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NEW BUY

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August 20, 2018

NOTE:  Atlas is owned by Targa.

We are buying a Corporate Bond from Atlas Pipeline, owned by Targa.  

CUSIP:  04939MAL3

The bond is ‘on sale’ and pays 5.3% if held to maturity in November 2021.  Go to the link below for the full article.

Targa Resources (TRGP) reported its second-quarter earnings on August 9. The company’s adjusted EBITDA for the quarter was $326 million—26% higher than the second quarter of 2017. Targa Resources’ distributable cash flow rose to $225.1 million from $196 million in the second quarter of 2017.

Targa Resources’ Gathering and Processing segment’s operating income rose 40% YoY (year-over-year). The growth was driven by higher Permian Basin, Central, and Badlands volumes. The above graph shows the growth in field gathering and processing gas inlet volumes and NGL (natural gas liquids) production. The graph also shows the growth in crude oil gathering volumes.

The Logistics and Marketing segment’s operating income grew 16% YoY. The higher fractionation margin and higher LPG (liquefied petroleum gas) export margin contributed to the earnings growth.
“With continued strong business fundamentals and clear visibility to new project contributions, our Gathering and Processing and Downstream businesses are expected to continue to perform well,” said Joe Bob Perkins, Targa Resources’ CEO.

https://marketrealist.com/2018/08/what-drove-targa-resources-q2-2018-earnings-growth

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The fake news is really, really trying to convince American voters that the liberals will take over in the November election.  Don’t believe it. (Yes there were polls that predicted Trump winning, but you never heard about them……we did follow the LA Times Poll which is mentioned below.) 

CBS Pollster Doesn’t See A Blue Wave

The head pollster for CBS News, Anthony Salvanto, doesn’t think we’ll see a Blue Wave this November — and certainly not one close to the Red Wave of 2010.

Salvanto learned from the failure of polls to predict the 2016 election. He saw that the two polls that ended up being right — the LA Times/USC and IBD/TIPP — were tracking polls, so he designed one himself to use in 2018. Tracking polls differ from regular “horse race” polls in that they poll the same sample of people over and over to see if and how their views have changed over the campaign.

Salvano’s team is polling 5,700 voters in the 50 or 60 districts that could flip the House of Representatives and Senate into Democrat hands. So far, he doesn’t see much flipping.
“Salvanto’s polling currently indicates that few House seats will change hands in November — and that the GOP could very well hold its majority in the House,” the New York Post said in an article interviewing Salvanto.

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Link to another article on FBI and DOJ corruption.
https://www.zerohedge.com/news/2018-08-17/deeply-troubling-wall-street-journal-implores-what-was-bruce-ohr-doing

 

 

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BUY, HOLD, AND COLLUSION

August 16, 2018

On August 10, we suggested you look at AWF.  Today we saw a positive article and have provided a link below to the full article.  BUY.

AllianceBernstein Global High Income Fund (NYSE:AWF)
AWF seeks “a high level of current income, with a secondary objective of capital appreciation. The fund will invest globally in all fixed-income sectors where they see opportunity.” AWF states they will “under normal market conditions, invest substantially all of the Fund’s net assets in lower-rated bonds.”
The fund has total managed assets of $1.206 billion, its size provides sufficient liquidity in the event of wanted to sell-out of the fund. The fund does utilize no bank borrowings at the moment for leverage. However, one will notice that the fund carries leverage from “investment operations” of around 37.23%. This investment operations leverage would be due to some of the underlying holdings. The best way to explain this is the fact the fund holds Credit Default Swaps and Interest Rate Swaps, these underlying holdings are of notional value only, meaning that this is only its spot price. Basically, the money is not really there but the fund will have to come up with the money if a default event occurs.
AWF offers investors a distribution yield of 7.29%, the fund has been maintaining the per share amount of $0.0699 since January 2017.
The fund currently trades at $11.50 per share, with a NAV of $13.30 per share. This equals out to a 13.53% discount at the moment. Further tempting the attractiveness of this fund is that the one-year z-score sits at -1.50. Even on a 5-year basis the average discount sits at 8.50%, this presents a relatively attractive time to be investing in AWF; at least based on its past performance. Of this list, I personally hold AWF and have written on the fund in the past.

https://seekingalpha.com/article/4199738-closed-end-funds-5-bond-funds-trading-wide-discount

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We see a nice positive article on CLDT Chatham, a holding in the Core Portfolio.  We are up ten percent, in addition to the dividends, but the momentum is now heading down.  We would HOLD.  It is not time to buy right now.

