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CLNS GOING EX-DIV: BUY.

June 28, 2017

Back on June 16 we suggested you look at CLNS.  This position just went ex-dividend paying 27 cents and the price is down.  If you did not buy a while back, now is the time to get in.

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If you are stuck in the rut of watching the evening news from the fake news networks with the plane crashes, car crashes, tornados, etc, you need to broaden your horizons.  Do you really need to know what Trump and the liberal left is doing everyday?  Or what the weather is doing in Timbuktu.  NO.  There are so many interesting scientific advancements out there that the media never talks about.

We strongly suggest the read the article linked below from the Smithsonian titled the Future of Energy. How is it we have never heard about this amazing innovation in solar energy.

There are dozens upon dozens of ideas for how to build a space-based solar collection system, but the basic gist goes something like this: launch and robotically assemble several hundred or thousand identically sized modules in geosynchronous orbit. One part comprises mirrors to reflect and concentrate sunlight onto solar panels that convert the energy into electricity. Converters turn that electricity into low-intensity microwaves that are beamed to large, circular receivers on the ground. Those antennae re-convert the microwaves back into electricity, which can be fed into the existing grid.

http://www.smithsonianmag.com/innovation/whats-next-solar-energy-how-about-space-180961008/

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The Clinton News Network known as the fake news CNN is a…BUSINESS:  they need ratings:

In addition to those aforementioned revelations in the Project Veritas video, Bonifield is shown on camera saying the reason CNN leadership and management is so focused on the Russia scandal despite the lack of real proof is “because it’s ratings.”  “Our ratings are incredible right now,” the video from Project Veritas shows Bonifield saying.

In the video, Bonifield says that CNN leadership regularly axes coverage of other newsworthy stories to shift coverage back to the Russia story. He provided as an example of the network’s coverage of President Donald Trump’s decision to withdraw from the Paris climate accords—which he is seen saying in the video lasted less than two days—before management deliberately shifted coverage back to the Russia scandal.

http://www.breitbart.com/big-government/2017/06/26/project-veritas-undercover-investigation-cnn-producer-admits-network-hyping-mostly-bullsht-trump-russia-scandal-for-ratings/

 

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CGBD. NEW IPO.

 

June 26, 2017

We are buying CGBD which is a new business development company that is just starting to trade.  Yield is approx. 8%.  Here is a short description of the position:  the link to the full article is posted below and you should read it before investing.

The Carlyle Group is one of the largest private equity and alternative investment firms in the world with $162 billion of assets under management across 287 investment vehicles. This includes the recent IPO of its business development company, TCG BDC Inc. (NASDAQ:CGBD), that will likely have a portfolio of around $1.7 billion after taking into account:

April 1, 2017 through June 2, 2017, new investment commitments of approximately $332.1 million, of which $226.3 million were funded, and exited or repaid of approximately $134.8 million.

June 9, 2017 – Completed NFIC acquisition. As of March 31, 2017, the fair value of NFIC’s investments was approximately $267.3 million in 75 portfolio companies.

https://seekingalpha.com/article/4083776-new-high-quality-bdc-ipo-carlyle-group?app=1&uprof=46&isDirectRoadblock=false

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Another must read article from Gundlach, probably the smartest financial guy out there right how:

http://www.zerohedge.com/news/2017-06-21/gundlach-doesnt-see-recession-says-flatter-curve-concern

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AMLP. ILLINOIS GOES DOWN.

June 22, 2017

As residents of Illinois, we have known for many, many years that Illinois was eventually going to head into bankruptcy.  With the rampant corruption and Democratic control in Springfield there was no other outcome.  The ‘spend money’ mentality is so ingrained that a bomb could not stop it.

We have told you numerous times to check with any bond funds that you own and sell them if they hold Illinois bonds.

Of course the voting residents of Illinois are really to blame.  This herd of sheep have continued to vote in the liberals as they did not want to give up all the freebies and benefits and pensions that they are getting.  The politicians will want to raise taxes and if the people do not riot in the streets, they are responsible for their own misfortune.

The time has come to pay the piper.  What a travesty.  Keep in mind there are several other states in line to fail and you should pay attention if you are residents.

