Last week we started watching EPD.  I expected EPD to trend down and we could buy at lower prices.  Well of course it did exactly the opposite and started to trend UP!!  Since the long term momentum is DOWN I am going to wait and watch.  If we get EPD at lower prices great.  If not we can move on to other possibilities….such as OKE Oneok Inc.  Pasted below is a general description from http://www.Fidelity.com:

ONEOK, Inc. operates as a diversified energy company in the United States. The company gathers, processes, stores, and transports natural gas; gathers, treats, fractionates, stores, and transports natural gas liquids (NGL); and owns and operates interstate and intrastate regulated natural gas transmission pipelines and natural gas storage facilities, as well as stores and distributes NGL products to petrochemical manufacturers, heating fuel users, ethanol producers, and refineries and propane distributors. It also owns and operates a parking garage; and leases excess office space to others in downtown Tulsa, Oklahoma. ONEOK, Inc. operates as the general partner of ONEOK Partners, L.P. The company was founded in 1906 and is headquartered in Tulsa, Oklahoma.

NOTE that OKE is a general partner, a term that most investors are not familiar with.  Below is more pasted copy that talks about general partners:  from http://www.dividenddetective.com.  OKE reached at high of $70 and is now down at $47….it should start trending up.  I suggest you buy a small position in OKE.

However, there’s a better way to invest in natural gas pipelines. As the name implies, MLPs are partnerships, not corporations. Typically, a general partner (GP) runs the business, and individual shareholders (technically unit holders) are limited partners.

Here’s why you should consider buying the GPs instead of their MLPs. The general partner usually takes a percentage off the top of its MLP’s cash flow, and then distributes the balance to the limited partners. The GP’s percentage typically increases as the MLP’s cash flow grows. For instance, the GP’s cut might start at 2%, but then eventually ramp up to 50%.

Here’s how that math works. Say that three years ago, an MLP generated cash flow of $200 million and its GP took 10%. So, the GP collected $20 million, and the limited partners received $180 million. Now, assume that this year the MLP generates $400 million from its pipeline business, but now the GP takes 25%. In this case, the GP takes $100 million leaving $300 million for the limited partners. Thus, over the three years, the GP’s take grew fivefold (400%) compared to 67% for the limited partners.

GPs pay lower dividend yields (2% to 4%) than their MLPs. However, your total return is dividends plus share price appreciation, and GP’s faster dividend growth translates to faster share price growth.

Stick With Corporations
General partners may be organized as corporations or as MLPs themselves. I recommend sticking with corporate GPs. Corporations require simpler tax returns than MLPs and their dividends are subject to a maximum 15%/20% federal tax rate.

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This corrupt administration keeps telling us how great the economy is.  BUT now we hear that the Fed is very hesitant to raise rates.  IF the economy is so hot and good they should be raising rates…..but now they hesitate.  Strange isn’t it.

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They didn’t mention this on the Oscars……………………!!!!!

Last year alone, Covenant Eyes, an Internet research firm, reported that the Adult Film industry (PORN) created 13,000 videos that brought in over $13 billion in revenue. Compare that to the 504 movies and $8 billion that Hollywood made in that same period. That’s easy to quantify.

MOVIES  50 Shades of Grey.  Wow the critics are killing this thing.  But we found it very very interesting.  Definitely recommended.  I just read that the male star is NOT returning in the sequels because his wife objects.  (The sex scenes are very tame.)

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