Chatham Lodging Trust is a premier U.S. lodging REIT with a high-quality real estate portfolio and relationships with top hotel brands. The company rakes in the highest EBITDA-margin in its industry and the highest RevPAR in its immediate peer group. The company covers its dividend with adjusted funds from operations, but has a volatile earnings profile and AFFO-payout ratio. Shares are not too expensive yet, and throw off a decent 6.3 percent dividend that is paid on a monthly distribution schedule. Despite the risks, Chatham Lodging Trust is still a ‘Buy’ at today’s valuation point, in my opinion. Buy for income and capital appreciation.

https://seekingalpha.com/article/4199712-chatham-lodging-trust-6_3-percent-yielding-top-shelf-lodging-reit-buy?app=1&isDirectRoadblock=false

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The collusion of the DOJ and FBI with the Russians has now come to light…..but you will never hear about it on CNN and ABC.  FOX and Hannity have been all over this story.  This is an article (Investors Business Daily) that you really need to read.  Go to link below to read more.

Congress, using the documents it pried out of the Justice Department after repeated requests, is busy getting at what might turn out to be the scandal of the century. And Congress is now doing the work the Justice Department and FBI won’t.

Russian Collusion: It Was Hillary Clinton All Along
Russia Investigation: It’s beginning to look as if claims of monstrous collusion between Russian officials and U.S. political operatives were true. But it wasn’t Donald Trump who was guilty of Russian collusion. It was Hillary Clinton and U.S. intelligence officials who worked with Russians and others to entrap Trump.

That’s the stunning conclusion of a RealClear Investigations report by Lee Smith, who looked in-depth at the controversial June 2016 Trump Tower meeting between officials of then-candidate Donald Trump’s campaign staff and a Russian lawyer known to have ties with high-level officials in Vladimir Putin’s government

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The media have spun a tale of Trump selling his soul to the Russians for campaign dirt to use against Hillary, beginning with the now-infamous Trump Tower meeting.
But “a growing body of evidence … indicates that the meeting may have been a setup — part of a broad effort to tarnish the Trump campaign involving Hillary Clinton operatives employed by Kremlin-linked figures and Department of Justice officials,” wrote Smith.
Smith painstakingly weaves together the evidence that’s already out there but has been largely ignored by the mainstream media, which have become so seized with Trump-hatred that their reporting even on routine matters can no longer be trusted.
But he adds in more evidence that the Justice Department only recently handed over to Congress. And It’s damning.

Memos, emails and texts now in Congress’ possession show that the Justice Department and the FBI worked together both before and after the election with Fusion GPS and their main link to the scandal, former British spy and longtime FBI informant Chris Steele.
As a former British spook in Moscow, Steele had extensive ties to Russia. That’s why he was picked as the primary researcher to compile the “unverified and salacious” Trump dossier, as former FBI Director James Comey once described it.
Steele’s dossier, for which Fusion reportedly received $1 million, was largely based on interviews with Russian officials. And who paid that $1 million? As we and others have reported, it was Hillary Clinton’s campaign and the Democratic National Committee, then under Hillary’s control.
The media knew all this, of course, but largely ignored it.
The great irony here is that, after more than two years of investigating, the only real evidence of collusion with Russians at all points to Hillary Clinton. It was she who hired Steele to dig up dirt on Trump using Russian sources.
But now, it turns out, it goes even deeper than that.

https://www.zerohedge.com/news/2018-08-15/was-hillary-real-colluder

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FR IS A DUDD. GO AWAY MUELLER

Update:  We mentioned IHIT the other day.  It may still come down to our buy price of $9.85.  Keep you buy limit order in place.

August 15, 2018.  We did NOT buy FR First Industrial Realty for the dividend.  It only pays 2.68%.

We DID buy FR for the potential capital appreciation—-which is an unusual strategy for us.  We typically buy only high paying positions.  Well, it is up a very tiny .55%.  We were wrong.