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We are getting hit in our AMLP position:  down 13%.  If we had been paying attention we would have sold back in March but we screwed up.

http://www.dividendyieldhunter.com, one of our favorite sites, has a unique perspective on AMLP.  They are buying.  We don’t agree as the technicals are still declining.  But you may want to look at it:

If you are like me you are watching the massive drubbings that shares in energy companies have been taking over the course of the last month as the price of a barrel of oil has fallen by about $10/barrel.  As you are watching the drubbing you are saying to yourself “which of these companies is a real bargain?”  There are 21 oil and gas related master limited partnerships (MLPs) with current yields over 10%–are there some bargains in these 21?  We are guessing there are, the question is which one is a bargain?  We all know that the midstream energy companies have continued to get beat down even though most of the services they provide are on a fee basis and finances are not affected dramatically with short term movements in the price of oil and natural gas.

Does this mean there are bargains available? Well we are sure there are bargains but we have been less than successful  when picking energy MLPs so we have decided we will take a position in the Alerian MLP ETF (NTSE:AMLP).  Being a ETF we avoid the leverage that is inherent in a closed end fund (CEF) which means movements in share price are not as violent as a similar CEF.  Of course the trade off is that if energy heads higher the lift to this ETF will not benefit as much as a similar CEF–given our conservative nature we are just fine not squeezing every possible penny out of a position.

AMLP is an ETF that invests in energy infrastructure meaning that it is invested in midstream MLPs.  The list of the holdings can be found at this link.  Currently AMLP is paying a quarterly dividend .215/share which equates to a current yield of 7.8%.  We will be taking a small position to start with buying 400 shares tomorrow at around $11.08/share.  Then we will watch and wait–if better pricing arises we will consider doubling our position.

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Must read article on Democrats poll rigging:

http://www.zerohedge.com/news/2017-06-21/democrats-stop-poll-riggingits-getting-embarrassing-and-clearly-not-helping-you

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TECHNICAL NIGHTMARES. BUY EATON VANCE HIGH INCOME TARGET TRUST 2021

June 20, 2017

Last week we down-loaded the new update to Windows 10.  In typical Microsoftie fashion the damn thing does not work and worst of all we did not have our Fidelity stock trading platform for two days.  So last week we spent days trying to get our machine running again.  That issue is resolved but new troubles continued yesterday.  Our main modem decided to blow-up and we again were out of commission.  ATT finally showed up at 8pm and we are back in action.

In fairness both Microsoft and ATT have been very responsive.  But why do Microsoft’s upgrades continually FAIL.

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Today we are looking at EHT.  Regular readers know we are heavy into individual corporate bonds.  We have made a LOT of money in corporates, ALTHO the high paying bonds are being called and it is very difficult finding replacements that pay anything.  We have discussed this many times.

So we are very interested in EHT which owns corporates BUT as a closed end fund, they use leverage to boost the yield.  Yes you are elevating the risk levels, obviously, and you need to be aware of this before buying EHT.

This is also not your typical bond fund as EHT will LIQUIDATE in 2021.  So this is very similar to the Guggenheim funds that we have been holding for years in the Core Portfolio.  EHT ‘acts’ like a single corporate bond that matures, BUT provides diversification as it holds approx. 125 bonds.

GO TO CORE PORTFOLIO to see current positions.

EHT is paying 6%, very nice in this low rate environment.

•Seeks to generate high current income from a diversified portfolio of short-maturity high-yield bonds, which have historically produced higher income and lower correlation to interest-rate movements than higher-quality corporate bonds.

•Utilizes a target term structure aimed at limiting interest-rate risk, credit risk and market price volatility over the life of the Fund.

•Searches for investment opportunities using a well-defined investment process that has been in place for over 20 years.

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Must read article:

https://seekingalpha.com/article/4082503-rather-listen-one-market-better-stick-credits?app=1&uprof=46&isDirectRoadblock=false

 

 

 

 

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BUY CLNS OR CLNS-I. AND: WANT TO INVEST IN FAT AMERICANS?

June 16, 2017

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

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Colony NorthStar has been through some “turmoil” in the recent past but the outlook is stabilizing.  CLNS pays 7.6 % and the Preferred Shares CLNS-I pay 7.1%.  Total return will probably be better long term with the stock CLNS but the preferreds will be ok.