Also, the technical momentum indicators are turning sour.

DUDD:  Defective, the one in a bunch that doesn’t work

Yes we have received a few dividend payments, and the price is up.  So at least we did not lose money.  FR turned out to be dead money.  SELL.  We will deploy the money into some income positions.

Fortunately, the Core Portfolio, in total, has been doing very well and we are very happy with the results.  So we continue to plod along while enjoying the Summer weather.

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Both conservatives and liberals want Mueller to get the hell out. 

WASHINGTON (CNN)Two-thirds of Americans, including majorities across party lines, would like to see special counsel Robert Mueller try to finish the investigation into Russian interference in the 2016 election before voters go to the polls to elect a new Congress this November.

Image result for cnn poll says mueller end cartoons

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ULTRA LIBERAL SOCIALIST LATE SHOW RATINGS SLIDE. LOOK AT IHIT. SHARK MOVIE.

August 13, 2018.  We bought IHIT in December.  It has been stable, paying 6%.  It is going ex-dividend today, paying five cents per share.  IHIT usually drops to around $9.83 after going ex-div.

We suggest a BUY LIMIT order at $9.85, and just WAIT for the price to drop, which may take a few days.

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We own BXMT in the Core Portfolio.  Here is a link to a positive article.  In our opinion it is too late to buy now.  HOLD.

Blackstone Mortgage Trust, Inc. (BXMT) is a promising income vehicle for investors that seek high, recurring dividend income and capital growth from one of the leading commercial real estate finance REITs in the country. Blackstone Mortgage Trust has a strong, largely floating rate loan investment portfolio that is poised to deliver net interest income gains in a rising rate environment. I consider the dividend to have a high margin of dividend safety, at least as long as U.S. commercial real estate continues to produce stable returns. An investment in Blackstone Mortgage Trust yields 7.5 percent.

https://seekingalpha.com/article/4198490-blackstone-mortgage-trust-7_5-percent-yielding-cre-finance-reit-still-buy?app=1&isDirectRoadblock=false

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The late nite Trump hating TV shows get a lot of attention in the liberal press.  BUT did you know their viewership is tanking!!!!

Now, if you happened to miss this, well, you are not alone. The fact is that nobody is really watching late night television anymore. Ben Domenech over at The Federalist points out that the late-night viewership of ABC, CBS, and NBC COMBINED is barely breaking 8 million viewers total. Just to give you a sense of how far things have plummeted for late-night television, not so long ago Jay Leno, who replaced Johnny Carson, was bringing in 6 million viewers all on his own. Johnny Carson could score 9 million viewers; nearly 20 million people watched his Tonight Show farewell. Now the total of all three network shows combined are bringing in basically what Jay Leno got on his own.

https://www.turleytalks.com/blog-summary/ratings-for-late-night-liberals-are-imploding

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FUN FACTS.  Did you think Amazon was the largest publicly traded Company.  Think again.  It’s actually down the list as number seven.  Here is a list of the largest Companies in the S&P.

 

MOVIES:  The Meg.  We shrieked in horror when we saw the trailers for the new shark movie.  It seemed so bad as a rip off of the original shark movie….younger readers are probably not even aware of the first version.  But, this flick is actually very good.  It is getting bad reviews, but if you want simple Summer entertainment, and are not expecting Gone With the Wind, go see this. 

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AWF. BUY.

August 10, 2018.  AWF is ON SALE.  And that is when you buy.

This closed end fund is trading at a 13% discount to its NAV. The bonds are selling for 87 cents on the dollar. As described below, the majority of the bonds are foreign.

The technicals look great, with momentum moving UP.  Pays over 7%.  BUY.

FUND DESCRIPTION: AllianceBernstein Global High Income Fund, Inc., formerly the Alliance World Dollar Government Fund II Inc., is an exchange-traded closed-end fund or a closed-end ETF which is officially described as a non-diversified, closed-end management investment company. INVESTMENT OBJECTIVE: The Fund’s investment objective is to seek high current income and secondarily, capital appreciation. FUND STRATEGY: To achieve this objective, it invests primarily in high yielding, high risk sovereign debt and U.S. corporate fixed-income obligations that they expect to benefit from improving economic and credit fundamentals. Under normal circumstances, the Fund will invest at least 65% of its total assets in sovereign debt obligations issued or guaranteed by foreign governments. Up to 35% of the Fund’s investments may be comprised of high-yielding, high-risk fixed-income securities issued by U.S. corporations. FUND MANAGEMENT: The Fund’s Advisor is AllianceBernstein L.P. and the Fund is managed by AllianceBernstein Investor Services Inc., a subsidiary of AllianceBernstein Holding L.P. (NYSE: AB).