The Company owns healthcare, hospitality and INDUSTRIAL properties.  It is the industrial portion:  distribution centers and warehouses—that we are most interested in ie with the growth in online sales.

(From Quantumonline.com)

BUSINESS:  Colony NorthStar, Inc. is a leading global real estate and investment management firm. The Company resulted from the January 2017 merger between Colony Capital, Inc., NorthStar Asset Management Group Inc. and NorthStar Realty Finance Corp. The Company has significant property holdings in the healthcare, industrial and hospitality sectors, opportunistic equity and debt investments and an embedded institutional and retail investment management business. The Company owns NorthStar Securities, LLC, a captive broker-dealer platform which raises capital in the retail market. The firm maintains principal offices in Los Angeles and New York with more than 500 employees in offices located across 17 cities in ten countries. The Company will elect to be taxed as a REIT for U.S. federal income tax purposes.

Notes:  12/20/16 — Colony NorthStar, Inc. (NYSE:CLNS) today announced the completion of the merger of Colony Capital, Inc. (NYSE: CLNY), NorthStar Asset Management Group Inc. (NYSE: NSAM) and NorthStar Realty Finance Corp. (NYSE: NRF). Colony NorthStar currently has an equity market capitalization of approximately $9 billion and assets under management of $58 billion, managing capital on behalf of its stockholders, institutional and retail investors in private funds and non-traded and traded real estate investment trusts (REIT) and 1940 Act companies. The transaction was originally announced on June 3, 2016 and approved by all three companies’ stockholders at their respective special meetings held on December 20, 2016.

GO TO CORE PORTFOLIO to see current positions.

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Leave it up to investors to find a way of making money off of obesity.  Yes that’s what we said:  super fat Americans.  No we are not going to invest in a fat ETF…altho we think it is a disgrace that people have such low esteem that they allow themselves to get up to 300 and 400 pounds.  Here is a link to the article:

https://seekingalpha.com/article/4081669-investing-obesity-hedging-fitness

Here is a portion of the article:

However, as an investor, long term trends are your friend, and with health, there are only two real outcomes – either people become healthier or they don’t. We should look at ways to capitalize on that.
Last year, Janus Capital (JNS) introduced four health ETFs. These are Janus Obesity ETF (SLIM), Janus Organic ETF (ORG), Janus Long Term Care ETF (OLD) and Janus Fitness and Health ETF (FITS).
I’m looking at SLIM and FITS from a purely long term view of the current obesity trend increasing.

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WHFBL FINALLY DROPS

June 14, 2017

WHFBL is in the Core Portfolio.  After going ex-dividend it is finally coming down and is priced right now at $25.45.  This is a reasonable price to buy if you do not own:  OR if you own you could ADD to the position.

It could go lower if you want to take and chance and wait but we doubt you will see a significant decline from here.

GO TO CORE PORTFOLIO to see current positions.

 

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SELL SBLKL. MISSED OPPORTUNITIES

June 14, 2017

We have done very well with SBLKL providing us dividends over the years.  As mentioned earlier we were going to hold despite a recent article telling us to sell a portion.  But this thing is stalling, and the technical indicators are telling us to get out.  SELL

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Sometimes we get so mad at ourselves.  Over the years we have missed some super opportunities.  Microsoft was a great buy years ago when they finally got rid of the dufus who made continuous mistakes.

Philip Morris is getting big into vape cigarettes and the stock is sky-rocketing–but again we missed the action.

Altho we own the corporate bonds in the data-center REITS we SHOULD have purchased the stocks a year ago………they have burst upward.

We could go on and on.  Back in the 80s we were told to buy Wal-Mart by one of our WM sales reps.  Who would have thought they would do anything.  And Amazon:  we used to see them building their displays at conventions that we were attending.  Another HUGE missed opportunity. 

The lesson here:  sometimes you can’t see the forest for the trees.  Keep an eye on the big trends and you will do well:  electronic devices/components, data centers/data streaming/telecom, online shopping and shipping/inventory warehouse REITs.

Speaking of Microsoft their recent Windows 10 upgrade is a nightmare.  We have had serious issues and now our Fidelity trading software is NOT working.  

 

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