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CORE PORTFOLIO CONTINUES TO PERFORM DURING SUMMER DOLDRUMS

August 9, 2018,  Within the five FAANG stocks, only two actually PRODUCE or MAKE or MANUFACTURE anything…..  Apple and Netflix make phones and movies.

Facebook, Google, and Amazon don’t make a damn thing.  They merely circulate food pictures, news, and ship products.  What a sorry situation.

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NGLPRB, a Core Portfolio holding for over a year, is selling for LESS than we paid.  This is a BUY.

https://luvthosedividends.com/2017/06/09/buy-ngglp/

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We recently bought GSBD and it is already up 5% within a week.  Here is a link to a very positive article.  These silly authors typically write their articles AFTER an increase in the stock price….hell, WE could write positive things about a stock after it has gone up.  It is too late to buy this:  you want to buy when they are on sale. 

Goldman Sachs BDC is a high-quality income vehicle in the BDC sector that regularly reports strong financial results and displays consistent excess dividend coverage. The BDC further has interest rate upside during the current rate hiking cycle which could improve the company’s dividend coverage stats even more. With a 117 percent average dividend coverage ratio in the last three years, the dividend has a high margin of dividend safety, making GSBD a sleep-well-at-night BDC. Buy for income and capital appreciation.

https://seekingalpha.com/article/4195735-goldman-sachs-bdc-strong-buy

Another positive article, this one on CTL a Core Portfolio holding.  (Update:  Up $1.80 today….wow)

https://seekingalpha.com/article/4195466-centurylink-growth-engine-nobody-talks

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FAKE NEWS INSANITY CONTINUES

Image result for FUNNY LAUGHING FACE
August 7, 2018.  The hate directed toward Trump is becoming laughable.  They seem to have forgotten the liberal Democrats of the past:  Bill and Monica…..Obama’s ‘you get to keep your doctor’ lies…….The Hillary lies and corruption that we have seen for decades.  (Or we can go way back to Jack Kennedy and Ted Kennedy)  What a joke.  Trump’s approval is still hanging around half the voting population:

The Rasmussen Reports daily Presidential Tracking Poll for Thursday shows that 50% of Likely U.S. Voters approve of President Trump’s job performance. Forty-nine percent (49%) disapprove.

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WHFBL Whitehorse Finance is redeemed.  This is the second Core Portfolio position that has been called recently.  We are watching numerous investments for a possible buy.

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We are currently running a 5% cash position in the Core Portfolio.  That’s right:  five percent.  No financial advisor would suggest holding such a SMALL amount of cash.  As we have tried to do in the past, we are attempting to reduce the number of positions and INCREASE the cash amount.

But the economy, and our positions, are doing well, making it hard to cut anything.

We typically hold 10% in cash, at minimum, and try to get even higher.  You never know when bad news will hit.

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We bought MAIN back in April.  Here is a positive article on the holding.  This is a HOLD, too late to buy this as a new position.

https://seekingalpha.com/article/4195162-main-street-capital-swan-bdc-still-buy-40

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So precisely what is the “Buffett Indicator”? Well, it is actually very simple to calculate. You just take the total market value of all stocks and divide it by the gross domestic product. When that ratio is more than 100 percent, stocks are generally considered to be overvalued, and when that ratio is under 100 percent stocks are generally considered to be undervalued. The following comes from MSN…
That being said, the Buffett Indicator, while it’s not a flawless indicator, does tend to peak during hot stock markets and bottom during weak markets. And as a general rule, if the indicator falls below 80%-90% or so, it has historically signaled that stocks are cheap. On the other hand, levels significantly higher than 100% can indicate stocks are expensive.
For context, the Buffett indicator peaked at about 145% right before the dot-com bubble burst and reached nearly 110% before the financial crisis.

FULL ARTICLE

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